Rec Center cost, program on council retreat agenda

Apr. 6—The Crossville City Council will again take up the details of a proposed indoor recreation center when it meets Tuesday for its quarterly retreat.

The long-sought facility is currently in a holding pattern as members of the council consider the construction costs, operations costs, what to include in the building and how to run it once complete.

"Where are we as a council comfortable with that price tag being?" asked Crossville Mayor R.J. Crawford during Tuesday's council work session.

"At the end of that conversation we need to know what we're comfortable with and what direction we want to go, because right now they're just kind of chasing their tail, and the meter is running."

The retreat is set for 1 p.m. Tuesday at the Crossville Depot, 169 N. Main St.

Councilman Mike Turner said he's hearing from constituents concerned about the cost of the center and the potential impact on the city's property taxes.

"We need some solid numbers," said Turner, who noted he's heard from about 100 constituents.

City Finance Director Fred Houston has been working on funding options, with details set to be shared next week.

Crawford added, "If we as a council don't feel comfortable making a decision, we can hold a referendum."

Operating partnerships

Last month, a contingent from Crossville visited Morristown to check out its new $35 million indoor recreation center.

The facility opened in March and features cardio and strength training areas, group fitness rooms, certified trainers, an indoor walking track, and an indoor aquatic center with a competition pool, therapy pool, indoor splash pad and waterslides.

Morristown contracted with a third-party company, called Morristown Landing, to operate the facility.

Membership rates include different tiers with different pricing for city residents and non-city residents, ranging from $20 a month for a city resident youth to $90 a month for a non-city resident family membership.

Tuesday, the council heard from Mandy Perhay and Matthew Swallows with the Putnam County YMCA, who said they would be open to partnering with the city of Crossville on a recreation facility — with partnerships from simply offering support for developing programs up to taking on overall operations.

"We can bring a lot to the table," Perhay said, noting the YMCA is a leader nationally in swim instruction and childcare.

Perhay said the Putnam County YMCA is preparing to launch a capital campaign for a $12.5 million expansion of their Cookeville facility. Taking on a second capital campaign to build a facility in Crossville would be "taxing."

However, as a nonprofit organization, the YMCA can access federal funding to assist with development of a new YMCA facility.

But, Perhay pointed to numerous government-agency partnerships in the state where the YMCA leases a facility and runs the programs, such as in Sparta.

"In order for something to be sustainable and successful, it needs to be programmed," Perhay said.

The Putnam County YMCA has about 2,000 membership units, Perhay said. A family membership costs $81 a month.

Members have access to 2,400 YMCAs across the country. As a nonprofit organization, the YMCA offers scholarships for memberships and other programs, like the day camps the organization offers during school breaks.

Design standstill

The council stalled on deciding what the facility will include, from what kind and how many pools to the types of gyms and other amenities.

The city had solicited proposals for construction managers to assist with budgeting and bidding the project and then serve as a general contractor on the construction project.

Six proposals were reviewed, with a panel from the city evaluating qualifications before considering cost.

Kim Chamberlin, with architectural firm Upland Design, said the top selections were American Constructors Inc. of Brentwood and Denark Construction of Knoxville.

But Chamberlin told the council the project can't move forward without knowing what the facility needs to include.

"That's the next conversation we would like to have," Chamberlin said. "The two things go together."

He's looking for the council to identify its priority list of amenities so that more accurate budget figures can be prepared.

Current questions have centered around an indoor pool versus an indoor and outdoor pool, a pool for competitions, and other aquatic programs.

Early estimates for the project have reached as high as $65 million for construction and furnishing an indoor recreation center.

On top of the cost of building the facility, the council is also considering how to cover a projected operations shortfalls of $476,088 to $695,347 a year.

One option is the sale of municipal bonds. Issuing bonds is a lengthy process.

Next week the council could consider taking another step toward that bond sale, though the city is not obligated to issue bonds.

But, if the city wants a third party, like the YMCA, to operate the center, that could open the door to more discussion on amenities within the facility and design options.

Funding options

The city is still considering options for funding construction of a recreation center.

However, it is considering the next steps in issuing municipal bonds to prepare for the project moving forward.

Larry Kidwell, president of Kidwell and Company, a municipal financial services provider, said the resolution he was asking the council to approve would set a "not to exceed" amount for the potential sale of bonds.

"It doesn't say the city is going to issue the bonds," he said. "But when this is adopted, it is published in the classified section of the Crossville Chronicle."

That public notice gives registered voters in the city 20 days to submit a petition signed by 10% of the city's registered voters to protest the bonds and require a referendum of the city voters.

A special election is estimated to cost $25,000.

City Manager Greg Wood asked if moving forward would prevent the council from seeking other funding options, like the Tennessee Municipal Bond Fund.

Houston said the city has a healthy fund balance, with more than $20 million in reserve funds available.

That money could be used while the city evaluates different funding options.

Kidwell noted the city had already approved a resolution that would allow it to recoup funds spent preparing for the project through the proceeds of a bond sale.

The only risk in waiting, Kidwell said, was that interest rates would begin to rise again.

Councilman Scot Shanks said, "I want to move forward, but we've got to be together on the funding.

"This does nothing but get more expensive."

Turner said he agreed.

"I think this is a great idea ... But at the end of the day, taxpayers want to know if they can pay for it," Turner said.

The city council's retreat agenda also includes an update on the Flatrock Motorsports Park, creation of a committee to consider issues of homelessness, street closures, shade and shelter at Garrison Park, a visitor center at Meadow Park Lake, sewer issues, and a strategic plan for the fire department.

Heather Mullinix is editor of the Crossville Chronicle. She covers schools and education in Cumberland County. She may be reached at hmullinix@crossville-chronicle.com.