Rosemount plans a partnership with Life Time for the new fitness center

A partnership between Rosemount and Life Time could bring a new indoor fitness facility to the subway’s southern suburbs, achieving a goal the city has pursued for more than a decade.

The city would buy the land and own the $ 48 million building. Life Time staff, would manage and maintain it. They would share the construction costs, with the city contributing $ 21 million and Life Time paying the remaining $ 27 million.

“The city council has consistently listened to the community’s strong desire for services, be it parks [or a] recreation center, “said Dan Schultz, director of parks and recreation at Rosemount.” We hear about it all the time. “

The 107,000-square-foot fitness center will have an indoor and outdoor pool, coffee shop, spa, space for fitness classes, gyms, a children’s area, and pickleball courts.

The city and Life Time signed a letter of intent to take the project forward in April, and Rosemount signed a purchase agreement to acquire 29 acres of land on the corner of County Road 42 and Akron Avenue for the new building, with plans to sell about 15 acres of the parcel for another development.

Aaron Koehler, vice president of real estate and development for Life Time, said the Chanhassen-based company had Rosemount on its radar as a place to build, but thought it would be a decade before the city’s population was high enough. to support a structure.

“It’s early, but this opportunity allows us to get into Rosemount before the game,” said Koehler.

Over the past decade, the city has also explored partnering with the YMCA and another local nonprofit organization, now called Hope Fieldhouse, to build a fitness club. Hope Fieldhouse built a 45,000 square foot field home in Rosemount in 2019.

That facility offers gym space, but no pool, and not as many other amenities like Life Time.

In a recent city council presentation, Schultz noted that a 2021 community survey found residents ranked having a recreation center as the third highest priority, behind having more retail space and a new police facility. and public works.

A detailed study in 2018 that included a concept plan for a $ 28 million, 87,000-square-foot recreation center confirmed “strong market demand” for such a facility, Schultz said, but also found that the city he would have lost at least $ 500,000 a year running it.

“We ditched that idea pretty quickly on the basis of the board’s leadership,” said Logan Martin, city administrator. “The list of pros and cons builds up sharply in favor of the private partner.”

As part of the Life Time partnership, Rosemount residents will receive a subscription agreement: no membership fee and a $ 10 discount on individual monthly membership dues, a $ 15 discount for couples, and a $ 20 discount for families .

Subscriptions to the center, before the discount, will cost $ 120 per month for individuals, $ 180 per month for couples, and $ 220 for a family. Families will receive $ 100 off a three-month summer pass so kids can use the pool in hot weather, Martin said.

A Life Time spokesperson says prices at the Rosemount headquarters are not yet final and may change.

Each Rosemount family will receive four free guest subscriptions per year for five years. The city and Life Time are working on the details of a low-income family scholarship program.

The city plans to use bonds to finance construction over 30 years, Martin said.

He said the city will use tip taxes – money paid to the city to host a landfill – from SKB Environmental, the owner of the landfill, as a source of funding to pay off the debt. The city receives approximately $ 2 million annually in tipping taxes, and approximately $ 1.4 million will go to the Life Time project each year.

Life Time will pay about $ 250,000 annually in property taxes, Martin said.

Koehler noted that Life Time has minor collaborations, mostly related to outdoor pools, with other suburbs, including Plymouth and Savage. Both cities have made a financial contribution to such facilities, she said, so that their residents can pay a daily admission fee without being a member. Residents also receive 15% off the lowest early-life rate in Minnesota.

Janet Williams, Mayor of Savage, said she only knows people who live in Savage because there is a Life Time nearby. The city contributed $ 3.1 million to the construction of the aquatic center in 2001, she said, and owns that property. Life Time has the option to purchase the land in 2041 for $ 1 million.

Several steps need to be completed for the Rosemount deal to be final, Martin said, including the lease, the sale of land, the guarantee of the bonds by the city, and the approval of the plans by the city and council. by Life Time.

Construction will begin in the fall, with completion scheduled for 2024.

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