RFP for NEXT on hold for more information
By Mark H. Stowers
The Birmingham City Commission discussed the resolution to proceed with the Request for Proposal (RFP) for the final design of a building for Next Senior Services, Phase 1, at their meeting on Monday, August 26, determining they need more information in order to proceed.
City manager Jana Ecker noted that more time is needed to gather more information since the decision to move forward with tearing down of the current space and figuring out the steps needed was just decided at the July 29 city commission meeting.
“We’re not there yet,” Ecker said. “We need to work with them more. We need more information and we are continuing to do that.”
After discussing the resolution and questioning representatives for NEXT and the YMCA, which has expressed interest in being part of the new building, the city commission decided to take no action on the resolution. They will wait for a September 9 workshop and see what it produces.
Ecker did meet with NEXT Executive Director Cris Braun, the current owner’s representative from Kramer Management Group and the president of the NEXT board.
“They provided us with a lot of legal and financial information on how much money they have, what legal entity they are, what governs their organization and what the boundaries are,” Ecker said.
There is an endowment fund, currently at $2.3 million, that is under the control of the board of directors for NEXT and can be used for capital improvements or programming. The organization is a non-profit, 501(c)(3) that fundraises and applies for grants and sponsorships. NEXT is now discussing the topic of taking on the operational costs of the new building, representatives have said. They currently do not pay those costs as they receive in-kind donations from the school district for rent and utilities and some IT services.
Regarding the YMCA partnership, they said they are exploring an option in Royal Oak. They would have to fundraise to pay for construction costs.
Ecker asked, “Do we bring them on? Do we do phased construction? All of these things are on the table right now. And any kind of formalized agreement with us would have to be taken to their boards for approval.”
Board members from NEXT were in attendance and Gordon Rinschler explained the money that NEXT has is in an endowment fund that fluctuates.
“It is not a sustainable resource,” he said. “If we use it for capital improvements, it’ll take us another 10 years or so to build it back up.”
During the discussion with president and CEO of the YMCA Metropolitan Detroit, Parrish Underwood, he explained the 501(c)(3) non-profit YMCA is working with Royal Oak, where they currently have a facility and own the land the facility is on, to build a new facility there. A 12-month agreement to talk and pursue the matter ends in November but Underwood said his understanding is that the agreement will continue. But he also said the YMCA wants to continue serving the community of Birmingham in addition to the other communities they continue to serve throughout metro Detroit.
“We have a mix of revenues that make our engine thrive. Our fee for service and our vehicle for fundraising on an annual basis,” he explained.
The YMCA does have a $7 million endowment, half restricted and half unrestricted, he said.
“The endowment is put in place for a rainy day in a sense,” Underwood explained. “I see all of it as restricted.”
The YMCA is excited to have a potential partner in NEXT and wants to continue to have a presence in Birmingham, Underwood said.
“I think there would be a great deal of support to raise the funds. And that creates a deeper ownership,” he said.
The city commission decided to take no action on the resolution. They will wait for the September 9 workshop and see what it produces regarding the project.
