Memorandum

City of Lawrence

Parks and Recreation

TO:	Cynthia Wagner, Assistant City Manager
FROM:	Jimmy Gibbs, Aquatics Manager
CC:	Ernie Shaw
DATE:	April 21, 2010
RE:	For-Profit Rental of Public Recreation Facilities

History

The Lawrence Parks and Recreation Department has received a 1-year facility rental request from a for-profit, Kansas corporation to operate a youth competitive swim team at the Lawrence Indoor Aquatic Center.  An agreement for use of the facility was included on the consent agenda April 20, at which time there were a number of questions raised by the City Commission.

The Parks and Recreation Department does not have a history of long-term facility rental to for-profit organizations.  While we are willing to work with any groups wanting to rent available facilities or parks, we must remain aware of our duty to do what is best as stewards of public tax dollars.

The City has worked with several for-profit groups to bring athletic and cultural events to the City of Lawrence.  Examples include park rental for concerts or shows, or rental of baseball/softball facilities for tournaments. Based on the size of the event, appropriate use of facility requested, timing and the applicant’s ability to provide support deemed necessary by the department, a permit for any commercial group using parks or recreation facilities may be required from the City Commission.  And, any event may be denied based on its potential to overload any park or recreation facility or the negative effect it may have on the adjacent property owners or citizens at large.   

Typically, these groups are charged significantly higher amounts to cover actual city expenses.  A park or shelter space typically rents for $60 per day to non-profit groups.  Commercial groups requesting the same space have been charged up to $800 to recover costs of trash cans, liners, electricity, water and dumpsters.  Charges may also be assessed to return park space back to pre-event conditions.  Commercial reservations at our ballfields are charged an hourly Supervisors fee in addition to a per-field clean up charge.  These rentals generally encompass a period of 5 days or less.

The City does have one relationship with a private organization that provides a youth indoor soccer league at one of our gymnasiums.  The organization rents available space from December to March and is charged at 1.5 times the regular rental rate.  This group only uses available space and at no time is public availability affected.

There is a concern that an additional competitive swim team will compromise the limited space that is available to the public at the Indoor Aquatic Center.  This is a valid concern and we must maintain swimming lanes for our own programs and our public swimmers.  Right now, lane assignments for other competitive users, programs and classes are secured.  A new rental agreement would only include lanes that are vacated by another user group—not add to the current schedule or push other swimmers out.  Swimming lane requests from our competitive user groups are compiled in the late fall for the following year.  The next option for making lane requests will be this September for the operating year 2011.

The Indoor Aquatic Center is operated at an estimated cost of $17.12 per square foot per year.  Based on average revenues and operational expenses, the cost of one 25-yard lane is approximately $15.31 per hour.  Non-profit organizations are charged $7.50 per lane per hour.

Recommendation

Staff recommends that this for-profit organization and any for-profit requests in the future be responsible for the actual cost of doing business in City facilities and that the City will recover all expenses associated with the operations of those facilities.