LUKE SHANNO EDITOR-IN-CHIEF
The first year’s operations payment on the Wartburg-Waverly Sports and Wellness Center is coming due in July and with current projected revenues, the city of Waverly will likely have to pay the full guarantee of $600,000 to help cover costs, according to reports from an advisory committee of Waverly citizens and Wartburg staff.
“We don’t know exactly where it’s going to end, but there’s no doubt in my mind just looking at the early numbers that it’s going to be significantly less, maybe even half of what we had originally hoped,” Wartburg College Vice President for Administration Gary Grace said.
“It’s not bad for the college, that’s why the college put that in the agreement. That’s what makes The W not have an impact on the rest of the budget.” Grace added that even if “The W” doesn’t meet revenue goals, it doesn’t affect the college because of how the city’s guarantee works.
While Knights Gym and the Wartburg Physical Education Center were still standing, plans were drawn up and an agreement was signed between the city of Waverly and Wartburg in the fall of 2005 for the construction and payment of a joint athletic and recreation center.
“The mayor and the president of the college at that time had been talking about the needs of the college and the needs of the community and felt that maybe a joint effort could be done to have a wellness and recreation center for the community,” City Administrator Richard Crayne said. “At the same time it would be a benefit for Wartburg students and faculty.”
The agreement states that for eight years, the city of Waverly will pay $150,000 per year for yearly costs associated with “The W.” This includes paying for the recreation programs that used to be city-run, but are now overseen by “The W” staff members.
In addition, the city will pay up to $600,000 a year to cover any differences between the operating and maintenance costs not covered by revenue.
The city’s guaranteed investment is $1.2 million, while they could pay up to $4.8 million extra depending on the contingent payments over the next eight years. The citizens of Waverly will have access to the facility for 35 years from the day that the doors opened, at which time, the current agreement will expire.
Although it looks like the city will have to pay the $150,000 plus the full $600,000 this year, Crayne said the city is committed and believes Waverly is getting a good deal.
“After looking at different ideas and trying to put projects together, finally the right combination came together,” Crayne said.
The city of Waverly tried multiple times in the past to build a community recreation center. In their most recent attempt, the city was looking at a roughly 40,000 sq. foot center for just under $6 million.
The operating and maintenance fees, as well as interest payments on bonds were going to be too much to try and cover and kept the project from getting off the ground.
With the current set up, community members have access to around 100,000 sq. feet of recreation space, and will pay up to $6 million.
According to Grace, the agreement between the city and the college represented both a good deal and sound decision making.
“I think both groups did a pretty good job of making sure their constituents were considered,” Grace said. “In our case, that was making sure this didn’t have an impact on the budget which would affect other services the college needed to offer. From the city’s point of view, it was making sure their risk had a limit to it.”
“It’s going to take time for the program to get fully developed and achieve the objectives that were set forth. It is very clear to me that this endeavor is a unique collaborative effort between community and college,” Wartburg College President William Hamm said. “It has enormous future potential as well as a significant current impact.”
There are currently over 800 “W” memberships that total over 2,100 members, not including students. According to figures provided by Grace, there are between 80,000 and 100,000 card swipes a month between members and students at “The W.”