The YMCA proposal includes space for several local organizations. The swimming pool would be used by the school district to train students to swim. GISD has committed $1 million for the project, $100,000 a year for 10 years.
The Hope Center of Greenville would have space set aside for its programming, which would include access to a computer lab and teaching kitchen. The Boys & Girls Club of Northeast Texas would also have access to a teen room for their teen program.
The Hunt County Commissioners Court has passed a resolution of support for the project, and will look at possibly donating funds during their budgeting process.
Ransom has committed $1 million ($100,000 per year for 10 years) to the project, and the YMCA has received other private contributions.
Paris Junior College’s Greenville location could potentially use the new building as a recreation facility for their students, although allocating funds for such a program would have to approved by the student body. According to Gaudreau, the new facility could also be used by PJC and GISD to host basketball tournaments.
The YMCA has been in discussion with SUBWAY to place a restaurant in the facility, but no agreement has been signed. If an agreement is not reached, Gaudreau says the Y has a “back-up plan.”
The new proposal has also received verbal support from L-3 and Hunt Regional Medical Center.
“This project isn’t about the YMCA or me,” Gaudreau said. “It’s about increasing the quality of life for our county and making an investment in our future.”
All of the money raised by the YMCA through their fund-raising campaign will go toward paying the bond’s debt service, according to Gaudreau. Based on contributions offsetting the $15 million bond, Gaudreau estimates a property tax increase of $0.024 per $100 of taxable assessed value. This would cost someone who owns $100,000 of taxable assessed value $24 per year for the first 10 years of the 25 year bond.
The increase in the tax rate for the final 15 years of the bond is unknown at this time, because that number would be based on property values, which fluctuate. Additionally, Gaudreau hopes that the funds generated by the events center would be able to offset some of the cost in the bond’s final 15 years. The tax burden on Greenville resident could therefore increase or decrease, depending on the profitability of the events center and local property values.
Any profit from the YMCA, apart from money that Gaudreau has planned to set aside for facility maintenance, would go toward paying the debt service, with the city paying the difference. The first debt payment would be due in 2015.
According to Gaudreau, the funds raised so far by the YMCA would cover approximately 60 percent of the debt service payments in the first five years of the bond and approximately 50 percent in years six through 10. After 10 years, the city of Greenville’s current debt obligations reduce significantly, which would free up the city to take on a higher percentage of the debt service payments.
“We’re still fund-raising, so the hope is that there are still people out there that will give money to this project, which would lower that $24 a year even more,” Gaudreau said. “We really focused on the first 10 years, which gives the YMCA time to establish itself and the events center to become profitable.”
The YMCA has told Greenville, according to Gaudreau, that the city will never have to pay operational costs for the building. The Y will cover those costs through memberships and programming revenue.