Things are looking up for The Center of Anna Maria Island.
The center paid off its $1.1 million commercial loan March 4 by negotiating the debt down to a $300,000 payoff with BB&T, according to center board chairman Bill Shuman and executive director Kristen Lessig
The money used to pay the renegotiated debt came from the center’s endowment fund, which has been part of the Manatee Community Foundation since 2007. Paying off the loan reduced the center’s annual operating expenses by about $75,000, Lessig wrote in a March 24 email.
Shuman further explained that the loan was not a mortgage and it was not secured by the building, which led to BB&T agreeing to the lower payoff in lieu of what could have become a bigger loss if the center defaulted.
Based on the lower payoff, the endowment board members agreed the money would be well spent and allow a remaining balance of $345,000 — or about $300k, depending on recent market losses, in the fund. The endowment fund board members had previously resisted pleadings from former executive director Dawn Stiles and prior board chair Scott Rudacille to release funds to pay off the higher debt.
The terms of the endowment trust have prohibited the center from spending the endowment money on operating expenses.
“This loan served as a dark cloud hovering over the center for many years and was a source of much community strife,” Lessig wrote in her email.
The payoff marked the center’s entrance to the next chapter of its financial future, beginning with no long-term debt and a short-term debt of approximately $50,000.
The center staff is focusing on continuing to reduce the debt and increase income streams.
The financial strategy involves expanding community engagement and the donor base, reducing overhead costs, implementing a revenue stream from vacationers who pay a facilities fee for accommodations in exchange for use of the center, expanding support from the island cities and Manatee County and increasing public-private partnerships.
Overall, the strategy is expected to produce $470,000 to $720,000 annually, enough to operate in a healthy financial environment and move toward a goal of rebuilding operating cash reserves, according to documentation provided by Lessig.
“We are excited about our future and looking forward to continuing to build a best-in-class community center for our well-deserving community,” Lessig wrote. She added she hopes the community will give the center a chance to change any past perceptions about the nonprofit.
The center is at 407 Magnolia Ave., Anna Maria.
— Kristin Swain
