“In the years I’ve been mayor, this is the largest crowd I’ve ever presided over,” said Mayor Kedley at the City Council meeting Tuesday night. “Sincerely, it’s upliifting to see people taking part in the process.”
A dozen extra seats were added to the chambers for the meeting, but there were still people standing in the hallway in anticipation of the cost estimates for the proposed recreation center.
Public comments
At the beginning of every City Council meeting, members of the public are invited to speak. With over 50 people in attendance, Mayor Kedley limited the number of minutes each person would have at the podium.
“I’m going to try to keep it to about two minutes per person, just to be fair, so we’re not here ‘til midnight. But we’d love to hear from all of you.” He said.
“It’s going to take away from people that have done a lot of work, fixed up buildings and paid taxes,” said resident Bruce Harris, though lifetime cost was a greater concern.
“You can build a facility without much trouble but keeping it open and not having it be a drain on the tax payers is a problem.” He said. “Having a healthier community and having a vibrant community that young people want to move into is a great idea. We could expand our programming [using the Hotel/Motel tax]... that would be a way of getting people involved without having all the money tied up in a brick-and-mortar facility.”
Shawn Johnson of J.E.T. Fitness had a somewhat heated discussion with Mayor Kedley on the risks a rec center would present to his business, as well as the other two privately-owned gyms in town.
“The city can afford to lose money... If it loses money, it can tap into the General Fund. In my world, that doesn’t work.” said Johnson. “I grew up here, went off and got a few degrees, came back and took a really big risk on opening up a facility — all privately funded.”
“I love the aspect of competing - as an athlete, as a business owner. With that, I have no problem with any private business coming in,” said Johnson. “I don’t think you’ll find any private business who will come in and build a $4.7 million facility. There’s a reason for that.”
Johnson took exception to the way the Mayor and the City Council have treated local business owners who might be affected by the project. No one reached out to see how the city and the gyms could work together to minimize the impact the project would have on their sustainability. Kidley was quick to remind Johnson of the many public meetings and hearings held on the topic that anyone is allowed to attend.
Councilmen Dennis Page offered up a few ideas that would encourage participation in local gyms and the Rec Center. Members of J.E.T. Fitness, Snap Fitness or Professional Physical Therapy Services, he suggested, might be able to use the Rec Center facilities for free. Other ideas invited gym owners to take part in the management of or programming hosted at the Rec Center. Johnson had some suggestions of his own.
“What if you use that money and you subsidize memberships to let citizens choose what facility they go to?” He asked the City Council.
“What happens if your facility goes away?” asked Kedley.
“Why would it? Where is your faith in local business?” asked Johnson.
Things got a bit heated, though Johnson was excused from the podium without incident, and there were offers from both sides to discuss the issue further at a later time.
Mel Miller, chairman of Osceola’s Park and Rec Board, commented on the social aspects available at rec centers which are sometimes missing from private facilities. Community programming keeps people active, from very young to very old. The discussion raised questions as to whether a needs assessment was figured into the current plan.
Additionally, Zach Woods, Lindsey Diehl and Michael Miller spoke in favor of the Rec Center, and Terry Keller, Gary Kimes, Crystal Locke, Michael Keller, Ryan Flaherty, Rod Clark and Doug Miller spoke opposed due to cost and competition with local business.
Cost estimation process
Earlier this summer, Hansen and Kitchell, the architectural firm hired for the initial design of the Rec Center, delivered specs to the City Council. The estimated cost of construction — at the highest end, according to Kedley — is $4.75 million. Organizers hope to raise the money largely through the Hotel/Motel tax, which does not raise property tax rates for locals.
What people were eager to see was how much the center would take to run.
Before delving into those numbers, Osceola City Clerk/Administrator Ty Wheeler went over the process he used in estimating expenses. First, visits were made to neighboring rec centers throughout Iowa, including the facility in Jefferson.
“Jefferson, which is probably the closest comparable facility that’s looked at here, the utility, maintenance cost, things like that, that’s fairly easy.. to project,” said Wheeler. “It’s the additional personnel costs. What I did was put together a simulated schedule of what coverage would look like.”
The model, based on similar centers, accounted for hours of 5 a.m. to 10 p.m., as well as one or two staff members, depending on the activities in place. Wheeler did not count Parks and Rec employees as Rec Center workers, as they’ll have their existing duties to manage.
Similarly, when it came to projecting revenue, fees for programs already hosted by Parks and Rec weren’t counted toward the Rec Center total. Membership fees and expected enrollment were a mix of comparing numbers from similar facilities and considering the statistics for the number of pool passes purchased last summer. There were 202 passes issued this year for individuals and families; 71 of them were part of the free pool pass program for low-income children.
It was a painstaking exercise that ultimately didn’t put many fears to rest. Projected revenues and expenses would leave the center with an estimated $50,000 annual deficit.
Council votes to support the project
Kedley pushed hard for an initial approval on Tuesday. Having a solidified plan and backing of the City Council is a key component to raising the funds needed to pay for the project.
“These are baby steps,” said Kedley, reminding the Council offering support to move forward was not the same as commiting the building just yet. Ultimately, a measure passed 4-1 in favor of moving ahead and tightening up the proposal while refining the details of the plan.
Councilman Doug Gay was the only holdout, and he reiterated that he does support building a Rec Center once there is a sensible plan of action in place.
“To me,” said Gay, “this is not the plan.”
He did, however, give Wheeler a suggestion which might have potential to save enough interest to offset some of those costs. As the plan stands, the City Council intends to lease-to-own the center at a higher rate of interest. Gay questioned the impact of utilizing a GeoBond instead. Wheeler supposed the interest could drop to one or two percent.