on Buying the Grand Hotel: an Editorial

TO: Editor
Sheboygan Press
632 Center Ave
Sheboygan, WI 53081

RE: Buying the Grand Hotel

Dear Editor,

The Sheboygan Press recently printed a letter from a concerned citizen regarding The Salvation Army’s campaign to expand its present facilities. It is wonderful to hear from the community and The Salvation Army appreciates the community support it has always depended upon.

Buying the Grand Hotel/Howard Johnson property is not a new idea. The Salvation Army has looked at the building every time it has come up for sale, including the most recent real estate listing of over $2 million. We have taken tours, spoken with owners, had discussions with city officials and board members and calculated budgets. We have always concluded that it is not the best plan to acquire that particular piece of property.

There are several reasons for this decision. First, the cost is prohibitive. The Salvation Army conducted a financial feasibility study for a possible $6 million campaign. The consensus was that The Salvation Army could raise $3.5 million. With an upfront purchase cost of over $2 million there would be approximately $1.2 million that could be put into direct renovation.

All programs would need to move to the new building. Renovations would not only need to accommodate the shelter and medical clinic – the main components of our present new building, but also the Saturday feeding program, food pantry, youth program, all offices, chapel and classrooms.

Secondly, The Salvation Army would not be able to afford the annual operating costs associated with a building the size of the Grand Hotel/Howard Johnson property. Comparing existing operating expenses with the calculated future expenses in our present expansion project, The Salvation Army feels it can do what it needs to do while maintaining minimal addition to operating expenses.

A third reason is what to do with The Salvation Army’s existing property? It would need to be sold, but could that be done in the present economy? We believe that it is too risky at this time. We also need to consider the ramifications of removing a very viable property from the Sheboygan tax base.

I want to assure the community that The Salvation Army has many checks and balances that assist us in thinking projects like this through. Much thought and discussion has gone into the present plan to buy the US Bank parking lot, build a new shelter and renovate the existing structure.

The Salvation Army appreciates any ideas that help improve what we do and encourages the citizens of Sheboygan County to call, write or e-mail us so that we may have a meaningful dialog for the community’s future. Please join us in the “Agents of Hope-Building Compassion” Salvation Army’s Capital Campaign. The Salvation Army needs all of Sheboygan County’s support to make this a truly worthwhile project a reality.

Sincerely,


Alan Hellstrom
Major
The Salvation Army - Sheboygan