As hundreds of young people swam, exercised and lined up for the massive sliding board at C.V. Starr Aquatic Center for the free reopening day on July 28, Dr. Richard Miller was contemplating his proposed purchase of Fort Bragg”s oldest health club across town.
Miller has made an offer to buy the foreclosed and shuttered Redwood Health Club in escrow, with hopes of opening as soon as October. The offer has been initially accepted by Savings Bank of Mendocino County, but first it must clear escrow.
“Richard and I are exploring the possibility of bringing the health club back into viability,” said Mike Dell”Ara, of Caspar, a former Mendocino Coast Hospital Board member.
The two senior citizens love their Redwood Health Club and what unique services it can offer again to a mostly adult audience.
Miller says it”s obvious he isn”t getting into the health club business for the money.
“Oh, no it is a very shaky business; I”m just doing it to help the community and I want the club to stay. It”s been a failing business.”
Redwood Health Club has much to offer, including top quality racquetball courts, which are the only courts for the sport in the area and attract tournament players from around Northern California. It has a hot tub and dry and wet and steam rooms in both men and women”s locker rooms, none of which is found at C.V. Starr.
Redwood Health Club was started in the late 1970s by dentist Michael Golden. Golden sold it shortly thereafter to Don Pollard, whose ownership came to an end less than a month ago on June 30 when the tax and mortgage deficient property was foreclosed upon by Savings Bank of Mendocino County.
The buyers aren”t disclosing their purchase price they have agreed upon with the bank, which is a short sale (less) on a bank and tax debt of about $1.2 million. Although the two men have put in a bid less than the debt, the price has been going up since.
“There is a lot of deferred maintenance. It needs a new roof and exterior signing. What looks like a cheap price to start costs a lot more when you get into it. The challenge is to compete against the Starr Center, to find a unique way to do so,” said Dell”Ara.
“When the Starr Center came in they lost about 60 percent of members; that is when things started getting rough with them,” said Dell”Ara.
Miller said he didn”t know the club was in foreclosure when Pollard posted final closure notice in mid-June. Once he heard, he set out to reopen the club.
A big hope is that Miller and Dell”Ara can bring Larry Hinson on board as manager. Hinson has wanted to buy the Redwood Health Club for many years. He tried to buy Redwood Health Club even before he opened his own Mendocino Sports Club on Highway 1 a decade ago. He said he would have a comment if and when a deal with Miller can be worked out.
Hinson tried to buy the club again earlier this summer, but was unable to work out bank financing. The two clubs would be merged, if the deal can be made.
Dell”Ara and Miller said having one less club might help them compete with the sales tax-subsidized Starr Center.
Dell”Ara had a career in the ownership and management of manufacturing businesses, mostly in the Willits area. Miller, who has a Ph.D., began the present Wilbur Hot Springs Sanctuary for the Self in 1972 combining the safety and security of the pristine Wilbur springs environment with a modern personal mind-body health philosophy in a clothing-optional environment. Miller is founder and CEO of Wilbur Hot Springs Health Maintenance Organization providing healing, prevention, and health maintenance. As the founder of the internationally acclaimed Cokenders Alcohol and Drug Program, Miller integrated his techniques of humanistic psychology and psycho-physical fitness training with social model rehabilitation. During the 1980s, Miller helped detoxify over 1,500 people at Wilbur Hot Springs, according to his Wikipedia entry, which Miller said was accurate.
Another possible moneymaker is water therapy. C.V. Starr was supposed to be the site for water therapy from the hospital and other physical therapists, but that never happened.
There is currently no place for water therapy on the Coast. The Redwood Health Club not only has hot water to help with therapy, the pool has been kept at 84 degrees warmer than usual to suit its mostly adult audience.
But the deal is far from sealed. An escrow is an accepted offer. Buyers and sellers are then given a certain time, in this case 90 days to work out any financing, do inspections of the structure and title.
Escrows fall apart for a variety of reasons, including the buyers being unable or unwilling to make the deal.
Dell”Ara said even if the health club isn”t the best imaginable investment and the purchase could be done to the thrill of many, it has to make enough money to operate in the black.
“We have to prove to ourselves this can work,” said Dell”Ara.
