Future of Cherry Hill Golf Course Discussed

Report on the Meeting of the Amherst Finance Committee, September 3, 2024

by Art and Maura Keene

This meeting was held over Zoom and was recorded. It can be viewed here.

Present
Bob Hegner (Chair, District 5), Cathy Schoen (District 1), Andy Steinberg (at-large), Mandi Jo Hanneke (at-large). Nonvoting members: Bernie Kubiak and Thomas Porter.

Staff: Athena O’Keeffe (Clerk of the Council), Melissa Zawadski (Finance Director), David Ziomek (Assistant Town Manager), Reynaud Harp (Recreation Director), Holly Drake (Comptroller)

Public Comment

Three members of the public offered comment, all in opposition to the Jones Library project. Janet Keller asked the committee to “consider the long-term costs of expanding the Jones Library and competing critical needs to repair and replace other Town buildings, roads, and infrastructure.” Maria Kopicki wondered how the committee would “square the circle” of a project costing $7 million mo43  than authorized borrowing with value engineering far less than that amount. Arlie Gould expressed concern over the loss of the Historic Tax credits and high risk of losing NEH and HUD grants totaling another ~$2 million.

Finance Committee Receives Limited Update on Jones Library Building Project
The committee had last discussed the Jones Library Building Project prior to the Town Council’s vote in December 2023 to authorize an additional $10 million for a total of $46.1 in debt authorization for the project. Since then, a single bid was received in April 2024 that was rejected because it was nearly $7 million higher than the authorization. The Library Trustees and Town Manager gave the go ahead to ask for a six month extension from the Massachusetts Board of Library Commission (MBLC) to pursue a rebidding process this fall after value engineering to decrease the cost. The Town Manager signed a contract with the design team from Finegold Alexander Architecture (FAA) for approximately $500,000 to do the redesign with the understanding that the town would be reimbursed from the Jones endowment. An original value engineering list approved by the Jones Library Building Committee totaled ~$2.9 million but approximately half of that has since been reinstated due to concerns of donors, the Design Review Board, the Planning Board, and the Amherst Historical Commission. It has also come to light that $1.8 million in Historic Tax credits that have been counted toward fundraising have been denied  (twice) by the Massachusetts Historical Commission. The library remains $900,000 in arrears of its promised $2 million reimbursement to the Town due at the end of January 2024. None of these developments were discussed at the meeting.

Finance Director Melissa Zawadski provided a single document which she stated was based on information provided by the library team. The figures provided indicated that nearly $7 million was still needed in fundraising to reach the $46.1 million cost estimate (they did not account for the bid that came in ~$7 million over that). The Community Campaign and Foundation and Corporate Funding lines included both pledged and received monies.

Chair Bob Hegner asked about the federal grants listed that total $2.1 million from NEH and HUD saying that “my understanding is that the library is basically in the process of redoing their paperwork to get these grants”. Resident member Bernie Kubiak argued that “These shouldn’t be considered at risk because they’re not. They can still get them and in fact the state historic commission could even change their minds [about rejecting the historic tax credits] if they choose.” 

Cathy Schoen disagreed, noting that the grants require a Section 106 review and inquired about its timing. She said, “One of the advisements on the federal site is make sure you go through that review before you sign a contract for the building, you can read it as before you go out to bid, because if there’s something you could change you might put it at risk.” Zawadski did not have the answer and Hegner suggested that the information could be provided at the Town Council meeting on September 9. 

Hegner indicated that he had  expected that someone from the library would attend.

Kubiak argued that the current state of project finances should not be a concern of either the Finance Committee or the Town Council at this time. He  suggested that the library trustees are elected officials, know what they are doing, and should be trusted to manage the project. Kubiak bemoaned the growing criticism and questioning of the project, suggesting that the trustees should be trusted to do the work they were elected to do. He concluded,   “They [the Library Trustees] understand what the limits are and I think they would admit that if the prices are out of control, the project is moot.”

Schoen countered that “the council does need to be financially accountable to the taxpayers” noting that if the current estimated cost exceeds the $46 million authorization or “if the $46 million has a bigger fundraising gap because the funds haven’t come in, the town is the one who’s going to be at risk.” 

Finance Committee Discusses Cherry Hill Golf Course Update
Recreation Director Rey Harp was asked to provide an update on the finances of the Cherry Hill Golf Course. He reported that the course “is making money right now and  revenue is coming in in advance of those of of expenses”. He noted that the high usage during the pandemic has come down since “but we were able to not not lose that much over the course of the last few years in terms of in terms of active play. We’ve been trying to be creative about using the space offseason.” 

Data was shared showing that revenues have exceeded expenses since 2021. Hegner, however, noted that if capital and fringe benefit expenditures were included, “it doesn’t look like you’re making money you’re actually losing a little bit”. He calculated losses of  $177,000 in 2022, $58,000 in 2023, and $37,000 in 2024 and encouraged trying to find ways to increase revenues. Mandi Jo Hanneke agreed that there seems to have been some improvements in revenues but asked larger questions: “Should we as a municipality be running a golf course?” and “What other uses would this land have?”. 

Harp responded by pointing out that the purchase of the course predated his tenure and saying that “My interest as the director now is to is to allow that asset to grow as much as I can and to make money off of it” adding that “If the town told me that it wasn’t in our best interest financially in terms of business’ sake, then I could make a pivot away from it, but as long as we have that asset, as long as that’s underneath Recreation, we are going to continue.” 

Harp also made the case that the facility attracts and serves a diverse demographic. “Cherry Hill is not a course that operates for the town elites. It’s not a place that big money comes in to sort of do big money stuff.” and “If you go out there and run through the parking lot, you will see a really interesting cross-section of a bunch of people who don’t do other things with the town.”

He also noted that reductions in staff to protect revenue “put a lot of strain on the people who work there – on our ground staff and on our clubhouse staff” but that “as much stress as it gives us, we think that we’re bringing in money and we’re doing the best of our service that we possibly can. So I defend it because it’s ours, but I also defend it because I think it fits a mission that we can all get behind.”

Schoen supported Harp’s work saying “I think it’s a pretty amazing resource and the management of it,  the expense line has not just stayed down, but it’s lower than it used to be” and noted that the facilities were well used and used as a selling point to live in North Amherst.”

Andy Steinberg expressed some concern that “the projected 2025 budget looked a little worse than prior years as far as the balance between revenue and expenses.” 

Dave Ziomek added “My worry is what happens when staff turns over, what happens when we get retirements? Can we hire people and expect the same kind of commitment that we have there now?”

Zawadski and Holly Drake pointed out that because the operations of this type of facility are so weather dependent, they are very conservative with projections so the figures for the upcoming year may make them appear worse than they will be. 

Hegner asked Ziomek to look further into the demographics of users to see “If we’re not just serving one narrow slice of the the community or we’re serving a broader spectrum of people.”

SHANGHAI, September 06, 2024–(BUSINESS WIRE)–Ant Group today unveiled its AI financial manager, Maxiaocai, at the 2024 INCLUSION·Conference on the Bund in Shanghai. The AI personal financial manager can be accessed via the Alipay app and the Ant Fortune app. The launch of Maxiaocai follows the introduction of the company’s AI life assistant, Zhixiaobao, and AI Healthcare Manager at the event, highlighting Ant Group’s latest progress in applying AI technology in consumer-facing use cases.

Maxiaocai leverages Ant Group’s self-developed foundation model capabilities and partners with financial institutions to deliver expert-level, customized financial services for users. It offers tailored market insights, simplifies complex financial concepts, and provides personalized investment advice. For instance, Maxiaocai can swiftly generate visual summaries of company financial reports, highlighting key details for users, and breaking down intricate financial terms into easy-to-understand language.

“Financial products and services have traditionally demanded a high level of expertise, often making them costly and difficult to access. Today, AI can help make these services more accessible for everyone,” said Wang Jun, President of Ant Fortune. “The successful delivery of AI-driven financial services depends on a robust ecosystem involving financial institutions, service providers, and content creators. Moving forward, closer collaboration across the industry will be crucial in enhancing the accessibility of financial services.”

Ant Group has been public-testing the AI financial manager since early 2024. As of August 2024, it has attracted 70 million monthly active users, with 45% of them living in cities below the third tier. Over 200 financial institutions, including asset management companies, securities firms, financial media, and more than 15,000 financial content creators, are now connected to the platform.

“By putting users at the center, AI helps investors organize the information they need and delivers personalized services,” said Wang Xiaohang, Vice President of Ant Group, CTO of Ant Fortune and Ant Insurance. “Generative AI technology not only enhances how investors interact with financial management services but also transforms the services themselves. By leveraging AI models tailored to professional service sectors, and with the model’s powerful capabilities in general knowledge, understanding, and communication, Maxiaocai can seamlessly integrate financial products, market information, and other services on the Ant Fortune platform, making digital professional financial services accessible to all.”

Story continues

About Ant Group

Ant Group aims to build the infrastructure and platforms to support the digital transformation of the service industry. Through continuous innovation, we strive to provide all consumers and small and micro businesses equal access to digital financial and other daily life services that are convenient, sustainable and inclusive.

For more information, please visit our website at www.antgroup.com or follow us on Twitter @AntGroup.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240905719583/en/

Contacts

Media Inquiries
Yinan Duan
duanyinan.dyn@antgroup.com

Investors are increasingly confident the US economy will achieve a “soft landing,” a scenario in which higher interest rates lead to lower inflation without a major hit to economic growth.

On the surface, it appears all signs point to that outcome. Inflation has eased. The economy is still expanding. Consumer confidence has risen. Retail sales are healthy. Corporate profits remain strong. And stocks continue to hover at record highs, with the Federal Reserve on tap to cut interest rates as soon as its next meeting on Sept. 18.

But one strategist warned on Yahoo Finance’s “Stocks in Translation” podcast that there are cracks under the surface.

“We’re skating on ice that’s a bit thinner than a lot of people presume,” said Michael Darda, chief economist and macro strategist at Roth Capital Partners.

Darda pointed to a rising unemployment rate and elevated earnings expectations, both of which contributed to the stock market routs seen at the start of August and September.

“It’s not unprecedented to have a slowdown period that looks like a soft landing, and then a recession ends up taking shape,” he said. “That’s sort of unexpected now because many have been lulled into this idea that the soft landing is going to be a permanent state of affairs for the business cycle. Equity market valuations reflected that coming into the summer.”

“But there’s been some cracks in the business cycle,” he cautioned, noting expectations for the economy, corporates, and the stock market have remained at “super high” levels.

To that point, the S&P 500 shed 2% on Tuesday, dragged down by the tech sector after Nvidia (NVDA) earnings didn’t deliver enough of a beat to satiate investors’ appetites. Stocks seesawed in the subsequent days as markets struggled to find their footing following the sell-off.

“What’s unfolding now actually makes a lot of sense to me,” Darda said of the pullback. “We’re seeing companies that had been soaring off of repeated beats on either revenues or earnings not do so well in this most recent period.”

The recent drawdowns point to how the current market — one in which investors consistently chase hot stocks and hot areas like artificial intelligence — can be a “dangerous” game, according to Darda.

“What that tells me is that the expectations have just gone up so much. It’s impossible to beat expectations indefinitely. Eventually they’ll catch up,” he said. “We’re in a bit of a frenzy here. And if things start to go wrong, whether it’s the earnings not living up to expectations or the business cycle faltering, that’s when you see stock markets roll over in potentially a material fashion.”

Story continues

‘Choppy waters’

But it hasn’t just been earnings. The jobs market is also telling a particular story.

Last month, the July jobs report spooked markets after unemployment unexpectedly rose to 4.3%, its highest level in nearly three years. The move higher also triggered a closely watched recession indicator known as the Sahm Rule.

The rule, which has accurately predicted recessions 100% of the time since the early 1970s, measures the three-month average of the national unemployment rate against the previous 12-month low. It’s triggered when unemployment rises 0.5% from that level.

Traders instantly panicked that the economy was slowing more than anticipated. But then the debate ensued: Why was unemployment suddenly seeing an uptick?

Economists and strategists began to lay out the possible scenarios, including a theory that above-trend immigration is driving up labor force participation rates, therefore pressuring unemployment as more workers enter the jobs market. This eased investor fears as stocks rebounded to finish August with wins across all three major indexes.

But Darda said the rise in unemployment is still “a bit concerning.” And he’s not completely sold on recent bullish commentary that higher unemployment doesn’t really matter as long as the economy keeps growing.

“4.3% is still an incredibly low unemployment rate level that looks quite good in the historical context,” he explained. “The problem, if there’s a problem, is that we’re up to 4.3% from a cyclical trough of 3.4%.”

“Those kinds of movements and the level tell us that the economy, if it’s still growing, is growing below trend or below the growth rate of potential,” he said. “There’s an exceptionally fine line between that and an actual recession.”

Investors will receive another update on unemployment Friday with the August jobs report on deck. Darda said that report could likely lead to even more market volatility in the weeks and months ahead.

“I do think we’re probably in an environment now where volatility is going to stay elevated,” he surmised. “The risk of a more material pullback and/or correction is quite high.”

Ultimately, his view is one of caution: “With what we saw for the last two years with this market backdrop, from these valuation levels, and based on where I think we are in the business cycle, I think we’re going to be in choppy waters for a little bit.”

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance