BSA Mortgages Philmont Scout Ranch

[desertrat77]

From Ministrywatch.com:

"The Boy Scouts Mortgage their 'Crown Jewel'"

"According to documents obtained by MinistryWatch.com the Boy Scouts of America has mortgaged Philmont Scout Ranch, one of the BSA’s largest and most valuable properties.

"The Boy Scouts filed the mortgage in Colfax County, New Mexico, where Philmont is located, on March 21, 2019.  The filing was recorded on April 3, 2019.  The document places a mortgage on the entire Philmont property – which covers more than 140,000 acres, or about 220 square miles – in northeastern New Mexico.  The mortgage also includes “all improvements” to the land.

"Philmont has been called the “crown jewel” of Scouting.  More than 1-million Scouts and their leaders have attended Philmont since its founding.  A typical year has about 22,000 campers plus about 5,000 adults and their families attending the training center.  Philmont is also home of the National Scouting Museum, visited by thousands of tourists each year.

"The mortgage is held by JP Morgan Chase Bank.  The terms of the deal are complex and depend on a number of factors, but the filing states that “the lien secured by this Mortgage shall not at any one time exceed $450,000,000.”

https://ministrywatch.com/the-boy-scouts-mortgage-their-crown-jewel/?fbclid=IwAR0lXqWsp2RQe7QCvODR0M2uxWHF2qX42Y2cKLyyMnbkAlretKwtkD7BQ5M

__________________________________________________________________

- Link to legal documents is in first paragraph of article (signed by Michael Surbaugh in March 2019)

- Also reported on in World Magazine:  https://world.wng.org/2019/11/a_desperate_move?fbclid=IwAR1mpVF-mvJRhV9qS7YzMNIfHppM1gfm25xYAwL8-57_8L2Tdeao4rJ78us

 

Edited November 18, 2019 by John-in-KC
Changing the Title

[prof]

OUCH!

[RememberSchiff]

So at a quick glance of OP document, this is rob Philmont to pay Bechtel?   

Edited November 18, 2019 by RememberSchiff

[desertrat77]

2 minutes ago, RememberSchiff said:

So at a quick glance of OP document, this is rob Philmont to pay Bechtel?   

@RememberSchiff, my impression is "in part."  I think National is cash-poor in just about every category....

[le Voyageur]

They've been burning money at Betchel like drunken sailors in a liberty port.  Should of saved a few bucks  and supported a nearby by Council that has 16 000 acres of playground... 

[RememberSchiff]

So signed in March, 2019, was this discussed at the National Annual Meeting last May, 2019? Seems rather important...

Edited November 18, 2019 by RememberSchiff

[Pale Horse]

1 hour ago, desertrat77 said:

From Ministrywatch.com:

"The mortgage is held by JP Morgan Chase Bank.  The terms of the deal are complex and depend on a number of factors..."

Then they probably should have consulted a real-estate attorney to explain it to them instead of publishing a story they don't understand. This transaction appears to be nothing more than updating and increasing the Line of Credit that BSA has been able to draw upon (with Philmont being the collateral) since 2010.

 

[Jameson76]

Just now, Pale Horse said:

Then they probably should have consulted a real-estate attorney to explain it to them instead of publishing a story they don't understand. This transaction appears to be nothing more than updating and increasing the Line of Credit that BSA has been able to draw upon (with Philmont being the collateral) since 2010.

 

Question is - what is the plan (if there is one) to rather than live on a Line of Credit, actually be somewhat revenue neutral.  Agree with the Summit burning money like a drunken sailor

[SubSM]

All this talk of drunken sailors... it's like y'all have met some before.

Revenue neutral is the best way to go.

 

Mike

[JoeBob]

That ought to cover exec salaries for another what, five years?

[Jackdaws]

Anyone know recent years attendance #'s?   The fires out there effectively cancelling one year and this years Jambo had to have hurt attendance. 

[John-in-KC]

First, thread title edited. 
 

second, my late Dad was a CPA. When he discovered businesses were borrowing for operating funds instead of capital growth, he’d get out of any positions he held in them forthwith. 
 

I pray the National Council does not need these funds for operating revenues. If they do, BSA is on some form of borrowed time. 

Edited November 19, 2019 by John-in-KC

[Jameson76]

15 minutes ago, Jackdaws said:

Anyone know recent years attendance #'s?   The fires out there effectively cancelling one year and this years Jambo had to have hurt attendance. 

Banner year for the ranch.  You had normal traffic, those that signed up in 2017 for a 2019 trek.  Then you have some of those cancelled in 2018 who filled in for 2019.  Maybe 25,000, (typical is maybe 22,000) but that may not be accurate.  Much of the loss will never be recovered.

In our case we had 24 Scouts and Leaders signed up for 2018.  Many did our hurried up Adventure Trek and called it good.  We had 4 from the 2018 group plus 4 others not signed up for 2018 attend this summer.  We will have 2 of the 2018 attend in 2020.

So in a very small sample, of the original 24 - 6 will do a 12 day Philmont trek.  That is 25%

Edited November 18, 2019 by Jameson76

[desertrat77]

On the camping headquarters side, over 24K backpackers attended Philmont in 2019 (treks, Cavalcade, OA trail crew, Rayado, etc.).  This was a record summer.

I don't have good numbers for the Training Center side of the street (training, family adventure).  From what I hear, sign ups were pretty sparse.

Edited November 18, 2019 by desertrat77

[Jackdaws]

Hmm sounding like a case of robbing Peter to pay Paul then.   Hopefully not though.