Quote:
Originally Posted by jrc
First, I'm all for this sailing school, I love to watch the newbies learn in Smith Cove now and I think having it at Ellacoya would give a lot more people chance to use it.
I do have a little trouble with the changing meaning of the word public in these emails. Some simple questions for clarity:
Who will pay for the construction of the building?
Who will own the building?
Will the LWSA pay rent on the land or a franchise fee for use of the facilities?
Who will pay utilities, upkeep and repair on the building?
Can the State of NH, choose a different organization to use the facilities, if at a later time the LWSA proves to be an inadequate manager?
Who will set the fees and selection process for users of the LWSA programs?
Who will be responsible if a sailing trainee or employee of LWSA is injured or killed?
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Greetings,
These are all fair questions. I'll try to answer them all and a few others that would logically flow from these answers, but there's no way to be brief and to address all these issues. First of all, please realize that the State of New Hampshire has no discretionary funds, like zippo, nada, gonzo and it could be years before tax yields come up with anything remotely usable to start making capital investments like new facilities at Ellacoya. This means that if an organization like the LWSA wants to create a new facility, the money has to be raised from sources other than the State.
The LWSA has proposed to build this facility without tapping into State funds, so it will be seeking contributions, grants, sponsorships and other in-kind contributions such as getting a sitework company to contribute time, equipment and labor to do a portion of the work; getting a roofing company to donate the men and materials for constructing the roof; etc. etc., etc.
The LWSA will seek major cash contributions from large companies such as banks, high tech firms and individual donors to cover building costs that aren't donated by firms in the construction business. If the LWSA doesn't cover all of the project's costs in the manner described above, certain benefactors have agreed to back a mortgage loan for an amount adequate to complete the building and to provide all the equipment necessary to run the programs.
Because the LWSA is a 501(c)(3), all donations are tax deductible to the donor so there can be tax benefits to those who dig deep to help get the complex built. A gifting program will be initiated to provide an endowment fund to cover expenses to the extent they exceed income. Right now, the LWSA's operating income and expenses are just about breaking even with the organization's balance sheet solidly in the black this current year as a result of the sale of donated boats and donations from supporters of the organization.
What it comes down to is for the State to create new facilities like this Sailing Center for the State's citizens, it has to turn to a non profit group like the LWSA whose members are passionate enough about a certain cause or activity so they will take on the risk of getting it built and equipped for use by the public. And be absolutely certain of this fact, the new LWSA/Adams Memorial Sailing Center IS a public facility. But the State doesn't stop there! DRED and Parks & Recreation have told the LWSA that there's a quid pro quo for getting the use of the land at Ellacoy. The LWSA has to upgrade the bath house, the road leading down to the waterfront and the public launching facility, in addition to building its own new facility, all in exchange for a use permit.
As for a fee back from the LWSA to the State for use of Ellacoya, it just won't happen. The LWSA's existing programs are barely breakeven. When the costs of running an Adaptive Sailing Program along with a new Adult Community Sailing Program are layered onto the costs of maintaining a new expensive building, it's a certainty that expenses will rise to exceed the sailing operation's income streams. That's where the need for event income will come into play. Instead of turning to Bingo and rummage sales like a lot of other charitable organizations, the LWSA will look to capitalize on the Sailing Center's glorious views up the lake and we'll allow the facility to be used for an occasional wedding, meeting or special event. I'm sure before we're done that there will be a meeting there of the Governor and the Governor's Council.
These types of arrangements between State, County or municipally owned facilities and various non-governmental entities (NGO's) like the LWSA are prevalent throughout New Hampshire. The underlying arrangement always allows the governmental side of the transaction to step in and take over ownership of the facility if the NGO doesn't fulfill its obligations and when or if this happens, the NGO's rights to use of the property are extinguished.
As for the use of the word "public" it obviously takes on different meanings based on the context in which it's used. All of the LWSA's programs are available to the public. Its facility at Ellacoya will be open to the public subject obviously to hours of operation and the payment of certain fees. There may be times when the facility is being fully utilized by the LWSA's activities in a way that would preclude additional members of the public from access, but only for such times.
To the extent that memberships are available such as membership in a particular activity like the Frost Biting Club, a group that sails and races up until ice has formed on the lake, the public can join that particular club and there may be a fee for use of boats and for paying staff to run races. If the capacity of the facility is maxxed out by the people who have already signed up for that program, it's concieveable a member of the public will not be able to participate even though that program is "open to the public".
There will be rules and regulations and fees all designed to offset, to the extent possible, costs of operating, staffing and maintaining the facility and its programs, but the LWSA's books are open to the scrutiny of the public since it is a 501(c)(3) at reasonable times, and if there are operating "profits" from one aspect of the facility's program, they will be quickly absorbed by other programs and the omnipresent need for replacing equipment.
If the organization does not fulfill its contractural responsibilities to DRED for use of the property and or abandons the facility, the State would be entitled to take over possession and ownership of the facility. If any loan secured by a mortgage is put in place by the LWSA, it would be junior in priority to the State's right to step in and that mortgage would then be wiped out forthwith. These are very typical provisions found in all such agreements where an organization such as the LWSA, whether it's a for profit or a not for profit entity, is a participant in a Special Use Permit with a governmental agency that owns the underlying land.
In essence, this is the same type of arrangement that is in place with the business that runs the Timberman Competition at Ellacoya. The difference is that the Timberman is there to, and in fact, does make a profit and because it does, it pays DRED/Ellacoya a fee for use of the facility. In the case of the LWSA, it is not designed to make a profit and none of it's officers and directors are paid for any of their services -- it is a true 501(c)(3). I wish I could say there's a likelihood the LWSA on an overall basis will ever see an operating profit. Since it's inception, we've always had to take a look at the books in the Fall of each year to see how far upside down the organization is and then we hold some type of fundraiser before year end to make up the deficit. I'm sure it will be no different at Ellacoya except there will be more at stake with larger deficits that will have to be made up every year.
Any Special Use Permit fees like the ones Waterville Valley or Loon pay to the National Forest Service would never fly at Ellacoya because both of those ski areas, like the Timberman program, are designed to make a profit and they should , therefore, pay for the access they have to the land. It could be argued that the State of New Hampshire ought to pay the LWSA for placing its facility at Ellacoya and then subsidize the on-going operations, at least to the point those programs break even -- not a very likely scenario!
The LWSA will probably pay a symbolic $1.00 per year fee for access to and use of the property, but the State will include terms in the Special Use Permit that will require the LWSA to properly maintain the facility and to operate the facility as represented. I'm sure there will be some requirements that the LWSA has to maintain and to possibly even oversee the operations of the public launching ramp. If a fee is to be collected, I'm sure the State will dictate how that fee is to be collected and how it will be shared if shared at all.
As for the fees the LWSA charges for use of the facilities, programs and its equipment, the State may choose to be involved, but I doubt they'll care. I'm sure they will want to have a say in our hours and days of operation and they will certainly want to decide what we will be allowed to do or not do on the property.
The LWSA is fully insured for all of its activities, including Workmans' Comp for its staff. Our policy is uniquely designed for non-profit sailing centers through the US Sailing Association, which is intimately familiar with the risks and perils associated with running a facility of this nature. The State of New Hampshire will be a named insured on all of our policies.
Although the LWSA is a 501(c)(3), it is run by a Board of Directors that includes a group of highly experienced business and professional people who dedicate many hundreds of hours each year to the furtherance of the LWSA's Mission. This Mission can be read by going to
www.lwsa.org and clicking on About.
I hope this information is helpful to those of you who have concerns about the LWSA and its intended uses of Ellacoya. If our proposed facility end up being approved, I can assure you that our organization will be responsible tenants and a net plus for all of its intended users.
Regards,
Tom Mullen, President
Lake Winnipesaukee Sailing Association, Inc.