The following is a guest column from Doug Lewis, a former federal cabinet minister and local lawyer.
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I read with interest the recent article on the sale of Geneva Park by the Simcoe-Muskoka YMCA. A year ago, I read an article on the sale of the Orillia YMCA.
Both articles beg the question: What happens to the net proceeds when a non-profit organization serving the community (Orillia) sells its assets and leaves the community?
First, let’s examine the history. I reread parts of David Town’s excellent book, Building Character: Stories from Orillia’s Remarkable YMCA 1872-1955.
When I came to Orillia I had the personal experience of attending a few Y’s Men’s dinner meetings. I joined the Y, jogged on the indoor track, and outside, until the new YMCA building was built farther north on Peter Street.
Similarly, our family had a relationship with Geneva Park. Our children went to summer day camp. We went to dances and Leacock Associates dinners at Geneva Lodge. I supported various fundraising endeavours over the years.
The YMCA buildings and the association as well as Geneva Park were an “institution” to the citizens of Orillia and the area.
In 2013-14 there was a controversy as to whether a new recreation centre should be built east or west of Highway 11. In order to strengthen rather than “gut” the centre of the city, I was among those who supported a rec centre east of Highway 11.
We fought the good fight and the Orillia city council of 2014-18 decided to build the Orillia Recreation Centre (ORC) on West Street. Unfortunately, Orillia could not support two such facilities and the Orillia YMCA closed.
That ORC is now built and functioning. Its debut was hampered by the COVID-19 pandemic. In time I am convinced it will serve as an active centre for physical fitness and community activities for individuals from Orillia, Oro-Medonte, Ramara and Severn.
Simcoe-Muskoka YMCA sounds pretty grand. Those are two very large areas. When you dig into it, only the following communities are served: Barrie/Innisfil, Midland, Collingwood, Wasaga Beach. YMCA Muskoka consists of a facility in Gravenhurst.
On Aug. 6, 2020, YMCA of Simcoe/Muskoka CEO Rob Armstrong painted a tale of woe in an article about the closure of the Barrie YMCA. But in the article he announced plans for a new facility, including “a full gym and pool as well as conditioning space, multi-purpose rooms, a youth hub, transitional housing for youth, and child care.” The taxpayers of Barrie and Innisfil were being looked after.
On Jan. 25, 2022, things had brightened up considerably. Jill Tettmann, current CEO of YMCA of Simcoe/Muskoka, in commenting on the building of a $50-million development in downtown Barrie, stated: “We are committed to building a downtown hub and open to exploring all options to support the community we serve to build health and strength for generations to come.”
That says it all.
Whereas the taxpayers of Orillia have built a facility (ORC) to build “health and strength for generations to come” and opened it up to taxpayers from surrounding communities, the YMCA of Simcoe/Muskoka is “committed to building a downtown hub” in Barrie.
Back to the question: What happens to the net proceeds when a non-profit organization serving the community (Orillia) sells its assets and leaves the community? I was referring to the YMCA of Simcoe/Muskoka’s sale of the YMCA facilities in Orillia, which has been completed, and the pending sale of Geneva Park.
Let’s track the final resting place of the proceeds from the Orillia YMCA property since that sale has been completed.
The Land Registry Office records indicate that the property was sold on May 17, 2021, for $2.9 million. There were no encumbrances registered on title.
The annual consolidated financial statements for the YMCA of Simcoe/Muskoka dated June 30, 2021, indicate on Page 4 that there was a “gain on sale of capital assets in the amount of $4,034,000 for the year ended June 30, 2021.” It is safe to say that $2.9 million of that amount is from the sale of the Orillia YMCA.
The financial statements of a non-profit organization such as the YMCA of Simcoe/Muskoka are the product of the board of directors. They designate where the funds end up.
The website states that there are 16 directors but only 14 are named, with no indication of what area they represent or where they reside. I am sure that they are all well-intentioned people.
The website contains the following quotes:
“More than ever, the board of directors of the YMCA of Simcoe/Muskoka are committed to building a new kind of Y in downtown Barrie – a community hub where everyone belongs and can thrive. We truly believe that this is the Y we need for the Barrie we want.”
I beg to differ.
Where is the fairness in taking funds raised from a county and a district – Simcoe and Muskoka, and specifically the communities of Gravenhurst, Midland, Collingwood, Wasaga Beach, plus Orillia, which contributed $2.9 million – and using the funds to build a $50-million YMCA in downtown Barrie?
As I understand, the funding for that facility it is coming from the following: Province of Ontario ($29.9 million), 100 Reasons Y fundraising campaign ($5.5 million), sale of former Y site on Grove Street ($4.5 million), County of Simcoe ($2.5 million), matching funds from the City of Barrie ($2.5 million), unfunded as yet ($7.6 million).
But don’t worry. There will still be funds coming from the sale of Geneva Park. The province, the county, and the citizens of Orillia can be proud of their support for “the Y we need for the Barrie we want.” With a population of 31,000, they contributed $2.9 million, whereas the City of Barrie and its citizens (148,000) contributed $8 million.
The initials YMCA originally stood for Young Men’s Christian Association. While what the directors have done is perfectly legal, is it the Christian way of doing things? Wouldn’t the fair and Christian way of doing things be for the YMCA of Simcoe/Muskoka to donate the $2.9 million to the City of Orillia as a contribution toward the cost of the ORC?
Thus the present and future citizens of Orillia would benefit, just as the citizens of Barrie are about to benefit.
Submissions from others would be interesting, as well as a response from the YMCA of Simcoe/Muskoka.
I am not one to normally suggest government intervention, but this situation leaves a bad taste in my mouth. Perhaps that should be considered to prevent this kind of thing happening in the future.
