Rosemount plans to partner with Life Time on a new fitness center


The partnership between Rosemount and Life Time could bring a new indoor sports facility to the south metro area, fulfilling a goal the city has had for more than a decade.

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

“The City Council has consistently heard a strong desire from the community for improvements, whether it be parks [or a] recreation center,” said Rosemount parks and recreation director Dan Schultz. “We hear about it all the time.”

The 107,000-square-foot fitness center will feature an indoor and outdoor pool, cafe, spa, space for fitness classes, gyms, childcare area and pickleball courts.

The city and Life Time signed a letter of intent to move forward with the project in April, and Rosemount signed a purchase agreement to buy 29 acres at the corner of County Road 42 and Akron Avenue for the new building, intending to sell about 15. hectares of land for other development.

Aaron Koehler, Life Time’s vice president of real estate and development, said the Chanhassen-based company has Rosemount on its radar as a location to build, but thinks it will be a decade before the city’s population is high enough to support a facility. .

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

Over the past decade, the city has worked with the YMCA and another local nonprofit to build a fitness club, now called Hope Fieldhouse. Hope Fieldhouse built a 45,000-square-foot fieldhouse in Rosemount in 2019.

This property offers a gym but no pool and lacks many other amenities like Life Time.

In a recent presentation to the City Council, Schultz noted that a 2021 community survey showed residents had a recreation center as their third-highest priority behind more retail and a new police and public works facility.

A detailed study in 2018, which included a concept plan for a $28 million, 87,000-square-foot recreation center, confirmed “strong market demand” for such a facility, Schultz said, adding that the city would lose at least $500,000 a year by operating it. he

“We gave up on that idea pretty quickly based on the council’s guidance,” said Logan Martin, city administrator. “The list of pros and cons is completely stacked in favor of a private partner.”

Under the Life Time partnership, Rosemount residents will receive a membership fee — no initiation fee and a $10 discount on individual monthly membership fees, a $15 discount for couples and a $20 discount for families.

Membership at the center will cost $120 per month for individuals, $180 per month for couples and $220 per month for families, before discounts. Families will get $100 off a three-month summer membership so kids can use the pool when it’s hot, Martin said.

A Life Time spokesperson says prices at the Rosemount location have not yet been finalized and are subject to change.

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

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

The city will use money paid to the city to host the landfill from landfill owner SKB Environmental as a source of funding to pay off the debt, he said. The city generates approximately $2 million annually, of which approximately $1.4 million will go to the Life Time project each year.

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

Koehler noted that Life Time has smaller partnerships with other suburbs, including Plymouth and Savage, primarily involving outdoor pools. Both cities have contributed funds to these facilities, he said, so their residents can pay the daily admission fee without membership. Residents also receive a 15% discount on the lowest Life Time origination fee in Minnesota.

Savage Mayor Janet Williams said she knows people who live in Savage because of the Lifetime nearby. He said the city contributed $3.1 million to the construction of the aquatic center in 2001 and owns the property. Life Time has an option to buy the land in 2041 for $1 million.

Several steps need to be completed for the Rosemount deal to be finalized, Martin said, including a lease agreement, land sale, securing bonds by the city and approval of the plans by the city and Life Time board.

Construction work will begin in the fall and is expected to be completed in 2024.



Source link