Bardwell Aquatic Center seeks immediate financial assistance from city

On Monday evening, Mayor Robert Listenberger and members of the Plymouth Common Council heard a request that the city pay its lease payments on the Bardwell Aquatic Center ahead of schedule.

Former City Attorney Sean Surrisi was the group's primary speaker, along with former Mayor Mark Senter, Leanne Senter, aquatic center manager Kari Vancza, Brad Surf, and Greg Hildebrand, on behalf of the Marshall County Economic Development Corporation. He told the council they have an immediate need for financial assistance. 

The city budgeted and appropriated $144,000 in this year’s budget to cover the two contracted lease payments for the aquatic center. The payments are due in June and December, but Surrisi asked the City Council to advance the $72,000 June payment to now so they can sustain the facility's operation and pay the $72,000 December payment in June to continue to keep the aquatic center open.  Surrisi said he would approach the Plymouth Community School Board at their next meeting and make the same advance payment request.

This project's complex history includes using New Market Tax Credits as part of the financing and creating Marshall County Life Center Inc., a subsidiary. Surrisi went back to the beginning, saying that the project was conceived in 2012 when the school corporation decided to close its pool. A Build A Pool committee was organized with ideas for the indoor facility. 

The project gained momentum when the state identified the Regional Cities Grant Program, leading to an approximately $2 million award. During this period, a company established and owned by Rick Miller was formed to operate the facility.  The scope of the project was modified with the New Market Tax Credits to bring the Marshall County Community Foundation/Growing Kids learning center structure with just over a million dollars for the construction of the aquatic center and just over $2 million for the Community Foundation building.

Surrisi said that after 7 years of the New Market Tax Credit financing agreement, the investor realizes the benefits of the tax credits and then exits the projects. That happens in June, and then it can all unwind, allowing new ownership to take place or rework the lease agreements.

The original leases on the aquatic center were with the City of Plymouth, Plymouth Community School Corporation, and Ancilla College.  The college committed to a $60,000, 25-year lease for use of the facility so they could have a swim program.  It was learned that Dr. Ken Zirkle, President of the college, signed the memorandum without the board of director's knowledge. The board didn’t want to fulfill the commitment but agreed to knowing that within 7 years, the financing model would change, and they could get out of the project entirely.

The next “wrinkle” was in the fall of 2019, just before the grand opening, Rick Miller’s company breached the 10-year contract and said they wouldn’t operate the facility.          

A limited liability company was formed to operate the facility for 6 months with Jerry Chavez of MCEDC.  City Attorney Sean Surrisi took on sole ownership of the company for about a year.  In 2021, We Love Swimming Inc., a 501C3, was formed to take over operations without a contract. 

The Plymouth Redevelopment Commission also issued a TIF bond and an Economic Development Revenue Bond to help support the construction of the facility. The annual payment of $450,000 goes through 2035.  Another loan with a United Federal Credit Union also helped support the construction. That loan was paid originally through the bond proceeds and with a portion of the semi-annual lease payments. In 2021, interest rates were low, so the TIF bonds were refinanced.

Surrisi said, “We knew going into this, with the studies that were done, that no pool is a money maker unless you have something like Splash Mountain or larger water parks where you charge big admission fees.”  He continued, “Over the years, we’ve been making it by. Last year, we were hit with quite a few extra repairs, including the HVAC system.”

Mayor Listenberger questioned what would happen to the city’s lease payments after the winddown.  It sounded like the amount would be less, maybe dramatically reduced.  The mayor also asked about operation costs.   

Council members asked about the facility's use and plans to increase usage. Surrisi said many are using the facility, including the Culver School Corporation, which has created a small swim program using a lane rental option. The Plymouth Sharks also use the facility.

Leanne Senter stepped to the podium and said the Plymouth schools have created a middle school program. They hope Culver continues, and she will approach Oregon Davis because they drain their pool in the summer and don’t offer swim lessons. Others using the Bardwell Aquatic Center include Growing Kids and Monkey Business. There are scuba classes, the autism camp uses the pool, Plymouth Wesleyan Church, Michigan mermaids, group and private lessons, and pool parties.  Senter said, “Swimming is the only sport that saves your life.”  She said she will approach Marian University at Ancilla College.

Councilman Dave Morrow said, “The city is shouldering the financial burden and have from day one.  In my opinion, it should have been a school project, but that is water under the bridge.” He continued, “I don’t think we as a city should keep pumping money into it at the benefit of the school because they have all the time slots.  There is too big a burden on us until we get a real commitment from the school and Ancilla.”          

After much discussion, the Plymouth City Council unanimously motioned to advance the $72,000 payment due in June now and the pool committee will be back at the next city meeting April 14th with additional information on how they can create additional revenues and what the impact of the unwinding of the News Market Tax Credits goes away. 

The council did not act on the December payment, and it is not out of the question that the Bardwell Aquatic Center may be closed.