Lochmere Swim & Tennis: Future in the Balance
News Saturday, February 6th, 2010
Gail Lewis (center), Camreon Moore (blue jacket) and staff and students at Lochmere Swim & Tennis Club last week. Photo by Hal Goodtree.
Cary, NC – Last week, we wrote about the difficult situation for Lochmere Swim and Tennis (LSTC). In this follow-up, we’ve talked to many of the principals involved and detail the short-term remedy to get LTSC open this summer.
IT LOOKED GOOD AT THE TIME
To begin, let’s have a little history. It’s a story of good intentions and favorable conditions gone awry.
The club was built by MacGregor Downs Development about 25 years ago. The builders were able to attract a paying membership, particularly from the growing Lochmere neighborhood surrounding the facility.
In 1998, MacGregor Downs wanted to get out of the pool and tennis business. But the Lochmere Home Owners Association wasn’t interested in acquiring the facility. Lochmere Swim & Tennis Club, a private, non-profit group, was formed to take over the club and run the facility.
As new fitness facilities opened in the area and the club population grew older, LTSC experienced a decline in membership from a high of more than 750 families. Renovation of the tennis courts was approved by the membership, but the club saw a dramatic exodus of paying customers when the tab for the work was presented in the form of an assessment. According to Jeff Madia, LTSC president, membership fell by more than 200 families.
NOT SO GOOD NOW
Current membership (about 340) may be too small to fund the club without punishingly high fees.
Madia first approached the HOA in 2007 seeking a solution to the club’s financial woes. Subsequently, the LSTC board took the additional step of closing the Highlands facility, a satellite of the main club, including a pool, club house and two tennis courts.
Wachovia, the mortgage holder, has advanced money to keep the tennis facility open while a deal can be arranged (with or without the HOA). But, so far, no funds have been approved by the bank for the aquatic program. The main facility, at 502 E. Lochmere Drive, covers 10 acres and has been appraised at $2.3 million dollars.
LEGACY MEMBER LIABILITIES
One of the stumbling blocks is the status of legacy membership initiation bond fees. These fees were gathered from new members to boost the capital fund. The agreement was that the money would be returned when members left the club. The initiation fee was discontinued in the early part of the last decade.
But that still leaves hundreds of families owed $1200 each. Madia agreed to a CaryCitizen estimate that the liability could be more than half a million dollars. The HOA would be on the hook for those payments unless LSTC goes through the bankruptcy process prior to the transfer of ownership.
THE TEAM SOLDIERS ON
In gathering info for this story, CaryCitizen has had a chance to meet many of the people who are struggling to keep LTSC’s future alive.
Jeff Madia and the board of LTSC work for free. Gail Lewis has been the Aquatics Director for years, a beacon of hope and optimism for club members. Tennis pro Cameron Moore could certainly find work elsewhere, but he cares about the kids and the program, so he sticks with it.
The tennis club is still open with over 100 people in leagues and about 440 members.
THE CLOCK IS TICKING
Photo by Brendan Bailey
In order to open for the summer season, LTSC needs a bridge loan from Wachovia. The infusion of new funds would buy time for an agreement with the HOA and allow the club to hire staff and get the pools ready for summer.
Without the loan from Wachovia (or another lender), the club has no plan to open this summer.
Lawyers for Wachovia told Madia that the company is considering the deal, but have made no commitment to a time table for a decision. “We just need to know,” said Madia.
“We have about three weeks to get it together,” said Gail Lewis.
THE BOTTOM LINE
LTSC has contributed a lot to the community. Nationally ranked tennis players have grown up on its courts. Hundreds of kids have spent their summers swimming laps in the pool.
It’s also in the HOA interest to see the club continue as a valuable part of the community. Local realtors have estimated the cost to homeowners of 5-15% in home value if the club is closed.
Homeowners, club members and the community all need more time to work out the details of a rejuvenated club. Right now, only Wachovia can grant them that time.
Short URL: http://www.carycitizen.com/?p=5111
As a member of Lochmere Swim club, I am very saddened to hear about this. I am a mom to a 3 year old little boy, and he is already attached to his summers at the pool. Our family would be devistated if the pool closed. Part of the reason we bought our home 3 years ago was because of it’s close proximilty to Lochmere pool. Please know that our monitary support will be there for many years to come if they are able to get the loan from Wachovia. Thank you!!
[...] reported earlier, this gives LSTC time to negotiate a transfer of ownership to the Lochmere Home Owners Association. [...]
[...] NC – As we reported back in the spring, Lochmere Swim & Tennis Club was in a tough place. Owned by a dwindling [...]