Poor marketing blamed as downtown facility continues to lose money and membership
Akron taxpayers have pumped in more than $1 million the past decade to breathe life into a downtown athletic club whose membership continues to plummet.
There was a time in the 1980s when the CitiCenter Athletic Club, with its oak lockers, swanky restaurant and warm towels, was an exclusive retreat to its 700 government and business members.
When the city saved the money-starved club and its 300 members in 1996, it worked out a lease with the Akron Area YMCA to run the facility with the hope of someday breaking even.
Instead, membership is now about 200, although less than 160 actually use the facility on a regular basis, operators say.
And as membership has declined, the city's costs have risen every year.
Just last month, the City Council was again asked to pony up money to keep the club open. This time around, the council approved spending $233,000. In turn, the city received about $90,000 from membership fees.
The costs have some on the council questioning the club's apparent lack of public appeal and its 10-year money-losing record.
''I hate to say it, but let's face it, it's just another downtown subsidy. That's basically what it is,'' said at-large Councilman John Conti. ''I've been saying this for three years now. It's time to take a closer look at how our money is being spent there.''
City leaders say closing the club isn't the answer. Rather, poor marketing remains the problem and a renewed campaign effort is ongoing.
The CitiCenter Athletic Club is housed on the fourth and fifth floors of the original downtown YWCA. In the 1980s, the building was purchased by a private developer, remodeled and in 1985 the Cascade Athletic Club was opened.
When the developer failed to pay his rent, the city took over the building for its own use. The renamed CitiCenter
Athletic Club was sold in 1993 to a private nonprofit group. When that venture failed to sustain itself, the city took over the club in 1996.
David Lieberth, Akron's deputy mayor of administration, has a long history with the club. He has used the facilities for 22 years and was a member of the nonprofit board that once operated the club.
In its heyday, membership was above 700, he said, but the club has never made a profit, regardless of ownership. The trend continues.
Costs on rise
Since 1996, the city has asked the council for more than $2.3 million to run it and during that time the city's costs have risen nearly 20 percent, according to council records.
Members have paid the city about $850,000 since 2000, while the city chipped in $819,000 during those same years to balance the books.
City officials could not provide membership numbers and fees for the years 1996-1999. But based on averages, memberships have steadily declined while running the club has cost the city about $1.2 million since 1996.
Despite the rising costs and sagging membership, Lieberth said he still views the facility as a perk to downtown workers while also providing incentives to government workers in need of a health boost.
''Why would we cut bait? We're not in the profit-making business. We're in the business of providing services to our residences,'' Lieberth said.
Poor marketing
Marketing, he conceded, has been poor and has not been effective in firming up the club's bottom line. He cited the fact that there is no prominent sign outside the building and fewer and fewer people who pass by even know it's there.
On a recent lunch-hour visit, a half-dozen or so members barely outnumbered the club's workers. The pool area was empty, except for the lifeguard positioned nearby. The club's 22-year-old exercise equipment was mostly idle, except for two women riding stationary bikes. The club's restaurant is now used only as a meeting room.
Because of its anonymity at South High and East Bowery streets, some call it downtown's best-kept secret.
''Everybody agrees we have to do a better job of recruiting new members,'' Lieberth said. ''If you observe that we don't have enough members, I'm saying to you that's a fair observation.''
Rugged competition
Club director Tim Goebel said the marketing campaign began last summer with visits to downtown offices to pass out brochures. He said competition is rugged from wellness centers that have sprung up in local suburbs and at the University of Akron.
In addition, the Canal Square YMCA, although it is marketed toward families, offers similar amenities and is only about 1,800 feet away from the CitiCenter Athletic Club.
Another marketing issue, Goebel said, is finding more people willing to exercise. Single memberships cost $47 a month. Discounts are available for corporate and government workers.
''The challenge is getting people in the door,'' Goebel said.
Deserving of scrutiny
Ward 6 council member Terry Albanese said Conti's questions about the club's financing are fair, and the city's investment deserves to be scrutinized.
On one hand, she compared the CitiCenter club to city community centers, none of which are designed to make money. On the other, she questioned its usefulness to serving fewer and fewer people.
''The CitiCenter is a different creature because of the expense of maintaining it and because of the clientele who use it - employed persons who can afford a membership fee,'' she said.
''What it boils down to is evaluating whether the amount we subsidize the CitiCenter is appropriate relative to its value to the community.''
By Phil Trexler
Beacon Journal staff writer
Published on Monday, Dec 10, 2007
Phil Trexler can be reached at 330-996-3717 or ptrexler@thebeaconjournal.com
