Local fitness businesses take Knock Out Punch by a $39 million municipal health club

While the Town of Canmore has enjoyed success with Elevation Place’s popularity in the community, it has also been challenged on that success by the local fitness industry.

Private gyms and fitness instructors have been meeting with administration to address concerns that Elevation Place is unfairly competing with the private sector.

Indeed, the popularity of the $39 million multiplex has been presented to council during budget deliberations as a success – exceeding revenue expectations in memberships.

Part of the success has to do with the fitness facility located on the second floor – which was originally 200 square metres in size when the building was planned. Since opening, two 50 square metre rooms were added for stretching and cardio, and it has been a growing cause for concern for local fitness business owners.

General manager of municipal services Lorrie O’Brien told council administration has been meeting with representatives of the industry over the past two months.

“Discussions at first were difficult, but over the last nine weeks we are pleased to say we have built trust with one another and see an opportunity to work together,” O’Brien said.

Members of the fitness community jointly submitted a position statement to the municipality arguing that administration acknowledge that Elevation Place using an enterprise model “has been overtly competitive and caused significant harm to the private fitness sector.”

The position asked for a commitment to eliminate personal training from Elevation Place and changes to current core class offerings at the facility. O’Brien said administration does not have a problem eliminating personal training and they are “currently in discussions of what (changes) might mean in terms of core class offerings at Elevation Place and what tweaks that might need to meet everyone’s needs.”

Two capital budget items in front of council in December were postponed so administration could work with the fitness community on the issue – and that has resulted in a memorandum of understanding between administration and the industry.

The projects included $35,000 in additional equipment for the gym at Elevation Place and $75,000 to put equipment in the Peaks of Grassi gym at the Rec Centre once the gymnastics program moves into its new space in the building.

“We have developed a memorandum of understanding for the Peaks of Grassi gym operation,” O’Brien said. “We explained that operation to the fitness businesses and they recognize … it will not be in competition with them and there may be an opportunity to be part of that business operation.”

The plan for the 4,700 square foot gym space is to create a space for teams or groups to train – and the MOU was signed after the private sector had an opportunity to review the project. O’Brien said the private sector recognized what is being proposed for the space is not in direct competition with businesses.

Yoga Lounge owner Jeff Mah, who is one of the businesses that has been involved in the discussions, said consultations have been productive and the MOU is a good sign of where the process has gone.

“Currently, the bulk of the group is motivated to sign it as a gesture of goodwill for better conduct at Elevation Place,” Mah said.

Part of the funding for the facility upgrade comes from a $25,000 grant from RBC Play Day and the intention is to provide a venue for youth especially to develop their physical skills and “will become an important space for youth sport teams to further develop skills” according to a report to council.

O’Brien said administration is sensitive to the effects of the enterprise model on the private sector and believes working together they can grow fitness in Canmore. She also presented a decision making model in the report for future recreation services and programs.

As for the possibility of squash courts in the space, council heard the majority of equipment being purchased could easily be relocated if the recreation master plan process recommends an alternative use for the gym.

“I wouldn’t preclude council deciding on squash for that space after a fulsome analysis in the recreation master plan,” said Mayor John Borrowman. “Right now, we have agreed not to approve any permanent uses.”

As for the additional equipment for Elevation Place, the delayed capital project would purchase cardio, resistance and other training equipment to add to what is already there and in high demand. Staff have already converted additional space upstairs at the facility for the extra equipment, but council is waiting for the results of consultation before proceeding.

It also raised a significant question for council around the parameters used to determine when and how the public body competes with the private sector. Councillor Joanna McCallum suggested a council policy on the issue would be helpful.

“I agree I would like to see a policy, but I think we should recognize all of this is coming from competition at Elevation Place and Elevation Place has experienced success,” she said. “We are realizing year three and four goals in the second year and these issues we are dealing with here are super important. I don’t think we realized we would deal with them this quickly.”

Elevation Place ended 2014 with 4,364 community members registered, including 1,641 purchasers of punch cards, and 2,195 annual members. Of that total, 35 per cent represents families that use the facility.