Brick rec. center feasibility study: Foodtown site cheapest option at $33M Pezarras: Traffic may present only hurdle for Route 70 site BY COLLEEN LUTOLF Staff Writer A rendering of Brick's proposed community center prepared by architectural firm KBA, Millville. A $33 million community center is financially feasible, based on the findings of an updated architectural study, said acting Business Administrator Scott Pezarras. The study is a 2006 update on a community center feasibility study completed by KBA Architecture, Millville, in 2002. KBA was hired to update the study earlier this year. "They were within 2 percent," Pezarras said. "What they assumed is actually what we now know. It made us feel good about their assumptions. If their assumptions hold true again, it looks good." The updated figures were based on the assumption that the Township Council would approve financing, design and construction of the community center in June 2006 with a fully operation community center ready for ribbon cutting in fall 2008. KBA estimated in the 2002 study that community center construction costs would be over $25 million. That figure has increased by $8 million to $33 million to be borrowed through long-term bonds, Pezarras said. Construction costs were omitted in the updated report. "Probably they already knew the cost of construction," he said. "The only thing that was going to change are the interest rates." KBA didn't return a call for comment by press time. The report expects the community center to net $145,000 in income during its first 10 years of operation, seeing a net profit by its fifth year of operation. But Pezarras pointed to a spreadsheet at the rear of the report that shows Brick would begin seeing a $216,175 profit after three years of operation if the township opens a community center by 2008. The first two years, the community center would operate in the red, showing a $460,930 deficit and $130,131 deficit, respectively. As in 2002, KBA recommended that Brick hire an underwriter to purchase the entire bond issue, who will then resell the issue at a profit to investors. "This allows the borrower to receive the entire issue's proceeds quickly, without worrying about marketing," the study states. Interest rates aren't the only aspect of the community center that has changed. KBA's updated estimate adds a minimum of 20,000 extra square feet to the proposed community center. Although not stated in the report, Pezarras said KBA based its financial analysis on the abandoned Route 70 Foodtown lot as the community center's location. "When they came down to have a meeting, we had dictated to them that that was the site being studied," he said. "[Township officials were told] at the time if that was not the case, that would alter the numbers. The profitability of the site would be delayed by a number of years." The 2002 report based its findings on a community center measuring between 125,000 to 150,000 square feet. KBA increased in the 2006 report the minimum and maximum suggested square footage by 20,000, proposing a community center somewhere between 145,000 to 170,000 square feet in size. That additional minimal square footage would be realized in an additional 10,500 square feet of hardwood floor surface (basketball/volleyball courts); 3,000 more square feet for the physical fitness area (free weights, universal equipment, treadmills); an additional 2,000 square feet dedicated to a senior center with private access; 2,000 additional square feet for a multipurpose room (for large and small group events, meetings and conferences); 2,000 additional square feet for a day-care facility; an additional 2,000 square feet for education and training rooms; and an additional 4,000 square feet in miscellaneous square footage. The suggested square footage for the two regulation-size ice skating rinks with locker room and seating; an eight-lane, 25-yard lap pool, and one leisure pool with water therapy whirlpool; and an indoor soccer facility that can be configured for volleyball, lacrosse, or flag football and limited seating remains the same at 47,500, 27,500 and 25,500 square feet, respectively. Although the town's under-age 25 population has increased from 32 percent in 2002 to 53 percent today, the conservative estimate of households that would purchase annual membership remains at 4,000, according to the report. Within the body of the report, KBA also did not increase the suggested membership prices over what it estimated the township should charge in 2002. For example, a suggested membership fee of $365 a year will get a family of four unlimited access to the aquatics center, physical fitness facility and six free skates per person. The $365 annual figure is the same fee KBA suggested in 2002. "We didn't want it to be detrimental to the people of Brick Township to utilize the facility and preclude people from participating," Pezarras said as the reason membership costs did not increase. But spreadsheet figures in the study's last pages estimates an additional $155,977 in membership and usage revenue for the community center's first year of operation above what it estimated in the 2002 study. That's because with population numbers rising, KBA expects more people to sign up for memberships, Pezarras said. "When we looked at it, we just didn't look at Brick" Pezarras said. "This would be a destination site utilized by the region." In order for the community center to show a profit after three operating years, KBA said the township must ensure several things in addition to using the old Foodtown site, according to the study: + the ice facility must generate nearly $2 million a year in revenue and more than $1 million in net income needed to offset operational deficiencies elsewhere in the community center, such as the aquatic facilities, which are usually a revenue drain + the aquatics center must be supported in-season and out of season + area residents must use the aquatics center for therapeutic programs + community center management must be diligent in its pursuit of contractual arrangements with area schools and competitive organizations + projected membership levels must be met + competent and experienced staff must be hired to oversee and implement programs and initiate proper marketing initiatives + external revenue sources must be pursued with diligence Brick can earn more revenue if it is willing to provide food service for customers. "Even if it didn't turn a profit, even if it broke even, I'd be happy," Pezarras said. "Providing an additional service and a building people can utilize and it costs you nothing? Even if it produced at a loss, would that be the worst thing?" Pezarras said that is why the township is proceeding with caution. "That's the input we're getting back," he said. "If it breaks even or better [people want it]. If it's a loser of the year for the next 20 years ..." KBA also recommended Brick form a self-liquidating, self-operating utility or authority to develop, construct and operate the community center. "I think once the council has an opportunity to digest this stuff, one of the key factors there is, is whether or not traffic conditions are going to stop the project in its tracks," Pezarras said. Township officials are meeting with state Department of Transportation officials this week regarding some traffic reconfigurations near the site that may alleviate traffic on the Route 70/Brick Boulevard/Chambers Bridge Road corridor, Pezarras said.