UPDATE FROM

John Cronin

North Castle Town Board

March 7, 2011

North Castle Pool and Tennis Club, LLC (NCPT) will be the new owner/operator of the pool.  During the transition, the Town will work closely with NCPT to guarantee a smooth and on-time opening of the pool.

Management

NCPT will begin immediately to operate the pool and prepare for opening day.  The current ALE Board will assist in the transition but play no role in future management of the pool.  All disbursements (eg exisiting accounts payable) will be signed off by me or another representative of the Town until the transition to the new owner is complete.

Membership

The fee structure for the upcoming season has been simplified.  Membership rates are as follows:

• Families (including nannies) - $1000.00
• Individuals - $700.00
• Seniors (individual or pair) - $500.

Those members who recruit a new member to join the pool will be given a $100.00 credit off of their membership fee.

Payment

As noted at the meeting last week, in order to insure an on-time opening, we are looking for members to send in their fees as soon as possible. The membership fees will be held in escrow until the pool opens.  All members will be issued a receipt stating as much.  Checks should be made payable to: North Castle Pool and Tennis Club, LLC.     Checks should be mailed to: 2 Gannett Drive, Suite 410, White Plains, New York 10604.

Bonds

New members will not be required to post a bond.  Existing Bondholders will have two options:

• Donate your bond and get a discount off membership. Donate your bond to ALE prior to the sale of the pool and take the tax benefits of making a donation to a 501 (c )(3) not for profit organization. An additional $75.00 discount off of the membership fee will be applied for the next 5 years for those who donate their bonds.
• Pay back over time out of profits. Repayment of bonds will begin after the pool has had two consecutive years of profits. 50% of the profits would be put into that fund from which remaining bondholders would be paid on a proata basis for monies due to them. In the event that the company fails to show a profit after five years, then those bonds would cease to exit.

Other

The new owner has assured the town both of his intention to continue to operate the pool as a recreational facility for the benefit of the residents and his commitment to investing in upgrading the facilities.  And as noted in the slide presentation, should he have a change of heart, the town will have the right of first refusal to buy the pool.

Finally, the Rec Supervisor will this week send out a town-wide mail announcing the camp will be using the pool for the upcoming season.