Buyers swoop on Hamilton's YMCA - but it's not for sale

Keen buyers have been swooping on the Hamilton City Council-owned YMCA facility - but elected members say sale talk comes as a big surprise.

The Herald understands the Waikato Kindergarten Association has been in discussions with council management since late 2011 and wants to buy the property.

Its board members were even shown around the Pembroke St site on Tuesday night.

The council's finance and audit chairman, Dave Macpherson, first learned yesterday morning of people looking at the ageing facility and said he couldn't find any evidence of giving staff the go-ahead to sell it.

Mr Macpherson said he and councillor Martin Gallagher were "embarrassed" and "shocked" when they met YMCA management yesterday and were told of their concern over the sale.

He said it was a big surprise given the council had voted against funding an indoor recreation centre in the long-term plan and earlier discussions had been around replacing the old one facility with a new one.

The YMCA is estimated to be valued at between $1.5 million and $2.5 million and the proceeds from the sale had been earmarked to go towards the new community sports facility.

He said the council had never given staff approval to sell the key asset and they should have told inquirers to "naff off" when they were approached. "The Y is not supposed to be being sold. There is no council decision to sell it."

Deputy Mayor Gordon Chesterman said he was unaware of there being a prospective sale until Mr Macpherson alerted him yesterday. "I have no particular view about it but I would support the sale for the purpose the money was intended for, which was the $20 million indoor sports facility."

Council management defended entering into discussions with potential buyers because the building is one of a number of facilities flagged for potential sale for the 2012/22 draft long-term plan. But that is yet to be signed off.

Leisure facilities manager Jason Rogers said the council had been fielding inquiries from interested parties because the Y was one of a number of council facilities, including three blocks of pensioner flats, the council had signalled would be for sale in the next 10 years.

"At this stage, with the YMCA, there has been general interest and information gathering from interested parties, and we're very clear with them any sale would be subject to a council decision following a detailed report on any sale options."

The city is facing a shortage of indoor recreation facilities.

The YMCA is already under pressure after the city council voted to remove its entire $90,000 operational grant from 2011/12.

The YMCA has objected to the cut and said it would have a direct impact on the services it provides.

UP FOR GRABS?
* The Waikato Kindergarten Association has been in discussions about possibly buying the YMCA site.
* It is estimated to be valued at between $1.5 million and $2.5 million.
* Proceeds from any sale would go towards a community sports facility.
* The Y site is one of a number of facilities the council has signalled may be for sale in the next 10 years.