A New York non-profit group, which operates a residential facility for youth, has reportedly made an offer for a lease/purchase of Lakeside Resort, which is under the control of UCHRA.
According to the Herald-Citizen, the formal offer by Timothy Hill Children’s Ranch for Lakeside Resort was recently presented to the UCHRA's real estate committee during a meeting in Cookeville. No specifics were given but the letter stated that they would like to purchase from UCHRA the buildings, machinery and chattels of the resort on Center Hill Lake, with the offer contingent upon UCHRA renegotating the lease with the Corps to at least 2050.
According to the group’s website, a number of programs are offered at the current location in Long Island, N.Y. — including a residential program — on the 70-acre farmstyle campus. The Ranch opened in November of 1980 and offers a safe haven for children who have been neglected, abused or in a time of crisis. Referrals come from the court system and private agencies.
The offer includes an initial payment of $50,000 and subsequent payments of $5,000 each calendar month for 13 years, beginning in June of 2015.
The total purchase price would be $830,000, which is below the reduced asking price of $999,999.
However, restrictions currently in place by the Corps of Engineers could prevent such a facility at Lakeside Resort.
Kevin Salvilla, natural resource manager at Center Hill Lake, reportedly informed the real estate committee that while Lakeside is an asset for DeKalb County there are conditions for its use and one is that it cannot be used for residential purposes, except for security. The intent of the location is for recreation. It's a parks and recreation lease, he said.
But, according to the current lease with UCHRA, the leaseholder must have an educational component to the operations.
If a deal were to be approved as offered, UCHRA would still have to pay off its loan debt through Rural Development. According to Luke Collins, Upper Cumberland Human Resource Agency executive director, the agency still owes $1.4 million on the property and the purchase price would not cover it. Collins said he has been told the lienholder will not release the lien without full payment of the debt but there could be an option for refinancing.
According to the Herald-Citizen, the real estate committee is set to meet again May 19 at 9 a.m. in Cookeville to look at submitted proposals and make a decision. In the meantime, representatives of the Timothy Hill Children’s Ranch board may meet with Salvilla and other employees of the Corps of Engineers, to discuss specifics of the proposal.