Chelan PUD is moving ahead with financial plans allowing the YMCA to relocate at the 5th Street headquarters property the PUD is leaving.

An agreement had been in the works, but the Y now wants to purchase additional property for its operations.

PUD shared services director Dan Frazier told the utility's commissioners this week that some YMCA investors were concerned it would outgrow its new space, as it's done in the past.

"The YMCA approached the PUD and said, 'well, we have a group, they really want to look at how we future proof this development, a large investment. How do we make sure that we're not in the same boat in 10 to 15 years from now in needing additional property.'" said Frazier.

The PUD worked with the Y and the group, which Frazier described as a fundraising subset of the nonprofit, and came up with the current plan.

The original plan called for the PUD to pay $400,000 for 85,000 square feet. It was what is known as a Term Sheet, a non-binding document (similar to a Memorandum of Understanding) which outlines the key terms to be included in a Purchase and Sale Agreement (PSA).

A new Term Sheet now calls for the YMCA to purchases approximately 144,000 square feet of the eastern portion of the Fifth Street campus (Tech Shop to Fifth Street) for the construction of a new YMCA facility.

It's composed lots 6 and 7 (the tech shop and utility services building minus the loading dock area), which the Y was in line to buy before, plus the new addition of lot 8 (the fleet shop). The lots are on land next to the railroad tracks at the rear of the 5th Street campus.

Image from Chelan PUD
Image from Chelan PUD

The purchase cost for the Y jumps from $400,000 to $1.2 million.

The YMCA assumes costs for all demolition and site preparation on the land. The appraised value of property if vacant is about $1.52 million. The Y will get a credit of $1.3 million for the cost of demolition, disposal and site preparation of the Service Building and Tech Shop.

The PUD's responsibility in the agreement includes construction (directly or indirectly) of a roadway and sidewalk, providing circulation for the entire campus redevelopment, and connecting Fifth St and Wenatchee Ave (via existing ramp) through the interior of the site.

The PUD must also relocate utility infrastructure currently located on subject parcels and provide access to utilities. In addition, the utility is responsible for removing a fueling station and all appurtenances.

PUD staff and the YMCA are working on the new Term Sheet to formulate a Purchase and Sale Agreement that Frazier says will be presented to PUD commissioners on October 16.

One loose end that'll have to be tied up involves the Chelan Douglas Port Authority, which waived its option to purchase in August on a number of the lots in the Fifth Street campus, including lots 6 and 7, which are part of the YMCA purchase plan. The port has not waived its option on lot 8, the third lot in the purchase plan.

YMCA CEO Dorry Foster also addressed commissioners at this week's meeting, where she said three specific donors to the Y were concerned it would be "landlocked" (from Fifth Street) with just lots 6 and 7. She said those three donors made up the difference so that lot 8 could be purchased. Foster said lot 8 would provide an opportunity for leased space and what she called “profit centers.”

Foster said the YMCA’s fundraising goal is now $25.4 million, an increase in the last two months. She said the increase was partly because of the aquatic center plans they have.

Foster said the YMCA has raised $11.3 million so far, 44 percent of its goal.

Several commissioners expressed support for the Y's expansion plans at the Fifth Street campus.

Commissioner Garry Arseneault mentioned how the Y had benefits many people, bringing up himself and family members over the years. He also noted his was a WMCA board member for seven years, where he became concerned at the state of the current antiquated building.

Arseneault said the new YMCA location will provide bigger opportunities to serve families and kids over its current downtown location.

"It's a great building," said Arseneault. "But it constrains the ability to help children. And with this new location, you will have the ability to help far more children and far more families."

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