YMCA Troubles Continue With Bankruptcy News

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.