A partnership between Rosemount and Life Time could bring a new indoor fitness center to the south metro suburb, fulfilling a goal the city has pursued for more than a decade.

The city would purchase the land and own the $48 million building. Life Time would staff, operate and maintain it. They would split construction costs, with the city contributing $21 million and Life Time paying the remaining $27 million.

“City Council has always heard the community’s strong desire for amenities, whether parks [or a] recreation center,” said Dan Schultz, director of parks and recreation at Rosemount. “We hear about it all the time.

The 107,000 square foot fitness center will include an indoor and outdoor pool, cafe, spa, space for fitness classes, gymnasiums, daycare and pickleball courts.

The city and Life Time signed a letter of intent to proceed with the project in April, and Rosemount signed a purchase agreement to acquire 29 acres of land at the corner of County Road 42 and Akron Avenue for the new building, intending to sell approximately 15 acres of the plot for further development.

Aaron Koehler, vice president of real estate and development for Life Time, said the Chanhassen-based company had Rosemount on its radar as a place to build, but it would be a decade before the city’s population is high enough to support an installation. .

“It’s early days, but this opportunity allows us to come to Rosemount before the game,” Koehler said.

Over the past decade, the city has also considered working with the YMCA and another local nonprofit, now called Hope Fieldhouse, to build a fitness club. Hope Fieldhouse built a 45,000 square foot field in Rosemount in 2019.

This facility offers gym space, but no pool, and not as many other amenities as Life Time.

In a recent presentation to city council, Schultz noted that a 2021 community survey found residents ranked having a recreation center as their third priority, behind having more retail space and a new police facility. and public works.

A detailed study in 2018 that included a concept plan for a $28 million, 87,000 square foot recreation center confirmed “strong market demand” for such a facility, Schultz said, but also revealed that the city ​​would lose at least $500,000 a year in operation. this.

“We pretty quickly scrapped that idea based on council direction,” said city administrator Logan Martin. “The list of pros and cons clearly stacks up in favor of the private partner.”

As part of the Life Time partnership, residents of Rosemount will receive an offer on memberships – no initiation fee and a $10 discount on individual monthly dues, a $15 discount for couples and $20 for couples. families.

Memberships at the center, before the discount, will cost $120 per month for individuals, $180 per month for couples and $220 for a family. Families will get $100 off a three-month summer membership so kids can use the pool when it’s hot, Martin said.

Each Rosemount household will receive four free passes per year for five years. The city and Life Time are working on the details of a scholarship program for low-income families.

The city plans to use bonds to finance construction over 30 years, Martin said.

He said the city would use tipping fees — money paid to the city for hosting a landfill — from SKB Environmental, the owner of the landfill, as a source of funding to pay off the debt. The city receives about $2 million a year in spill fees, of which about $1.4 million will go to the Life Time project each year.

Life Time will pay about $250,000 a year in property taxes, Martin said.

Koehler noted that Life Time has smaller partnerships, mostly related to outdoor pools, with other suburbs, including Plymouth and Savage. Both cities have made a financial contribution to these facilities, he said, so that their residents can pay a daily admission fee without being members. Residents also receive 15% off Minnesota’s lowest lifetime initiation fee.

Janet Williams, mayor of Savage, said she knows people who live in Savage simply because there’s a Life Time nearby. The city contributed $3.1 million toward the aquatic center’s construction in 2001, she said, and owns that property. Life Time has the option to buy the aquatic center in 2041 for $1 million.

Several steps must be completed for Rosemount’s agreement to be final, Martin said, including the lease agreement, the sale of the land, the city obtaining bonds, and the plans being approved by the city and the council. Life Time Board of Directors.

Construction would begin in the fall of 2022 and is expected to be completed in 2024.