Fee plan for Lake Kennedy Racquet Center moves forward
Cape Council expected to approve proposal next week
Cape Coral City Council will set the membership and other fees for the Lake Kennedy Racquet Center next week.
Council in June chose the second presented option for center membership fees, which are proposed to include a $250 annual membership for individuals, $350 for couples, $500 for family and $100 for juniors.
There would be no initiation fee for residents and a non-resident initiation fee of $100 would be applied for annual membership, $50 for semi-annual and $50 for monthly membership.
The facility would host 16-18 tournaments a year.
Councilmember Tom Hayden pulled Resolution 216-24 at Wednesday’s meeting this week to share that Council was not then approving any final plans for the Lake Kennedy Racquet Center.
The resolution, which was passed, approved the direction Council previously provided city administration — which included selection of the second option for resident membership fees, drop-in/guest rates and more options for the brand to include the City of Cape Coral in the logo.
The city manager addressed a comment from the community during citizen input that addressed the only expense to the management company of $220,000.
That comment was made by resident Tom Sweeney.
“After looking into it, there was a P3 opportunity to hire an organization to run the racquet center that was presented on Aug. 23 of last year. (They would) generate income for the city. Since then, a contract was awarded to SFC. In that contract it looks like SFC was given an open checkbook to charge the city whatever they needed to run the facility,” Sweeney said during public input.
City Manager Mike Ilczyszyn said they entered into a fixed fee contract with the management company, Sports Facilities Companies, to do such things as have a marketing firm and accounting manager.
“We are basically utilizing their company for those management entities,” he said. “We are not going to be managing those with our own accounting staff, city attorney, own managers. We are paying a fixed fee to the company to handle all of that.”
Ilczyszyn also addressed the costs for staff to run the facility. He said it is a pass-through cost, as when they hire a tennis pro, they pay for them.
“If we didn’t, we have to hire them. We are going to pay for those costs one way or another,” Ilczyszyn said.
The management company will provide expertise the city does not have such as entering into tournament agreements, managing the facility and having purchasing power for certain entities, he said
Right now, the city has an estimate of what they think the expenses and revenues are going to be for the facility, which will continue to evolve over the next year.
“For me, or anyone, to say that we aren’t going to be successful in a year is a crystal ball comment,” he said.
Parks and Recreation Director Joe Petrella said the company cannot provide a full business plan until the rates are set. He said from that point forward, they have to provide the business plan 120 days prior to the budget approval.
Rates will be set at the Wednesday, July 24 Cape Coral City Council meeting. The facility is anticipated to open on Aug. 1.
Councilmember Bill Steinke said he believes the center should be revenue neutral.
To reach MEGHAN BRADBURY, please email news@breezenewspapers.com