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Estimates compiled on rec center revenue, costs

Predicting revenues and expenses for the county’s proposed Wellness/Recreation Center is a difficult task at this point, but the county has compiled some estimates for Monday night’s meeting.
The figures are part of a Powerpoint presentation Assistant County Administrator Robert Hiss and Recreation Director Anthony Akers are to present Monday. The presentation will precede a public comment period during the Board of Supervisors’ regular meeting at 7 p.m. at the County Administration Building on Third Street in Pulaski.
According to information contained in the presentation, “revenues are very hard to predict” until it is clearer what services will be offered at the center. The county is proposing to purchase the former TMD Friction plant in Pulaski County Corporate Center and turn it into an indoor recreation facility.
At this point, there are believed to be three potential sources for revenue:
n Rental of facilities – Due to the amount of office space available at the facility, the county is proposing to rent some of the space to agencies that would fit well in the center. Another source of rental income could include the rental of an existing cafeteria for parties, banquets or other events. Finally, facility features such as training rooms could be leased to groups wishing to use the facilities.
n User fees – One way to keep operational costs down would be to consider charging admission fees at a rate lower than or comparable to other recreation centers. The county estimates that if an average rate of $150 per member were charged and a tenth (1,500) of the county’s 15,000 households became members, $225,000 in annual revenue could be generated from user fees.
Rate examples included in the presentation include $240 per year for families; $180 per year for couples; and $120 per year for singles. There also is a proposal for a “scholarship based” fee for those with proven economic hardships so no citizen is excluded from using the center.
According to the presentation, the proposed rates are lower than charges at comparable localities, except for Radford and Christiansburg’s centers which do not charge residents for using their centers.
n Tournaments and special events – The county estimates the center could bring in “at least $20,000” in revenue from hosting tournaments, such as AAU basketball tournaments, major soccer tournaments.
“… we have the perfect venue for tournaments that will draw teams and guests from several states,” the presentation states. “Tournaments and special events should prove to be a significant source of revenue once (the) facility is in full operation.”
As for predicting the amount of operating budget required to operate an indoor center, an early estimate for staff, both full and part time, is $180,000 per year.
If agencies proposed to be located in the center do, indeed, occupy the center, the county expects staff costs will be “kept to a minimum” because the agencies can “provide oversight and programming for facility patrons mainly during the weekday business hour.”
Full-time staff that may be needed include a facility coordinator, maintenance worker and full-time custodian, all of which would cost about $90,414 annually.
Two part-time staff working in shifts would be needed to operate the facility during the center’s proposed operating hours of 6 a.m. to 9 p.m. Monday through Saturday and noon to 8 p.m. on Sundays. The annual estimated cost for part-time staff is about $90,000.
An architect estimates monthly utility rates to be between $20,000 to $30,000 for an 80,000- to 140,000-square-foot facility. However, the presentation notes that those estimates are “figured on the high side” and do not consider “many aspects of the facility that are not as climate sensitive as others.” If the facility is developed in phases, utility bills would “dramatically decrease based on lower initial square footage.”
The county estimates other “miscellaneous” operating costs to be around $200,000 per year. These expenses would include janitorial supplies, insurance, repairs and maintenance, and sewer, water and garbage collection services.

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Estimates compiled on rec center revenue, costs

Predicting revenues and expenses for the county’s proposed Wellness/Recreation Center is a difficult task at this point, but the county has compiled some estimates for Monday night’s meeting.
The figures are part of a Powerpoint presentation Assistant County Administrator Robert Hiss and Recreation Director Anthony Akers are to present Monday. The presentation will precede a public comment period during the Board of Supervisors’ regular meeting at 7 p.m. at the County Administration Building on Third Street in Pulaski.
According to information contained in the presentation, “revenues are very hard to predict” until it is clearer what services will be offered at the center. The county is proposing to purchase the former TMD Friction plant in Pulaski County Corporate Center and turn it into an indoor recreation facility.
At this point, there are believed to be three potential sources for revenue:
n Rental of facilities – Due to the amount of office space available at the facility, the county is proposing to rent some of the space to agencies that would fit well in the center. Another source of rental income could include the rental of an existing cafeteria for parties, banquets or other events. Finally, facility features such as training rooms could be leased to groups wishing to use the facilities.
n User fees – One way to keep operational costs down would be to consider charging admission fees at a rate lower than or comparable to other recreation centers. The county estimates that if an average rate of $150 per member were charged and a tenth (1,500) of the county’s 15,000 households became members, $225,000 in annual revenue could be generated from user fees.
Rate examples included in the presentation include $240 per year for families; $180 per year for couples; and $120 per year for singles. There also is a proposal for a “scholarship based” fee for those with proven economic hardships so no citizen is excluded from using the center.
According to the presentation, the proposed rates are lower than charges at comparable localities, except for Radford and Christiansburg’s centers which do not charge residents for using their centers.
n Tournaments and special events – The county estimates the center could bring in “at least $20,000” in revenue from hosting tournaments, such as AAU basketball tournaments, major soccer tournaments.
“… we have the perfect venue for tournaments that will draw teams and guests from several states,” the presentation states. “Tournaments and special events should prove to be a significant source of revenue once (the) facility is in full operation.”
As for predicting the amount of operating budget required to operate an indoor center, an early estimate for staff, both full and part time, is $180,000 per year.
If agencies proposed to be located in the center do, indeed, occupy the center, the county expects staff costs will be “kept to a minimum” because the agencies can “provide oversight and programming for facility patrons mainly during the weekday business hour.”
Full-time staff that may be needed include a facility coordinator, maintenance worker and full-time custodian, all of which would cost about $90,414 annually.
Two part-time staff working in shifts would be needed to operate the facility during the center’s proposed operating hours of 6 a.m. to 9 p.m. Monday through Saturday and noon to 8 p.m. on Sundays. The annual estimated cost for part-time staff is about $90,000.
An architect estimates monthly utility rates to be between $20,000 to $30,000 for an 80,000- to 140,000-square-foot facility. However, the presentation notes that those estimates are “figured on the high side” and do not consider “many aspects of the facility that are not as climate sensitive as others.” If the facility is developed in phases, utility bills would “dramatically decrease based on lower initial square footage.”
The county estimates other “miscellaneous” operating costs to be around $200,000 per year. These expenses would include janitorial supplies, insurance, repairs and maintenance, and sewer, water and garbage collection services.

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