Community Center Investment Options City CouncilOctober 25, 2018

*Showing percentage of 4’s and 5’s on a 1 to 5 scale with 1 being strongly disagree and 5 being strongly agree.

67% 66% 65% 63%54%

39%

0%

20%

40%

60%

80%

100%

I support building a newcommunity center in the

location of W. 98th St andLogan Ave near Bloomington

Civic Plaza.

It is a good idea for the Cityand YMCA to partner on ajoint community center.

A new community center willimprove the quality of life in

Bloomington.

Bloomington should have anew community center to

replace the existingCreekside Community

Center.

YMCA membership feesshould be charged to offset a

portion of the operationalexpenses.

The value of my property willincrease by having a new

community center.

Residents Resident Don't know

Only asked of those living within the city of Bloomington.N = 233 Resident

Market Research Findings

Market Research

3% 11% 31% 31% 21% 3%

Definitely join Probably join Maybe joinProbably not join Definitely not join Don't know

Likelihood to join proposed facility

N = 276 Member; N = 303 Resident

45%

Obtainable PotentialMemberships

4

Maximum Potential

Memberships

Obtainable PotentialMemberships

40% of definitely joiners 20% of probably joiners 10% of maybe joiners

100% of definitely joiners 100% of probably joiners 100% of maybe joiners

Obtainable Potential Memberships

• YMCA transfer memberships: 1,500• New resident memberships: 2,637• Total Memberships: 4,137

Potential Added Membership Based on Likelihood of Joining

Option A: City-YMCA Partnership

$76 M (Operational 20 yrs)

YMCA Operations and Scholarship

INVESTMENT $99.5 M (+/-) (Total Project)

Shared Responsibility

$ 18.5 M(+/-)Bloomington

$23.5 M (+/-) (Capital)

$5 M (+/-)YMCA

$81 M (+/-)

YMCA Investment

YMCA Operational Investment (20 years)

Avg. Operational Savings from YMCA : $800,000/ yearScholarships: $300,000/year

Does not include the Operating Shortfalls which the YMCA would bearHard Cost: $325/sq. ft.

OPERATIONSY=$60M+City= $0*

REINVESTMENT/REPLACEMENT

Y=$16MCity=$0*

CAPITALY=$5 M

City=$18.5M

UPFRONT INVESTMENT

LONG TERM RISK/INVESTMENT

*Motor Vehicle/Public Health not included

INVESTMENT SUMMARY

In the long run…YMCA

Invests $81M Carries Operational Risk

City Invests $18.5M*

*Excludes operations and reinvestment in public health/motor vehicles

Option B: City-only Enterprise

Operational Analysis2015 Community Center Needs Assessment

Category Facility BudgetExpenditures $2,075,541Revenues $709,790Difference ($1,365,751)Recovery percentage 34%

Metro ComparisonsEagan Eden Prairie Shoreview

70,000 square feet 175,000 square feet 130,000 square feet

Gym, fitness areas,walking/running track, meeting rooms, indoor playground, coffee shop

Gym, fitness areas, walking/running track, indoor playground, meeting rooms, 3 ice rinks, aquatics

Gym, fitness areas, walking/running track, indoor playground, water park, meeting rooms, concessions

500,000 annual visits 850,000 annual visits 600,000 annual visits

2,000 memberships (approx.) 3,000 memberships (approx.) 3,000 memberships (approx.)

2017 Operating Budget ActualsRevenues: $3,051,962Expenses: $2,445,973Net gain/loss: $605,999

2017 Operating Budget ActualsRevenues: $4,520,132 Expenses: $4,653,636Net gain/loss: ($133,504)

2017 Operating Budget ActualsRevenues: $3,016,067Expenses: $2,706,822Net gain/loss: $309,245

Community Center Considerations

• Integration model for partnership in shared facility• Inclusion of City operations• Financial considerations• City Plaza compatibility• Staffing and programming

Potential Funding Options

• Bond referendum • Property tax abatement• Lease revenue bonds • Conduit debt• Charter bonds • CDBG grants• Local option sales tax • Franchise fees• Property sale • Energy and tax credits• Naming rights • Donations

Discussion

Construction and Operations Options:

A. City-YMCA partnership

B. City-only enterprise

C. Other alternative or model