Illinois Valley YMCA plans improvements after Eakas sale

The Illinois Valley YMCA in Peru recently sold 80 acres to Eakas Corp. for $2 million. With those funds, the Y will erase $1.7 million in debt and, with the remainder, tackle some upgrades to its facility.

Chris Weittenhiller, CEO of the Illinois Valley YMCA, said Tuesday that a top priority is upgrading all four locker rooms – the adult men’s and women’s are the oldest and will get the most attention – plus flooring; ceiling repairs; repainting; and replacement of some countertops, sinks and toilets.

“We’re blessed to be in a position to complete the project,” Weittenhiller said. “We’re truly excited to be able to make these improvements for our members. We anticipate starting the project in early August with a goal of having all upgrades completed by the Tuesday after Labor Day. It will be our intention to have one male and one female locker room accessible to members throughout the project.”

As previously reported, Eakas plans “significant investment to expand [Eakas’] capability to include larger injection molding machines, a new state-of-the-art decorative finish line and increased warehousing to support new business awards from [Eakas’] customers,” according to a statement issued last month by Jeff Wagner, vice president of Eakas Corp.

“We anticipate construction and installation will last through the remainder of 2024 as we target completion in the spring of 2025,” Wagner had said. “This investment will create an unspecified number of new jobs; however, prior to completion, Eakas will commence with hiring and training associate members for production startup in July of 2025.”

Weittenhiller acknowledged that some of the YMCA’s projects were pending when he arrived three years ago, delayed by the pandemic.

“Like many businesses, the Y saw a significant decrease in revenue from lower membership numbers and limited programming being offered,” he said. “It wasn’t until March of 2023 that our membership surpassed pre-COVID levels.

“In 2023, we reestablished our Strong Kids annual campaign to raise funds to support our financial assistance program. As a nonprofit organization, the Y doesn’t deny services to anyone based on an inability to pay. Those who cannot afford Y membership and program fees can submit an application, and fees will be subsidized based on household income and the number of dependents in the household.”

The Eakas sale had been planned long in advance but was nonetheless timely because the YMCA still carries $3.5 million in debt – with an annual debt service of $240,000 – dating back to a 2006 expansion. One of the notes matures next spring, and the YMCA will use proceeds from the Eakas sale to pay it off.

“The majority of the funds have been invested to mature at a time and value that will allow us to retire one of our debts, and the remainder will be used for facility upgrades,” Weittenhiller said. “The remaining farmland will continue to be cash-rented for farming. Our remaining note, $1.8 million, matures in May 2030, and another property sale will likely be considered.”

One other change for Y members to watch out for is the transfer of the clinic space vacated by St. Margaret’s Health in summer 2023. Weittenhiller said St. Margaret’s withdrawal, followed by the rental agreement terminated in bankruptcy court, cost the Y $300,000 in annual rental revenue and left 15,000 square feet of vacant medical space.

Weittenhiller said the YMCA has listed the space with a commercial real estate agency, and the organization is hopeful to identify a tenant soon. OSF HealthCare, which acquired and reopened the Peru hospital, isn’t likely to fill the space anytime soon.

“The YMCA has a good relationship with OSF and their leadership team,” Weittenhiller said. “As the acquisition was taking place, we were in communication regularly. Their leadership toured our vacant facility but ultimately decided that utilizing this space wasn’t in their immediate plans. Although their needs could change down the road, the Y has to be proactive in getting this space rented or sold to recover the lost revenue.”