A $12-15 million, 45,000 sq foot renovation/expansion that will ‘break the boundaries’ of anything that has ever been done in the industry.
Click a question below to see the answer…
Q. Will our rates increase due to this expansion?
Every year since we were founded, the NAC has incurred an annual rate increase in January.
After the completion of the Big Build, we finally made the leap into becoming not just a health club, but a true lifestyle club. The annualmembership dues increase represents the increase in operating expenses as well as increases provided to our employees.
Even if we raise the dues only $5 per month on each of our 5,000 membership units that increases our membership revenue by $25,000 each month or $300,000 annually. At that rate it would take over 33 years to pay off the cost of a $10 million expansion. As any business, we manage our expansion through loans from the bank and pay back the loans over time, just as the mortgage on your home.
To put this into some context, a dues increase of $300,000 annually is only a 2% increase over our $16 million annual budget. That amount barely covers the cost of increased operational expenses.
So again, the answer is yes the rates will increase, but only as a reflection of the cost of doing day to day business, not as a reflection of capital expenses for expansions.
Q. Would we consider solar power throughout this expansion?
A. After a thorough independent analysis, we will not be using solar as our heating requirements are too vast (including all the outdoor and indoor pools, the laundry, the equipment and more). Unfortunately, the cost vs. benefits do not support this use.
Q. Can we offer more activities for teens?
A. Yes, we are creating an outdoor recreation area between the outdoor pool and the NAC Sports Training Center. This area will include an outdoor sand volley ball court and an outdoor basketball court.
In addition, we have asked our members for over three years to give us input about teen programming and we have had little or no response, and when we have tried certain programs, no teens participate. Yet we still consider this area a gap in our programming and have not given up. We are very open to any and all suggestions.
Q. Will we ever add any tennis courts?
A. Not at this time, but according to a well-known quote, “never say never”. No new courts have been built in the Philadelphia area for over 30 years and for a very good reason. They simply don’t pay for themselves and can present a financial drain on a business.
Q. What about easier entry for those with orthopedic issues?
A. We will have ready access to new elevators and of course solid stairs with easy passage both ways simultaneously.
Q. Will there be programming for NAC members at the NAC Sports Training Center that is now located in the main NAC building?
A. There has been some consideration to move certain training programs to the NSTC during down times. Otherwise, all programs at the NSTC are fee-based and specialized.