09-08-2020 Council Work Session Packet

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WS – Item 9 WORK SESSION STAFF REPORT Work Session Item No. 9 Date: September 8, 2020 To: City Council From: Michael Grochala, Community Development Director Re: YMCA Status Update Background In July of 2020, the Y notified the City that they would not be reopening the Lino Lakes facility pending further evaluation of the operation. As the City Council is aware, Lino Lakes provided considerable financial resources to make the YMCA a reality for our residents. The City provided land, infrastructure, and cash as part of the original agreement. The development agreement does include requirements for the YMCA to continue to operate a recreational facility. While the YMCA has indicated a need to diversify the programming at this location, the City Council has been clear that continued operation of the wellness center is our primary concern. A default, on the Y’s part, does provide the City with the right to reenter and take possession of the property. The YMCA is currently looking at both interim and long term solutions for continued operations. Currently, the Y is proposing to provide distance learning support to the community at large. Provided that the program does not preclude reopening wellness operations, staff is not opposed. The Y has kicked off their proposed “Reimagining” process. The first meeting of the steering committee was held on September 1. The process, facilitated by LSE Architects, will continue through the fall. Approximately four sessions with the steering committee and two community wide meetings are planned. The purpose is to identify services that would lead to a more sustainable business model consistent with the Y’s mission. During ongoing discussion, the City Council has expressed a need to evaluate options available to the City to ensure continued use of the facility as originally intended. Accordingly, staff is recommending retaining a qualified financial consultant to lead this assessment. The assessment could include multiple scenarios for evaluation. As a first step, staff would recommend sending out a Request for Qualifications (RFQ). Upon review of responses, the City could then select a preferred firm. As an unbudgeted item, funding would need to be allocated from City Council contingency.