Squeezing fitness facilities into small markets: an Illinois regional survey reveals unique challenges for small-market fitness facilities.

According to the Northeastern Illinois Planning Commission, Sugar Grove's population of 6,000 is projected to grow to 62,740 residents by 2030. This community is located 40 miles west of Chicago and enjoys an abundance of open farmland now being developed at a rapid pace. "New" residents are moving into formerly rural communities like Sugar Grove and asking, "Where are the park and recreation amenities?"

Simultaneously, Glencoe, Ill., is experiencing a different problem. Located about 20 miles north of Chicago, Glencoe is an affluent north shore community whose population of 8,760 people is estimated to only increase by 195 people through 2030. Adjacent communities on three sides border this suburban area with Lake Michigan to the east. For Glencoe Park District, change is created not by land development, but rather by changing demographics of younger families with children moving into the community.

Both areas have park and recreation departments who serve a population of 30,000 or less. And both small-market agencies have to plan and design effective community recreation centers for these populations. According to a recent survey conducted by Burnidge Cassell and Associates, Inc. (BCA), an Illinois-based design firm that deals mainly with small-market agencies, there are essentially two different scenarios facing small communities.

Sugar Grove is an example of a small rural community that is mushrooming into a larger population overnight because of the availability of land. Glencoe Park District oversees a primarily landlocked suburban community that is experiencing a change in its demographics. Glencoe's need for recreation improvements is not a result of population growth, but rather "new" residents. These newcomers are demanding high-quality recreation amenities that may or may not have been previously offered by the community. (See rendering on this page.)

In BCA's survey, the results from more than 65 Illinois park and recreation directors and administrators revealed that more than half of small-market agencies have a community center, compared with 83 percent of agencies serving more than 30,000 people; and one-third of small-market agencies that do not have a recreation center anticipate building one in the near future. But the challenges these agencies will face in the planning, construction and operation phases will determine whether their centers are successful. The main challenges these directors and administrators listed in priority include:

* Limited revenue and tax cap limitations

* Limited funding

* Large boundaries/multiple community agency and local competition

* Local opposition

* Available land (agencies serving populations of 10,000-30,000 listed this as their third greatest challenge.)

Limited Revenue

By nature of the smaller service population, the number of people that a small-market community recreation center may draw is less than a larger market. A conservative estimate is that between 4 to 8 percent of the service population will join as a fitness member in a community recreation center. Generally, a limited market area of people has a direct connection to limited revenue opportunities.

One exception is an affluent community that is more likely to have the resources available to pay a higher membership fee and have a higher membership total. Consider that typically; 20-30 percent of a town participates in community recreation center programs, while about 10 percent belong to private health clubs. Higher revenue is achievable, but good planning must be part of the process.

So what is good planning? It includes conducting a market analysis or market research of your service area. Begin with determining who the recreation providers are in your service area, what they provide and whom they target. This information will identify your competitors and what your community center will have to offer to keep up. What are their membership totals and membership makeup? What services are they providing at what cost? The market research can be greater depending on your time and budget constraints.

You can hire a professional to conduct the research, or you can do the footwork yourself. Concentrate on a five- to 10-mile radius for suburban locations, because most people are not willing to drive farther if similar services are offered closer. Use a larger mile radius from your planned location for rural markets, which will depend on the availability of other recreation providers in the area.

In 2001, BCA conducted a similar survey of Illinois park and recreation directors and administrators that noted the top three reasons patrons use a community recreation center are (in order of priority):

* exercising at a fitness center

* taking instruction programs, such as aerobics and dance

* recreation and leisure programs

Chuck Szoke, executive director of the Channahon Park District, knows firsthand the importance of a fitness center, having opened the district's new 35,000-square-foot Heritage Crossing Field House in 2003. A 3,000-square-foot fitness center provides more equipment, while almost tripling the size of the district's former space. Membership has increased from 400 members to about 1,200 members in the first 15 months of operation. The park district's service population is 14,000.

"The facility provides an opportunity for not just additional fitness center equipment and an expanded membership base and revenues," Szoke says. An elevated, three-lane 1/8 mile track, program room and two gymnasiums allow us to provide for a wide range of wellness, sport and social opportunities for every age in the community. We observe that many of our members will work out or use the track while their kids are participating in a program in the building." (See photo on page 56.)

Other items that may influence the financial success of a facility include the facility location, accessibility, hours of operation, types of fitness equipment, a connection between indoor spaces and the outdoors through the introduction of daylight and views, visually interesting and stimulating spaces, fee structures and a comfortable interior environment.

Limited Funding and Local Opposition

These two challenges have been grouped together because sometimes limited funds result in the need for a tax increase approved by the voters. This action may open the door to local opposition. More often than not, communities may want certain amenities, but their willingness to fired the construction and operation may not be their priority. Opposition groups to your proposed improvements might include the private sector, school district, other public providers, special interest groups, seniors, elected officials, people who vote against everything, your local don't raise my tax group, NIMBY's (Not In My Back Yard) crowd, and last by not least NOEAM's (No One Else After Me). Reasons for opposition may include competition, the selected site, the cost of the improvements and the agency's need for the improvements.

One strategy to reduce local opposition is to understand the stated concerns and turn them into support. And if you are going to ask for a tax increase at election time, it may be necessary to be successful. Assistance from a professional that is skilled and experienced at developing and executing a good game plan is critical.

"Local opposition usually comes out of a concern for costs, like increased property taxes, or because the facility being planned will have a perceived negative impact on the immediate neighborhood," says Rod Aiken, director of the Glencoe Park District. "Financial concerns can be lessened if you can cultivate strategic partnerships either in support of tire construction costs or in making and exceeding operating costs once the facility is constructed."

Some examples include partnerships with hospitals in creating fitness centers that also serve as a cardiac rehabilitation function. Agencies can also use private investors to fund amenities in community centers, golf courses and other facilities in return for their ability to "operate" the amenity for a prescribed number of years before it reverts to agency ownership. "Raising money from private donors not only reduces the project's costs, but also creates a sense of community," Aiken adds. "You can leverage your existing funds and lower the amount needed from a possible tax increase."

Funding options should never be looked at as a taxpayer increase--they could be a partnership, bond issues, property tax, sales tax, grants and private donations. Exploring these options may uncover multiple funding sources that enable a community's dream to become a reality.

Szoke knows that partnerships can create a higher level of broad-based support, service a larger constituency, receive public support and reduce land requirements through a shared campus. His recent experience proves this, when his community successfully passed a voter-approved tax increase to construct his agency's new facility.

The uniqueness of the project involved an intergovernmental partnership. With the goal of maximizing efficiency while minimizing cost, the Channahon Park District and the Channahon Elementary School District 17 collaborated to construct a new field house facility and an adjoining new junior high school. The property is adjacent to an existing 45-acre park and 11-acre elementary school site, creating a 90-acre recreational/ educational campus.

The success of constructing your recreation center may ultimately depend on the community deeming the facility a priority. Involving the community in a public process is becoming more critical to implementing a successful capital improvement. The key questions to ask when planning a successful center include:

* What are the community's needs?

* How much are they willing to pay for membership?

* Will they financially support the proposed capital improvements?

A community survey is one way to gain the answer to these questions. A 10-percent return of completed surveys will provide a good view of your community's needs and priorities. Part of this front-end work is to maximize value for everyone, which is especially important if you are asking for financial support.

Aiken adds, "A professionally prepared and administered survey can take the guesswork out of facility master planning. You can identify or real firm expressed community needs, discover which amenities are most or least important, determine the community's willingness-to-pay threshold, and create a sense of 'buy-in' by those who are asked to participate. This is too important a step to do alone or to leave to an entity that has only secondary expertise in researching and evaluating needs assessments."

Large Boundaries

Agencies that reach beyond their community will be defined as having large boundaries. These large boundaries may overlap into adjacent communities and/or incorporate several communities. There are two reoccurring problems that develop in large boundaries. First, the residents may be paying taxes to more than one recreation agency. For instance, a family may live in a community being served by a park department and also pay taxes to an adjacent community's park district because the lines of the recreation boundaries overlap.

Secondly, when an agency serves multiple communities, the challenge of providing recreation for everyone equally and fairly in the eyes of those served is paramount. Seeking only a taxpayer referendum to fund the construction of a new community recreation center is very difficult to successfully pass. Especially if an existing public and or private facility already serves part of the residents.

"Educating the public in the community with overlapping recreation agencies is very challenging," says Trudy Wakeman, director of the park and recreation department in Lake in the Hills, Ill. "Breaking down what each household pays in taxes to those agencies has been a very visible way to generate support for a public agency."

In Lake in the Hills, a minimal tax (less than $35) for more than 300 acres of open space, parks, beaches and recreation programs is issued, whereas overlapping park districts may assess more than $150 for similar opportunities. Additionally, the area school districts (three in this community) have annually asked residents for additional funds. Lake in the Hills' population is approximately 25,000 and is projected to increase to 30,500 by 2030.

The nearby private fitness centers in Lake in the Hills have also broadened the park and recreation department's scope of opportunities it brings to the residents and surrounding communities. "Finding a void and a niche to fill has been the challenge in Lake in the Hills," says Wakeman. "We strive on the beauty of our lakes, our top quality special events, preschool programs and summer festivals." Currently, the Lake in the Hills Village Hall lower level will be finished to accommodate two classrooms, and will be able to facilitate additional day camp participants and youth programs.

Another option for park and recreation departments to service larger boundaries might be to work with the local government officials and housing developers to investigate the possibility of constructing smaller and less expensive community recreation centers. This option eliminates the need for taxpayer financial support and presents a win-win opportunity for the developer to have a recreation facility within the development run by professionals as a marketing tool.

Another option is to develop a public/private partnership. In this scenario, the public agency may own the land with a long-term lease that enables a private agency to pay for the construction and own the facility. The public agency may or may not run the day-to-day operations. However, the recreation programming within the facility most likely will be the result of a joint effort between what will make revenue and what the population wants. One of the most difficult aspects of this partnership is agreeing on who runs the facility.

According to a BCA survey, more than three-quarters of the survey participants indicated that they would want to remain in control of the management of the facility when developing a partnership with another agency.

Available Land

The third greatest challenge faced by small market recreation agencies, according to BCA's survey, is one of the most precious natural resources--land. Truly, this challenge affects every community--it isn't just an urban or suburban challenge. Minimizing the consumption of prime farmland and avoiding 100-year flood plains and wetlands are necessities. As professionals striving for environmental conservation, we need to--whenever possible--channel our planned improvements to sites with existing infrastructure to preserve habitat and natural resources.

Understanding each of these unique challenges and the opportunities that they present are critical to your success in building and operating a community recreation center.

Build It and They Will Come

Building a fitness facility or recreation community center may depend on how much the community will pay for its construction and user fees. An average 20,000-square-foot facility may include a basketball court, a 3,000-square-foot fitness center, an aerobics/dance room, a multi-purpose room, locker rooms, a small administration area and lobby.

The Crestwood Community Center in Crestwood, Ill., illustrates an economical quality of construction. This municipal agency serves a population of about 11,500 residents. The budget dictated the use of a pre-engineered facility resulting in a cost-effective 37,100-square-foot building. The facility contains three, high school-regulation basketball courts with telescopic seating for 550 spectators; a three lane, 10-lap-per-mile indoor jogging track; fitness center and multi-purpose/aerobics room; game room; concessions and locker rooms. The gym floor also accommodates a regulation indoor soccer field. The community center in 1998 cost $3.3 million. (See photograph on pages 54,-55)

Keep in mind to focus on the community's priorities, and don't fall into the something-for-everyone mentality. That kind of thinking may result in a facility that is too large and costly to fired. Voter results have proven that if the public thinks that the issue is important to them, they are more likely to vote. Your challenge is to get them to vote yes.

Don't forget to investigate adaptive reuse of existing facilities as a possible economical means to provide indoor recreation programs. According to BCA's survey findings, half of the respondents indicated that they would be willing to consider an adaptive reuse of an existing community-based facility to meet their needs.

Your first choice should be a school, because they are designed to support classroom learning, provide administrative offices and include the workhorse of all program spaces--a gymnasium. If a school is not available, look at other public agency facilities that you may be able to acquire for $1.

A fire station may provide an opportunity as another public building that has interior spaces such as offices, a kitchen, restrooms, showers and an activity room that can be converted into a community recreation center.

The clear height requirements and the clear span of the space are very compatible with a fitness center. The former overhead doors become wonderful opportunities for views into and out of the facility. Design the remodeling improvements to occur over time if the total cost is too great to bear at one time.

Is your school district building a new replacement school? What's happening with the old one? In Washington, Ill., the park district recently purchased a 46,270-square-foot, two-story facility middle school for $1 alter an initial facility assessment. The facility dates back to 1934 with additions completed in 1953 and 1993. The plan is to convert the facility into a community center with programs that will maximize the use of the existing classrooms and gymnasium. The park district is now contemplating the development of a facility master plan to guide immediate and future improvements.

"The conveyance of this building to the Washington Park District ... gives the park district a facility that will allow programming to expand into areas that were not offered due to lack of space," says Doug Damery, executive director of the Washington Park district. "The school district does not have the burden of selling a building designed for a special purpose or the expense of maintaining it for a long period of time. And, the community and the neighborhood not only have peace of mind that the building will not deteriorate and become an eyesore, but will have the opportunity to enjoy increased recreational opportunities."

With infrastructure already in place, the old middle school building becomes an instant community center. "We can move in and begin programming from day one," says Damery. "We would not be able to build a new facility for the price tag that we will spend updating, improving and adapting the school for our needs. We felt our use of this building for additional programming and services completely changes our ability to serve the community."

The Sugar Grove Park District is also planning the adaptive reuse of a 85-year-old, 7,500-square-foot fire station. After an investigation was completed, Greg Repede, executive director of the Sugar Grove Park District, sold his board on the idea that this facility provided a cost-effective opportunity for conversion into a community recreation center.

"With an initial tax levy of $350,000, we've had to be creative. Fortunately, we have a great relationship with the school district. We inherited an old rental facility that we converted to program space and we use other community buildings. Acquiring the fire station gives us offices and a parks garage and the opportunity to convert it into a small recreation center in the future," says Repede.

Lastly, don't just think of one facility to serve all of your recreation needs. Consider several smaller facilities that may offer different programs and activities in a way that become affordable over a longer period of time. Phasing improvements is a great way to achieve your vision using baby steps. The tendency is to think that it's all or nothing, which can lead to no action because of limited funding options.

The mall concept or one-stop-shop is not always the answer. Bigger is not always better. Sometimes, smaller decentralized facilities complement a community, depending on its location and makeup. Is your service population concentrated or spread out? Do you have a perceived barrier, such as a river, separating your service area?

Considering these issues along with others will aid you in developing a plan that best meets the needs of your agency as opposed to what another agency has done. The patrons will determine success for your center and understanding how they define success should be part of the big idea.