Rite Hite Center Executive Keelyn Lyon Offers Information About YMCA / Rite Hite
Good afternoon Walter Schroeder Aquatic Center Families,
I am writing you today about some important news we just announced about the YMCA of Metropolitan Milwaukee.
For some time, our leadership team and Board of Directors have been working with the highest sense of urgency to develop a restructuring plan that will help resolve our significant operating and financial challenges, while ensuring Milwaukee has a strong Y for years to come.
The plan we announced today calls for us to dramatically refocus our operations and establish a truly urban Milwaukee Y, where our services are essential. This urban Milwaukee Y will include centers that are primarily leased, restricted or gifted to the Y, and are located within (or very close to) the City of Milwaukee. They include: Rite-Hite YMCA, Northside YMCA, Parklawn YMCA, Downtown YMCA and John C. Cudahy YMCA (where we will operate summer programs only and close for the fall, winter and spring, when the center is historically underused). We will also continue to run Camp Minikani. Note that the Rite Hite Family YMCA will continue normal operations including programming, our partnerships, hours, staffing structure, and services.
The plan also calls for us to sell the majority of our owned centers to operators who are better positioned to not only continue these Y’s, but invest in these centers for the long-term. We have a letter of intent from the YMCA of Central Waukesha County to purchase the West Suburban, Tri-County and Southwest YMCAs. We also have a letter of intent from the Kettle Moraine YMCA to purchase the Feith Family Ozaukee YMCA. Both of these transactions require court approval. We are working to identify strategic partners for both the South Shore YMCA and Camp Matawa, as well.
We expect to shortly finalize the sale of the Young Leaders Academy, which is vital to this plan. And while preserving a strong downtown presence is critical for this new urban Milwaukee Y, our current location is not suitable for the long-term. We will continue operations there as usual, while also working to identify a new location for the Downtown Y that better serves our needs and our members’ preferences. When that is achieved, we will sell the current Downtown center as well (again, while preserving downtown operations somewhere else more suitable).
While we have been talking about the prospect of our Y looking very different for some time now, we appreciate this may still be hard news to hear. Please know that we truly believe this is the best solution in this very difficult situation for our Y, our members and our communities.
- It actually strengthens the Y’s presence in Southeastern Wisconsin and avoids massive center closings and loss of staff.
- By selling the majority of our owned real estate, we will generate a significant amount of funds to repay much of our debt.
- It refocuses our operations in a way we can afford, that aligns very well with our existing staffing resources and, importantly, creates a truly urban Y that can focus its mission more explicitly on helping establish strong, healthy families throughout our City.
Despite its many positives, this plan does not come without risk. This morning we also announced that we have voluntarily filed for Chapter 11 bankruptcy protection from our creditors. This was a necessary and prudent step to allow the Y to continue operations uninterrupted while we finalize this plan. Ultimately, despite selling the vast majority of our owned real estate, those proceeds will not fully repay our debt.. That means we will be asking our banks to establish a reduced debt level that is both feasible and consistent with the Y’s smaller operating platform and will position the organization to emerge from Chapter 11 as an operating entity without the need for further liquidation.
During the Chapter 11 process, all center and camp operations, as well as all programs will continue as normal. That means all hours, classes, programs and other offerings will be uninterrupted. In other words, it is business as usual. We will also file an emergency motion with the court to allow us to continue paying employee wages and benefits without interruption. This step is mostly procedural in nature, and we expect immediate approval. Lastly, we have confirmed that all gifts to the Y are protected and will be used for their originally intended purpose. So if you have a gift you have pledged to the Y and have it restricted for specific purposes or centers that will continue to be honored.
As a friend of the Y, I can’t tell you enough how much your support means to the entire organization. While the past few years have indeed been difficult on many different levels, we believe this plan is a tremendous step in the right direction. It is sustainable, will help substantially pay down our debt, preserves our mission and best serves our shared community by helping build a stronger, healthier Y throughout Southeastern Wisconsin.
We hope you continue to walk with us during this most important journey. I’ve attached to this email the press release we issued this morning, as well as a FAQ you may find helpful. Please know that we will continue to keep you posted on our progress. In the meantime, please don’t hesitate to reach out to me at any time with questions or concerns.
Best regards,
Keelyn Lyon
GVP, Center Executive
Healthy Lifestyle Village / Rite Hite Family YMCA
