From bond analyst Steve Willson:
Regarding the Healthbridge Counterpoint
In his email, Mr. Collins makes several claims in his counterpoint in support of the Park District purchasing the old Healthbridge.
Let’s examine them one by one.
Mr. Collins claims that the private fitness centers in Crystal Lake (six and another on the way) don’t serve seniors or people with disabilities.
In fact, there are lots of seniors at the fitness clubs in town, and at the YMCA. And I called several of the fitness clubs and the YMCA to confirm that they all serve people with disabilities.
As far as “families seeking affordable, low impact aquatic exercise”, the YMCA has a pool and it’s available to nonmembers.
And unless the Park District intends to undercut the YMCA on price, it will be no more affordable than the Y.
As for support shown in Park District surveys, the Park surveys don’t provide useful data about local demand because the questions are self-serving.
“Would you like a pool”
isn’t the same as
“How much are you willing to raise everyone else’s property taxes so you can have a pool?”,
which is the relevant question.
With regard to cost efficiency, we know that Healthbridge was closed because of declining membership, and that no private party has been willing to buy it and operate it.
This is strong evidence that the facility is unlikely to be self-supporting if operated by the Park District.
It is NOT a myth that this facility wouldn’t compete with the YMCA and with local businesses.
It would.
As for collaborating with the Sage YMCA, Mr. Collins doesn’t explain how “collaborating” would prevent this facility from damaging demand for the YMCA’s facilities.
It’s also clear that Mr. Collins hasn’t spoken with the Director there about this topic or the likely damage to the Y.
I have.
As for not needing to turn a profit, what Mr. Collins is proposing is that the project be subsidized by the taxpayers.
Finally, feasibility studies by municipalities are a joke. In 42 years in the municipal finance business, I never saw a feasibility study that said a project would fail.
Every consultant knows his job is to find out what answer the customer wants and to give it, or they won’t see future business from any other municipalities.
When Lakewood hired a feasibility consultant for their abortive TIF, the consultant approved it.
I asked the consultant on how many TIF districts they had opined,
- how many they had approved, and
- how many they had back-checked to see if their projections were accurate.
- The answers were 50, 50, and zero.
They approved every project they ever saw, despite the poor track record of TIF districts in Illinois, and never did any research to confirm whether they were right or not.
To conclude, Mr. Collins says this facility is not a “white elephant”.
The American Heritage Dictionary defines white elephant as “a possession that provides few benefits and is a financial burden to maintain.”
I would suggest this facility meets both characteristics.
It will provide few if any unique benefits, it will damage local businesses and the YMCA, and it is highly likely to prove to be a financial burden on the taxpayers.
= = = = =
Here is my report on the last Crystal Lake Park Board meeting:
