YMCA Troubles Continue With Bankruptcy News

Bankruptcy and closures were announced this week, less than a year after the City of Temecula offered to buy the troubled Y on Margarita.

The Temecula YMCA has been closed since July, and now there are reports the YMCA of Riverside City and County have agreed to a bankruptcy.

The Press-Enterprise reported news of the bankruptcy Tuesday, and stated both the Riverside and Hemet Ys have closed.

The bankruptcy news falls on the heels of problems in Temecula. but escrow on the deal has not closed because the city contends it is still in its due diligence phase.

The city says the building has construction and maintenance issues that need to be addressed by the Y before a final deal can be inked. In the meantime, city officials say the non-profit is in default on its $1 per year ground lease agreement with the city.

The history of the relationship between the two entities goes back to Jan. 2003 when the ground lease agreement was entered into. The YMCA subsequently constructed the existing building on the City of Temecula-owned land but then ran into financial trouble.

The city agreed to step in with the $1.6 million offer that included an agreement to terminate the ground lease. It was agreed the city would take ownership of the more than 14,000-square-foot building and equipment inside -- including a lap pool -- and would subsequently operate the facility as a community recreation center.

Meanwhile, this week’s bankruptcy news is affecting more than just Temecula. The Riverside closure has left courthouses without daycare services, it was announced Tuesday.

"They told us last night they would not be able to provide services anymore," Riverside County Presiding Judge Mark Cope told City News Service. "It was short notice. Now we'll need to move as quickly as possible to find a replacement."

Members of the general public, including jurors, had the option of leaving their children at daycare facilities in the Riverside Hall of Justice, Family Law Courthouse and Riverside Juvenile Court.

Until a replacement vendor can be found, alternate arrangements will have to be made, according to Cope.

"With the budget issues we're facing, we're going to have to re-examine how much we can do and whether we can continue to do it," the judge said.

He noted that last week's proposed 2013-14 budget presented by Gov. Jerry Brown did not contain the major spending cuts state courts feared. However, past years' budget reductions have created a long-term "significant" deficit for the court system as a whole, Cope told CNS.

He said the Riverside County Superior Court will be weighing various options to address the funding gap.

Ryan Newby January 16, 2013 at 04:41 PM
City of Temecula has been taking business lessons from Gordon Gekko, while the Y's seems to pluck its talent from local community colleges. Building and maintenance issues are holding up a 1.6 million dollar deal? BS. I was a member of the Y for the last 4 years and that building is in infinitely better shape than say the Reagan park community pool building. How much could the repairs cost? The city probably thinks they can pick up the building for penny's once the dust settles, then they can take over the building and promptly run an operating loss for the next 30 years.
Holly Daley January 16, 2013 at 08:26 PM
I'm a SENIOR and I WAS using the facility for Silver Sneakers Program. I need the pool very much and joined a fitness center to get the jacuzzi and pool exercise I need. The exercise program was great and so was the Zumba dancing. I miss that and the friendly people who I had met there. I was fortunate to have received a gift for a 1 yr. workout program from "family" as I could not afford to pay it for myself. What else are our tax dollars going for? Oh, I forgot the big $64 million dollar Town Hall......need I say more?
LetsBfair January 16, 2013 at 11:19 PM
Our city has given away $$$millions to the Dalton family, the Pujols family and many others. We just sold a $6.5 million piece of land for $2.3 million. Our city council is so corrupt but it does not matter because Temecula residents voted them in. So, in Temecula, we are going to get what we voted for this year. Mayor Naggar may be wearing an orange jump suit this year.


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