POLL: Pleased with Swim Club Plan?
The lease to buy arrangement for the club will wipe out township debt on the property and bring year-round sports, including hockey. Do you like the vision?
So, the Middletown Swim and Tennis Club is no longer under water.
It will stay afloat with the help of its new prospective owner, the NJ Junior Titans ice hockey non-profit group, which take over the management reins and run the club as is this summer — no change in rates or schedules.
Principal of the Titans, George Haviland, is also a Middletown man. He knows the community and its wants and needs just as he knows sports, officials and residents boasted.
Haviland plans to convert the 8.9-acre property into more than a swim club — more like primarily a swim and skate club. Once the Titans owns it, it will, in fact, become Ice World Middletown.
According to officials, Haviland’s group is talking about not only adding an ice rink, for hockey and just plain skating, but for other indoor sports and, perhaps, heated and/or indoor pools.
The ideas and knowing Haviland was at the helm, pleased club members beyond expectation.
Yes, assured Township Administrator Anthony Mercantante, the club will still focus on swimming, despite the pending name change and ice hockey tie-in with the group’s name and focus.
Residents who spoke at last night’s Township Committee meeting, when the plans were announced, raved about the save and proposed revision of the site.
Officials said the whole arrangement “exceeded all expectations.”
The lease with an option to buy deal will cure any and all debt the township has on the club. The only drawback, “if you could call it that,” said Mayor Tony Fiore to a resident last night, is that the lease/purchase will not provide any tax relief/reduction.
If the township wanted to sell the property for any purpose that accommodates current zoning restrictions, the property may sell for a lot more than the $1.37 million will realize with the sale and cure its debt.
But leaving out the deed restriction for recreational use only would put taxpayers in the position of perhaps fighting an unwanted commercial development on the site. It’s what happened when the township originally opted to buy the club from a private owner in 1997 — it was a means of staving off a Home Depot on the site.
So, the township will be swim club debt-free and the club and other recreation will be hosted on the site year-round.
So, do you like the plan? Let us know in the poll below. If you have anything to add or any other suggestions for the Titans, tell us about them in the comment box.
Lions4
4:58 pm on Tuesday, April 3, 2012
how about an indoor turf field soccer teams could rent out
Elaine Van Develde
5:22 pm on Tuesday, April 3, 2012
From what I've heard, it's a possibility down the road.
Jake bloos
9:00 pm on Tuesday, April 3, 2012
This in no way is a not for profit sale. Ice world ,Haviland Hockey consulting group and George Haviland will be the tax free beneficiaries of this inside deal.
It is not even being explopered on open market for private bid with a recreational restriction, if no bidders, remove restriction to see true market value.
The township is short sighted and caved in a vocal minority that does not best serve the interest of the township.
If the business fails then it goes back to the township as a worse mess than it currently is, sweet deal if you or I could get it!
Steve
10:03 pm on Tuesday, April 3, 2012
Will the high school hockey teams be able to play there?
Elaine Van Develde
10:35 pm on Tuesday, April 3, 2012
I believe that is part of the plan, Steve, as it is with swim teams.
Terry
6:31 am on Wednesday, April 4, 2012
Great option we are lacking both ice and pool time in Middletown. The decision for the option to buy should be within 5 years. Middletown parks and recreation should not be involved with any portion of this venture. The township should look to tax relief within that 5 year period. We are Taxed Enough Already
Tony Fiore
7:10 am on Wednesday, April 4, 2012
I'll try to answer some questions from above:
The terms of the deal dictate that the option to buy must be exercised within a year. We anticipate the new operator will exercise that option as they are making a large capital investment on the property. No township staff or taxpayer dollars will be involved with the club going forward. That is exactly why we went through this whole process so that taxpayers would not have to fund the swim club.
As for the comment on the sale above, this transaction is no different than what many towns have done with the YMCA. Towns like Old Bridge and Woodbridge for example have done this same type of transaction with the Y. I'd argue that in those deals the municipality gave the land in return for the Y to build and operate. In this transaction we are selling the land to retire the debt service on the facility and make a clean break.
Bill
9:23 am on Wednesday, April 4, 2012
Why not leave it as a land lease that covers the debt service and then eventually when the debt is paid off it becomes a payment that covers taxes and a slight premium for say 30 years (with extension options). This way township has no expense associated with the property and the township never loses control of the land. This would be the smart thing to do. Once you give up land you never get it back or somebody fights to change the zoning or deed restriction down the road and causes headache in the future.
Christopher Romano
10:51 am on Wednesday, April 4, 2012
I agree wholeheartedly with Lions04. The town really needs a turf soccer field. As a parent of 2 travel soccer players in Middletown, I am ashamed of our fields. We played this past Sunday at Lincroft Acres upper field and the conditions were downright dangerous. We apologized to the other team for the conditions. The Middletown Soccer Club can help fund the field, charge each of their players more money to help defray costs, and work out some kind of guarantee it can be used for the towns travel teams, as well as for others to rent at reasonable rates.
Diane
6:16 pm on Thursday, April 5, 2012
Chris, agreed. It is embarrassing when we play other teams..sometimes they won't play citing the fields are not fit to play. With the size of our town, the soccer club has money to spend, and the kids should have nice, safe fields to play on..just a shame.
backindaday
7:33 pm on Wednesday, April 4, 2012
Anyone do any research on the effect to traffic on Harmony Rd?
The eastern side of Rt35N is already access to Shoprite plaza, Staples plaza, Sovereign and TD banks, a fitness center, and a new development of townhouses. All of this sits within 300 yards of the swim club's entrance.. and Harmony Rd is a single lane in both directions. I'm just wondering if the proposed additions to the club are going to have an negative impact .
Lou DeGeorge
8:23 pm on Wednesday, April 4, 2012
Mr Fiore , will the town receive property taxes? Or since it's a non profit group will it be tax exempt?
Tony Fiore
10:08 pm on Wednesday, April 4, 2012
Bill- That would have been ideal but there was absolutely no interest from any entity to put capital into a facility that they would just lease. The Township is not in a financial position to put capital into the facility. Once again, if we did not come to terms on this agreement, the Township would have been on the hook for the greater of a $225k payment towards debt service or loss of revenue from operation. This would have been used from the general fund and not the swim utility because all surpluses were exhausted last year.
As for if the property is going to be taxed, it will be tax exempt as it will be owned by a not for profit. The only way to have driven tax revenue and obtain maximum value on the property would have been to put the property out for auction and to release the recreational deed restriction. The Township would have received the tax revenue at that point but would have lost a recreational facility to a potential big box store. There is no loss of tax revenue because right now we are not collecting taxes on the property. The true loss of revenue would have been being stuck with an operation that would have been funded by taxpayer dollars and would have driven up property taxes. The economics of running that facility were just not fiscally prudent anymore.
Hope this helps answer some of the questions.
Elwood Bloos
10:11 pm on Wednesday, April 4, 2012
I do not trust the validity of this not for profit.
The Y is a national organization, not a small self serving local hockey
team, managed by a private family business with strong local hockey roots
http://non-profit-organizations.findthebest.com/l/110866/Nj-Junior-Titans-Ho
ckey-Club
I would be curious to see what Haviland family members get paid to operate
this so called not for profit and how much their family hockey consulting
firm gets paid from the not for profit.
It is the Ice world and family buying it as a private entity under the halo
of a small not for profit organization without the not for profits funds to
support the purchase.
It would not be fair for a private business person to get the advantage of a
not for profit and not have to compete for the purchase. The option was not
even explored to see what private organizations would pay for the property
with a restricted use. This is an inside deal and the township is happy to
make a clean break. The town is getting the wool pulled over its eyes to
operate the swim club for one more year without any guarantees or tax
revenue.
Tony Fiore
7:05 am on Thursday, April 5, 2012
The above comment at 10:11pm couldn't be any further from the truth. What the town is getting is a first class recreational facility for the residents of Middletown at ZERO cost to the taxpayers. That's what public/private agreements are all about and why they are promoted by the state.
Arethra Bloos
10:19 am on Thursday, April 5, 2012
You said it
"public/private" agreement.
If this is a private partnership it should have been open to pubic auction not sold to a private entity with the advantages of non competitive bids only afforded to non for profit agencies, like the YMCA or Boy Scounts or JCC.
Why was the resolution Not acted on to put the property up for sale with a recreational restriction? Why did a private partnership get the tax and no bid advantages afforded to not for profit and religious groups?
Lou DeGeorge
7:14 am on Thursday, April 5, 2012
Thank you Mr Fiore for taking the time to answer my question .
Arlene Lucy
11:16 am on Thursday, April 5, 2012
Arlenelucy
Having lived on off of Harmony road for the past 5 years makes me think that Middletown politicans haven't got a clue at the issues we face. First of all we can't even pull out of our block without waiting 10 minutes, secondly will you put up more trees to block the view of the eye sore of a pool club, I can't even imagine what it would look like with more structures, third can you get the entrance to be off of rout 35 instead of Harmony? The value of my home is already in the dumps, I might as well hand the keys over now and walk away from my property.
Maureen
7:09 am on Sunday, April 8, 2012
I grew up just off Harmony Rd. It was busy then. Why would you purchase a house on Harmony Rd. if you did not expect the traffic pattern. The pool club was there long before you moved here. How is it the fault of Middletown politicians that you purchased your home in a high traffic area? When my husband and I bought our house we looked at all aspects of the surrounding area, asked questions about neighboring properties and what their land use might be. It is the largest purchase one makes.
Anna Heller
12:50 pm on Friday, April 6, 2012
All great news very exciting and much needed by the Township. The only problem we have is like 300 other Middletown families who were told for the 5 months that Middletown Club would not open we joined Hazlet Club who offered their resident rate until March 1st. So now what do we all do?? If we knew there was a chance Middletown was opening to open we would have waiting. Have fun at Middltown maybe we will see you next summer.
barbara
4:49 pm on Friday, April 6, 2012
When is the destruction of the tennis courts set to begin? I was disappointed to hear we would not be able to use them this summer - especially since at the meeting it was stated that everything at the pool club would be the same as last year. From children to adults taking tennis lessons, to the tennis team (who competed against other clubs), to the general use of the courts- they will be missed by many.. The tennis coaches in the area will miss them also. This season North, South, SJV andCBA
all have MSTC alumni playing on their teams. The friendships and memories from the courts will last forever. BC
Sandy
10:25 am on Saturday, April 7, 2012
There seems to be no POC to learn more information about the Swim Club, all that is posted is the fee schedule. Are we supposed to just give them money not knowing when they will open part-time/full-time or what the club hours will be?
Donna Blaze
9:44 pm on Friday, April 20, 2012
There is no law that guarantees a nonprofit is tax exempt in all it's activities. As a matter of fact they have to apply for exemption under specific conditions for each property they own. The county can also over turn an exemption granted to a nonprofit who is participating in market activities.