Deer Park Community Development Corporation - Regular Meeting

This meeting is at 06:06PM. Closed. 06:15.

Alright.

I'd like to call to order the 01/27/2025 department Deer Park Community Development Corporation meeting. Do we have anyone from the public sign up to speak?

No, sir.

Alright.

Okay. Need approval of the minutes for the meeting on October 28.

To make motion make a

Alright. Got

a first from Bill.

Second.

Second. Alright. Doug. All in favor?

Aye. Any

opposed? Alright. We have a discussion of issues relating to the economic development corporation report to the state comptroller for the fiscal year of 2024.

Anybody have any questions?

Alright. Thanks, Nicole. Alright. Consideration of and possible action of the quarterly report for the period 10/01/2024 through 12/31/2024. Someone like to make a motion to approve that quarterly report?

So moved.

Bill? I'll second. Alright. Bailene. All up all in favor? Aye. Any opposed? Alright. Motion will carry. Now we have a discussion of issues related to the current and future status of DPCDC projects for the period of 10/01/2024 through 12/31/2024. Looks like Kenny's gonna give us an update.

Good evening. Just opening on on a few projects. The community center, they've completed the roof install, completed the dry end. They're starting starting this week, starting to come in and work on Sundays just to keep things moving. We've added some additional pool drain covers and piping to the pool. The brickwork has been done in the bathhouse. The bathhouse completion is estimated. It's on it's on pace to be ready by the summer. Early April, late late March, they started the brickwork on the bathhouse, the deck. I was over there today.

They're putting in a lot of the tile right now, so I couldn't really get too far. But I'm making a lot of progress, and that's still on pace for the summer, this this upcoming summer. The Spencerview Bridge. Spencerview Bridge, the RFP was awarded to Lucas Construction. We have a preconstruction meeting with Lucas and Kyle Finley, who's the architects, earlier this month. So there's about a twenty to twenty four week period to construct the bridge. Once that's complete, then we'll meet again with Lucas to put bridge. Then

then have

the the adding. Then We have the park and then trail access to the bridge to give access to the Spencer Butte Athletic Complex. We have some contingency funds to add a a one eight loop trail to make it a little more amenity park friendly instead of just a parking lot and trail. We added one eighth loop circle trail. We added some lighting, and we've added some some light amenities, some benches, and trash cans.

One eight mile trail, and that's still scheduled for March early March completion. The Dow Park Pipeline project and P Street parking renovations, that was awarded to NHS Planning. So next week, we have a kickoff meeting with with them to discuss the design. And then last project is the pickleball courts. We've that's been awarded to T. F. Harper. You guys remember, I think last time we met, we approved additional funding to go from four quarts to six quarts. Jacob and I yesterday Friday on Friday, met with T. F.

Harper to finalize the design. So once that's done, we'll send that to us, and then we'll put a construction deal together. So we anticipate that starting construction will start within the next three months. So any questions on the updates of most recent projects?

We have a trail. The back one eight loop. Who will use that? Is that gonna be in the neck for the neighborhood or what?

Yeah. I mean, it's for a lot of the users of the complex as well. Oh, that's right. Yeah. It was good to see a complex. That's cool. Yeah. Awesome. Yeah. Yeah. So it's not a home. I met a lot of people when their kids are playing, they like to exercise and be able to go out and walk in one day loop and with light in the evening. It would be they'd be highly used to really do.

I used get the pickleball course so I could get my son and his crew out there to compete with Jay and his crew.

Crips in the bloods. We need to do, like, a a tournament to to Yeah. Open that thing. That'd be really cool.

What's the

I have the EastEnders.

Want Jeff on my side.

Well, new boys from the other side of town. Right? That's right.

Scroll up. Let's do it.

Open next one. Yes. I got your presentation. Yeah. What's the latest estimated completion on the deck over there?

The community center, the summer.

Still summer? Okay.

Yeah. It could be as early as June as late as could be September.

Like full opening? Full opening? And everything? No. Everything will be open at

that Absolutely. Okay. I'll I'll give more updates on kind of our plant and coconut facility here in a second. Okay. But but, yeah, I mean, right now, it's we're planning on sometime this summer. Once the facility gets closed in like it is now, it's a lot easier to anticipate the work schedule because we're not being able take our weather. So in our next couple meetings with the construction company, Duratech, we'll be able to get some really more concrete deadlines and hopefully a more narrow window in three to four months.

Are they considered on schedule at this time?

One additional question. Are we going to leave

the Avon center open? Yes, sir.

And the weight facility that's there, the exercise, it will still be there? Yes. That's pretty cool.

Yeah. So Avon provides a community with a with another option. I mean, there's fees that are gonna be tied to the DAC, and they're not I don't I think they're extremely reasonable fees. But still, what Avon does, it provides a a more cost effective option. Right now, it's very heavily used. It's very popular. And this gives the community multiple options if they wanna pay more for additional services or if they don't. Same thing with the Maxwell. If have seniors that don't wanna pay the additional, they still have the option of utilizing the Maxwell. So, yes, our plan is to keep

The fees that people pay to use the new DAC center will not apply to any of the other facilities. Is that correct? Like, membership to there, it won't get me into the Avon Center.

We have probably. You know, we haven't really gone that. The Avon Center in Maxwell, those those fees are so minor. If we decide that we wanna include it

Avon in May Center. It's a great place to go exercise.

Yeah. I mean, I know that's extremely cheap. We're we're talking $10.15, $25 a year at the Avon Center. If we go through this process and we're about to open and realize, you know what, for those that utilize the stability, we're going go ahead and include the Avon. We may. Mean, we're not we're not that that far yet.

It's not complicated for one thing. Alright. It's pretty simple. Yes, sir. Good for over retired guys. Thank you.

Any other questions?

I think Kenny's going to go over the DAC business plan now. It's a good presentation.

Okay.

So for several months, myself and Jacob and some of the other staff have been doing a lot of research to determine, basically, the business plan for the complex. Hours, fees, staffing that we need, the rental prices, the pool hours, maintenance schedules. We put a lot of time into it. Jacob and I both attended several state and national conferences. We did market analysis of other cities, mostly local, but but but national as well.

And long story short, we kinda put together we also had a company that put together did a pro form a with some recommendations as well. They did that five years ago, and they did another update in pro form a more recently. So we utilize all the information to put together what we believe is kinda how how we think is the best way to move forward with the facility. Recommended facility hours, Monday through Friday, six to nine, nine to five on Saturday. Total is eighty three hours per week.

The child watch available to those at their use of facility. Parents can drop their children off ninety one and four to eight, Monday through Friday and Saturday morning. It's forty hours per week in the child watch. Recommended therapy full hours, eight to eight, Monday through Thursday, eight to twelve on Friday. Friday afternoons for programming tends to be light.

A lot of your lessons run Monday through Thursdays. A lot of your evening aerobic classes, usually Monday, Wednesday, or Tuesday, Thursday. Friday evening is a good opportunity to do all of our cleaning and maintenance without having to bring people in on a Sunday or Saturday night. So Friday afternoons, our plan is to shut down the pool for the public at I'll just kinda run through the presentation. Feel free to to ask any questions at all that you have at at any time.

Our recommended pricing, family memberships, you see on the first column is the resident rate and then the nonresident rate directly underneath that. We have the annual rate as the first column and a three month rate, three month membership opportunity available in the second column. At the bottom are recommended prices for daily drop ins. So we'll offer a daily drop in. Somebody comes in to pay for the day where you get a membership for three months, or get a membership for the year.

We do have we do allow or have the ability to do monthly drafts with our recreational software program. So for example, if some of the family pay wants to pay $3.95 a year to register their family, then they could pay that per month, and we'd automatically draft that out monthly. So they wouldn't have to pay all that upfront.

How are you gonna do the daily passes? That won't be cash only?

No. Credit card? Yes, sir.

Okay. Mhmm.

That's awesome.

So what this what this is is about five, six years ago, 2019, 2020, a pro form a was done on the back, basically saying, with this facility, this is roughly the type of fees you could expect to see. So we analyzed those, and we figured some inflation, made some adjustments to now to basically come up with the fees that we have now. Five, six years ago, 2019, 2020, those recommendations you you can kinda see there was no youth or child fees recommended at the time. The nonresident fees were double what the resident fees were. After some research on our end, we believe that's a little high.

We're recommending 50% increase. We think doubling the fees to nonresidents could price out too many people. Some cities do like to double the fees, and they tend to do that because, really, what's the goal of the facility or the goal of the city is to make it priority and membership resident only facility and try to drive out nonresidents. That's not our goal. We rely on nonresidents to use our facility.

We're relying on some of that revenue, and we wanna be able to serve nonresidents. And but we wanna obviously give more cost effective rates to Deer Park residents. So we're recommending a 50% increase. To the gonna not

other

We're

of the to

expire at the end of this month. You're you're running those reports every you know, sending those out monthly when someone wants to pay by the month. Like I said, they can, but based on the annual membership and and running drafts. But we recommend

of a lot of nonresidents and we get complaints about that, I would assume then we would reevaluate what we're doing towards. Yeah. Absolutely.

And I've said this said this before. These are these are our best estimates on the way to move forward. You don't really know until you open the doors and let people in. Yeah. When you really find out what the demand is for specific programs, shares, we get open and and the adult the adult rates are skyrocketing. The seniors are not. And we need to look at readjusting those fees. The nonresidents are are are skyrocketing or they're too low. And that's why it's very difficult to forecast. This is a this is a when I get to the budget, it's based on the first year.

And we anticipate growth over the next few years, but anticipate that percentage of growth, I think, is a little challenging to do right now without really seeing any trends trends and seeing how the community responds to the facility once we open. But it's a good question, and it is our plan to to really closely monitor and make adjustments as needed. It's a working budget. These are working fees, and then there's definitely gonna be some you know, the community will really tell us what they're willing to pay and what they're willing Yeah. To You know?

And and we're gonna use that to basically make adjustments as needed to to to find that to find that. These are the prices to rent the rooms. We have seven rooms available for use. Also, the price is to rent the pool. The price is to rent the gym. And then there's Roboplast fees as well. We're offering a drop in to taking Roboplast. We're offering a 10 punch card and a 30 punch card.

The pool rental, is that for the Indoor rental. For the big pool as well as for the little pool?

This is for the indoor pool. Indoor pool. Yes. Thank you. Specifically indoor.

So after hour rates will be higher. It requires us to bring in additional staff, and we charge additional fees to help cover those after hour charges. So I see a room reservation is $60. If they wanna do it after hour, they have to pay additional 40 an hour, so it would be a $100 to help bring in additional staff. That's even if you cover the event for the rental.

And the staffing, the positions in green are existing. These are the existing positions we have that we're reclassifying or moving over to the facility to manage the operation of the facility. Positions in blue are new positions that we're creating. Black is a reclassification of an existing position. We have an existing position that's part time.

We're gonna reclassify it to a full time. The positions at at the the bottom bottom in brown, brown reddish, are new part time positions. Obviously, additional lifeguards that are gonna be needed, front desk staff, child walk staff, staff meeting, the fitness center. So those are all Well, they're going to be they'll have the trainer's knowledge, and they could do private training. They could.

But that's not their primary source of that job is to provide supervision of the sale of the fitness center. With the equipment, the weights, it's important that it's monitored at all times for safety, especially when you have a lot of people use the use the equipment that I'm very familiar with.

If they were gonna do private training, I I mean, I'm assuming that that's gonna happen with the new

We'll offer that. We yes. We could use a fitness specialist or we could contract out the private training specifically.

But if a fitness specialist is part time, but that person is also a certified trainer and they could do it, would they be able to do their training in our facility?

They could. Yes. They could. Yes. So if they offer that yes. One one thing you don't wanna do is if you have somebody designated to man to supervise a fitness center, you don't want that person doing a private training because then their attention is on individual. So the intent of the staff is to provide supervision of the facility during specific times. If we decide to utilize these specific individuals for training, we can during times that they're not monitoring the fitness center.

We can do that. Are we going to allow outside trainers to come in and train people using our equipment?

Yeah. So there's a couple ways to do that. Any outside trainer would have to have a contract with the city, and they enter into an agreement with the city at a certain percentage If the city determines that if some you know, if somebody pays their drop in fees, then once you're in, if you're in, you're in. I mean, some things are hard to monitor. Two people come in and say, I paid my drop in fees. We're just here working out. I mean, how much policing? So we're still working through some of those details. The city is gonna offer private training. How we police it or monitor it, we're still working through some of those details.

New opportunities for management. Yes. Absolutely. Thank you.

Yes, sir. And then based on the facilities, one other new position is the building full technician. And then existing full two existing full time staff, we relocated from another location, and we're we're rec requesting five part time custodial staff. Three of those will be filling in for the spots that are being vacated by the full time staff. The other custodians will be working the budget.

Basically, this is what we're anticipating. This is based on one year, based on the first year. And it's a conservative estimate as we anticipate these numbers to grow as word gets out, as marketing continues to develop, as people take not everybody comes in the first day and joins and starts going. People hear about it. They come in.

They take tours. They tell their friends, and, gradually, people start signing up for memberships and and using the facility. So we anticipate roughly 660,000 in membership revenue in the first year. We anticipate roughly $24,000 in drop in fees and about close to $6,060,000 dollars in revenue in enrollment classes.

In

And these are the fees. The first column is the fees that I showed earlier in the slide, and the second column is the participation numbers rentals, pool rentals, and gym rentals. Overall revenue I'm sorry. Program revenue. Specific to programs, the 70,000 and 40,000 in red, that's existing revenue that we're already generating that's being transferred over to the DAT.

For example, the dance program that takes place at Claude Burgess, that's being moved to the DAT. So earlier, when I said these are all existing staff that I move it over, as the expense comes over, the revenue's coming with it. So there's some athletic revenue that we're currently having and and the dance revenue that that's already in place, so that'll be part of the And, obviously, expenses. Salary expenses is about 1,500,000.0. That's what we anticipate spending in salaries in the first year.

About 860,000 is new, and about 679,000 existing that we're transferring from the other budgets. Full time and part time, the point of that is just to show that most of the new salary that we're getting is what's required by bringing in all of our lifeguards and bringing in all of the fitness specialists and bringing in the front desk staff. So most of that is coming from the part time. But about 1,500,000.0 is what we anticipate in the first year in salaries. The rest of the budget, basically, is just all of our operating supplies, uniforms, full chemicals, office supplies.

Roughly 458,000 is what we anticipate as contract labor. That's paying those aerobic class instructors. That's paying personal trainers if we decide to go that route. Training and travel for staff, about 460,000. Overall budget, a little over 1,000,000 in revenue, a little under 2,000,000 in expenses.

The first year, that's roughly 53, 55% cost recovery. And as we get to year two and year three and year four, as these revenues go up, we don't anticipate adding a whole lot of expenses to them. So we see that number tightening. So what this slide shows is comparing existing funds to the new funds. So if you look at the slide, total debt expenses is $1900000.0.07 60 of that comes from money we're already spending, but we're already paying our current staff.

I'm asking for another 1,200,000.0 to cover the additional staff that we need bring in and the additional expenses that we're gonna bring in. But of the revenue from that, we're gonna generate 930,000 in new revenue. So even though the facility came out about 55% cost recovery, I'm gonna recuperate about 78% of the new expenses that were requested just in revenue just in the first year. And this is scheduled on how we plan and operate in the grand opening. When we get close, when we're roughly a month, six weeks out, and I get a real good concrete date from Duratech.

I'm making updates. Let's say August 1. August 1, we're gonna open. I'll pick a Saturday, very close to that. This Saturday is gonna be our grand opening at 9AM. We'll go two weeks prior to that, kinda have a soft opening two weeks out where we allow the employees to come in and get their discounts and and and sign up for memberships and start using the facility. The soft opening gives the staff a lot of practice, gives the staff a lot of work, has, you know, signing people up, put teaching people how to use the equipment. The public can come in every day and use some tours. The second

Any questions for Kenny? Thank you, Kenny. Appreciate that.

It's a

lot of good information. Yes.

Lot of hard work

and thought obviously went into that. Pretty impressive. I guess with that, our next meeting will be April 28 at 05:30 And then we'll have a meeting July 28 at 05:30. And our last meeting of 2025 will be October 27 at 05:30. So with that, I will close the meeting.