Exh 3BAGENDA ITEM #3B
FEBRUARY 26, 2001
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Report on feasibility of acquiring the property at 725 Atlantic
Boulevazd (Pic-N-Save) and forming a partnership with YMCA for
operation of a communityn
SUBMITTED BY: Jim Hanson, City
DATE: February 15, 2001
CHARGE: The resolution adopted by the City Commission at the regular
meeting of January 22, 2001 directed staff to "investigate the
feasibility of acquiring the property at 725 Atlantic Boulevazd and
present their findings to the City Commission for consideration."
Prior to the adoption of the resolution, staff members from the
Winston YMCA in Ponte Vedra made a presentation and
Commissioner Waters explained his proposal to establish a
partnership with the YMCA for operation of a community center at
the Pic-N-Save site.
FINDINGS: PIC-N-SAVE Building at 725 Atlantic Boulevard; An inspection
of the Pic-N-Saue Building has revealed several deficiencies. The
HVAC, electrical, plumbing and roof are inadequate in that the
building has been vacant for over four yeazs with no service to any
of the systems. The roof is leaking in several locations and the
facade at the front entrance has been leaking. The renovation of
this structure to meet current codes would likely exceed the cost of
building a new structure. The cost of new structures (stores) in our
area is approximately $55.12 per squaze foot. However, the cost
for construction of a new YMCA facility would be much more
because of the special features (gymnasium floor) and equipment.
YMCA; The Young Mens Christian Association (YMCA) is a
charitable, not for profit corporation established under Federal
SOlc3 guidelines. The national organization is over 150 yeazs old.
Each YMCA region is atominous and pays dues to the national
organization. The regional organization that serves the
Jacksonville azea is the "YMCA of Florida's First Coast" which is
governed by a local Metro Board. There are currently 1fi YMCA
facilities in the First Coast region.
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FEBRUARY 26, 2001
The Winston YMCA in Ponte Vedra is one of their newest
facilities. David 7ezek and Teresa Rogers are the managers. They
have both been very professional, helpful and interested in working
with Atlantic Beach to establish a YMCA here. They have been
familiaz with the needs of the area because of the portable building
in Russell Park, where YMCA programs were offered in the past.
Any decision to establish a YMCA in the Atlantic Beach azea would
be made by the Metro Board, and the Winston managers have
made the regional CEO Trigg Wilkes aware of our ongoing
discussions.
The Winston YMCA in Ponte Vedra was completed in June 1999
at a cost of 3.1 million dollars including land. Since then, a
outside pool has been added for an additional $850,000. The land
cost for the Winston YMCA was under $100,000. Indoor facilities
total approximately 30,000 squaze feet and include a full size
basketball court, wellness center (with weight machines, treadrnilis,
etc), spinning room, special needs locker rooms, conference room,
multi-purpose/aerobics rooms, a nursery (Kidzone), a teen room,
mens and womens locker rooms and administrative offices.
A loan was taken out by the YMCA for construction of the Ponte
Vedra facility with debt service budgeted at sightly aver $300,000
per yeaz. This construction loan covered a majority of the 3.1
million dollaz cost. Private contributions were also obtained to
cover the remaining costs of the Ponte Vedra facility. Campaigns
to raise private capital are common for new YMCAs. The
operating costs of the Winston YMCA, along with the debt
service is paid mostly by membership dues from individuals and
families. A flyer entitled "Winston Fanuly YMCA Membership
Rates" is attached.
It is common for the YMCA regional organization to conduct
feasibility studies prior to deciding to establish new facilities.
The YMCA has provided the City with a copy of a recent study
done in the 7ululgton Creek azea which includes many
important components needed to determine feasibility in a
specific local market. It includes a survey of azea
residents as to their desire to join the YMCA with specific
questions as to various programs (swimming workout
equipment, spinning, sports leagues, wellness programs, day
camps, etc). That information, combined with local census
data; is the basis for a projection of anticipated membership.
AGENDA ITEM #3B
FEBRUARY 26, 2001
From this projection, an estimate of revenues and operating costs
can be established. The Julington Creek feasibility analysis also
considered different locations in the area to determine the
suitability of each for the largest number of potential membets.
Existing Private Providers; Both Atlantic Beach and the
YMCA have already been contacted by representatives of local
private facilities that view a tax exempt YMCA as unfair
competition. Several other providers of similar health related
facilities exist in the Atlantic Beach azea and can be expected to
express concern over possible loss of customers if a YMCA
were built in our area. Staff from the YMCA have indicated
that opposition from private providers is common when new
locations are considered. The question of public interest comes
down to whether or not the existing private companies
presently provide or will provide the range of family related
programs that is typically available from a full service YMCA
center. News stories to date have generated a considerable
amount of public input in At]antic Beach, both for and against
acquisition of the Pic-N-Save property. Those opposed have
generally expressed a concern over the high cost and
affordability. Those in favor have mostly focused on having
facilities that do not presently exist available for community
activities.
POSSIBLE COST OF COMMUNITY CENTER IN ATLANTIC BEACH:
The asking price for the Pic-N-Save building is 2.5 million
dollars. The construction cost of the YMCA (including pool)
was just under 4 million dollazs. Thus, a `worst case" scenario
for construction of a community center in Atlantic Beach. would
be 6.5 million dollars. However, a number of factors could
decrease this cost. If any portion of the existing Pic-N-Sane
building could be used instead of total demolition, costs may
come down. Also, safe of some of the property fronting on
Atlantic Boulevard could have the effect of lowering the total
cost and the asking price for the Pic-N-Save property maybe
negotiable.. One additional cost not included above is for
demolition of the existing building.
DISCUSSION: Atlantic Beach alone could not afford to purchase the Pic-N-
Save property and construct a new community center in its
place. It has been suggested that a portion of the funds
anticipated from the additional''/Z sales tax from the Better
Jacksonville Plan could be used for this purpose. While it is a
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I'EBRUARY 26, 2001
legal expenditure of the funds, the anticipated $500,000 per
year to be received by Atlantic Beach would not cover the debt
service needed for this project. If bonds were issued for a
period of ten years with an interest rate of 5 percent, the
$500,000 per yeaz revenues would only equate to less than 4
million dollazs in bonds.
However, while the City of Atlantic Beach alone may not be
financially able to shoulder the burden, it may be possible to
utilize a combination of funding sources. These sources may
include the issuance of debt by the YMCA, a local campaign
could be conducted to raise capital funds from private sources,
the cost of acquisition for the Pic-N-Save property could be
negotiated down, other municipal or county sources maybe
willing to contribute funds and state/federal grants should also
be considered.
Regazdless of how capital funding could be obtained, the
YMCA appears to have in place a good management structure
to operate a facility in Atlantic Beach. Career managers from
YMCAs across the country could be recruited to manage a
new Atlantic Beach facility. It would be much more difficult
for the City of Atlantic Beach to manage a community center
providing these types of services, although it is possible.
The next logical step in determining whether or not to build a
new community center in the Atlantic Beach area would be to
assess a number of critical questions with specific business
related answers. Is the Atlantic Beach area adequately served
at the present time by the types of programs that a YMCA
would provide? These services would include not only the
availability of fitness equipment and a pool, but also more
family oriented programs such as a teen center and athletic
leagues. What will the needs of the area be 5 and 10 yeazs
from now? If the azea needs are not presently being met or will
not be met in the future, is the gap lazge enough to support a
YMCA? More specifically, would there be enough families
and individuals who would be willing to pay membership fees
to off set the operating costs for a new facility? Further,
would the revenues anticipated be high enough to also cover
debt service for some or all of the capital costs of such a
facility?
RECOMMENDATION: If the City Commission chooses to proceed with the
investigation of the possible purchase of the Pic-N-Save
AGENDA ITEM #3B
FEBRUARY 26, 2001
property and/or the establishment of a YMCA in the Atlantic
Beach area, the next step is for the City Commission to get a
feasibility study much like the one done by the YMCA
in the Julington Creek azea. There would be advantages to
jointly funding such a study with the regional YMCA
organization and possibly other cities. No only would the
joint funding reduce the cost for each entity, but the interest
of each would be represented in the analysis. YMCA staff
have estimated the cost of such a feasibility study in the range
of $20,000 to $25,000.
ATTACHMENT: (1) Flyer on Membership Rates, Financial Assistance and
Programs available from the Winston Family YMCA
AGENDA ITEM #3B
FEBRUARY 26, 2001
WINSTQN FAMILY YMCA
MEMBERSHIP-RATES
Effective January 1, 2001
FAMILY MEMBERSHIP:. Available to persons 18 years of age & older who aze married, and may
have dependents (under the age of 21) living at home.. Includes privileges. far the entire family.
joining Fee: $120.00
Monthly Dues: $78.00
INDIVIDUAL MEMBERSHIP: Available to individuals I8 yeazs of age & older, whether single
or married. Includes privileges for one person only.
Joining Fee: $75.00
Monthly Dues: $49:00
TEEN/STUDENT MEMBERSHIP: Available to individuals 13 years of age (or in 6th grade)
through age 25, who are full-time students. Proof of school registration is required.
Joining Fee: $30.00
Monthly Dues: $32.00
We accept Visa, MasterCard, and American Express,. as well as check or cash
Noce: Prices aze subject to change.
PAYMENT OPTIONS:
The joining fee is a one-time fee as long as the membership does not lapse for more than 60 days.
The monthly fee can be paid in two methods:
1. Monthly Bank Draft. This is a convenient, automatic deduction from your checking or
savings account. Just provide a voided check, and specify the date you would like the funds to
transfer -either the 1st or.the 15th of each month.
2. Annual Lump Sum. This method allows you to pay a-lump sum (equal to 12 times the
monthly fee) in advance for the year.
FINANCIAL ASSISTANCE:
The YMCA will provide service for anyone who desires to participate in membership or programs,
regardless of inability to pay the established fees. Funds raised through our Really Caring Campaign
suppott our financial assistance program.
Financial assistance is available to those who qualify. Applications for financial assistance are
available in the Member Services Office. All information is strictly confideritial.
Our mission: To put Chrisrictn principles into practice through. programs that build healthy spirit, mind and body (or aQ.
AGENDA ITEM #3B
FEBRUARY 26, 2001
MEMBER ADVANTAGE:
Your membership entitles you to many benefits in addition.to the use of the facility. Here aze some
of the benefits that you may want to take advantage of as a YMCA member:
* Free Aerobic Classes
* Free Spinning Classes
* Free Fitness Evaluation 6c Orientation
* Free Fit and Fabulous over Fifty Classes
* Free Healthy Start Program
* Open Basketball Play
* Volleyball
* Free YMCA Boot Camp
* City Wide Membership (includes use of all Duval & St. }ohns.County YMCA's)
* A.W.A.Y. Program -access to YMCA's azound the country
* New! Peak Performers Branch -Utilize this new addition to the YMCA as a rock
climbing gym
* Cline week advance program registration before open registration
FFC Family Members may take advantage of the followings
* Kids tumbling, karate, dance &. ballet exclusively for YMCA family members
* Free Kids Aerobics 6t Kids Play classes
* Free KIDZONE (nursery)
* Reduced program fees for the following: Summez Day Camp, Before and After School
Caze, Youth Spore Leagues & Clinics, Indian Guides & Princesses, Mother's Morning
Cvt, Kid's Night Out, Chess Club, and much more.
Teen(Student Members and FFC Family Members may take advantage of the following:
* Free Pre-Teen and Teen Stength Orientation
* Free Teen Cycling Classes
* Teen dance classes exclusively for YMCA members.
* Access to the Teen Center (Teens only)