One of the first steps they took was to contact other companies in the area, e.g., other clubs, childcare centers,daycare providers, and dance, gymnastics, and martial arts studios’ that might be affected by the opening of a new Y.They then formed the Newtown Community Center Alliance (NCCA), a coalition of individuals, local leaders, andbusinesses that opposed the Y initiative for a number of reasons, and that proposed an alternative solution of its ownfor Newtown’s growing recreational needs.NCCA’s list of disputed issues included: the giving of township-owned land to the Y; the unfair competition that thenew Y would pose; its proposed location (next to the largest residential development in the township and across thestreet from an elementary school); and the fact that Newtown was already being well-served by the private sector,e.g., 16 clubs within a seven-mile radius, as well as by the Township Recreation Department. NCCA suggested that,rather than endowing a Y, the township raise funds to build and operate a community center for teens and seniors,which could also be used for community events, but wouldn’t have a fitness component. (blog editor highlighted)
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While making the broad philosophical and financial arguments against the Y, Worthington was also intense aboutmaking the case for NAC. ‘Some of the town supervisors had suggested that the Y was more community minded thanwe were,’ he says, ‘but, in fact, four out of the five of them hadn’t been into our club during its 25-year existence. Sowe gave them a tour, and talked about the services that we provide to the community, such as our teen program,which has won a national award.’ Worthington was also candid about what NAC contributed to the township. ‘Last year, for instance,’ he points out, ‘wegave over $2 million in cash, goods, and services to more than 600 different organizations.’ In response to the chargethat private clubs, such as NAC, were upscale and prohibitively expensive, Worthington noted that, when all of thefees were accounted for, a one-year membership for a family of five at NAC ($2,193) actually cost less than one at aY in a nearby town ($2,497).’ Although the YMCA’s ability to undercut the market is still a significant problem ‘incertain communities, the Y is not always the least expensive option nor are they providing the most financialassistance,’ said Kevin Buckley, IHRSA’s government relations manager. ‘Industry research indicates that tax-payinghealth clubs have virtually the same percentage of members with household incomes of less than $25,000, as tax-exempt clubs,’ he added. ‘This is also true for households with incomes of $50,000 and greater.’ Worthington alsotook a small, but significant step, formalizing NAC’s financial assistance program, and, in so doing, eliminated one of the principal distinctions’i.e., the ‘charitable’ mission’between what NAC was already doing and what the Y said itwould do. ‘The Y acted as though our program didn’t exist,’ says Worthington, ‘and, when we told the townsupervisors that we’d been providing financial assistance to people for years, they were incredulous.’Taking theargument one step further, Worthington obtained a copy of the financial assistance program utilized by the nearest Y,and discovered that there were some applicants who didn’t qualify. ‘I learned about one woman, with five children,whose husband earned $18,000 a year, who wasn’t granted assistance,’ he remembers. ‘I told her to come to ourclub. Our program is less stringent than the one offered by the Y in that community, which is less affluent than ourown,’ he observes. ‘Hundreds of people have applied for assistance here, and, when we tour prospects, we routinelytell them about this option. While NAC’s program has established guidelines, it’s quite flexible. To instill a sense of ownership and pride in participants, and permit NAC to assist as many people as possible, most of the candidates arerequested to pay the ‘affordable’ part of their membership (the exact amount is based on a sliding scale andindividual circumstances). They’re asked to submit a financial assistance application, along with their 1040 and W-2forms for the prior year, current pay stubs, and a completed household income and expense form. The requests arereviewed semimonthly by NAC’s financial assistance review committee, which consists of the club’s owners, generalmanager, general counsel, and director of charitable giving.
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Worthington made use of every avenue and platform available, pleading the fair-competition case in person, and bytelephone, mail, and e-mail. He put the clear, unambiguous facts before the board of supervisors, the Newtownchamber of commerce, and the local business association. ‘We’re a $7-million-a-year business with 300 employees,and pay $300,000 a year in taxes,’ he says. ‘A new Y could conceivably reduce our gross revenues by 7%-10% and, if we were to drop below the $6-million level that would wipe out our profits.’ NAC initiated a letter-writing campaign toeducate town supervisors, local business organizations, and the Y’s board of directors and steering committee, andWorthington and Mitchell contacted local newspapers to discuss the controversy. The following month, in April, the Yreported that an initial phone survey had revealed a positive interest in the proposed facility, but said that it wanted
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