Tight times are pushing leaders in Lansing, Michigan, to seek a private owner to operate three city-owned cemeteries.
According to media reports, the city initiated a bidding process in 2011 for cemetery privatization. Only one company, StoneMor Partners, LP, responded. Under the terms of the firm’s proposal, StoneMor would take over all operations for the cemeteries, including sales, proceeds, maintenance and contracts.
StoneMor, which is the second largest cemetery operator in the U.S., structures its deals to, “Lower and cap a city’s negative cash flow in the first couple of years, moving towards cash flow positive by year three or four,” said Paul Waimberg, VP Finance and Corporate Development, StoneMor Partners.
Two years ago, StoneMor acquired nine other cemeteries in Michigan.
“In many cases, municipalities can’t sell their land, so we work out an arrangement—typically for 10 years or more, to operate the cemetery only, not take ownership. Often times, within the first year or two, we improve the bottom line by increasing revenues and operating the cemetery in a more efficient manner,” said Waimberg.
Click here to read the original coverage on the move. Details on StoneMor Partners can be found here.