Life Time Project Updates
Tuesday, April 5, the Rosemount City Council signed a purchase agreement to acquire a 29-acre parcel at the northeast corner of Cty Rd 42 and Akron Avenue. In addition, they signed off on a letter of intent with Life Time to build a state-of-the-art athletic club on a portion of the land parcel. If the proposed partnership with Life Time is completed, Rosemount residents would receive a reduced membership rate and other access benefits to the newly built Life Time location throughout the partnership.
“We are extremely thrilled about the prospect of this innovative partnership with Life Time,” stated Rosemount Port Authority Chair and City Council member, Heidi Freske. “Growth and development are top priorities in Rosemount right now. Our citizens are looking for the convenience, retail variety, and amenities that contribute to a high quality of life in our city.”
Mayor Bill Droste added, “Life Time has secured its place as the premier club operator with the best programming and experiences for the entire family. This partnership would be a forward thinking and nimble way to achieve multiple goals for our residents while letting the private sector do what it does best.”
For complete details of this innovative public-private partnership, read the complete press release dated April 5, 2022.
Since 2012, the City of Rosemount has been exploring options for bringing more recreation spaces to town. Based on consistent citizen feedback and market demand, it was clear that additional facilities were needed as Rosemount continued to grow.
2018 Rec Facility Study
In 2017, consulting firm Ballard King was hired to conduct a market and feasibility study on the city constructing and running its own recreation facility. Results showed that Rosemount had a strong need for additional facilities and that residents were spending their recreation/fitness funds elsewhere. However, the study concluded that the City would lose upwards of $500,000 annually on this option for a variety of reasons, leading city officials to strategically pursue other options. In the years that followed, the City began comparing the costs and benefits of either a non-profit partnership or a public-private partnership model. As seen in the table below, the public-private partnership model with Life Time athletic club had less long-term cost and offers many more amenities that residents desire. Additionally, Life Time has a proven track record of attracting nearby retail growth, which is a high priority for Rosemount residents.
|City Run Facility||Non-profit Partnership Option||Public Private Partnership Option|
|City Project Budget||$28.9M||$21M||$21M|
|Annual Losses to City||$500,000||city would pay half of all annual losses||$0|
|City's Annual Maintenance and CIP requirements||All costs||$420,000||$0|
|Annual Sales & Property Taxes||$0||$0||$1,125,000|
|Annual Lease Payments collected after bonds paid||$0||$0||$600,000|
|Facility Size||87,000 ft||60,000 sq ft||107,000 sq ft|
|Ability to Attract Nearby Retail Investment||Low to mid||Low to mid||Proven history = high probability|
Additional Benefits to Rosemount Residents
As stated in the Letter of Intent, Rosemount residents will receive the following benefits:
- No initiation fees
- Reduced monthly rates ($10 off individual, $15 off couple, $20 off family)
- Summer Membership option - a summer only reduced-rate membership option that runs from June to August. Access to both indoor and outdoor pools and all other amenities.
- (4) guest passes per household annually for the first five years
- A scholarship fund will be co-sponsored by the City and Life Time
- There is no tax impact to residents for the financing of the project. The City will utilize revenues generated by landfill tipping fees to fund its portion of the project.
- City receives an average of $1.9M to $2.2M annually from this source.
- City's debt payment will be approximately $1.2M, saving the remaining $700K in revenues for other City amenity projects.
- The City will purchase the land and own the building; Life Time will be the Lessee
- The City will utilize General Obligation Bonds to fund the acquisition, development, and construction of the premises and building. Current estimates place the value of the facility at $48M.
- Life Time will lease the building for 30 years, with two, 5-year renewal options
- Life Time will pay rent payments equal to their portion of the agreement (everything over $21M)
- After the 30 year term, the city will begin collecting an annual revenue of approximately $600,000 from rent payments
Stay tuned to this project page for future project updates and announcements. To receive project updates via email or text, sign up for the Life Time Project Notify Me list.