Subject:
Title
Kimmel Bogrette presentation in response to Town Council Member Questions of the revenue model for a potential aquatics and fitness center
Body
BACKGROUND SUMMARY:
At the Town Council work session on December 16, 2024, Kimmel Bogrette and Ballard*King presented an overview of the key factors that have shaped their projections for a potential aquatics and fitness center in Vienna. To help the Council decide whether to temporarily raise the meals tax for ten years to finance the construction of this facility or to maintain the current meals tax and forgo the project at this time, the Council provided a list of questions to Town Staff, which were then relayed to Kimmel Bogrette and Ballard*King. The responses to these questions will be discussed in the January 21, 2025, Town Council Work Session.
OVERVIEW:
Kimmel Bogrette and Ballard*King will present responses to Council questions provided at the December 16, 2024 Town Council work session.
Ballard*King developed the operational plan with the following data points; market assessment, input from Town staff, history of similar studies, and history of operating similar facilities. The purpose of the study is to provide information to the Town regarding the feasibility of a new indoor space. The information that Ballard*King has developed points to the fact that such an indoor space is feasible. The operational plan, which is a point of concern, illustrates a higher cost recovery than was anticipated, but is consistent with what Ballard*King has experienced in other communities with similar characteristics (Town of Scarsdale, NY, Town of Pittsford, NY, Oak Park, IL, Richmond Heights, MO).
SUMMARY/STAFF IMPRESSIONS:
While Town Staff is using more conservative projections than Kimmel Bogrette and Ballard*King, to make sure the Town can cover the year over year operating cost in a worse case scenario situation, it is extremely important to consider that Kimmel Bogrette and Ballard*King are experts in this field of analysis and their findings should not be dismissed.
RECOMMENDATION:
Recommended Action
It is up to the Town Council to decide whether to temporarily increase the meals tax for ten years to finance the construction of an aquatics and fitness center or to maintain the current meals tax rate.