City Council approves making December lease payment for Bardwell Aquatic Center before June 1

Plymouth Clerk-Treasurer Lynn Gorski told members of the City Council that she received an invoice on Monday from Marshall County Health & Wellness Center.  The invoice for $72,000 is for the December 2025 lease payment for the Bardwell Aquatic Center and needs to be paid before June 1^st. 

She reminded members that in March of this year, the city was asked to make their June lease payment early to help keep the doors open, and the council agreed to make the payment. 

While a resolution was approved in 2022, which allows the clerk to make certain payments without council approval, including this lease payment, Gorski wanted their confirmation in the minutes since the payment is six months early.

City Attorney Jeff Houin said New Market Tax Credits were used to fund the pool project.  He said it has been seven years, and the financial structure will unwind in July, and the debt obligation will be completed.

Houin said, “Because of the requirements of the New Market Tax Credits structure, it would be catastrophic if you were to not accelerate this December payment to June.  It’s the very last payment, and you don’t want to jeopardize the city’s credit rating and financial status by missing the last payment over a seven-year structure.”       

Councilman Dave Morrow questioned what happens beyond 2025, and Houin said the 25-year lease remains in place, with 18 years left on the lease. The lease required two payments every year, one in June and one in December.  Each payment is $72,000, and the next payment won’t be due until June 2026.

The attorney said Mayor Listenberger created a committee that has reformed the “We Love Swimming LLC” entity that operates the facility, and they are making some fantastic progress.   The LLC will participate in a council meeting in the next couple of months to update the city on operations and the changes being made to keep the aquatic center active. 

Houin said, “Legally, the obligation of the city is to continue making twice-a-year payments under the current lease agreement in June and December.” 

The Plymouth Common Council unanimously approved the accelerated payment of the lease for the Bardwell Aquatic Center.