August 27, 2025 City Council Meeting

Announcements

• 📅 The Adult Wellness and Education Center, which opened on November 11, 2023, is undergoing a contract reassignment for its operator.
• 📅 The Young Family Athletics Center (YFAC), operational since February 2024, will see its concession stand transition to city operation.
• 📅 The contract with previous YFAC concession operator, Beanstock Coffee and Snow, was mutually terminated with a 60-day notice issued on June 23.
• 📅 The YFAC concession stand is expected to reopen under Parks Department operation in October.
• Resolution R-2526-38, concerning the Adult Wellness Center contract reassignment, is listed as item #21 on tonight's consent agenda.

Key Decisions & Votes

Adult Wellness and Education Center Contract Reassignment

• The City Council discussed Resolution R-2526-38 to reassign the operator contract for the Adult Wellness and Education Center.
• The contract will be reassigned from Healthy Living Center Norman LLC (an entity tied to an Oklahoma City operation) to Healthy Living Center Incorporated, a newly formed Norman-based nonprofit.
• This change aims to further separate Norman operations and ensure the facility is overseen by a local, Norman-focused board of directors.
• No changes are anticipated to the existing contract terms, operations, staffing, prices, or memberships as a result of this reassignment. The city will continue to assist with utilities, janitorial, landscaping, and pool maintenance as per the original agreement.
• The new board will comprise Norman residents or those who work in Norman, including former council members and a former mayor, with the City Manager or their designee serving as an ex officio member.
• Outcome: The resolution is on the consent agenda for approval tonight, which would release the previous LLC from future liability.

YFAC Cafe Operations Transition

• The Council discussed the future operation of the cafe at the Young Family Athletics Center (YFAC).
• The city has mutually separated from its previous concession operator, Beanstock Coffee and Snow, due to operational challenges for the business in the high-volume recreational environment.
• The City of Norman Parks Department will now operate the concession stand, with plans to reopen in October.
• This transition is expected to create three permanent part-time positions ($13-14/hr) and additional seasonal part-time roles ($10/hr), expanding the scope of an existing Food and Beverage Coordinator.
• The Parks Department plans to offer traditional concession items (e.g., nachos, hot dogs, popcorn, sports drinks) and partner with local businesses for other food options.

Financial Matters

YFAC Financial Performance & Concession Projections

• 💰 The Young Family Athletics Center (YFAC) reported a net loss of $290,000 in its first full fiscal year of operation.
• City staff noted that recreational centers typically operate at a loss, with a goal of achieving profitability within three to five years.
• The Parks Department projects the new city-operated concession stand could generate a net revenue of $165,000 annually (from $400,000 in revenue against $235,000 in costs), helping to offset the overall YFAC deficit.
• Other cost-saving measures are being explored, including energy efficiency improvements with OG&E (potential 30% daily electricity savings) and running more in-house programs to avoid revenue sharing.
• A new, separate cost center will be established within YFAC's budget to monitor the concession stand's financial progress.
• Council members inquired about the detailed breakdown of YFAC revenue and expenditures, noting that the pool facility is a significant cost center with limited revenue potential due to its size.

Economic Impact of YFAC

• 💰 Despite the operational loss, the YFAC is recognized for its significant economic benefit to the city, generating substantial sales tax and hotel/motel tax revenue.
• In its first six months, the YFAC saw approximately 200,000 visitors with an average dwell time of over two hours, contributing to local businesses and supporting over 30 overnight-stay events annually.
• Council discussed the potential for charging for parking at YFAC, noting that while private facilities often do, city-owned facilities typically do not. The success of a nearby hotel's paid parking system was mentioned as a point of interest for future consideration, especially if additional parking structures are needed.

Agenda Summary Table