CORRECTION: This story was modified at 2:30 p.m. May 23 to more accurately reflect the cost of the Temecula YMCA facility. We apologise for the error.
City officials saved a 120-year-old nonprofit organization from financial catastrophe today.
The approved the purchase of the at 29119 Margarita Road for $1.6 million, thus saving an organization that was barely able to pay its employees -- sometimes bouncing their paychecks for several pay cycles.
"This purchase will save a 120-year-old organization," said Jackie Fielder, the CEO of YMCA of Riverside City and County which, until today, owned the facility in Temecula.
When the Temecula facility went up, it strapped the organization for cash. It took years to reach a point when it was breaking even, which bled the organization of its funds nearly to death.
The city's purchase will give the nonprofit the cash infusion it needs to survive the bad economy, Fielder said.
The city will continue many of the same activities, but will include more for the "active" adult -- which has been a goal of Councilman Ron Roberts for several years.
"The other (senior) center we have is for older seniors. There's nothing 'active' about it," Roberts said during a meeting at the Civic Center today. "You want something mixed, this is perfect… and the price is right, too."
The building cost about $2.3 million when it went up, according to Rick Neugebauer, a project manager for the Y at the time of construction.
This is a good deal for the city, said Councilman Jeff Comerchero. "The price is right," he said. "Today, with this economic circumstance… you can buy buildings for far less than it would cost to build."
The city plans to pay for the organization using unallocated, extra money in its general fund, according to Community Services Director Aaron Adams.
"This is money we've identified as left-over," he said. The city plans to put the money in escrow tomorrow and finalize the transfer in June.
Fees paid by developers to pay for community services will replace the funds within a few years, Adams said.