COUNCIL AGENDA ITEM
SUBJECT: YMCA Operational Plan
DEPARTMENT: Administration
SUMMARY: The Edgewater branch of the YMCA has suffered severely reduced revenues during calendar year 2020 due to COVID - 19 to the point their administration may be forced to close operations. In an attempt to keep this course of action from occurring, their management is proposing changes they believe are a sound way of keeping operations in Edgewater going and the building open.
Among other things they want to try is moving to a 24 hour, seven day a week operation (24/7) to compete with all other gyms in the area. At their expense, they are willing to install a new card lock system for the exterior doors and a surveillance camera system for patron safety. This change is planned to begin on September 1, 2020.
They also want to institute a new monthly membership program whereby patrons can use the wellness room (gym/weights) room for a flat monthly fee of $10; again, to compete with all other gyms in the area. Management estimates 80% of their current $30 per month members will enroll in the new $10 per month plan, which will result in a loss of revenue equal to $24,384 annually or $2,032 monthly. They are hopeful the new programing will assist in recruitment of new members to make up the difference. In this scenario they would need 203 new memberships to make up the shortfall.
While at the time of this writing they are current with rent payments owed to the City, they are requesting consideration of reimbursement of two months paid rent for 2020 (representative of the two months they were required to be closed), or a total of $7,558.34 to assist with anticipated shortfalls during fiscal year 2021. They are also requesting a monthly reduction in rent for all 12 months of fiscal year 2021 of $2,000 or $24,000 total or until their operations return to breakeven or better. City staff cannot support this recommendation because the length of the requested forbearance is vagu...
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