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Question of the week
Q: I saw that CLI is advertising your event space at 16 West Main Street in this newsletter now. Why does CLI have spaces like 16 West & Kenilee Lanes? It seems like CLI shouldn't have spent the money to purchase those buildings.
A: Great question! The short answer is that there are 2 reasons why CLI bought those spaces and why we promote them as businesses. The first reason is that we believe that Ohio's new laws about community integration mean that we need lots of community spaces where we can duck in to use a wheelchair accessible bathroom and/or find privacy to get help eating a pureed lunch. It's really hard to get away from the segregated setting if you have to keep coming back every 2 hours to use the bathroom, etc. The second reason we bought them is that part of CLI's mission is to expand opportunities for everyone to do more community activities with other people. We've used all of our spaces to host lots of community events which has enabled CLI to build new relationships and help our clients have new opportunities.
As for why we rent the spaces out and/or operate them as a business-- that's easy. CLI needs more money and these spaces generate more money than they cost. We estimate that loans, taxes, and labor for 16 West Main Street cost CLI approximately $18K per year, but we generated approximately $23,000 in event rentals last year. That's $5k more than we spent and $5k more than we had otherwise. Kenilee Lanes operates as working bowling alley. Those operations cover the taxes, mortgage, utilities, and contribute another $25,000 back to CLI.
CLI's finances have been very tight for the last 4 years. Operating these extra side hustles is A LOT OF WORK-- but without this extra money, CLI would not havebeen able to stay in business.
We do get lots of questions about how we can afford to buy properties and/or vehicles. The short answer is that CLI's business operations require that we use commercial debt to a significant degree. We've never been fortunate to have any significant stockpile of cash. We've always had to operate according to reliable cash flow business fundamentals. That means if we want to spend more money on clients and staff and our community-- or even just stay ahead of rising costs-- then CLI has to keep finding new ways to make more money.
100% of the money spent in a CLI-owned business goes back to CLI. And if CLI ever sells an asset, 100% of the money left after we pay back the bank goes back to CLI too.
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