Financing recreation complexes for the future.

As professionals in the recreation field, we know the importance of quality facilities for our community's quality of life. However, new and/or remodeled facilities place policymakers, especially in government, between a rock and a hard place when it comes to fiscal responsibility. Experiences with elected policymakers and volunteer board members in private, non-profit organizations support these facilities but they do not have a strong budget to recommend approval.

The Long Center, located in Pinellas County in Clearwater, Florida, has overcome this dilemma by creating a public/private partnership with governmental and nonprofit organizations supporting shared facilities on a financial and program level.

The center, a 20-year dream of Clearwater For Youth (CFY), opened in July 1990 and has quickly become a shining star for all the surrounding communities. In 1972 its mission statement read, "To fund and construct a youth-oriented recreational complex that will contain facilities for every kind of activity of interest to young people." To reach this dream would cost millions of dollars which CFY did not have. After 14 years, the City of Clearwater agreed to support the project by providing 15 and one-half acres of land. Simultaneously, Clearwater For Youth received a private contribution of $1 million to establish an endowment - an incentive for the city as well as start-up construction funds. In addition to the $1.5 million cost of the land, the city also contributed $1 million in construction costs, equalling a total $2.5 million.

A third partner to this project, the Upper Pinellas Association for Retarded Citizens (UPARC), reached an agreement with CFY and the City of Clearwater, and represents people with mental disabilities in North Pinellas County. The UPARC home was more than 20 years old and deteriorating, and UPARC wanted to place its clients in an atmosphere as normal as possible. The agreement called for a $2.1 million contribution to the capital construction in return for centralizing their program and training facilities for the mentally impaired. To carry out this dream, a non-profit umbrella agency, the Center Foundation, was formed in September 1986. The foundation is a joint venture of Clearwater For Youth, City of Clearwater and UPARC.

In 1989, another partner became a part of this unique community recreational and educational facility, the City of Safety Harbor. As a result of their comprehensive plan, Safety Harbor would soon have to provide their citizens with a municipal swimming pool. Center Foundation representatives approached their political leaders and reached an agreement to become a sponsor agency at a cost of $375,000, or 15 percent of Clearwater's contribution.

Before the center opened in July 1990, the Center Foundation's Board of Trustees decided to separate the operational sides of the project from the fundraising/endowment section and, therefore, created the Long Center. The Long Center houses two indoor heated pools, including the only 50-meter Olympic-size pool on Florida's west coast, an adult fitness room featuring Keiser pneumatic resistance equipment, a three-court hardwood gymnasium, classrooms, cafeteria, playing fields and the 10,000-square-foot Sunshine Playground. One-half of the 150,000-square-foot structure is vocational classrooms, rehabilitation areas, a nurses station, sheltered workshops, warehouses and offices for UPARC.

Construction of the facility cost $15 million, which is not a small undertaking by any agency. However, with a strong fundraiser and respected community activist, Fred Fisher, the project was destined to succeed. Following is a breakdown of the costs associated with the construction.

Development & Construction   $11 million
Land                         $1.5 million
Interim Financing            $. .5 million
Endowment                    $ 2 million

The source of the funds to cover The costs was a 60/40 split between private and public resources. Capital financing for the Long Center was provided primarily by $9 million (60 percent) in contributions from individuals, corporations and private and family foundations. Governmental agencies provided $6 million dollars (40 percent) with less than half of that amount coming from local municipal agencies. (Clearwater and Safety Harbor).

Two other creative fundraising activities, the Dry Water Ballet and the Pepsi/Pick Quik promotion, brought in thousands of dollars. In November 1989 people throughout the community attended a waterless water ballet on the fields on the Long Center. This was to promote a "Buck a Gallon, Help Fill the Pools" fundraiser. The goal was $720,400, which is identical to the total number of gallons required to fill both pools. Contributions ranged from $100,000 by a corporation to $.32 by a young child. The event offered hard-hat tours before and after the ballet and program. Pepsi and Pick Quik teamed up to contribute a cash donation to the Center Foundation for each case of Pepsi sold in a Pick Quik store. Beautiful posters were made showing pepsi cans and pick quik bags in bathing suits in and around the swimming pool.

The Community Contribution Tax Incentive Program through the State's Department of Community Affairs allows non-profit organizations and units of state and local government to apply to become eligible sponsors and solicit donations. Corporations located anywhere in Florida that make donations to approved community development projects may receive a tax credit equal to 50 percent of the donation's value. Businesses may take the credit on Florida corporate income tax, franchise tax or premium tax. Individual business credits are limited to $200,000 with a maximum of 3 million dollars in tax credits available each fiscal year.

Operating the Long Center relies greatly on solid communication and coordination. There are seven different and autonomous agencies housed at the center. Each agency has its own mission, budget, executive and staffs, as well as policymakers. All of these come together through representatives on the boards of directors and trustees and weekly agency staff meetings. The Long Center staff is made up of eight full-time employees, nine part-time employees (29 hours) and more than 200 active volunteers, some as young as 13.

At the end of fiscal year 1990-91, our volunteers contributed a total of $114,000 of time, including assistance to governmental agencies, programs and events. Throughout the year the center is open 80 hours per week and only closes three days. Our staffing level does not meet the minimum necessary to operate this facility based on our hours of coverage and activity. However, we have a quality volunteer program which enables us to stretch our staff coverage.

Not only has the private sector built and funded the majority of a publicly used facility but also manage it, adding to the Long Center's uniqueness. The public and private sectors work together on operational expenses. If one agency is offering a program outside operating hours, the agency, upon Long Center approval, can open and close the center. Each agency has staff members trained and authorized by the Long Center for this purpose. This allows extension of our program availability and limits agencies' expenses.

Operational costs are shared by the user agencies. Operating revenues for the Long Center are derived from three major sources: Long Center membership and rental fees, sponsor agency instructional usage and supplemental financial support from the Center Foundation. Sponsor agencies are assessed a user fee based on actual Long Center operational costs less all sources of Long Center Revenue. This encourages cooperation in growth because the more the center is used for instructional classes and membership, the less the cost per person.

This money is called the Residual Obligation Fund and is based on the Historical Data Report. The residual obligation, which our municipal friends like to call shortfall, is based on the previous 12 months' total instructional program attendance. Based on their percent of use of the total is the percent of the residual we assess the agency for the following fiscal year. For example:

Revenue $100,000 Expenses $200,000 = Residual $100,000

Clwr 70% x $100,000 = $70,000 12 $5833.34/month

S.H. 25% x $100,000 = $28,000 / 12 = $2083.34/month

CFY 5% x $100,000 = $5,000 / 12 = $416.67/month

Since UPARC occupies 50 percent of the center's square footage, their use agreement makes them responsible for 50 percent of common expenses, such as wages for groundskeepers, perimeter lighting, various equipment needs and the fire alarm maintenance contract. UPARC is responsible for their half of the building and all the associated expenses. The City of Clearwater offers instructional classes in therapeutic recreation for UPARC's clients at no cost to them.

Another unique feature of the Long Center is the concept of reciprocity between our sponsor agencies. Normally, if an individual registers for a class in another governmental taxing area, they are required to pay a higher fee since they do not support facilities through their taxes. The Long Center, since it is not a governmental facility, coordinated written agreements stating that all four sponsor groups, residents and/or affiliated individuals register for classes at the same rate. This has allowed instructors and agencies to reach others who would not have been accessible. One municipal agency stated recently that 50 percent of their total attendance is comprised of non-city residents.

Rentals are a major source of successful programming and revenue generation. In the coming fiscal year, the Long Center will be much more aggressive, attempting to increase revenue 100 percent through rentals of the indoor Olympic pool, three indoor gymnasiums and our classrooms. The center has hosted many local, state and regional events, including Tae Kwon Do tournaments, dog obedience shows, high school and age group swimming events, lock-ins by youth organizations, state and international water polo tournaments, volleyball and basketball tournaments and soccer and softball games. Holiday swim practices from college and university swim teams have developed into a strong annual program.

To continue our growth both financially and in daily use, marketing of the facility plays an important role. In October, a small line item for marketing was approved, with planned increases over the next four years. However, we have used in-kind contributions and win/win marketing strategies to date. Our major tools have been two commercials directed and produced by Vision Cable of Pinellas. Another strength is an excellent relationship with various media sources: newspaper, television and radio. We notify them regularly by news releases and verbal confirmation of center events.

The Long Center staff works closely with UPARC to keep operational expenses down, but also to elevate and build the individuality of UPARC's client base. Instead of receiving financial payment for common services as our use agreement states, administrators agreed to use client labor and supervision in landscape maintenance and custodial cleaning. Through this relationship, UPARC has proposed and received other contracts in custodial maintenance.

The equipment account and sinking fund have been recent additions to our operational-reduction strategies. We formed our equipment account for equipment purchases only. Monies are placed in this account from specific contributions and from a percentage of the net revenue from rental activities.

The sinking fund, or Capital improvement Program (CIP), consists of capital items costing a minimum of $5,000. These items are agreed upon by the executives of each agency and included as a separate item in the operational budget. The sinking fund is an investment by all agencies to keep the Long Center in proper working order. Each agency's financial participation is based on the historical data report percentages used for the residual obligation fund and is reviewed annually.

Our initial endowment of $1 million has now grown to $2 million when we include other major contributions in deferred giving programs. This is our strongest strategy of reducing operating expenses. As the Center Foundation works towards building this endowment, the interest is a plus in the Long Center operating budget, placing less burden on the agencies for financial assistance. The overall goal is to build the endowment to the $5 million level which will, based on the economy, provide the necessary funding to operate the Long Center. The Long Center opened its door mortgage-free because of the fundraising efforts of the Center Foundation and partnerships with the four agencies.

Combining the private and public sectors to provide facilities which meet the needs of all people under one roof at a minimal cost should be the trend of all administrators in the leisure field. Even if a municipality warrants such a facility and has the necessary funding, all citizens will continue to pay for that structure and the annual operating costs for eternity. By working together, the public and private organizations are both working smart instead of hard. In the case of the Long Center, instead of having four separate centers with the associated capital and operational expenses for each, we have one magnificent structure that is mortgage-free and available to everyone.