North Castle Approves Purchase of Armonk Pool Complex

The North Castle Town Board approved buying the Anita Louise Ehrman (ALE) Recreation Center swimming pool complex for $728,000 last week from the nonprofit organization that rebuilt the facility more than a decade ago.

Citing strong membership numbers since the town entered into a licensing agreement with ALE in 2015, the board authorized paying for the Greenway Road complex through a Bond Anticipation Note (BAN) that will be paid off in five years, said Supervisor Michael Schiliro.

Membership has been consistently strong for the three summers that the town has operated the pool under the licensing agreement, ranging between 450 and 460 households with about 1,500 individual passholders, according to Matt Trainor, superintendent of recreation and parks.

“There was an opportunity now. We didn’t know if it would occur or not but there’s an opportunity to purchase it at what I believe is a very fair price and that’s up for consideration tonight,” Schiliro said.

In 2016 and 2017, operating expenses were $297,000 and $299,000, respectively, while revenues have ranged between $211,000 and $219,000, Trainor said. Expenses have included the $114,000 annual licensing fee, making the pool marginally successful operationally.

The opportunity came about after ALE ran into financial difficulty following its 2006 refurbishment of the complex. By 2012, a local resident operated the pool for three summers but was unable to continue. Then the town was approached by ALE to see if it wanted to buy the complex. While the town was interested, officials decided to operate the facility for at least a few years to see if it could hold its own financially.

Although the board unanimously approved the resolution last week, a few residents questioned whether it was a prudent financial decision. Armonk resident Ann Dantzig said the board was effectively bailing out an entity with taxpayer money, setting a poor precedent.

With the town on the hook for another five years to pay off the BAN, that will be at least eight years where the town is subsidizing the pool, she said.

“If you’re buying the pool so they can pay off their debt, you’re bailing them out,” Dantzig said. “I know you don’t like that term.”

But Councilman Stephen D’Angelo said putting aside that significant numbers of people enjoy the pool, the property was appraised for more than $1.9 million in 2011, and the town is acquiring an asset for less than half of that sum.

“That alone on the face of it is good for the town,” D’Angelo said. “The fact that there is a pool that will operationally break even every year going forward, and as the supervisor said, 1,500 people in this town enjoy the pool, everybody wins here.”

Before the licensing agreement the town was paying $55,000 a year so the municipal summer camp had access to the pool, said Councilman Jose Berra. If the facility wasn’t open, the town would have to bus its campers somewhere out of town to swim, severely impacting the viability of the camp, he said.

Larry Ruisi, a member of the town’s Budget and Finance Advisory Committee, agreed that with interest rates for the BAN at between 1 and 2 percent it’s an excellent decision.

“The benefit of having the camp and having the pool in this town raises everybody’s real estate values,” he said. “This has been prudent and well-thought out and the numbers make a lot of sense.”

Over the next five years, the town will pay about $155,000 annually to pay off the debt service and principal.

North White Plains resident Anthony Futia said he was skeptical about the purchase and opposed the town taking on additional debt despite the low interest rate.

“The reason for borrowing money is because it’s so cheap. Well, the town is not Microsoft or Apple,” he said. “If you don’t have to borrow money it’s a lot cheaper not to have to borrow money.”

Resident Susan Shimer supported the town’s decision even though she doesn’t use the pool.

“Do I want a pool for the town? Do I consider that an appropriate amenity? Yes, I do and if it costs a little bit, then so be it,” Shimer said.

The town also passed a resolution to spend about $35,000 on covers for the main pool, the area of the mushroom that streams water and the kiddie pool. Trainor said the covers would help protect the pool from the elements during the off season.