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Yacht Club attorney: Bankruptcy not likely
By Jason Miller, The News-Dispatch
While some members of the Michigan City Yacht Club disagree over whether its financial straits are as dire as others say, club officials are looking into all possibilities to get out from under a financial mess caused by dropping membership and rising costs.
One of those possibilities, though, will not likely be bankruptcy.
“That hasn't been mentioned at all,” said Pat Donoghue, a long-time member and attorney for the club. “I know of no intentions [to seek bankruptcy] expressed anywhere on the part of the Yacht Club.”
Donoghue, who agreed to speak for the club because Commodore Clyde Zeek was out of state, said Sunday that revenue at the club has been reduced by two-thirds and the board is “struggling with what to do.”
The notion has been floated to sell the club, but Donoghue said little agreement has been reached on that front. Donoghue also is attorney for the city's Park Board but said the Park Department hasn't expressed interest in purchasing the property.
He said the city's Port Authority, however, might have some interest.
“It's quite clear the Port Authority is more of an interested party,” he said. “They haven't approached us to acquire the Yacht Club, but it's no secret it would be available for sale.”
Port Authority attorney Jefferey Katz declined to comment Sunday on any possible interest it might have in the club.
Donoghue said membership at the club has dropped from a recent high of around 350 to only 90 in recent months. He pointed to several reasons for the decline, including a lack of interest among younger people and less disposable income for many people.
“The Yacht Club has always had new members coming in on a regular or generational basis,” Donoghue said. “But now, our youngest members are in their 50s. In my view, as a father with kids who have young families, the cost of the American dream is now higher because of increases in property values and things like that.
“People just don't have a lot of disposable income for expensive things.”
Donoghue said the Yacht Club owns both the building and the property on which it sits. The Port Authority, however, owns the parking lot and other areas surrounding the building.
He said the property is worth “way more” than the $300,000 value that had been rumored.
The situation, though, gets worse financially as the days go by, Donoghue said. “It's a bad situation in terms of finances. The board is struggling with what to do.”
Contact reporter Jason Miller at jmiller@thenewsdispatch.com.
By Jason Miller, The News-Dispatch
While some members of the Michigan City Yacht Club disagree over whether its financial straits are as dire as others say, club officials are looking into all possibilities to get out from under a financial mess caused by dropping membership and rising costs.
One of those possibilities, though, will not likely be bankruptcy.
“That hasn't been mentioned at all,” said Pat Donoghue, a long-time member and attorney for the club. “I know of no intentions [to seek bankruptcy] expressed anywhere on the part of the Yacht Club.”
Donoghue, who agreed to speak for the club because Commodore Clyde Zeek was out of state, said Sunday that revenue at the club has been reduced by two-thirds and the board is “struggling with what to do.”
The notion has been floated to sell the club, but Donoghue said little agreement has been reached on that front. Donoghue also is attorney for the city's Park Board but said the Park Department hasn't expressed interest in purchasing the property.
He said the city's Port Authority, however, might have some interest.
“It's quite clear the Port Authority is more of an interested party,” he said. “They haven't approached us to acquire the Yacht Club, but it's no secret it would be available for sale.”
Port Authority attorney Jefferey Katz declined to comment Sunday on any possible interest it might have in the club.
Donoghue said membership at the club has dropped from a recent high of around 350 to only 90 in recent months. He pointed to several reasons for the decline, including a lack of interest among younger people and less disposable income for many people.
“The Yacht Club has always had new members coming in on a regular or generational basis,” Donoghue said. “But now, our youngest members are in their 50s. In my view, as a father with kids who have young families, the cost of the American dream is now higher because of increases in property values and things like that.
“People just don't have a lot of disposable income for expensive things.”
Donoghue said the Yacht Club owns both the building and the property on which it sits. The Port Authority, however, owns the parking lot and other areas surrounding the building.
He said the property is worth “way more” than the $300,000 value that had been rumored.
The situation, though, gets worse financially as the days go by, Donoghue said. “It's a bad situation in terms of finances. The board is struggling with what to do.”
Contact reporter Jason Miller at jmiller@thenewsdispatch.com.