Community Government

New rec center meeting PenMet’s financial expectations

The Peninsula Metropolitan Park District’s new recreation center lived up to expectations during its first six months of operations, according to a presentation Tuesday evening.

From July to December, slightly more than 30,000 people visited the recreation center. A little more than a quarter of visitors used the facilities on a fitness pass, and families used the facility the most. Seniors made up about a quarter of the participants, said Tracy Gallaway, director of recreation services at the park district. 

“We’re learning from our customers, learning from our staff and making adjustments when necessary,” Gallaway said.

PenMet’s Recreation Center opened on June 18, 2025. Photo by Ed Friedrich

Revenues and expenses both low

PenMet did not project the center to turn a profit right away. In fact, staff told the elected board of directors that it would either break even or require subsidies to meet its financial obligations.

“Seeing the strong attendance and the warm reception from the community since opening the recreation center has been incredibly humbling,” PenMet board member  Missy Hill said in an email. “From the moment the doors opened, it’s been incredibly rewarding to see the center already becoming a place where families, seniors, and community members come together.”

In the first six months, the recreation center earned $369,000 in revenues, far below the $516,820 projected in the annual budget. The facility made less than projected on drop-in and facility rental fees, according to the presentation.

However, expenses also came in far below projections. Rec center expenses for July through December was $872,376, versus a projected $1.2 million.

“The biggest takeaway for the public tied to the PenMet Parks Recreation Center is that it is performing as anticipated before the final decision was made to build the facility,” said Brynn Grimley, Peninsula Metropolitan Park District director of operations and public information.  “As the financial section shows: We’re on target, despite the center opening three months later than anticipated or budgeted.”

District didn’t expect a profit

PenMet did not design the recreation center to operate at a profit, Grimley said. The district understood it would operate in the red for several years.  

“We increased our operating reserves overall to help ensure financial stability across the district and we also added two years of debt service reserves to our Debt Contingency Fund to make sure we were covered, should anything unexpected or unprecedented arise,”Grimley said. “There are no financial surprises with how the center is operating since opening in July. We are tracking the financial process monthly and so far, everything is tracking as forecasted.”

The basketball courts at PenMet’s new rec center in June 2025. Photo by Ed Friedrich

The bulk — 85% — of the park district’s general fund revenues come from property taxes. In April 2021, the park district issued and sold $20 million in general obligation bonds to design, build, equip and renovate facilities in the district.  This year the payment will be $808,230, according to the annual budget.

The district’s 2026 operating budget was $13.1 million, which includes a $4.6 million capital budget.

“As a commissioner, I am mindful that I serve at the will of our constituents and that I have a responsibility to be a careful steward of taxpayer dollars,” Hill said. “This project moved forward because the community asked for it, helped shape it through their input, and ultimately supported it through a public vote.”