Legion faces financial crunch from rent loss

By on August 7, 2009

by Martha Quetsch
Elburn—American Legion Post 630 officials said their organization will be looking for another permanent tenant for the second-floor of its Elburn building, at 112 N. Main St., now that the village is terminating its lease of the space.

Before the village of Elburn began leasing most of the second-floor of the Legion Hall for the Building Department in 2005, the Legion rented the space occasionally to temporary occupants. However, that was not profitable, Legion member Norbert Lund said.

“We were looking for a more permanent tenant,” Lund said.

Legion Commander Wiley Overley said the result of the village’s termination of the lease will be a financial crunch for the Legion.

“What this will do is put us into a negative cash flow situation until we can rectify it,” Overley said.

The Legion will discuss marketing strategies for the rental space during its executive Committee Meeting Monday, Aug. 10.

Legion members also will talk about other ways the organization can cope financially with the reduction in revenue caused by the lack of rent from the village.

“We’ll live with it one way or another,” Lund said.

Lund said the Legion was able to get through the more than five-year period the space was vacant after its former renter, the public library, moved to its new space on North Street.

Eventually, if the Legion does not find a new tenant, it would have to liquidate the property, Overley said.

“But I don’t think that would be in the near future,” Overley said.

To cope with the financial loss from the lease termination, the Legion will look at ways to cut expenses during the coming months for the Legion.

“We’re going to have to suck it up just like everybody else,” Overley said.

The Legion owns its building. It uses its revenue, primarily from fundraising, to donate to veterans and community organizations, and to pay property taxes and operations expenses. He said the Legion receives some income from past investments, but that revenue “has taken a hit,” he said.