## Agenda ## City of Minnetonka ## Council Special Study Session Monday, December 22, 2025 ## 6:00 PM ## Council Chambers 14600 Minnetonka Blvd. 1.Call to Order 2.Introductions/Roll Call 3.Business Items: A.Long term asset planning B.2026 city council study session work plan C.Closed session to conduct city manager performance evaluation; pursuant to Minnesota Statute § 13D.05, subd. 3(a) 4.Adjournment The purpose of a study session is to allow the city council to discuss matters informally and in greater detail than permitted at formal council meetings. The council may provide direction to staff but does not make formal decisions at study sessions. Members of the public are welcome to attend and listen, but the council does not take comments from the public. 1 ## City Council Agenda Item 3.A Meeting of December 22, 2025 Title:Long term asset planning ## Report from:Mike Funk, City Manager ## Submitted through:Darin Nelson, Finance Director ## Presenter:Mike Funk, City Manager Action Requested:Receive information and provide direction regarding next steps. ## Summary Statement This agenda item is intended to support a long-term, strategic conversation about the City’s approach to managing aging and future assets and infrastructure. At the outset, staff wants to be clear that there is no expectation or pressure for the City Council to take action on any specific project, funding mechanism, or policy direction as part of this discussion. Rather, staff views it as our responsibility to proactively bring forward information that can help inform future decisions related to asset stewardship, service levels, and community investment. This is an exercise in long-range planning, recognizing that decisions made over time regarding facilities and infrastructure will have meaningful and lasting impacts on the Minnetonka community. ## Strategic Plan Relatability ## Infrastructure & Asset Management This discussion aligns with the desired outcome to develop an annual capital improvement plan that supports the sustainable maintenance and replacement of assets. ## Background Over the past approximately 18 months, staff has brought forward several facility-related studies and assessments for Council consideration, particularly related to fire stations and recreational facilities. Individually, these studies addressed specific needs or facilities. Collectively, they point to broader questions about how the City prioritizes investments, sequences improvements, and aligns funding strategies across its portfolio of assets. Staff believes this is an appropriate time to step back and review this information holistically, with the goal of framing a longer-term asset management strategy rather than reacting to individual needs in isolation. ## Scope of Discussion For purposes of this study session, staff intends to focus the conversation on capital needs and long- term planning considerations associated with the following asset areas: Trails and pedestrian infrastructure Fire stations ## The Marsh 2 ## Williston Fitness Center ## Community Center OPUS facilities These facilities represent a mix of aging infrastructure, evolving service expectations, and potential future investment needs. Staff will provide a high-level synthesis of prior studies and observations to support discussion rather than advocating for specific solutions. ## Funding and Revenue Considerations In addition to asset conditions and capital needs, the study session will include an overview of potential funding and revenue considerations. This includes a discussion of existing funding mechanisms as well as alternative or supplemental revenue sources that may warrant future consideration, including the possible implementation of a local sales tax. The intent of this portion of the discussion is informational and exploratory, aimed at understanding options and tradeoffs rather than advancing a recommendation. ## Attachments and Reference Materials Included with this agenda item are several reference documents to support the discussion, including: The University of Minnesota local sales tax report Previously completed facility studies related to fire stations and recreational facilities These materials are provided to give Council members background and context as part of the broader strategic conversation. ## Desired Outcome The desired outcome of this study session is to begin a thoughtful and structured conversation about the City’s long-term approach to asset management. Specifically, staff is seeking Council input and discussion related to: How the City should think about prioritizing capital projects across multiple asset categories Establishing a general timeline or sequencing framework for future improvement projects Identifying and evaluating potential funding sources Direction from the City Council on next steps, including whether additional analysis, refinement, or community engagement should occur Staff looks forward to Council’s perspective as we work collaboratively to ensure Minnetonka continues to plan responsibly for the long-term maintenance, improvement, and sustainability of its public assets. ## Discussion Questions 1. Does the council need additional information? 2. Does the city have interest to pursue local option sales tax as a potential revenue source of funding? ## ATTACHMENTS: ## Minnetonka Satellite Fire Study, Updated Costs 12-15-25 ## Minnetonka Community Facilities Study Report ## Minnetonka LOST Final Report ## Local Sales and Use Tax Chart ## Metro Tax Rate Guide 2026 Q1 3 ## SATELLITE FIRE STATIONS NEEDS ASSESSMENT BUDGET SUMMARY 32 ## RECOMMENDED BUDGET (REVISED DECEMBER 2025) The design team, using current year costs for fire sta,ons, developed these budgets for each sta,on. Each Budget has been inflated to the an,cipated ,meline as noted. They are summarized here: ## STATION 2: ## STATION 3: ## Station 2: New Construction ## LowMediumHigh New Construction (13,350 sf) New Fire Station (Building)6,934,270$ 7,704,744$ 8,475,218$ Site Development588,152$ 653,503$ 718,853$ Station No. 2 Demolition48,672$ 54,080$ 59,488$ Escalation (construction inflation)275,383$ 305,981$ 336,580$ Total Construction Budget7,846,477$ 8,718,308$ 9,590,139$ Project Cost Factorx 1.35x 1.35x 1.35 Total Project Cost10,585,328$ 11,761,475$ 12,937,623$ Note: Assumes mid-point of construction in 2028 ## Cost Range ## Station 3: New Construction ## LowMediumHigh New Construction (14,750 sf) New Fire Station (Building)8,038,857$ 8,932,064$ 9,825,270$ Site Development1,024,319$ 1,138,132$ 1,251,945$ Station No. 2 Demolition50,619$ 56,243$ 61,868$ Escalation (construction inflation)334,177$ 371,307$ 408,438$ Total Construction Budget9,447,971$ 10,497,746$ 11,547,521$ Project Cost Factorx 1.35x 1.35x 1.35 Total Project Cost12,754,761$ 14,125,542$ 15,589,153$ Note: Assumes mid-point of construction in 2029 ## Cost Range 4 ## SATELLITE FIRE STATIONS NEEDS ASSESSMENT BUDGET SUMMARY 33 ## STATION 4: ## STATION 5: ## Station 4: New Construction ## LowMediumHigh New Construction (13,350 sf) New Fire Station (Building)7,500,106$ 8,333,451$ 9,166,796$ Site Development588,152$ 653,503$ 718,853$ Station No. 2 Demolition48,672$ 54,080$ 59,488$ Escalation (construction inflation)275,383$ 305,981$ 336,580$ Total Construction Budget8,412,314$ 9,347,015$ 10,281,717$ Project Cost Factorx 1.30x 1.30x 1.30 Total Project Cost10,962,364$ 12,180,404$ 13,398,445$ Note: Assumes mid-point of construction in 2030 ## Cost Range ## Station 5: New Construction ## LowMediumHigh New Construction (13,350 sf) New Fire Station (Building)7,800,110$ 8,666,789$ 9,533,468$ Site Development611,679$ 679,643$ 747,607$ Station No. 2 Demolition50,619$ 56,243$ 61,868$ Escalation (construction inflation)286,399$ 318,221$ 350,043$ Total Construction Budget8,748,806$ 9,720,896$ 10,692,986$ Project Cost Factorx 1.30x 1.30x 1.30 Total Project Cost11,400,859$ 12,667,621$ 13,934,383$ Note: Assumes mid-point of construction in 2031 ## Cost Range 5 ## SATELLITE FIRE STATIONS NEEDS ASSESSMENT BUDGET SUMMARY 34 ## SUMMARY The following table summarizes the total project cost for all fire sta)ons: ## Size Mid-Point of ## Construction ## Total Project ## Cost Station 213,350 sf202811,761,475$ Station 314,750 sf202914,125,542$ Station 413,350 sf203012,180,404$ Station 513,350 sf203112,667,621$ 50,735,043$ 6 ## CITY OF MINNETONKA ## COMMUNITY FACILITIES STUDY ## COMPREHENSIVE PLAN FINAL REPORT April 15, 2024 7 ## 1.VISION AND PRINCIPLES oVision Summary oGuiding Principles oEngagement Approach oEngagement Timeline oEngagement Summary ## 2.SPACE NEEDS AND ## RECOMENDATIONS ## oGlen Lake Activity Center ## •Existing Facility Assessment •Needs Assessment ## •Community Engagement Summary •Cost Recommendations ## TABLE OF CONTENTS ## 3.APPENDIX ## •Community Engagement Results ## •Minnetonka Market Assessment •Cost Estimates ## oMinnetonka Community Center ## •Existing Facility Assessment •Needs Assessment ## •Community Engagement Summary •Cost Recommendations ## oWilliston Fitness Center ## •Existing Facility Assessment •Needs Assessment ## •Community Engagement Summary •Cost Assessment oThe Marsh ## •Existing Facility Assessment •Needs Assessment ## •Community Engagement Summary •Option 1 Deferred Maintenance and Refresh •Option 2 Renovation and Program Expansion ## •Option 3 Event Pavilion Addition •Cost Assessment 8 ## VISION & ## PRINCIPLES 9 ## WHO WILL THESE FACILITIES SERVE? •Seniors are primary current users of the Community Center, make up significant majority of user base of The Marsh. Williston is more family and youth. •Would like to reach more youth with programming at the Marsh. •Reaching both residents and nonresidents is important. ## HOW WILL THIS STUDY SUPPORT YOUR STRATEGIC VISION? •Needs to be cost conscious •Should be equity focused – able to meet people of all backgrounds. •Should provide value to the city and residents in a long-te rm sustainable way. ## WHAT WILL MAKE THIS STUDY A SUCCESS? •Be able to program each space and set clear goals. •Know how to finance the final concept’s build and define the co st recovery model. •Will have reached both Minnetonka residents and no n residents. ## VISION SUMMARY ## HGA 10 ## GUIDING PRINCIPLES •Maintain, Preserve, and Enhance the existing Wetlands, Parks, and open spaces that give Minnetonka its Unique Character. • Equitable Parks and Facilities that match the desires, needs, and abilities of residents and visitors. •Connect people to ## Parks, Open Space, and Village Centers, and build a culture of Active Living. •Resiliencyof Parks and Open Space to recover and adapt to climate change and extreme weather events. ## HGA 11 Phone and email outreach: •3 rounds of email; 2 rounds of phones calls to 21 community members/community groups Social media toolkits: •Sent to 21 community members/community groups 6 pop-ups throughout the city of Minnetonka: •To build awareness and encourage comments Minnetonka Matters website with online survey and ideas board: •1,288 responses ## HGA ## ENGAGEMENT APPROACH ## HGA 12 ## ENGAGEMENT TIMELINE ## SEP OCT NOV ## Farmer’s Market ## Tuesday, Sept 26 3:00 – 5:00 p.m. ## Cub Foods ## Saturday, Sept 30 10:00 a.m. – 12:00 p.m. ## Online Survey and ## Idea Board Launch ## Tuesday, Sept 11 ## Online Survey and ## Idea Board Close ## Tuesday, Oct 31 ## Phone Calls, Emails Sept 20, 27, Oct 13, 17, 24 21 organizations ## Williston Fitness Center ## Monday, Oct 2 5:00 – 7:00 p.m. ## Community Center ## Wednesday, Oct 4 8:30 – 10:30 a.m. ## Marsh Open House ## Saturday, Oct 14 9:00 – 12:00 p.m. ## Social Media Toolkit Oct 13 21 organizations ## City Open House ## Tuesday, Oct 10 5:00 – 7:00 p.m. 2023 13 ## KEY THEMES 1.Affordable membership & programming costs. 2.Facility awareness and communication. 3.More variety in wellness and fitness programs. 4.Interior facility upgrades and modernization. 5.Age-s pecific programming. 6.Parking and facility accessibility. 7.Expand on sports courts, workout and community spaces. 8.Environmental considerations. 9.Cater to different audiences for each facility. 10.Clean and hygienic spaces. ## HGA ## ENGAGEMENT SUMMARY 14 ## SPACE NEEDS AND ## RECOMENDATIONS 15 1 1. Glen Lake Activity Center2. Minnetonka Community Center3. Williston Fitness Center4. The Marsh 3 2 4 ## MINNETONKA ## WOODLAND ## DEEPHAVEN ## MINNETONKA ## MILLS 16 ## GLEN LAKE ## ACTIVITY CENTER 17 ## Glen Lake Activity Center ## The Glen Lake Activity Center (GLAC) was initially constructed as a fire station in 1964. In 1995, the station was no longer needed, and a decision was made to convert the facility to an activity center to provide meeting and storage space to Glen Lake area non-profits and civic organizations. That conversion was complete in 1999-2000. The facility consists of one general 1,600 sq. ft. Activity room that can be divided into two 800 sq. ft. Rooms as needed. In addition, the GLAC houses two work offices for the police department. Over the years, community user groups have used the GLAC for various meetings and small events. In the early 2000’s the facility was used for about 1,300 hours annually, however in recent years use has fallen to approximately 400 hours per year. 18 ## GLEN LAKE ACTIVITY CENTER ASSESSMENT ## WORKING WELL •Storage for community groups: Optimist Club, baseball, softball, boy scouts •Police Substation ## NOT WORKING WELL •Underutilized with only ~400 rental hours/year (1/2 is City programming) by Homeowners’ associations, boy scouts, other community meetings •Roof (slated for replacement in 2024) •Not purpose built – o ld fire station •Dated interior, only 2 single use non-A DA accessible restrooms ## GENERAL •With the addition of Ridgedale Commons and The Marsh meeting space, the need for meeting space ## at Glen Lake Activity Center has decreased •Opportunity for park improvements / larger skate p ark with the removal or reduction of the building •Alternate Option: could the existing building be r enovated (i.e., demolish the office wing, but keep the apparatus bay area and convert to restrooms, activity room serving an expanded skate park)? Or reuse the brick for a new restroom/storage structure? 19 149, 12% 1,139, 88% Have you ever visited or utilized the Glen Lake Activity Center? ## YesNo 11 3 16 116 12 0 20 40 60 80 100 120 140 Several times a week Once a weekA few times a month Several times a year ## InfrequentlyNever How often do you visit the Glen Lake Activity Center for your activities? •76 of the respondents (42%) were unaware that this facility even existed or knew what it offered. Therefore -a suggestion for improvement is to better publicize what is offered here and improve the facility’s utilization •Of the respondents who were familiar with the space, ~20 (11%) mentioned that it's dirty and needs an upgrade or even a full repurposing of the building Are there any ideas you would like to share and suggest to improve Glen Lake Activity Center? ## KEY SURVEY TAKEAWAY -GLEN LAKE ACTIVITY CENTER 20 ## 2 ADA Restrooms ## Meeting Space ## DEMO mech 1 23 4 5 ## GLEN LAKE ACTIVITY CENTER RECOMMENDATIONS O p t i o n 1: ## Demo Building O p t ion 2: ## Storage 1.Really the only space working well, would ideally be replaced or relocated if building is demolished ## If Building Remains 2.Keep Storage 3.Add ADA Restrooms and mechanical space ## 4.Enclose Small Space 5.Demo Hallway & Support ## Spaces 6.Reuse of portion of the building an option if skate park can be configured around it 21 ## OPTION 1: ## REMOVE BUILDING ## Construction Cost: $112,784 •Demo the Glen Lake building •Prepare site for expanded regional Skate park design plans •Explore need and location of restroom and picnic/storage pavilion •Note: Provides maximum flexibility for skatepark design / park improvements ## OPTION 2: ## KEEP BUILDING ## Construction Cost: $838,081 •Demo office wing of the Glen ## Lake Building •Keep Storage, renovate current meeting space to include restrooms and mechanical space •Expand skate park in area of demolished office wing •Note: Limits extent of skate park due to existing building location ## GLEN LAKE ACTIVITY CENTER ## COST ESTIMATE ## HGA Skate park concept –not proposed design ## HGA Skate park concept –not proposed design 22 ## MINNETONKA ## COMMUNITY CENTER 23 ## Minnetonka Community Center The Community Center is a 33,000 square foot building built in 1987 to offer community banquet and meeting room rentals, council chambers for city meetings and houses the Minnetonka senior center. No significant upgrades/renovations have taken place since it was built –bids for major renovation were cancelled in 2008 due to the economy and 2023 due to The Marsh purchase. 24 ## WORKING WELL •Does not feel like a Senior Center •Education programming and presentations (history, b ird club, etc.) •Senior Events (monthly parties, lunch & a movie, etc.) •250 seat banquet room has strong rental •Excellent natural lighting ## NOT WORKING WELL •Wayfinding – reception area isn’t visible enough •Accessible route to Senior's space is circuitous •Need space to stay for a few hours or between pr ograms; social space •Limited space for fitness •Need more mid-s ize meeting rooms •Limited art programming space (ceramics, etc.) •Purgatory Creek Room is difficult to find ## MINNETONKA COMMUNITY CENTER ASSESSMENT 25 280 210 202 175 137 82 60 ## Enhanced Senior Services programs Health and wellness classes Outdoor gathering spaces Recreational activities for all ages ## Other Updated facilities or décor Enhanced audiovisual equipment (projectors, mics, cameras for... 0100200300 What additional activities, programs and amenities would you like to see that currently aren’t offered or need enhancements at the Minnetonka Community Center? ## KEY SURVEY TAKEAWAY -MINNETONKA COMMUNITY CENTER 26 4 4 2 ## 1 Existing Plans •Renovate restrooms and meeting spaces 2 Lobby •Improve wayfinding throughout facility •Improve Lobby/Reception Area for better visibility to Reception and gathering ## 3 Reception Desk •Reconfigure and center reception desk for most visibility on main level ## 4 Gathering Spaces ## •Improve Access to Glen Lake Activity Room by expanding lobby space •Add ‘Social Spaces’ via furniture and moving self serve coffee to public lobby 1 1 3 1 ## MINNETONKA COMMUNITY CENTER RECOMMENDATIONS 27 ## 1 Existing Plans •Renovate restrooms and meeting spaces 2 Lobby •Improve wayfinding throughout facility •Improve Lobby/Reception Area for better visibility to Reception and gathering ## 3 Reception Desk •Reconfigure and center reception desk for most visibility on main level ## 4 Gathering Spaces ## •Improve Access to Glen Lake Activity Room by expanding lobby space •Add ‘Social Spaces’ via furniture and moving self serve café to public lobby 5 Circulation •Improve Wayfinding to Purgatory Creek room 5 ## MINNETONKA COMMUNITY CENTER RECOMMENDATIONS 1 2 Lobby •Improve wayfinding throughout facility •Improve Lobby/Reception Area for better visibility to Reception and gathering ## 3 Reception Desk •Reconfigure and center reception desk for most visibility on main level ## 4 Gathering Spaces ## •Improve Access to Glen Lake Activity Room by expanding lobby space •Add ‘Social Spaces’ via furniture and moving self serve café to public lobby 1 28 ## MINNETONKA COMMUNITY ## CENTER COST ESTIMATE Move forward with existing plans Cost (escalated to 2025): A.New finishes in lobby and new reception desk B.Restroom renovations and refresh C.Meeting room renovations and refresh ## Cost Estimate: $2,740,000 Alternative recommendations ## Access Corridor Option: ## 1.Glen Lake Room Access Corridor ## Low Cost: $346,022 ## High Cost: $422,915 ## 2.Self Serve Coffee and Lounge ## Low Cost: $12,293 ## High Cost: $15,026 ## C ## C ## B 2 1 ## B ## C ## A 29 ## WILLISTON FITNESS ## CENTER 30 ## The Williston Fitness Center The Williston Fitness Center is a 64,000 square foot fitness facility that was acquired from a private owner in October 1995 and was renovated in two phases in 1997-98 with most of the work addressing code requirements and, as funding allowed, operational or structural deficiencies found in the facility. The facility’s last renovation was completed in 2011 (~$4M) and added programming space for fitness, aerobics/spin, splash pad and treehouse play area as well as a new entrance. 31 ## WILLISTON FITNESS CENTER ## ASSESSMENT Working well •Youth Amenities (splash pad, treehouse) •10,000 members •Robust tennis program; multigenerational draw •Group Fitness offerings Not working well •Locker Rooms •Treehouse cramped with poor lighting •Consistent look and feel •Wayfinding is a challenge •Inadequate tennis viewing area •Limited fitness space •Not enough pickle ball courts •Splash pad too small •Limited parking •Space with batting cages is not utilized year round •Batting cage technology is not up to date •No AC in tennis building ## City Lacks: •Pickle ball courts (8 outdoor, 2 indoor) •Indoor Turf •Low on gymnasium space 32 428 386 347 144 125 80 64 63 59 42 0100200300400500 Group fitness classes Weightlifting and cardio... ## Other Swimming lessons Aerobics classes Tennis lessons Open pickleball Personal training Birthday parties Equipment orientations What types of activities do you usually engage in at Williston Fitness Center? 548 486 337 197 194 110 124 76 72 64 0100200300400500600 Swimming pool Fitness center Fitness studio Splash pad Indoor playground (treehouse) Tennis courts ## Other Basketball court Batting cages Child care What types of amenities do you frequently utilize at Williston Fitness Center? ## KEY SURVEY TAKEAWAY -WILLISTON FITNESS CENTER •Water-related activities (swimming classes or leisure swim) •Kid-related programming (e.g. treehouse or splash pad) •Sports-related courts (e.g. tennis, basketball courts or batting cages) ‘Other’ in Question 1 includes Ideas such as: 33 The most common suggestions for improvement were as follows: •Offer additional types of fitness classes and expand the s cheduling to offer more times (50+ respondents) •Upgrade the fitness equipment and increase the space allotted due to crowding (35+ respondents) •Improve and increase the size of the locker rooms as well as add a de dicated "family room" (30+ respondents) •Add dedicated pickleball courts (21 respondents) •Improve the overall lighting as the facility appears dull (15+ r espondents) •Keep the facility cleaner (10+ respondents) •Pricing and parking (~15 respondents) ## A dditionally, the following positive comments were made: •Williston is great for families, which differentiates it from the Marsh (2 5+ comments) •The staff is knowledgeable and friendly (15+ comments) Are there any ideas you would like to share and suggest to improve Williston fitness center? ## KEY SURVEY TAKEAWAY - WILLISTON FITNESS CENTER 34 ## WILLISTON FITNESS CENTER MAIN-LEVEL RECOMMENDATIONS 1 Lobby and public spaces •Reconfigure lobby/reception area •Expand viewing area for tennis 2 Offices •Renovate part of the 2 nd level treehouse into new office spaces for Williston Staff ## 3 Rental Spaces •Renovate 2 nd level treehouse, personal training, and storage into additional rental space ## 4 Locker Rooms •Reconfigure men/women locker rooms as needed •Expand family locker rooms into existing childcare room 5 Fitness •Reconfigure existing programming room into expanded fitness space and personal training 6 Aquatics •Expand pool/splashpad area 7 Parking •Add parking to east side of building with retaining wall 22 6 5 3 2 1 7 4 ## 4 (BELOW) ## Indoor Play 2 35 1 Lobby and public spaces •Reconfigure lobby/reception area •Expand viewing area for tennis. 2 Offices •Renovate part of the 2 nd level treehouse into new office spaces for Williston Staff ## 3 Rental Spaces •Renovate 2 nd level treehouse, personal training, and storage into additional rental space. ## 4 Locker Rooms •Reconfigure men/women locker rooms as needed. •Expand family locker rooms into existing childcare room 5 Fitness •Reconfigure existing programming room into expanded fitness space and personal training. 6 Aquatics •Expand pool/splashpad area 7 Parking •Add parking to east side of building with retaining wall. 9 8 12 11 ## Indoor Play ## WILLISTON FITNESS CENTER LOWER-LEVEL RECOMMENDATIONS ## 8 Lobby and Public Spaces •Improve wayfinding throughout facility 9 Childcare •Convert party room to child watch space 10Party Rental •Convert Treehouse and adjacent space into rental spaces 11 Indoor Play + Flexible court space •Demo batting cages for new addition that includes expanded Treehouse indoor play and multi-use / pickleball court space ## 12 Tennis Building •Add air conditioning to tennis building 1 Lobby and public spaces •Reconfigure lobby/reception area •Expand viewing area for tennis. 2 Offices •Renovate part of the 2 nd level treehouse into new office spaces for Williston Staff ## 3 Rental Spaces •Renovate 2 nd level treehouse, personal training, and storage into additional rental space. ## 4 Locker Rooms •Reconfigure men/women locker rooms as needed. •Expand family locker rooms into existing childcare room 5 Fitness •Reconfigure existing programming room into expanded fitness space and personal training. 6 Aquatics •Expand pool/splashpad area 7 Parking •Add parking to east side of building with retaining wall. 10 10 36 4 2 7 9 ## 1 Upper Lobby: ## Low Cost: $393,154 ## High Cost: $480,521 ## 2 Lower Lobby: ## Low Cost: $195,550 ## High Cost: $239,006 ## 3 Locker Rooms: ## Low Cost: $1,364,399 ## High Cost: $1,667,599 ## 4 New Offices, Rentals, & ## Party Space: ## Low Cost: $1,811,382 ## High Cost: $2,213,911 ## 5 Fitness Refresh: ## Low Cost: $156,713 ## High Cost: $191,538 ## 6 Fitness Expansion: ## Low Cost: $121,062 ## High Cost: $147,965 ## 7 Tennis Building AC: ## Low Cost: $858,187 ## High Cost: $1,048,896 ## 8 Aquatics Addition: ## Low Cost: $4,041,709 ## High Cost: $4,939,867 ## 9 Multi Sport / Indoor Play ## Addition: ## Low Cost: $6,856,984 ## High Cost: $8,380,759 ## 10 Additional Parking / Site ## Work: ## Low Cost: $753,168 ## High Cost: $920,539 To t a l : ## Low Cost: $16,552,309 ## High Cost: $20,230,600 5 6 1 4 3 8 ## WILLISTON FITNESS CENTER COST ESTIMATE 10 37 ## THE MARSH ## CONCEPT DESIGN 38 ## The Marsh ## The Marsh was built by Ruth Stricker Dayton in 1985 as a “center for balance and fitness.” The 67,000 square foot facility was built in two major phases: 1984 and 1993-94. The original building included lap swimming and warm water therapy pools, group exercise and Pilates studios, a full-service spa, an award-winning restaurant, boutique, six overnight guest rooms, and meditation spaces as well as art and architecture with an appreciation for Chinese culture. Ruth Stricker passed away in April 2020. Ms. Stricker’s estate then donated the building and property to the YMCA in October 2020. In October 2022, the YMCA announced it would close the facility in December 2022 and would sell the property. The City of Minnetonka purchased the property in February 2023 and opened the facility in May 2023. 39 ## CREATE A UNIQUE DESTINATION FACILITY THAT CAN ## SERVE AS A MODEL FOR OTHER CITIES: •Focus on the intersection of Menta l Hea lth, Recrea tion, a nd Hea lth/W ellnessprogramming •Whole facility could be considered a “Wellness Center” •Programming to broa den people’s a bility to live –including things beyond fitness/aquatics like mental health programming, connection to nature, food/cooking classes, music •Expa nd progra mming to include both adult-and youth-driven programming to broaden impact and create future, life-long users •Take advantage of the a ma zing site –bike infrastructure/connection to trail, interpretive programming, rentals (ski/snowshoe, birding kits, bikes, etc.) •Create a friendly sepa ra tion between the membership/spa and public/program spaces •Retrea tscould be popular–nature, mental health/wellness, arts (think wildlife art etc.), in addition to conferences, meetings, and weddings •Keepthe spa function—it’s what makes the facility unique, and it’s what the community loves about the facility; how to expand to the broader community is the key •Expand restaurant services and renovate restaurant –Would be a major attraction to the facility, drawing visitors from around the metro and provide revenue for the City ## HGA ## THE MARSH OPPORTUNITY ## HGA ## HGA 40 ## CURRENT CONDITIONS ## Working Well •Connection to outdoors-adjacent landscape and trails •Mind/Body Classes •Pool classes, Pilates, and yoga demand •Programming for adults •Informal social space •Features 1 of 2 therapy pools in the Twin Cities ## Not Working Well •Deck underutilized •Fitness room underutilized •Not enough family locker rooms •Poor flow from lockers to pools •Perception this is a private club for adults •Limited swim lesson options here due to locker space •Need for additional outdoor programming •Hotel rooms •Retail Space •Office Space ## HGA ## THE MARSH ASSESSMENT ## HGA ## HGA 41 296 282 265 262 196 186 176 175 164 132 102 050100150200250300350 Add additional spa services ## Other Improve the walking track Connect to the regional trails Add or improve art/creative... Develop gardening or nature space Add sports courts (e.g. basketball,... Love the Marsh the way it is - don't... Enhance locker room facilities More accessible pricing Drop-in childcare services Please select up to three ideas you are in favor of to improve the space at The Marsh. 422 399 324 313 307 303 264 260 230 228 181 177 166 149 103 0100200300400500 Yoga and meditation classes Functional fitness classes for seniors Expand spa offerings Educational seminars on health... Live music and cultural events Physical therapy and injury... Cooking and nutritional workshops Outdoor fitness areas Senior social gatherings Dance and movement classes Art and craft workshops Nature education Stress management workshops ## Other Family-friendly fitness activities What types of events, programs and health/wellness services would you like to see more of at The Marsh in the future? ## KEY SURVEY TAKEAWAY –THE MARSH •To reinstate the restaurant/café •Expanding on classes and programming •Updating flooring and interior ‘Other’ in Question 1 includes Ideas such as: 42 Are there any ideas you would like to share and suggest to improve The Marsh? •142 respondents (24%) mentioned having a restaurant, café, or food options served at The ## Marsh •125 respondents (21%) would like to see an expansion of classes and programming, in addition to staggered classes for less congested common areas •116 respondents (20%) would like a fresh interior, revamp spaces, and keep the common spaces clean at The Marsh •59 respondents (10%) would prefer increased operation hours ## KEY SURVEY TAKEAWAY – ## THE MARSH 43 ## PROJECT OPTIONS OVERVIEW ## Option 1: Deferred Maintenance & Interior Refresh •Refresh with Finish Upgrades throughout the facility •Deferred Maintenance items •Maintain current programming ## Option 2: Interior Renovation & Program Expansion ## •Deferred Maintenance Scope Plus interior Refresh •Heavy renovation and accessibility upgrades ## Option 3: Event Pavilion Addition •Utilize West Parcel for expanded programming •Expand building to the west to create Event Pavilion •Provide infrastructure and hardscape/landscape for outdoor events, expanded dining, and activities ## Option 4: Sell The Property ## HGA ## THE MARSH OPTIONS ## OPTION 3|EVENT PAVILION ADDITION ## OPTION 2|RENOVATION AND PROGRAM EXPANSION ## OPTION 1|DEFERRED MAINTENANCE & INTERIOR REFRESH 44 ## Deferred Maintenanceand Interior ## Refresh •Deferred maintenance scope •Refresh existing spaces:new paint, ceilings, lighting, flooring, millwork, FFE, etc. •New AV technology in program spaces and meeting spaces •Pool maintenance •Exterior façade repairs/re-stain and roof replacement •Replace exterior deck in place •New exterior and interior signage •Provide minimal bike infrastructure (air, drinking fountain/bottle filler) for trail access ## OPTION 1 ## CONFERENCE CENTER ## FITNESS CENTER ## LAP POOL 45 ## OPTION 2 (INCLUDES OPTION 1) ## Interior Renovation & Program Expansion •Renovate Conference/Event/Retreat Centerto create connections to spa facility (imagine a wedding with spa experience for instance); open events lobbyto face the marsh landscape to the north •Expand spainto existing retail space for more unique spa spaces (halotherapy, sand floor, others); create outdoor spa programming •Consider offerings for higher membership levels; ideas include private outdoor hot tub/sauna area •Relocate officesto existing child watch space (whole or portion of space as needed), and convert outdoor space adjacent to child watch to outdoor rental area (bikes, snowshoes, etc.) •Provide better separationbetween public lobby and member only spaces; consider enclosure at middle stair to separate public from locker rooms •Reworkexisting office adjacent to kitchen to expanded dining roomwith rentable private dining room (free up lobby to be more public but retain café connection so public has access) •Repair poolsand pool mechanical •Renovate locker roomsfor code compliance, inclusive/familylocker rooms, amenity improvements, and pool access •Exterior façade and roof replacement–new cladding and roofing throughout, new windows and doors •Nature programminglayer –Improvements to outdoor deck and boardwalk •Extendelevatorto upper-level walking trackto make it accessible ## HGA 46 ## OPTION 2|LOWER LEVEL ## WETLANDS ## 100 YR FLOOD PLAIN ## 500 YR FLOOD PLAIN ## RENTAL ## SAUNAS ## NATURE ## PROGRAMMING ## OPPORTUNITY 47 ## OPTION 2|MAIN LEVEL ## WETLANDS ## 100 YR FLOOD PLAIN ## 500 YR FLOOD PLAIN ## TRAIL HEAD / RENTAL ## INFRASTRUCTURE 48 ## OPTION 2|UPPER LEVEL 49 ## OPTION 3 ## Event Pavilion Addition •New addition of a sheltered pavilion with enclosed support spaces •Expands programming at The Marsh to a broader age de mographic •Provides space for outdoor seating, food service/catering s pace, lawn games and activities, rentals, and events •Utilizes west parcel to accommodate expanded parking n eed ## HGA 50 ## LARGE SCALE PROJECT | SITE ## NEW ADDITION ## NEW PARKING ## RENTAL ## SAUNAS ## NATURE ## PROGRAMMING ## OPPORTUNITY ## TRAIL HEAD / RENTAL ## INFRASTRUCTURE ## SPA DECK ## RENTALS ## FUTURE CITY ## TRAIL ## NEW ## PARKING ## ACTIVITY ## PAVILION ## WETLANDS ## 100 YR ## FLOOD PLAIN ## 500 YR ## FLOOD PLAIN ## OPTION 3|SITE PLAN 51 ## OPTION 3|EVENT PAVILION FLOOR PLAN ## FUTURE CITY ## TRAIL ## WETLANDS ## 100 YR FLOOD PLAIN ## 500 YR ## FLOOD PLAIN 52 ## OPTION 3 | EVENT PAVILION ADDITION •Expand building to the west to create activity Pavilion •Provide Infrastructure and Hardscape/Landscape for o utdoor dining and events overlooking the marsh. •Utilize West Parcel for expanded parking ## HGA 53 ## THE MARSH COST IMPACT ## SUMMARY ## Option 1: Deferred Maintenance + Interior Refresh •Cost: $6.9M / 10 Years ## Option 2: Renovation and Program Expansion Note: (Includes Option 1) • ## Low Cost: $13,447,059 •High Cost: $17,890,029 ## Option 3: Event Pavilion Addition •Low Cost: $4,863,089 •High Cost: $5,943,775 Option 4 –Sell the Property ## •TBD ## OPTION 3|EVENT PAVILION ADDITION ## OPTION 2|RENOVATION AND PROGRAM EXPANSION ## OPTION 1|DEFERRED MAINTENANCE & INTERIOR REFRESH 54 ## PROJECT PARTNERS 55 ## APPENDIX 56 ## PROJECT SCHEDULE ## FACILITY TOURS ## REPORT 20 ## ISSUE FINAL ## REPORT ## CITY COUNCIL REVIEW ## APRIL 15 th 57 ## COMMUNITY ENGAGEMENT ## RESULTS SUMMARY 58 •Reach a broad section of Minnetonka facilities users, which include Minnetonka residents as well as residents of neighboring communities. •Target outreachto those who have previously been overlooked in community outreach, particularly renters and seniors. •Gain an understanding of how these four facilities meet the diverse needsof the community today •Identify areas for improvementsbased on community desires. ## ENGAGEMENT GOALS 59 •Phone and email outreach: 3 rounds of email; 2 rounds of phones calls •Social media toolkits: sent to 21 community members/community groups •6 pop-ups throughout the city of Minnetonka •Minnetonka Matters website with online survey and ideas board ## ENGAGEMENT APPROACH 60 ## ENGAGEMENT TIMELINE Sep Oct Nov ## Farmer’s Market ## Tuesday, Sept 26 3:00 –5:00 p.m. ## Cub Foods ## Saturday, Sept 30 10:00 a.m. –12:00 p.m. ## Online Survey and ## Idea Board Launch ## Tuesday, Sept 11 ## Online Survey and ## Idea Board Close ## Tuesday, Oct 31 ## Phone Calls, Emails Sept 20, 27, Oct 13, 17, 24 21 organizations ## Williston Fitness Center ## Monday, Oct 2 5:00 –7:00 p.m. ## Community Center ## Wednesday, Oct 4 8:30 –10:30 a.m. ## Marsh Open House ## Saturday, Oct 14 9:00 –12:00 p.m. ## Social Media Toolkit Oct 13 21 organizations ## City Open House ## Tuesday, Oct 10 5:00 –7:00 p.m. 61 ## PHONE/EMAIL OUTREACH Phone and email outreach played a pivotal role in ensuring information about the study and survey were shared with a diverse range of community members such as senior and rental communities, community education centers, school districts and employers in Minnetonka and surrounding areas. ## Education ## •Eagle Ridge Academy ## •Hopkins Public Schools ## •Hopkins Community Education ## •Minnetonka Public Schools ## •Minnetonka Community Education ## •Wayzata Public Schools ## •Wayzata Community Education ## Senior and Rental Communities •Applewood Pointe •Avana Minnetonka •Avidor Minnetonka ## •Cedar Hills East •Elmbrooke Townhomes ## •The Glenn Minnetonka •The Luxe •Minnetonka Heights ## •The Ridge Apartments ## Employers •Cargill •Ridgedale Center •UnitedHealth Group Three initial emails were sent: 9/20, 10/13, and 10/24 and two phone calls were conducted: 9/27 and 10/17 to all 21 organizations: 62 ## SOCIAL MEDIA OUTREACH A social media toolkit, including text, GIF, and still image, was delivered to all 21 key community groups on October 13. Listed to the far right is an example of Tonka United sharing the initial social media post from the City of Minnetonka's Instagram page. 63 ## POP-UPS ## 1.Minnetonka Farmers Market ## Date: Sept. 26 ## Location: Ridgedale Commons 2.Cub Foods ## Date: Sept. 30 ## Location: 4801 County Rd 101 ## 3.Williston Fitness Center ## Date: Oct. 2 ## Location: 14509 Minnetonka Dr ## 4.Minnetonka Community Center ## Date: Oct. 4 ## Location: 14600 Minnetonka Blvd ## 5.City of Minnetonka Open House Date: Oct 10 -The event was staffed by city Location: Central Fire Station, 14550 Minnetonka Blvd. ## 6.The Marsh Open House ## Date: Oct. 14 ## Location: 15000 Minnetonka Blvd ## Key Takeaways •People are very happy with the facilities! •Increasing awareness about the benefits of Silver Sneakers. •Request for a broader range of adult-focused activities. •Affordable membership costs and combined membership fee for increased accessibility. •Requests for more classes, preferably swimming, senior- focused programming and one-off classes (not series). •Extend operational hours and increase the amount of pickleball courts. •Transportation challenges for seniors to get to and get back home from the facilities. •Advocation for the addition of a skate park. 64 ## IDEA BOARD 16 ## Ideas 63 ## Visitors Space out the treadmills @ Williston. Sign / rule to not squat on exercise equipment. Golf simulators. Indoor baseball space. ## Outdoor Pickleball.  Schedule regular weekly programs for seniors. More Marsh yoga & with amplified sound.   Would like to see health workshops at The Marsh. Add food service to the Marsh.  ## Healthier Pool and Spa Maintenance.  Move ISR infant swim out of therapy pool at the Marsh. Please convert the therapy pool to saltwater. Hot tub should be all ages.  Too many unproductive staff. Open 24 hours.  ## Williston Childcare hours. 65 ## ONLINE SURVEY -DEMOGRAPHICS 1,288 ## Responses Respondents came from 40 cities 44% of respondents were over 65 years old •1023 respondents live in Minnetonka •233 respondents visit Minnetonka •32 respondents work in Minnetonka Top 3: •Minnetonka (744) •Hopkins (124) •Wayzata (120) ## Other Age Groups: ## •56-65 YO (22%) ## •36-45 YO (15%) ## •46-55 YO (11%) 85% of respondents were white 71% of respondents were female Out of 894 respondents, 61% had a total household income of $100k or more. 66 ## ONLINE SURVEY –GENERAL FEEDBACK 829, 64% 373, 29% 86, 7% 4. Do you feel that the existing four recreation facilities meet your needs adequately? ## YesSomewhatNo 495, 38% 768, 60% 25, 2% 3. Are you familiar with the four recreational facilities being studied? Very familiarSomewhat familiar Not familiar 799, 62% 463, 36% 26, 2% 5. How well is the city achieving to have equitable parks and facilities with the four existing recreation facilities? Very wellSomewhat wellNot at all 878, 68% 373, 29% 37, 3% 6. How well do the four existing recreation facilities help you to live a more active life? Very wellSomewhat wellNot at all 473 357 96 2 120 0 50 100 150 200 250 300 350 400 450 500 ## Williston Fitness CenterThe MarshCommunity CenterGlen Lake Activity CenterNone of them 7. Which of the four recreation facilities do you use the most? How well is the city achieving to have 67 ## ONLINE SURVEY –GENERAL FEEDBACK 622 459 367 310 297 231 215 210 170 122 101 58 0100200300400500600700 Affordable membership fees Well-maintained equipment and spaces Diverse range of activity options Clean and hygienic environment Convenient programming and event scheduling Welcoming and inclusive facilities Up-to-date facilities Opportunity to connect with others in the community Family-friendly options Knowledgeable employees Community events and programs ## Other 8. What do you most value in the four existing recreational facilities? (select up to three) Majority of responses were pool 68 ## ONLINE SURVEY –THE MARSH 975, 76% 313, 24% 9. Have you ever been to The Marsh ## YesNo 365 133 79 301 97 0 50 100 150 200 250 300 350 400 Several times a week Once per week A few times a month ## InfrequentlyNever 10. How often do you visit The Marsh for your activities? 69 ## ONLINE SURVEY –THE MARSH 703 383 142 156 Relaxing and tranquil Welcoming and inclusive Energetic and vibrant ## Other 0100200300400500600700800 11. How would you describe the overall atmosphere and environment at The Marsh? 470, 50% 478, 50% 12. Would you be in favor of The Marsh broadening the audience it serves? ## YesNo Outdated / Tired / Run down Too pricy ## Supportive Not inclusive Not welcoming +mentions about the infant swim 70 ## ONLINE SURVEY –THE MARSH 296 282 265 262 196 186 176 175 164 132 102 050100150200250300350 Add additional spa services ## Other Improve the walking track Connect to the regional trails Add or improve art/creative programming Develop gardening or nature space Add sports courts (e.g. basketball, tennis, pickleball) Love the Marsh the way it is - don't change anything Enhance locker room facilities More accessible pricing Drop-in childcare services 13. Please select up to three ideas you are in favor of to improve the space at The Marsh. 422 399 324 313 307 303 264 260 230 228 181 177 166 149 103 050100150200250300350400450 Yoga and meditation classes Functional fitness classes for seniors Expand spa offerings Educational seminars on health topics Live music and cultural events Physical therapy and injury prevention... Cooking and nutritional workshops Outdoor fitness areas Senior social gatherings Dance and movement classes Art and craft workshops Nature education Stress management workshops ## Other Family-friendly fitness activities 14. What types of events, programs and health/wellness services would you like to see more of at The Marsh in the future? 71 ## ONLINE SURVEY –THE MARSH 27941920153 23 020040060080010001200 15. How well do you think The Marsh caters to the needs of the community? Extremely wellFairly wellSomewhat wellNot very wellNot at all 71% 72 ## ONLINE SURVEY –THE MARSH Are there any ideas you would like to share and suggest to improve The Marsh? •142 respondents (24%) mentioned having a restaurant, café, or food options served at the Marsh. •125 respondents (21%) would like to see an expansion of classes and programming, in addition to staggered classes for less congested common areas. •116 respondents (20%) would like a fresh interior, revamp spaces, and keep the common spaces clean at the Marsh. •59 respondents (10%) would prefer increased operation hours. “Revive the restaurant!” “One more affordable price for both Williston and the marsh” “Open later hours in the evenings” “Please add in more family time to swim. Fridays at 5:45 -7:45 is completely unreasonable for the only time for children to swim. This is during their dinners and getting ready for bed time. Please offer another (or two!) more reasonable times. ” 73 ## ONLINE SURVEY –WILLISTON FITNESS CENTER 1,048, 81% 240, 19% 17. Have you ever visited or utilized the Williston Fitness Center? ## YesNo 292389304 49 14 0%20%40%60%80%100% 19. How satisfied are you with the current range of programs and activities offered at the Williston Fitness Center? Very satisfiedSatisfiedNeutralUnsatisfiedVery unsatisfied 332 135 139 69 284 89 ## Several times a week Once a week A few times a month ## Several times a year ## InfrequentlyNever 0 50 100 150 200 250 300 350 18. How often do you visit the Williston Fitness Center for your activities? 65% 74 ## ONLINE SURVEY –WILLISTON FITNESS CENTER 428 386 347 144 125 80 64 63 59 42 0100200300400500 Group fitness classes Weightlifting and cardio equipment ## Other Swimming lessons Aerobics classes Tennis lessons Open pickleball Personal training Birthday parties Equipment orientations 20. What types of activities do you usually engage in at Williston Fitness Center? 548 486 337 197 194 110 124 76 72 64 0100200300400500600 Swimming pool Fitness center Fitness studio Splash pad Indoor playground (treehouse) Tennis courts ## Other Basketball court Batting cages Child care 21. What types of amenities do you frequently utilize at Williston Fitness Center? 75 ## ONLINE SURVEY –WILLISTON FITNESS CENTER 426 237 184 164 154 134 113 53 050100150200250300350400450 Not that I can think of More fitness classes and equipment ## Other Outdoor fitness areas More aquatic programming Enhanced equipment options Specialty workshops (e.g. nutrition, stress management) Social events 22. Are there additional features or programs that you would like to see introduced at the Williston Fitness Center? 76 ## ONLINE SURVEY –WILLISTON FITNESS CENTER The most common suggestions for improvement were as follows: •Offer additional types of fitness classes and expand the scheduling to offer more times (50+ respondents) •Upgrade the fitness equipment and increase the space allotted due to crowding (35+ respondents) •Improve and increase the size of the locker rooms as well as add a dedicated "family room" (30+ respondents) •Add dedicated pickleball courts (21 respondents) •Improve the overall lighting as the facility appears dull (15+ respondents) •Keep the facility cleaner (10+ respondents) •Pricing and parking (~15 respondents) Additionally, the following positive comments were made: •Williston is great for families, which differentiates it from the Marsh (25+ comments) •The staff is knowledgeable and friendly (15+ comments) Are there any ideas you would like to share and suggest to improve Williston Fitness Center? “Yes, more variety of cardio classes for evenings” “Water fitness classes at 9:00 are my priority.” “The family locker room is tiny in comparison to other cities’ family spaces. “ “More functional fitness space” “Improve lighting and ambiance” “Update your pickleball floors and add additional courts” “Williston is fantastic for kids, parties, swimming, tennis and basketball. The family vibe is fantastic!” “ “Great, friendly staff!” 77 768, 60% 520, 40% 24. Have you ever visited or utilized the Minnetonka Community Center? ## YesNo 29 34 49 381 193 21 0 50 100 150 200 250 300 350 400 450 Several times a week Once a weekA few times a month InfrequentlySeveral times a year ## Never 25. How often do you visit the Minnetonka Community Center for your activities? ## ONLINE SURVEY –MINNETONKA COMM. CENTER 78 130235380 20 3 02004006008001000 26. How satisfied are you with the range of senior services activities and programs offered at the Minnetonka Community Center? Very satisfiedSatisfiedNeutral UnsatisfiedVery unsatisfied 82141530 11 4 02004006008001000 27. Are you satisfied with the current availability and booking process for rentals at the Minnetonka Community Center? Very satisfiedSatisfiedNeutral UnsatisfiedVery unsatisfied ## ONLINE SURVEY –MINNETONKA COMM. CENTER 79 280 210 202 175 137 82 60 ## Enhanced Senior Services programs Health and wellness classes Outdoor gathering spaces Recreational activities for all ages ## Other Updated facilities or décor Enhanced audiovisual equipment (projectors, mics, cameras for... 050100150200250300 28. What additional activities, programs and amenities would you like to see that currently aren’t offered or need enhancements at the Minnetonka Community Center? 258 240 208 183 148 128 86 79 47 050100150200250300 ## Meetings ## Senior Services programs ## City meetings (e.g. City Council, Planning Commission, Park... Community group gatherings Banquets or special events ## Other Conference, meeting and craft rooms Banquet, dining, and community room Fitness room 29. What types of activities do you usually engage in, and which amenities do you frequently utilize at the Minnetonka Community Center? ## ONLINE SURVEY –MINNETONKA COMM. CENTER 80 •Close to 30% of respondents mentioned either not knowing the Community Center existed or that it's underutilized, suggesting that there is better advertisement for what is offered. •~20 respondents (12%) suggested added more times for and types of classes as well as age-specific programs Are there any ideas you would like to share and suggest to improve Minnetonka Community Center? ## ONLINE SURVEY –MINNETONKA COMM. CENTER “I'm not even sure what is available so maybe more advertising?” “seems like the popular classes or events are hard to get into sometimes or fill up before I even know they are available:) “More senior art including pottery, making blankets, and useful items for other seniors” “We don’t use the community center really except for voting” 81 149, 12% 1,139, 88% 31. Have you ever visited or utilized the Glen Lake Activity Center? ## YesNo 11 3 16 116 12 0 20 40 60 80 100 120 140 Several times a week Once a weekA few times a month Several times a year ## InfrequentlyNever 32. How often do you visit the Glen Lake Activity Center for your activities? ## ONLINE SURVEY –GLEN LAKE ACTIVITY CENTER 82 50 36 30 27 27 7 ## Meetings Club or association meetings ## Other Small gatherings or social events Preschool and youth classes Storing equipment for an organization 0102030405060 33. For what purposes have you used the Glen Lake Activity Center? 121564 3 4 51 050100150200 34. Are you satisfied with the current availability and booking process for the Glen Lake Activity Center? Very satisfied ## Satisfied ## Neutral ## Unsatisfied Very unsatisfied Never booked a rental at the Glen Lake Activity Center ## ONLINE SURVEY –GLEN LAKE ACTIVITY CENTER 83 38, 26% 111, 74% 35. Do you see any potential alternative uses for the Glen Lake Activity Center that would better serve the community's needs? ## YesNo 782041 8 2 050100150200 36. Do you find the location of the Glen Lake Activity Center convenient for your activities? Very convenient Somewhat convenient ## Neutral Very inconvenient Not convenient at all ## ONLINE SURVEY –GLEN LAKE ACTIVITY CENTER 84 ## ONLINE SURVEY –GLEN LAKE ACTIVITY CENTER •76 of the respondents (42%) were unaware that this facility even existed or knew what it offered. Therefore -a suggestion for improvement is to better publicize what is offered here and improve the facility’s utilization •Of the respondents who were familiar with the space, ~20 (11%) mentioned that it's dirty and needs an upgrade or even a full repurposing of the building Are there any ideas you would like to share and suggest to improve Glen Lake Activity Center? “The meeting room is very large and noisy from the exposed duct work. Winters were also cold. It's not ideal for meetings. We used to hold our association meetings there but no longer use it for these reasons..” “Seems to be a wasted opportunity to me since it isn’t regularly utilized especially on weekdays. .” “We live near the Glen Lake Activity Center and joined the ## Eden Prairie Community Center for fitness. The city doesn't have a good facility for fitness on this south side of the city.” 85 ## SUMMARY ## Key Themes 1.Affordable membership & programming costs 2.Facility awareness and communication 3.More variety in wellness and fitness programs 4.Interior facility upgrades and modernization 5.Age-specific programming 6.Parking and facility accessibility 7.Expand on sports courts, workout and community spaces 8.Environmental considerations 9.Cater to different audiences for each facility 10.Clean and hygienic spaces 86 ## MINNETONKA ## MARKET ASSESSMENT 87 ## DEMOGRAPHICS OF MINNETONKA The demographic analysis is to provide Minnetonka’s Recreation Services Department insight into the makeup of the population they serve and identify market trends in recreation. The report also helps to quantify the recreational market in and around the cityand assists in providing more information about the types of parks, facilities, and services used to satisfy the needs of residents. 88 Demographic data used for the analysis was obtained from U.S. Census bureau and from the environmental systems research institute, inc.(ESR) they provide information systems (GIS) and specialize in population projections and market trends. All data was acquired in June 2023 and reflects actual numbers as reported in the 2020 census. ESRI then estimates the current population (2023) as well as a 5-year projection (2028). ## Minnetonka ## Service Area 89 49,692 2010 ## Census ## POPULATION 58,489 0.82% 53,781 54,091 54,984 56,981 0.73% 0.53% iHlt 2020 ## Census 0.29% 0.33% 20282023 ## Estimate ## Projection 2033 ## Projection ## Total ## Population -Population ## Annual ## Growth ## Rate 2038 ## Projection 90 ## POPULATION ## BY ## AGE ## SEGMENTS 0-12 13-17 18-34 35-54 55-64 65-74 75+ 9% 11% 14% 14% 15% 8% 14% 15% 16% 17% 19% 16% 13% 13% 13% 28% 24% 24% 23% 22% 18% 17% 17% 17% 16% 7% 6% 5% 5% 14% 12%12% 11% 5% 11% 2010 ## Census 2023 ## Estimate 2028 ## Projection 2033 ## Projection 2038 ## Projection 91 Adding more recreational activities for active adults and elderly populations,such as exercise classes or recreational leagues, may prove to be beneficial in keeping those populations active. This increasingly high percentage of senior and elderly residents may also give the city a better idea of what offerings may serve the community best in a potential community center . The department should be mindful of this when pricing out programs and events and considering amenities, while staying aware of the potential interaction that they can expect from a populace that has a higher-than-average income level. ## This population growth should be considered and accounted for when planning new amenities and offerings for the community, as well as the maintenance and upkeep of current offerings. ## Finally, Minnetonka should ensure its diversifying population is reflected in its offerings, marketing/communications, and public outreach . With increasing diversity in both race and age, Minnetonka should remain prepared to change its offerings over time. ## DEMOGRAPHICIMPLICATIONS 92 ## LOCAL FITNESS POTENTIAL This charts show sport and leisure market potential data for Minnetonka residents, as provided by ESRI. Market Potential Index (MPI) measures the probable demand for a product or service within the defined service areas. 93 ## SUGGESTIONS FOR PROGRAMS AND ACTIVITIES With consideration of other facilities nearby and the programs they offer, below are programs and activities to consider for the Marsh facility.Available program space will need to be evaluated to provide a clearer definition of the programs that could be offered. ## Educational and Learning Experiences •Understanding the Internet •Subjective Study •Genealogy •Dealing with Grief •Learning a Foreign Language ## •Long Term Care •Book Clubs •Cooking and Healthy Eating ## Modera te Activities •Line Dancing for Exercise •Ballroom Dance for ## Exercise and Fun •Ping Pong •Walking Club •Table Games ## Arts Programs •Learn to Play an Instrument •Group and Individual Singing •Dance Socials ## •Guitar Music Singalongs ## Mental Health Support •Stroke Recovery ## •Care Giver Support •Support Groups for ## Parkinsons and Dementia 94 ## SUGGESTIONS FOR PROGRAMS AND ACTIVITIES ## Life Skills –DIY Learning •Home Care •Personal Finances •Tax Preparation •Estate Planning ## Special Events •Dance Night •A Day in the Park ## •5K Walking Race •Holiday Parties •Festivals ## Relaxation •Massage Techniques •Stretching and ## Balance •Meditation •Music Enjoyment 95 ## PRO FORMA 96 ## Business Plan for: 97 2 ## TABLE OF CONTENTS CHAPTER ONE - INTRODUCTION ............................................................................... 3 CHAPTER TWO - MARKET ANALYSIS ........................................................................ 4 2.1 DEMOGRAPHIC ANALYSIS .......................................................................................................... 4 2.1.1 Methodology ................................................................................................................................ 5 2.1.2 City Populace ................................................................................................................................ 7 2.2 RECREATION TRENDS ANALYSIS ............................................................................................ 12 2.2.1 National Trends in recreation ..................................................................................................... 12 2.2.2 overall participation ................................................................................................................... 13 2.2.3 National Trends in General sports .............................................................................................. 15 2.2.4 National Trends in General fitness ............................................................................................. 17 2.2.5 National Trends in Outdoor/adventure recreation .................................................................... 19 2.2.6 National Trends in Aquatics ....................................................................................................... 21 2.2.7 National Trends in Water sports/activities ................................................................................ 22 2.2.8 Local Sport and Leisure Market Potential .................................................................................. 24 2.3 ALTERNATIVE SERVICE PROVIDER ......................................................................................... 28 2.3.1 Introduction ................................................................................................................................ 28 2.3.2 Services offered .......................................................................................................................... 29 2.3.3 Type and Number of Services ..................................................................................................... 30 2.3.4 Monthly Memberships ............................................................................................................... 31 2.3.5 Service Price Sampling ................................................................................................................ 32 2.3.6 Summary .................................................................................................................................... 33 ## CHAPTER THREE – OPERATIONAL PLAN .............................................................. 34 3.1 VISIONING AND CORE PROGRAM PLAN ............................................................................... 34 3.2 OPERATIONAL STANDARDS .................................................................................................... 41 3.2.1 Organizational Structure ............................................................................................................ 41 3.2.2 Operational Goals and Assumptions .......................................................................................... 41 3.2.3 Operational Standards ............................................................................................................... 43 3.2.4 Staffing Strategy ........................................................................................................................ 44 3.2.5 Guest Services Strategy .............................................................................................................. 45 3.2.6 Technology Strategy ................................................................................................................... 46 CHAPTER FOUR - FINANCIAL PLAN ....................................................................... 47 4.1 FINANCIAL ASSUMPTIONS ........................................................................................................ 47 4.2 PRICING STRATEGY ..................................................................................................................... 47 4.3 FIVE-YEAR PRO FORMA ............................................................................................................ 51 APPENDIX ................................................................................................................... 52 NATIONAL CORE VS. NON-CORE PARTICIPATION TRENDS ..................................................... 52 REVENUE MODEL ............................................................................................................................... 59 EXPENDITURE MODELS .................................................................................................................... 62 98 ## The Marsh Business Plan 3 ## CHAPTER ONE - INTRODUCTION Minnetonka’s Recreation Services Department desired to purchase the “The Marsh” facility and property as a compliment to their other recreation facilities they currently own and operate now. The Marsh for the last 20+ years has been under private ownership as a spa, fitness, wellness, and hospitality facility for people in the region. The Marsh has provided many members and users the opportunity to enjoy the many health and wellness benefits it provides to its members and individuals who belong to the facility or have taken part in programs provided there. Minnetonka Recreation Services wanted a complete evaluation of the facility, programs that have been provided and what other types of uses the facility could provide to the Minnetonka community and the region. In their pursuit of this effort, they hired HGA Architects and PROS Consulting to develop an updated site facility plan and business plan for the facility to guide them forward. The goal of the updated site and business plan is to determine what elements of the facility that are working well, what areas could be updated or expanded to serve a wider audience of users and programs to make The Marsh feel like it can serve the entire Minnetonka community. Through this effort, PROS Consulting and HGA Architects determine what they felt should stay in the building, what needs updated and what new additional building features and programs could be added to the existing key core spaces to maximize its use and increase its range of users. The existing core spaces included the spa treatment area, health and wellness programs and services, and a restaurant. New facility options included adding additional program and hospitality space with the focus of not pushing out existing users of the site while still generating more operating revenue to cover all the city operational costs for the future. PROS Consulting and HGA Architects met with the staff who oversee the facility, to determine how they would like to manage the facility in the future. This included discussions on what program services they felt the facility should keep, what they felt was missing that could be added to the building itself or expanded to the outdoor areas surrounding the building to create a wider age segment appeal of programs and services without making extensive changes to the building and site. PROS Consulting working HGA Architects provided several scenarios of building options and program options that could be added to the facility for the future while still staying with the overall goals of the building to create a wider user base, updating existing building features, and keeping the spa amenities and restaurant intact. PROS Consulting provided a full market analysis of the demographic and trends of the region The Marsh serves, created an updated vision and new operational plan, looked at other similar spa providers in the area and created a financial plan with an operational proforma and pricing plan for the facility for the next five years. This operational plan and proforma follows the updated site plan with changes designed to the building by HGA Architects and added features outside of the building to take advantage of the natural areas as a program feature for the community and visitors to enjoy. The Marsh is an unusual recreational facility for a parks and recreation agency to operate but with the proposed additions and changes to the building and grounds, PROS feels it will provide many new users to the facility, keep existing users, and enhance the overall experience for all users of the facility for years to come. 99 4 ## CHAPTER TWO - MARKET ANALYSIS A key component of the Community Center Feasibility Study is a Market Analysis. The purpose of this analysis is to provide Minnetonka’s Recreation Services Department (“Department”) insight into the makeup of the population they serve and identify market trends in recreation. The report also helps to quantify the market in and around the City of Minnetonka, Minnesota (“City”) and assists in providing a better understanding of the types of parks, facilities, and services used to satisfy the needs of residents. This analysis is two-fold; it aims to identify the who and the what. First, it assesses the demographic characteristics and population projections of Minnetonka residents to understand who the Department serves. Second, recreational trends are examined on a national and local level to understand what the population may want to do. Findings from this analysis establish a fundamental understanding that provides a basis for prioritizing the community need for parks, trails, facilities, recreation programs, and even a potential community center. ## 2.1 DEMOGRAPHIC ANALYSIS ## The Demographic Analysis describes the population in Minnetonka. This assessment is reflective of the City’s total population and its key characteristics such as age, race, and income levels. It is important to note that future projections are based on historical patterns and unforeseen circumstances during or after the time of the analysis could have a significant bearing on the validity of projected figures. Figure 1 provides an overview of Minnetonka’s populace based on current estimates of the 2023 population. A further analysis of each of these demographic characteristics can be found in Section 2.1.3. ## Figure 1: Demographic Overview of Minnetonka, MN 100 ## The Marsh Business Plan 5 ## 2.1.1 METHODOLOGY Demographic data used for the analysis was obtained from U.S. Census Bureau and from Environmental Systems Research Institute, Inc. (ESRI), the largest research and development organization dedicated to Geographical Information Systems (GIS) and specializing in population projections and market trends. All data was acquired in June 2023 and reflects actual numbers as reported in the 2020 Census. ESRI then estimates the current population (2023) as well as a 5-year projection (2028). PROS then utilized straight line linear regression to forecast demographic characteristics for 10 and 15-year projections (2033 and 2038). Please note: Some data has yet to be released from the 2020 Census, resulting in certain analyses utilizing 2010 Census data instead (e.g., age segmentation). ## RACE AND ETHNICITY DEFINITIONS The minimum categories for data on race and ethnicity for Federal statistics, program administrative reporting, and civil rights compliance reporting are defined below. The Census 2020 data on race are not directly comparable with data from the 2010 Census and earlier censuses; therefore, caution must be used when interpreting changes in the racial composition of the US population over time. The latest (Census 2020) definitions and nomenclature are used within this analysis. American Indian or Alaska Native: A person having origins in any of the original peoples of North and South America (including Central America), and who maintains tribal affiliation or community attachment. Asian: A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam. Black or African American: A person having origins in any of the black racial groups of Africa. Hispanic or Latino: A person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race. Native Hawaiian or Other Pacific Islander: A person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands. White: A person having origins in any of the original peoples of Europe, the Middle East, or North Africa. Census states that “the race and ethnicity categories generally reflect social definitions in the U.S. and are not an attempt to define race and ethnicity biologically, anthropologically, or genetically. We recognize that the race and ethnicity categories include racial, ethnic, and national origins and sociocultural groups.” Please note: The Census Bureau states that the race and ethnicity categories generally reflect social definitions in the U.S. and are not an attempt to define race and ethnicity biologically, anthropologically, or genetically. We recognize that the race and ethnicity categories include racial, ethnic, and national origins and sociocultural groups. They define Race as a person’s self-identification with one or more of the following social groups: White, Black, or African American, Asian, American Indian, and Alaska Native, Native Hawaiian and Other Pacific Islander, some other race, or a combination of these. Ethnicity is defined as whether a person is of Hispanic / Latino origin or not. For this reason, the Hispanic/Latino ethnicity is viewed separate from race throughout this demographic analysis. 101 6 ## 2.1.2 DEMOGRAPHIC ANALYSIS BOUNDARY The City of Minnetonka boundaries shown below were utilized for the demographic analysis (Figure 2). ## Figure 2: Service Area Boundaries 102 ## The Marsh Business Plan 7 ## 2.1.3 CITY POPULACE ## POPULATION Minnetonka has a steadily growing population that ranges from light to moderate yearly increases; in fact, the population has increased from 49,692 in 2010 to an estimated 54,091 in 2023. Minnetonka’s population is expected to continue to steadily grow in the following 15 years, where it is projected to reach 58,489 residents by 2038 (Figure 3). The total number of households has also grown at a consistent rate proportional to the population growth, increasing from 21,872 in 2010 to an estimated 23,929 in 2023. By 2038, it is estimated that there will be 26,071 total households within Minnetonka, which is likely to continue growing (Figure 4). ## Figure 3: Minnetonka’s Total Population and Annual Growth Rate 49,692 53,781 54,091 54,984 56,981 58,489 0.82% 0.29% 0.33% 0.73% 0.53 % 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 44,000 46,000 48,000 50,000 52,000 54,000 56,000 58,000 60,000 2010 ## Census 2020 ## Census 2023 ## Es�mate 2028 ## Projec�on 2033 ## Projec�on 2038 ## Projec�on ## POPULATION ## Total Popula�onPopula�on Annual Growth Rate ## Figure 4: Minnetonka’s Total Households and Annual Growth Rate 21,872 23,694 23,929 24,448 25,343 26,071 0.83% 0.50% 0.43% 0.73% 0.57% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 19,000 20,000 21,000 22,000 23,000 24,000 25,000 26,000 27,000 2010 ## Census 2020 ## Census 2023 ## Es�mate 2028 ## Projec�on 2033 ## Projec�on 2038 ## Projec�on ## HOUSEHOLDS ## Number of HouseholdsHouseholds Annual Growth Rate 103 8 ## AGE SEGMENTATION The largest age segments of Minnetonka’s current population are 18-34 (17%), 35-5 4 (24%), and 55-64 (16%), comprising a relatively middle-aged City population. Within the community, there is an aging trend with people over the age of 55, increasing from making up 33% of the population in 2010 to making up 47% of the population by 2038; as the population projects to slightly age over time, younger populations will thus decrease in exchange for an increase in middle age and elderly populations. The median age has risen from 45.0 in 2010 to 47.2 in 2023, where it projects to continue to increase slightly in the coming years. Therefore, the amenities updated and developed for Minnetonka should likely be designed to be accessible for the slow growing elderly population, while also remaining oriented for families with both old and young children (Figure 5) . ## Figure 5: Minnetonka’s Population by Age Segments 14% 12%12% 11% 11% 7% 6% 5% 5% 5% 18% 17% 17% 17% 16% 28% 24% 24% 23% 22% 16% 16% 13% 13% 13% 8% 14% 15% 17% 19% 9% 11% 14%14% 15% 2010 ## Census 2023 ## Es�mate 2028 ## Projec�on 2033 ## Projec�on 2038 ## Projec�on ## POPULATION BY AGE SEGMENTS 0-1213-1718-3435-5455-6465-7475+ 104 ## The Marsh Business Plan 9 ## RACE Analyzing race, Minnetonka’s current population makeup is mostly ‘White Alone,’ with the 2023 estimate showing 82% of the population falling into the White Alone category, along with ‘Two or More Races’ (6 %), ‘Asian Alone’ (5%), and ‘Black or African American Alone’ (5%) representing the second, third, and fourth largest categories. Predictions for 2028 and beyond expect the population to steadily diversify, with a decrease in the White Alone population, and minor increases to all other race categories. Within this change, the ‘Two or More Races’ category will increase the most from 6% to 10% by 2038 (Figure 6). ## ETHNICITY Minnetonka’s population was also assessed based on Hispanic/Latino ethnicity, which by the Census Bureau definition is viewed independently from race. It is important to note that individuals who are Hispanic/Latino in ethnicity can also identify with any racial categories identified above. Based on the current 2023 estimate, people of Hispanic/Latino origin represent 4% of Minnetonka’s population, which is well below the national average (19% Hispanic/Latino) and slightly below the state of Minnesota average (6% Hispanic/Latino). The City’s Hispanic/Latino population is expected to continue growing slightly to 5% of Minnetonka’s total population by 2038 (Figure 7). 4%4%4% 5% 5% 96% 96% 96 % 95% 95% 2020 ## Census 2023 ## Es�mate 2028 ## Projec�on 2033 ## Projec�on 2038 ## Projec�on ## HISPANIC POPULATION ## Hispanic / La�no Origin (any race)All Others ## Figure 7: Minnetonka’s Hispanic Population ## Figure 6: Minnetonka’s Population by Race 90% 83% 82% 79% 76% 74% 4% 5% 5% 7% 7% 8% 3% 5% 5% 5% 6% 6% 1% 1% 1% 2% 2% 2% 2% 6%6% 7% 9% 10% 2010 ## Census 2020 ## Census 2023 ## Es�mate 2028 ## Projec�on 2033 ## Projec�on 2038 ## Projec�on ## RACE ## Two or More Races ## Some Other Race ## Na�ve Hawaiian & ## Other Pacific ## Islander Alone ## Asian Alone ## American Indian & Alaska Na�ve ## Alone ## Black or African American Alone ## White Alone 105 10 ## INCOME CHARACTERISTICS When analyzing income, the per capita income is that earned by an individual while the median household income is based on the total income of everyone over the age of sixteen living within the same household. Minnetonka’s per capita income ($68,073) and median household income ($107,747) are both well above the state of Minnesota averages ($41,204 and $77,706) and national averages ($35,672 and $65,712). Minnetonka projects to increase in both median household and per capita income, where the averages are expected to increase to $96,030 and $148,907 respectively by 2038. These relatively high- income characteristics should be taken into consideration when the Department is pricing out programs, calculating cost recovery goals, or planning amenities for a potential community center (Figures 8 and 9). ## Figure 8: Income Characteristics of Minnetonka $68,073 $77,392 $86,711 $96,030 $107,747 $121,467 $135,187 $148,907 2023 ## Es�mate 2028 ## Projec�on 2033 ## Projec�on 2038 ## Projec�on ## INCOME CHARACTERISTICS ## Per Capita IncomeMedian Household Income ## Figure 9: Comparative Income Characteristics of Minnetonka $68,073 $41,204 $35,672 $107,747 $77,706 $65,712 MinnetonkaMinnesotaU.S.A. ## COMPARATIVE INCOME ## Per Capita IncomeMedian Household Income 106 ## The Marsh Business Plan 11 ## 2.1.4 DEMOGRAPHIC IMPLICATIONS While it is important not to generalize recreation needs and priorities based solely on demographics, the analysis suggests some potential implications for Minnetonka, Minnesota: • Minnetonka’s aging population indicates a need to identify and understand the interests of the middle-aged and elderly populations. Adding more recreational activities for active adults and elderly populations, such as exercise classes or recreational leagues, may prove to be beneficial in keeping those populations active. This increasingly high percentage of senior and elderly residents may also give the County a better idea of what offerings may serve the community best in a potential community center. • Minnetonka’s relatively high per capita income and household income characteristics suggest potential disposable income at the individual and family level. The Department should be mindful of this when pricing out programs and events and considering amenities, while staying aware of the potential interaction that they can expect from a populace that has a higher-than- average income level. • In comparison to the United States average (0.74%), Minnetonka had a relatively low annual growth rate from 2020 to 2023 (0.29%). However, the annual growth rate is projected to increase to 0.54% from 2023 to 2038, showing a continuation of the steady growth the community has seen in the past decade. This population growth should be considered and accounted for when planning new amenities and offerings for the community, as well as the maintenance and upkeep of current offerings. • Finally, Minnetonka should ensure its diversifying population is reflected in its offerings, marketing/communications, and public outreach. With increasing diversity in both race and age, Minnetonka should remain prepared to change its offerings over time. 107 12 ## 2.2 RECREATION TRENDS ANALYSIS The Trends Analysis provides an understanding of national, regional, and local recreational trends as well recreational interest by age segments. Trends data used for this analysis was obtained from Sports & Fitness Industry Association’s (SFIA), National Recreation and Park Association (NRPA), and Environmental Systems Research Institute, Inc. (ESRI). All trend data is based on current and/or historical participation rates, statistically valid survey results, or NRPA Park Metrics. ## 2.2.1 NATIONAL TRENDS IN RECREATION ## METHODOLOGY The Sports & Fitness Industry Association’s (SFIA) Sports, Fitness & Leisure Activities Topline Participation Report 2023 was utilized in evaluating the following trends: ## • National Recreation Participatory Trends ## • Core vs. Casual Participation Trends The study is based on findings from surveys conducted in 2022 by the Sports Marketing Surveys USA (SMS), resulting in a total of 18,000 online interviews. Surveys were administered to all genders, ages, income levels, regions, and ethnicities to allow for statistical accuracy of the national population. A sample size of 18,000 completed interviews is considered by SFIA to result in a high degree of statistical accuracy. A sport with a participation rate of five percent has a confidence interval of plus or minus 0.32 percentage points at a 95 percent confidence level. Using a weighting technique, survey results are applied to the total U.S. population figure of 305,439,858 people (ages six and older). The purpose of the report is to establish levels of activity and identify key participatory trends in recreation across the U.S. This study looked at 120 different sports/activities and subdivided them into various categories including: sports, fitness, outdoor activities, aquatics, etc. 108 ## The Marsh Business Plan 13 ## 2.2.2 OVERALL PARTICIPATION Approximately 236.9 million people ages six and over reported being active in 2022, which is a 1.9% increase from 2021 and the greatest number of active Americans in the last 6 years. This is an indicator that Americans are continuing to make physical activity more of a priority in their lives. Outdoor activities continue to thrive, recreation facilities reopened, fitness at home maintains popularity, and team sports are slowly reaching pre-pandemic participation levels. The chart to the right depicts participation levels for active and inactive (those who engage in no physical activity) Americans over the past 6 years. ## CORE VS. CASUAL PARTICIPATION In addition to overall participation rates, SFIA further categorizes active participants as either core or casual participants based on frequency of participation. Core participants have higher participatory frequency than casual participants. The thresholds that define casual versus core participation may vary based on the nature of each individual activity. For instance, core participants engage in most fitness activities more than fifty times per year, while for sports, the threshold for core participation is typically 13 times per year. In each activity, core participants are more committed and tend to be less likely to switch to other activities or become inactive (engage in no physical activity) than causal participants. This may also explain why activities with more core participants tend to experience less pattern shifts in participation rates than those with larger groups of casual participants. Increasing for the fifth straight year, 158.1 million people were considered CORE participants in 2022. 216.9 218.5 221.7 229.7 232.6 236.9 81.4 82.1 81.2 74.3 72.2 68.6 0.0 50.0 100.0 150.0 200.0 250.0 2017201820192020 2021 2022 ## NUMBER OF PARTICIPANTS ## (MILLIONS) ## ACTIVITY AND INACTIVITY TREND ## Total ActivesTotal Inactives ## Figure 10: Active vs. Nonactive Trend 143.6 147.5 149.7 154.3 156.7 158.1 0.0 50.0 100.0 150.0 200.0 201720182019202020212022 ## NUMBER OF PARTICIPANTS ## (MILLIONS) ## TOTAL CORE ACTIVES ## Figure 11: Total Core Actives 109 14 ## PARTICIPATION BY GENERATION The following chart shows 2022 participation rates by generation. Fitness sports continue to be the go-to means of exercise for Boomers, Gen X, and Millennials. Over half of the Gen X, Millennials, and Gen Z generation participated in one type of outdoor activity. Team sports were heavily dominated by generation Gen Z and nearly a third of Gen X also participated in individual sports such as golf, trail running, triathlons, and bowling. ## HIGHLIGHTS Team sports are continuing to recover due to shutdowns during the pandemic. Team sports participation rate increased to 23.2% which is near 2019 participation levels. Pickleball continues to be the fastest growing sport in America by doubling its participation in 2022. Following the popularity of pickleball, every racquet sport also increased in total participation in 2022. Americans continued to practice yoga, attend Pilates training, workout with kettlebells, started indoor climbing, and while others took to the hiking trail. The waterways traffic had an increase of stand-up paddlers, kayaks, and jet skis. Gymnastics, swimming on a team, court volleyball, and fast-pitch softball benefited from the participation boom created from the Olympics. Water sports had the largest gain in participation rates. Activities such as jet skiing, scuba diving, and boardsailing/windsurfing all contributed to the 7% increase. Outdoor sports continued to grow with 55% percent of the U.S. population participating. This rate remains higher than pre-pandemic levels with a 51% participation rate in 2019. The largest contributor to this gain was trail running, having a 45% increase over the last five years. 66.2% 22.9% 43.3% 8.0% 4.6% 8.8% 3.7% 66.7% 31.9% 52.9% 13.1% 14.4% 13.4% 9.0% 69.2% 43.4% 61.6% 21.2% 31.3% 18.8% 15.8% 55.5% 45.4% 61.0% 23.4% 54.8% 17.4% 20.4% ## FITNESS ## SPORTS ## INDIVIDUAL ## SPORTS ## OUTDOOR ## SPORTS ## RACQUET ## SPORTS ## TEAM ## SPORTS ## WATER ## SPORTS ## WINTER ## SPORTS ## PARTICIPATION BY GENERATION ## Boomers (1945-1964) ## Gen X (1965-1979) ## Millennials (1980-1999) ## Gen Z (2000+) ## Figure 12: Participation by Generation 110 ## The Marsh Business Plan 15 ## 2.2.3 NATIONAL TRENDS IN GENERAL SPORTS ## PARTICIPATION LEVELS The top sports most heavily participated in the United States were basketball (28.1 million), golf (25.6 million), and tennis (23.6 million) which have participation figures well more than the other activities within the general sports category. Baseball (15.5 million), and outdoor soccer (13.0 million) round out the top five. The popularity of basketball, golf, and tennis can be attributed to the ability to compete with small number of participants, this coupled with an ability to be played outdoors and/or properly distanced helps explain their popularity during the COVID-19 pandemic. Basketball’s overall success can also be attributed to the limited amount of equipment needed to participate and the limited space requirements necessary, which make basketball the only traditional sport that can be played at most American dwellings as a drive-way pickup game. Golf continues to benefit from its wide age segment appeal and is considered a life-long sport. In addition, target type game venues or golf entertainment venues have increased drastically (86.2%) as a 5-year trend, using golf entertainment (e.g., Top Golf) as a new alternative to breathe life back into the game of golf. ## Five-Year Trend Since 2017, pickleball (185.7%), golf - entertainment venues (86.2%), and tennis (33.4%) have shown the largest increase in participation. Similarly, basketball (20.3%) and outdoor soccer (9.2%) have also experienced significant growth. Based on the five-y ear trend from 2017-2022, the sports that are most rapidly declining in participation include ultimate frisbee (-31.5%), rugby (-28.1%), and roller hockey (- 25.4%). ## One-Year Trend The most recent year shares some similarities with the five-year trends; with pickleball (85.7%) and golf - entertainment venues (25.7%) experiencing some of the greatest increases in participation this past year. Other top one-year increases include racquetball (8.0%), badminton (7.1%), and gymnastics (7.1%). Sports that have seen moderate 1-year increases, but 5-year decreases are racquetball (8.0%), gymnastics (7.1%), and court volleyball (4.2%). This could be a result of coming out of the COVID-19 pandemic and team program participation on the rise. Similar to their 5-year trend, rugby (-5.8%), roller hockey (-4.0%), and ultimate frisbee (-2.2%) have seen decreases in participation over the last year. 111 16 ## CORE VS. CASUAL TRENDS IN GENERAL SPORTS General sport activities, basketball, court volleyball, and slow pitch softball have a larger core participant base (participate 13+ times per year) than casual participant base (participate 1-12 times per year). Due to the COVID-19 pandemic, most activities showed a decrease in their percentage of core participants. However, there were significant increases in the percentage of casual participation for basketball, baseball, pickleball, outdoor soccer, flag football, badminton, and indoor soccer in the past year. Please see Appendix A for the full Core vs. Casual Participation breakdown. 201720212022 ## 5-Year Trend1-Year Trend ## Basketball23,40127,13528,14920.3%3.7% Golf (9 or 18-Hole Course)23,82925,11125,5667.3%1.8% ## Tennis17,68322,61723,59533.4%4.3% ## Golf (Entertainment Venue)8,34512,36215,54086.2%25.7% ## Baseball15,64215,58715,478-1.0%-0.7% Soccer (Outdoor)11,92412,55613,018 9.2%3.7% ## Pickleball3,1324,8198,949185.7%85.7% Football (Flag)6,5516,8897,1048.4%3.1% ## Badminton6,4306,0616,4900.9%7.1% Volleyball (Court)6,3175,8496,092-3.6%4.2% ## Softball (Slow Pitch)7,2836,0086,036-17.1%0.5% Soccer (Indoor)5,3995,4085,4951.8%1.6% Football (Tackle)5,2245,2285,4364.1%4.0% Football (Touch)5,6294,8844,843-14.0%-0.8% ## Gymnastics4,8054,2684,569-4.9%7.1% Volleyball (Sand/Beach)4,9474,1844,128-16.6%-1.3% ## Track and Field4,1613,5873,690-11.3%2.9% ## Racquetball3,5263,2603,521-0.1%8.0% ## Cheerleading3,8163,4653,507-8.1%1.2% ## Ice Hockey2,5442,3062,278-10.5%-1.2% ## Softball (Fast Pitch)2,3092,0882,146-7.1%2.8% ## Ultimate Frisbee3,1262,1902,142-31.5%-2.2% ## Wrestling1,8961,9372,0367.4%5.1% ## Lacrosse2,1711,8921,875-13.6%-0.9% ## Roller Hockey1,8341,4251,368-25.4%-4.0% ## Squash1,4921,1851,228-17.7%3.6% ## Rugby1,6211,2381,166-28.1%-5.8% ## National Participatory Trends - General Sports ## Activity % Change ## Participation Growth/Decline: ## Moderate Increase (0% to 25%) ## Large Decrease (less than -25%) NOTE: Participation figures are in 000's for the US population ages 6 and over ## Large Increase (greater than 25%) ## Moderate Decrease (0% to -25%) ## Participation Levels ## Figure 13: General Sports National Participatory Trends 112 ## The Marsh Business Plan 17 ## 2.2.4 NATIONAL TRENDS IN GENERAL FITNESS ## PARTICIPATION LEVELS Overall, national participatory trends in fitness have experienced growth in recent years. Many of these activities have become popular due to an increased interest among Americans to improve their health and enhance quality of life by engaging in an active lifestyle. The most popular general fitness activities in 2022 also were those that could be done at home or in a virtual class environment. The activities with the most participation was walking for fitness (114.8 million), treadmill (53.6 million), free weights (53.1 million), running/jogging (47.8 million), and yoga (33.6 million). ## FIVE-YEAR TREND Over the last five years (2017-2022), the activities growing at the highest rate were trail running (44.9%), yoga (23.0%), Pilates training (14.0%) and dance, step & choreographed exercise. Over the same period, the activities that have undergone the biggest decline in participation include group stationary cycling (- 33.4%), cross-training style workout (-32.1%) and non-traditional/off road triathlons (-28.1%). ## ONE-YEAR TREND In the last year, fitness activities with the largest gains in participation were group-related activities, cardio kickboxing (8.5%), Pilates training (5.8%), and group stationary cycling (5.5%). This 1-year trend is another indicator that participants feel safe returning to group-related activities. Trail running (5.9%) also saw a moderate increase indicating trail connectivity to continue to be important for communities to provide. In the same span, fitness activities that had the largest decline in participation were cross-training style workout (-5.3%), bodyweight exercise (-2.6%) and running/jogging (-2.4%). ## CORE VS. CASUAL TRENDS IN GENERAL FITNESS Participants of walking for fitness are mostly core users (participating 50+ times) and have seen a 1.5% growth in the last five years. Please see Appendix A for the full core vs. casual participation breakdown. 113 18 ## Figure 14: General Fitness National Participatory Trends 201720212022 ## 5-Year Trend1-Year Trend ## Walking for Fitness110,805115,814114,7593.6%-0.9% Treadmill 52,96653,62753,5891.2%-0.1% ## Free Weights (Dumbbells/Hand Weights)52,21752,63653,1401.8%1.0% Running/Jogging 50,77048,97747,816-5.8%-2.4% ## Yoga27,35434,34733,63623.0%-2.1% ## Stationary Cycling (Recumbent/Upright)36,03532,45332,102-10.9%-1.1% ## Weight/Resistant Machines 36,29130,57730,010-17.3%-1.9% Free Weights (Barbells) 27,44428,24328,6784.5%1.5% ## Elliptical Motion/Cross-Trainer32,28327,61827,051-16.2%-2.1% ## Dance, Step, & Choreographed Exercise22,61624,75225,16311.3%1.7% ## Bodyweight Exercise24,45422,62922,034-9.9%-2.6% ## High Impact/Intensity Training21,47621,97321,8211.6%-0.7% ## Trail Running 9,14912,52013,25344.9%5.9% ## Rowing Machine11,70711,58611,8931.6%2.6% ## Stair Climbing Machine 14,94811,78611,677-21.9%-0.9% ## Pilates Training 9,0479,74510,31114.0%5.8% ## Cross-Training Style Workout13,6229,7649,248-32.1%-5.3% ## Martial Arts5,8386,1866,3558.9%2.7% ## Stationary Cycling (Group)9,4095,9396,268-33.4%5.5% ## Cardio Kickboxing6,6935,0995,531-17.4%8.5% ## Boxing for Fitness5,1575,2375,4726.1%4.5% ## Boot Camp Style Cross-Training6,6515,1695,192-21.9%0.4% ## Barre3,4363,6593,80310.7%3.9% ## Tai Chi3,7873,3933,394-10.4%0.0% Triathlon (Traditional/Road)2,1621,7481,780-17.7%1.8% ## Triathlon (Non-Traditional/Off Road)1,8781,3041,350-28.1%3.5% ## National Participatory Trends - General Fitness ## Activity % Change NOTE: Participation figures are in 000's for the US population ages 6 and over ## Moderate Increase (0% to 25%) ## Large Decrease (less than -25%) ## Participation Growth/Decline: ## Large Increase (greater than 25%) ## Moderate Decrease (0% to -25%) ## Participation Levels 114 ## The Marsh Business Plan 19 ## 2.2.5 NATIONAL TRENDS IN OUTDOOR/ADVENTURE RECREATION ## PARTICIPATION LEVELS Results from the SFIA report demonstrate rapid growth in participation regarding outdoor/adventure recreation activities. Much like general fitness activities, these activities encourage an active lifestyle, can be performed individually, and are not as limited by time constraints. In 2022, the most popular activities, in terms of total participants include day hiking (59.5 million), road bicycling (43.6 million), freshwater fishing (41.8 million), camping (37.4 million), and wildlife viewing (20.6 million). ## FIVE-YEAR TREND From 2017-2022, sport/bouldering (174.8%), camping (42.5%), skateboarding (41.3%), day hiking (32.7%), birdwatching (28.6%) has undergone large increases in participation. The five-year trend also shows activities such as indoor climbing (-51.4%), adventure racing (-32.2%) to be the only activities with double- digit decreases in participation. ## ONE-YEAR TREND The one-year trend shows most activities growing in participation from the previous year. The most rapid growth being in sport/boulder climbing (151.1%), BMX bicycling (8.3%), birdwatching (6.8%), and in-line roller skating (4.7%). Over the last year, the only activities that underwent decreases in participation were indoor climbing (-56.9%), adventure racing (-6.1%), and overnight backpacking (-0.9%). ## CORE VS. CASUAL TRENDS IN OUTDOOR / ADVENTURE RECREATION Most outdoor activities have experienced participation growth in the last five years. Although this is a positive trend, it should be noted that all outdoor activities participation, besides adventure racing, consist primarily of casual users. Please see Appendix A for the full core vs. casual participation breakdown. 115 20 ## Figure 15: Outdoor/Adventure Participatory Trends ## 2017202120225-Year Trend1-Year Trend Hiking (Day) 44,90058,69759,57832.7% 1.5% Bicycling (Road)38,86642,77543,55412.1%1.8% Fishing (Freshwater)38,34640,85341,8219.1%2.4% ## Camping26,26235,98537,43142.5%4.0% Wildlife Viewing (>1/4 mile of Vehicle/Home)20,35120,45220,6151.3%0.8% ## Camping (Recreational Vehicle)16,15916,37116,8404.2%2.9% Birdwatching (>1/4 mile of Vehicle/Home)12,29614,81515,81828.6%6.8% Fishing (Saltwater)13,06213,79014,3449.8%4.0% ## Backpacking Overnight10,97510,30610,217-6.9%-0.9% Skateboarding 6,3828,7479,01941.3%3.1% Bicycling (Mountain)8,6098,6938,9163.6%2.6% Fishing (Fly)6,7917,4587,63112.4%2.3% ## Archery7,7697,3427,428-4.4%1.2% Climbing (Sport/Boulder)2,1032,3015,778174.8%151.1% ## Roller Skating, In-Line 5,2684,9405,173-1.8%4.7% Bicycling (BMX) 3,4133,8614,18122.5%8.3% Climbing (Indoor)5,0455,6842,452-51.4%-56.9% Climbing (Traditional/Ice/Mountaineering)2,5272,3742,452-3.0%3.3% ## Adventure Racing2,5291,8261,714-32.2%-6.1% ## National Participatory Trends - Outdoor / Adventure Recreation ## Activity % Change NOTE: Participation figures are in 000's for the US population ages 6 and over ## Participation Growth/Decline: ## Moderate Increase (0% to 25%) ## Large Decrease (less than -25%) ## Large Increase (greater than 25%) ## Moderate Decrease (0% to -25%) ## Participation Levels 116 ## The Marsh Business Plan 21 ## 2.2.6 NATIONAL TRENDS IN AQUATICS ## PARTICIPATION LEVELS Swimming is deemed a lifetime activity, which is why it continues to have such strong participation. In 2022, fitness swimming remained the overall leader in participation (26.3 million) amongst aquatic activities. ## FIVE-YE ## AR TREND Assessing the five-year trend, fitness swimming (-3.2%) and swimming on a team (-3.4%) experienced moderate decreases due to the accessibility of facilities during COVID-19. While aquatic exercise (2.1%) saw a slight increase in participation during this same time period. ## ONE-YE ## AR TREND In 2022, all aquatic activities saw moderate increases in participation which can be asserted to facilities and programs returning to pre-COVID-19 pandemic levels. Swimming on a team (2.8%), aquatic exercise (2.7%) andn fitness swimming (2.5%) saw moderate increases in participation. ## CORE VS. CASUAL TRENDS IN AQUATICS All activities in aquatic trends have undergone an increase in casual participation (1-49 times per year) over the last five years. Please see Appendix A for full the core vs. casual participation breakdown. ## Figure 16: Aquatics Participatory Trends 201720212022 ## 5-Year Trend1-Year Trend Swimming (Fitness)27,13525,62026,272-3.2%2.5% ## Aquatic Exercise 10,45910,40010,6762.1%2.7% Swimming on a Team3,0072,8242,904-3. 4%2.8% ## National Participatory Trends - Aquatics ## Activity % Change NOTE: Participation figures are in 000's for the US population ages 6 and over ## Participation Growth/Decline: ## Moderate Increase (0% to 25%) ## Large Decrease (less than -25%) ## Large Increase (greater than 25%) ## Moderate Decrease (0% to -25%) ## Participation Levels 117 22 ## 2.2.7 NATIONAL TRENDS IN WATER SPORTS/ACTIVITIES ## PARTICIPATION LEVEL The most popular water sports / activities based on total participants in 2022 were recreational kayaking (13.6 million), canoeing (9.5 million), and snorkeling (7.4 million). It should be noted that water activity participation tends to vary based on regional, seasonal, and environmental factors. A region with more water access and a warmer climate is more likely to have a higher participation rate in water activities than a region that has a long winter season or limited water access. Therefore, when assessing trends in water sports and activities, it is important to understand that fluctuations may be the result of environmental barriers which can influence water activity participation. ## FIVE-YEAR TREND Over the last five years, surfing (37.8%), recreational kayaking (28.7%), stand-up paddling (13.6%) and white-water kayaking (9.0%) were the fastest growing water activities. From 2017-2022, activities declining in participation were water skiing (-14.9%), snorkeling (-12.0%), boardsailing/windsurfing (- 11.6%), and sea/touring kayaking (10.6%). ## ONE-YEAR TREND In 2022, water skiing (-0.6%) was the only water activity to see a decrease in participation. Activities which experienced the largest increases in participation in the most recent year include jet skiing (7.6%), scuba diving (7.4%), boardsailing/windsurfing (7.2%), and surfing (6.6%). ## CORE VS. CASUAL TRENDS IN WATER SPORTS / ACTIVITIES As mentioned previously, regional, seasonal, and environmental limiting factors may influence the participation rate of water sport and activities. These factors may also explain why all water-based activities have drastically more casual participants than core participants, since frequencies of activities may be constrained by uncontrollable factors. Please see Appendix A for the full core vs. casual participation breakdown. 118 ## The Marsh Business Plan 23 ## Figure 17: Water Sports/Activities National Participatory Trends ## 2017202120225-Year Trend1-Year Trend Kayaking (Recreational)10,53313,35113,56128.7%1.6% ## Canoeing9,2209,1999,5213.3%3.5% ## Snorkeling8,3847,3167,376-12.0%0.8% ## Jet Skiing5,4185,0625,4450.5%7.6% ## Stand-Up Paddling3,3253,7393,77713.6%1.0% ## Surfing2,6803,4633,69237.8%6.6% ## Sailing3,9743,4633,632-8.6%4.9% Rafting 3,4793,3833,5953.3%6.3% ## Water Skiing3,5723,0583,040-14.9%-0.6% ## Wakeboarding3,0052,6742,754-8.4%3.0% ## Kayaking (White Water)2,5002,5872,7269.0%5.4% ## Scuba Diving2,8742,4762,658-7.5%7.4% Kayaking (Sea/Touring)2,9552,5872,642-10.6%2.1% ## Boardsailing/Windsurfing1,5731,2971,391-11.6%7.2% ## National Participatory Trends - Water Sports / Activities ## Activity % Change NOTE: Participation figures are in 000's for the US population ages 6 and over ## Participation Growth/Decline: ## Moderate Increase (0% to 25%) ## Large Decrease (less than -25%) ## Large Increase (greater than 25%) ## Moderate Decrease (0% to -25%) ## Participation Levels 119 24 ## 2.2.8 LOCAL SPORT AND LEISURE MARKET POTENTIAL ## LOCAL SPORT AND LEISURE MARKET POTENTIAL The following charts show sport and leisure market potential data for Minnetonka residents, as provided by ESRI. Market Potential Index (MPI) measures the probable demand for a product or service within the defined service areas. The MPI shows the likelihood that an adult resident will participate in certain activities when compared to the U.S. national average. The national average is 100; therefore, numbers below 100 would represent lower than average participation rates, and numbers above 100 would represent higher than average participation rates. The service area is compared to the national average in four (4) categories – general sports, fitness, outdoor activity, and commercial recreation. It should be noted that MPI metrics are only one data point used to help determine community trends; thus, programmatic decisions should not be based solely on MPI metrics. Overall, when analyzing Minnetonka’s MPIs, the data demonstrates mostly above average market potential index (MPI) numbers in all assessed areas, with high potential in several more specific activities. For example, Tennis and Road Biking both scored well above the national average, while also outperforming most of their other General Sports or Outdoor Activities counterparts according to the analysis. Something to note about Minnetonka’s MPI scores is that there are very few activities below the national average, with only 16 of the measured 44 activities scoring less than 100. This becomes significant when the Department considers starting up new programs or building new facilities, giving them a strong tool to estimate resident attendance and participation. The following charts compare MPI scores for 44 sport and leisure activities that are prevalent for residents within Minnetonka. The activities are categorized by activity type and listed in descending order, from highest to lowest MPI score. High index numbers (100+) are significant because they demonstrate that there is a greater likelihood that residents within the service area will actively participate in those offerings provided by the Department. 120 ## The Marsh Business Plan 25 ## GENERAL SPORTS MARKET POTENTIAL The following chart shows that only two of Minnetonka’s recorded General Sports are above the national average regarding MPI: Golf (129) and Tennis (125). Minnetonka’s other General Sports scores are all below the national average of 100, however, the lowest scoring activities (Basketball, Softball, and Soccer scoring at 88, 88, and 85 respectively) all still scored at or above 85. Something important to note is that the scores for General Sports (aside from Tennis and Golf) were among the lowest in the entire MPI analysis for Minnetonka (Figure 18). ## Figure 18: General Sports MPI for Minnetonka 85 8888 90 9393 125 129 0 20 40 60 80 100 120 140 ## SoccerSo�ballBasketball ## Volleyball ## BaseballFootballTennis ## Golf ## GENERAL SPORTS MPI ## MinnetonkaNa�onal Average (100) 121 26 ## FITNESS MARKET POTENTIAL Assessing MPI scores for the Fitness Activity category reveals that Minnetonka’s fitness activities are nearly all above the national average. Of these activities, Yoga ( 121), Walking for Exercise (116), and Pilates ( 115) scored the highest, while the City’s only activity scoring below the national average was Zumba (94) (Figure 19). ## OUTDOOR ACTIVITY MARKET POTENTIAL Minnetonka’s Outdoor Activity MPI chart reflected some similarly strong scores to that of its Fitness MPI; the City is mostly above the national average, with the most popular activities being Road Biking (122), Hiking (119), and Mountain Biking (116). Alternatively, the lowest scores in the City’s Outdoor Activity MPI belonged to Horseback Riding (96), Rock Climbing (93), and Freshwater Fishing (92) (Figure 20). 92 93 96 103 113 114 116 119 122 0 20 40 60 80 100 120 140 ## Fishing (fresh water) ## Rock ClimbingHorseback ## Riding ## ArcheryCanoeing/ ## Kayaking ## BackpackingBicycling (mountain) ## HikingBicycling (road) ## OUTDOOR ACTIVITY MPI ## MinnetonkaNa�onal Average (100) ## Figure 20: Outdoor Activity MPI for Minnetonka ## Figure 19: Fitness MPI for Minnetonka 94 109 110 113 114 115 116 121 0 20 40 60 80 100 120 140 ## ZumbaSwimmingJogging/ ## Running AerobicsWe ight ## Li�ing PilatesWalking for ## Exercise ## Yoga ## FITNESS MPI ## MinnetonkaNa�onal Average (100) 122 ## The Marsh Business Plan 27 ## COMMERCIAL RECREATION MARKET POTENTIAL The Commercial Recreation MPI category reveals that most of the City’s recorded Commercial Recreation activities are also above the national average, with only a few exceptions. The most popular activities in the service area were ‘ Went to live theater,’ ‘Participated in a book club,’ and ‘Went to art gallery,’ which all scored at 126. The types of activities that are popular in Minnetonka are diverse; artistic activities and sports activities alike have similarly high ratings across the board, though artistic activities seem to be the strongest user base. One thing to note is the relatively high willingness to spend money on sports or recreational equipment, as the ‘Spent $1-$99’ category scored at 96, the ‘Spent $100-249’ category scored at 108, and the ‘Spent $250 category’ scored at 111. Paired with the other MPI ratings (General Sports, Fitness, and Outdoor Activity), these activities could signal potential target areas for new facilities, funding, or programs for the Department (Figure 21). ## Figure 21: Commercial Recreation MPI for Minnetonka 89 90 91 91 93 96 102 103 103 103 104 106 108 109 111 111 116 126 126 126 0204060 80 100 120140 Played video/electronic game (console) Visited an indoor water park Played video/electronic game (portable) Flew a drone Visited a theme park Spent $1-99 on sports/rec equip Went overnight camping Did pain�ng/drawing Did photography Visited a zoo A�ended sports event A�ended adult educa�on course Spent $100-249 on sports/rec equip Dined out Did photo album/scrapbooking Spent $250+ on sports/rec equip Went to museum Went to art gallery Par�cipated in a book club Went to live theater ## COMMERCIAL RECREATION MPI (last 12 months) ## MinnetonkaNa�onal Average (100) 123 28 ## 2.3 ALTERNATIVE SERVICE PROVIDER ## 2.3.1 INTRODUCTION The Marsh is a wellness center owned by the city of Minnetonka, MN. The 67,000 square foot facility is set on scenic marshlands. The city acquired the facility in February of 2023 and after evaluating the services and operations of the facility, it was partially opened in May 2023 with aquatics and fitness amenities. For many years, the Marsh has provided fitness, aquatics, and programs to benefit the health and wellness of the residents of Minnetonka, and a Feasibility Study is being conducted to understand how the facility can function more effectively and be financially sustainable for the city. Similar providers identified are located within a 15-minute drive from the Marsh. Due to the unique services the Marsh offers, research stepped outside of the 15-minute drive time since similar providers that offer a minimum of services, they provide pale in comparison to services and the facilities of the Marsh. It is important to look at the services offered at the Marsh as they compare with other service providers in the area to also see how the pricing and services offered could be competitive and to learn what services are offered exclusively at the Marsh. The Marsh has a location that appeals to the spa atmosphere and has amenities that could be used in a positive cost recovery model since similar providers do not have many amenities the Marsh has to offer. The similar providers in the spa market are numerous in the Minnetonka community with minimal similar services as the Marsh offers. However, no similar providers offer all the amenities and services that are offered at the Marsh. This report will present the findings of an analysis of the spa market and outline four similar provides as examples of businesses providing health and wellness services, as well as general information found about like business not shown in this report *Research was conducted on the internet and information obtained and used in this report could differ from actual services and prices offered at the facilities. Similar providers researched: ## • Spavia Day Spa www.minnetonkamn.spaviadayspa.com ## 11300 Wayzata Blvd. / Minnetonka, MN ## • Sapphire Spa Services http://www.sapphiremn.com/ ## 13911 Rigedale Drive, Minnetonka ## • Sanctuary Float Spa www.sanctuaryfloatspa.com ## 14525 MN-7, Minnetonka • Massage Envy (2 locations in Minnetonka) ## Minnetonka, Minnesota Massage Therapy & Facials at Massage Envy ## 13185 Ridgedale Drive, Minnetonka 124 ## The Marsh Business Plan 29 ## 2.3.2 SERVICES OFFERED This Similar Providers Analysis will address how the Marsh compares with similar service to other providers. (Figure 22) However, other spa type businesses in the Minnetonka area (our research reached further than the 15-minute drive time in an attempt to find providers offering similar services) found approximately sixteen other businesses that are characterized as a Spa yet may actually be Salons (fingernail / toenail salons, hair salons, beauty salons). Analyzing their services, these businesses may offer a minimal number of services matching the Marsh. These businesses are not in the analysis. When researching potential similar providers that have “Spa” in the name of their business and they offer many beauty services, a minimal number actually are health and wellness based. There are services those providers offer that the Marsh does not. Only 2 offer wellness services, but not wellness in terms of maintaining a healthy lifestyle with fitness exercising or aquatic offerings as does the Marsh. Their wellness services refer to health restoration or methods to improve health with products or innovative services. (body wraps, aroma therapy, floating therapy, or a variety of injectable products) The below graph shows that Marsh offers nearly three times as many services as all four similar providers combined. Services that are duplicated (with the Marsh and Similar Providers) are minimal compared to the Marsh as well as to other providers. This duplication is not a concern for competition against the Marsh because the Marsh offers many other spa services that customers may choose to purchase as well as a serene location near a wooded wetland. ## Figure 22: Spa Services by Venue 125 30 ## 2.3.3 TYPE AND NUMBER OF SERVICES The list below shows services the Marsh offers as well as those of the other providers researched. Services are listed alphabetically and are categorized as below: • Services offered by the Marsh are in bold text. • Services offered by any other providers are underlined. • Services in red text are offered by both the Marsh and other providers. Dividing services differentiates the fact that the Marsh offers a significant number of services compared to other providers, and a more diverse type of service to visitors. • 50/50 ## • Advanced Ai Chi ## • Ai Chi ## • Aqua Flow • Aromatherapy ## • Balance Yoga ## • Barre Fusion • Bell of the Ball ## • Body Burn II ## • Body Detox • Botox ## • Cardio Boxing Barre ## • Cellulite Removal ## • Chair Yoga ## • Classic Cardio Fusion • Colonic ## Hydrotherapy • Cycle & Core • Cycle & Sculpt • Cycle / Yoga / Sculpt ## • Deep Stretch Reset ## • Deep Water Extreme • Dermatology ## Products ## • Endurance Ride ## • Gentle Yoga ## • H.I.I.T. ## • Hatha Yoga • Hydro Tone & ## Stretch ## • Infrared Therapy • Injectables (rejuvenate) • Kettlebell ## • Kids Zumba ## • Kripalu Gentle Yoga ## • Laser Hair Removal ## • Massage Services • Memberships • Nia ## • Organic Body Rituals ## • Personal Massage ## Pack ## • Physical Therapy • Pilates ## • Pilates Advanced ## • POUND Unplugged ## • Power Yoga • Pump ## • Qui Gong ## • Rise and Shine Yoga ## • Sr. Cycle / Strength • Silver Sneakers ## Circuit ## • Sliver Sneaker Classic • Skin Care / ## Treatments • Skin Laser ## Treatments ## • Sound Healings ## • Spa Parties • Strength ## • Strike Fusion ## • Tabata Cardio Core • Tai Chi: Daily ## Wellness ## • Tai Chi for Health ## • Teeth Whitening • Tennis ## • TRX Circuit • Vinyasa to Yoga ## • Water Fit ## • Weight Management ## • Wellness Services ## • Wellness Shots ## • Varicose Vein Treat • Women on Weights ## • World Dance Variety • Zumba 126 ## The Marsh Business Plan 31 ## 2.3.4 MONTHLY MEMBERSHIPS The Marsh and two similar providers offer some type of membership for age group, number of people, resident and non-resident and memberships offering basic to premier services. (Figure 23.) The chart shows monthly membership costs. The other two service providers offer their services at a pay per service, or multiple visits at a slightly discounted rate. Gift certificates are offered by all providers and some provide promotional packages. *R = Resident NR = Non-Resident *Spavia Day Spa has three levels of service and treatments. Each itemized service will have more care. • Essential: Massage, Facials / Skin Care / Beauty (make up and lashes) • Premier: Massage, Body Treatments / Facials and Skin Care / Beauty • Ultimate: Massage / Body Treatments / Facials and Skin Care / Beauty (longer massage and additional facial care) Since comparing the similarities that exist with the Marsh and other providers is not a parallel assessment, services offered at the Marsh for services offered at other providers, it is more appropriate to consider another means of viewing other providers. Using the Marsh services and programs as the standard for this report the services and programs the other providers offer could be matched to the Marsh. Services and programs that the Marsh offers and the other providers do not will indicate where the Marsh has exclusive market presence. Services and programs offered by the four similar providers are underlined in the list. ## Figure 23: Spa Memberships 127 32 ## 2.3.5 SERVICE PRICE SAMPLING To distinguish the price of services at the Marsh from the prices of other providers, some common spa services were researched and placed in the chart below. (Figure 4.) In the sampling of services shown, the Marsh prices are: • Facial: Comparable to two other providers • Lashes: Comparable to one other provider and considerably lower than one provider • Massage: all other providers are close in price for comparable length of time As demonstrated in the previous narrative and information in this report, the Marsh offers a much greater number of services than all other providers. In the sample of Service Prices Examples chart below, the light blue cells indicate the provider listed does not offer that service or amenity. In the selected services shown below: • Marsh offers 11 spa services • Among the other providers, the closest number of services shown is Saphire Spa Services with 4. • The remaining providers offer 3 or less services *It is worth noting in the price comparison, the Marsh offers Sports and Fitness-related services. No other provider offers these programs or services. ## Figure 24: Service Price Sampling ffers these programs or services. 128 ## The Marsh Business Plan 33 ## 2.3.6 SUMMARY The Marsh is a unique facility in terms of the overall type and number of services offered compared to the other providers researched. There are many other facilities that provide a limited type of services that may be found in a spa facility. (Hair Salons, Massage Facilities, Nail Salons, Fitness Facilities, Organic and Natural Beauty Parlors, and other specialized treatment businesses) however the wide variety of services pales in comparison to the Marsh. Because the Marsh offers many services and amenities that are not offered by any of the other providers, there is no definitive competition on a parallel comparison with them. There are major amenities and services that set the Marsh on a service level far above what other providers offer currently, and they will most likely not be able to offer in the future due to the limits of facility size, extent of amenities, variety and type of services, as well as a serene location appropriate to the relaxing atmosphere of a full-service spa like the Marsh. Major amenities and services exclusive to the Marsh: • Wide selection of offerings and programs for youth to seniors ## • Banquet Room Rental • Café ## • Conference Room Rental ## • Gym Rental • Partnership with a sports-oriented facility (Williston Center) ## • Physical Therapy ## • Fitness Equipment ## • Sports Programs • Aquatics / lap pool / therapy pool • Hot tubs • Steam rooms • Saunas • Resident and non-resident rates • Personal and group training The spa is truly distinctive in the Minnetonka area and with data provided in this report, other facilities are shown as non-competitors with services and amenities offered by the Marsh. Further research regarding cost of service, cost recovery, revenue and expenses, staff evaluation and facility condition and other operational details should be explored with a similar provider lens and could be combined with data in this analysis 129 34 ## CHAPTER THREE – OPERATIONAL PLAN ## 3.1 VISIONING AND CORE PROGRAM PLAN In comparing the supported capital improvements, the Consulting Team can see how well they meet the project goals. To do this a Core Program Matrix has been created to add structure to the analysis. The following sections look at the events, programs, and health/wellness along with access and spaces that survey respondents supported. Using the survey responses in order, each event and program looked at the age segment served, guiding principles, and partnership/sponsorship opportunities. The Marsh primary target market is ages 15 and up. Therefore, all programs, events and health/wellness listed in the matrix are a viable option within the facility or on the grounds. The opportunities described for programing space in the Marsh and on the grounds have led to a design of spaces that serve existing members and attract potential new members from the community and surrounding communities. The intent was to take what existing members have grown to appreciate from the facility when it was privately owned and bring in new trends that increase the facility’s appeal and improve the health and wellness of the community. Partnership / ## Sponsorship 2-5 years 6-8 years 9-12 years 13-15 years 16-18 years 19-30 years 31-45 years 46-60 years 61-70 years 71-75 years 76 + years 1Yoga and meditation classes ••••••••• 2Functional fitness classes for seniors •••••• 3Expand spa offerings •••••••••• 4Educational seminars on health topics ••••••••• 5Live music and cultural events ••••••••••••• 6 Physical therapy and injury prevention programs ••••••••• 7 Cooking and nutrition workshops •••••••••••• 8Outdoor fitness areas •••••••••• 9Senior social gatherings ••••• 10Dance and movement classes •••••••••••••• 11Art and craft workshops •••••••••••• 12Nature education •••••••••••••••• 13Stress management workshops ••••••••• 14Family-friendly fitness activities •••••••••••••• ## Minnetonka, MN Community Facilities Study - The Marsh ## Events, Programs, and Health/Wellness Priority Matrix ## Citizen ## Survey ## Ranking ## Improvement ## Age Segments ServedGuiding Principles ## YOUTHADULTSENIOR (excluding "other" responses) Culture of ## Active Living ## Maintain, ## Preserve, & Enhance ## Equitable Parks & ## Facilities ## Resiliency Partnership / ## Sponsorship ## Potential 130 ## The Marsh Business Plan 35 The access and space priorities again reflect a good cross section of age segments by space and how each will be utilized for delivery of programs and services. Each space is designed to work collectively to create synergy within the facility with a variety of interests and independently depending upon the specific activity. Partnership / ## Sponsorship 2-5 years 6-8 years 9-12 years 13-15 years 16-18 years 19-30 years 31-45 years 46-60 years 61-70 years 71-75 years 76 + years 1Additional spa services •••••••••• 2Improve walking track ••••••••••••• 3Connection to regional trails •••••••••••••••• 4Provide art or creative programming •••••••••••• 5Develop gardening or nature space ••••••••••••••• 6 Add sports courts (e.g., basketball, tennis, pickleball) ••••••••••••• 7 Love it the way it is - don’t change anything •••••• 8 Enhanced locker room facilities •••••••••• 9More accessible pricing ••••••••••••• 10Drop-in childcare services •••••••• Partnership / ## Sponsorship ## Potential ## Minnetonka, MN Community Facilities Study - The Marsh ## Access & Space Priority Matrix ## Citizen ## Survey ## Ranking ## Improvement ## Age Segments ServedGuiding Principles ## YOUTHADULTSENIOR ## Maintain, ## Preserve, & Enhance ## Equitable Parks & ## Facilities Culture of ## Active ## Living ## Resiliency (excluding "other" responses) 131 36 132 ## The Marsh Business Plan 37 133 38 134 ## The Marsh Business Plan 39 135 40 136 ## The Marsh Business Plan 41 ## 3.2 OPERATIONAL STANDARDS ## 3.2.1 ORGANIZATIONAL STRUCTURE ## 3.2.2 OPERATIONAL GOALS AND ASSUMPTIONS The operational and financial assumptions describe the overall operational philosophy of Fieldhouse and explain the cost-centers and revenue centers approach to establish sustainable operational standards and the operational pro forma. ## GENERAL ASSUMPTIONS • The big picture is to focus on the intersection of mental health, recreation, and health/wellness programming. ## • Desired Core Program Areas ## o Mental Health o Nutrition & Culinary o Events o Fitness 137 42 o Aquatics ## o Family Programming o Arts ## • Revenue Drivers o Marsh Management (Revenue is leases) o Membership & Passes o Dining o Spa & Therapy o Event & Reservations o Programs & Events o Other: ##  Bike & Snowshoe Rental  Merchandise sales • The Marsh will have program zones that can work independently of each other or in concert with each other depending upon program or event. • The target market for the Marsh is ages 15+ for membership services and all ages for programming and events. • New introductory programming will keep the facility fresh. The Department will need to routinely introduce new programming including introductory programs for youth highlighting each of the member and spa services. • When special events are implemented at the facility and grounds, the facility should be open as an additional activity to help introduce services to potential new members, increasing reach and memberships. • Amenity and space sizes are based on estimates from the conceptual design Medium Option plus developed terrace and deck space (Large Option). Amenities and spaces may change during final design, construction documents, etc. • Restaurant: o The dining hall will include 30 tables (48”X48”) that can seat up to 240 people at one time. o The ideal table turnover rate is between 1.5-2.5 times per meal. For the pro forma, the table turnover rate shall be 1.5 during lunch and 2.0 for dinner. o The restaurant visitation is estimated to be 80–100 Monday to Thursday and approximately 250–300 on weekends. • Fulltime staff are calculated at midrange of the pay scale for the purpose of the pro forma • Fulltime staffing of the Marsh to consist of the following: ## o Marsh Manager ## o Guest Services Coordinator ## o Sr. Fitness Coordinator ## o Maintenance Technician ## o Program & Events Coordinator o Part-time staffing consists of:  Fitness instructors  Program leaders 138 ## The Marsh Business Plan 43  Attendants  Cashiers  Bartenders ##  Food Prep Staff  Servers/Waiters ## 3.2.3 OPERATIONAL STANDARDS • Hours of Operations are 94 hours per week for the Marsh. Monday-Friday 6AM-8PM with Saturday and Sunday being 8AM-8 PM. Holiday Hours include the following: ## o Thanksgiving: Closed o Christmas Eve: Open until 1PM ## o Christmas Day: Closed ## o New Year’s Eve: Open until 1PM ## o New Year’s Day: Opens at 1PM o Memorial Day: 8AM-7PM o Independence Day: 8AM-7PM o Labor Day: 8AM-7PM • Operations for the bike rentals shall be approximately April 20-October 1, annually. The concession/bike rental office shall be open for 137 days a total of 1790 hours annually. Details for Bike Rentals in Table below. • Snowshoe rental shall be weather dependent and operations shall be approximately October 2 – March 31, annually. When snowshoe rentals are available, the hours shall be on weekends and holidays only and be from 8:00AM – 4PM October2-January 30, from January 30-March 31 from 8:00AM – 5PM. Operational average of 36 days (median of days with snow) per season has been applied for pro forma development. Total hours of operation are estimated to be 306 hours a season. o The Restaurant is open 93 hours a week  Breakfast: M-FRI 6AM-10AM, Sat/Sun 8-10AM - Open for bistro style breakfast options with minimal staffing  Lunch-Dinner: M-TH 11AM – 8PM, FRI-SUN 11AM – 10PM - Lunch and Dinner ## Restaurant Style ## Approx. TimeframeOperationsHours ## April 20-May 17Sat, Sun, Holidays11AM-7PM ## Thur-Friday12-7PM ## Sat, Sun, Holidays9AM-9PM ## Mon - Fri10AM-9PM ## Weekends/Holidays9AM-9PM ## Mon - Fri10AM-8:30PM Weekends /Holidays9AM-8:30PM ## Mon-Fri10AM-8PM ## Weekend/Holidays9AM-8PM ## Mon-Fri1-8PM ## Weekend/Holidays1-7PM September 3-22Weekend/Holidays11AM-6PM May 18-27 May 28-Jul 21 July 22-August 4 August 19- September 2 August 5 - 18 ## Bike Rental Detailed Hours of Operation 139 44 ## 3.2.4 STAFFING STRATEGY Staffing is driven by the facility, conceptual design renovations, and the services offered within each programmable space. Leadership should clearly define the responsibilities and expectations of each position as it pertains to managing the facility and planning the various programs and activities. Key Performance Indicators such as member retention and program cancellation rates, tracking the total cost of service, and customer satisfaction can establish best practices to ensure that the desired cost recovery is achieved. It is recommended that the Marsh include seven full-time staff consisting of: ## • Marsh Manager ## • Spa Manager ## • Spa Treatment Coordinator ## • Guest Services Coordinator ## • Maintenance Technician ## • Programs & Events Coordinator ## • Senior Fitness Coordinator Operations can be supplemented with part-time and seasonal staff. Recommended Marsh positions include Spa Services Attendants, Concession/Rental Attendants. Part-time and seasonal aquatics staff include Pool Lifeguards, and Instructors. Recreation staff can include Recreation Assistants, Activity Leaders, and Instructors. Marsh Management should also consider contracted staff or programs that do not require additional employees to be hired by the agency, such as custodial services. 140 ## The Marsh Business Plan 45 ## 3.2.5 GUEST SERVICES STRATEGY The Marsh will have a focus on connecting guests to fitness and wellness, spa and therapy, dining, aquatics, events, and interpretive opportunities. The programs and services can evolve over time by understanding the interests of guests through positive interactions with staff and regular feedback. Enhancing internal and external customer service ensures a quality guest experience. Ensure the following: Internal and external: Internally, staff should be consistent in their interactions with each other and with guests. This includes defining expectations for branding, messaging, and communication. Externally, the Department should review its written communication, promotions, verbal communication, and signage to ensure that it is consistent with the desired guest experience and brand reinforcement. Telephone etiquette: Marsh should have a developed standard for telephone greeting that all staff use. This greeting should be welcoming and informative, and it should reflect Marsh’s commitment to connecting guests to spa, wellness, and enrichment opportunities. Voicemail: Marsh should develop a standard voicemail greeting that all staff use. This greeting should be professional and helpful, and it should provide guests with clear instructions for how to reach a staff member. Email: Marsh should develop a standard email signature that all staff use. This signature should include the staff member's name, title, and contact information. It should also include a link to the agency’s website and periodically include banners below the signature that promote events and activities happening at the Marsh. Training: The Marsh Experience is intended to be one of rejuvenation. Regular training on guest service standards for all staff, partners, and volunteers. This training should help to ensure that everyone who interacts with guests is aware of the expectations and that they are able to deliver a consistently positive experience. Incorporate program training in conjunction with existing programming. Also consider implementing cross- training for key positions and critical responsibilities to help maintain consistency with operations. Key Performance Indicators (KPIs): The Marsh should develop KPIs to measure the success of its guest experience initiatives. These KPIs should be focused on areas such as guest satisfaction, repeat visitation, and social media engagement. Onboarding and Offboarding: The Marsh should develop an onboarding checklist for new staff members and offboarding checklist for staff members moving on. The onboarding checklist should ensure that all new staff members are aware of Marsh's guest services standards and that they are able to deliver a consistently positive experience to those visiting the facility. The offboarding checklist should identify items that the outgoing staff member is overseeing and will be reassigned on at least a temporary basis such as building and software access and essential files. This helps minimize negative impacts to the customer’s experience when the employee leaves. By operating with customer focus, the Marsh can create a more memorable quality experience for the guests. 141 46 ## 3.2.6 TECHNOLOGY STRATEGY Technology integration is becoming increasingly important in new buildings, as it can help to improve efficiency, sustainability, and visitor comfort. The specific technologies that will be integrated into the March renovations should complement programs and services. Some common technologies that should be integrated into the Marsh include: Operational software: Operational software is essential to simplify tracking of services to be offered in The Marsh. Should the City choose to operate the spa and/or dining, there is industry specific software that would help with Member Lifetime Value calculations and automate membership reminders, sales, and satisfaction surveys. Building automation systems: Building automation systems should be used to control the Marsh's HVAC, lighting, humidity control, and other systems (i.e., irrigation system). It is important considering the different environments being created indoors to integrate these systems to improve efficiency and comfort. Energy management systems: Energy management systems can be used to monitor and optimize Marsh's energy consumption. This should help to reduce energy costs and improve sustainability. Security systems: Security systems can be used to protect the Marsh from unauthorized access, theft, and vandalism. • Additional specific technology considerations: • High-speed cable internet; ideally fiber optics. • Video conferencing equipment, including large screen sharing capability. • Presentation technology, including laser clickers and a laptop for room set-up. • Water quality monitoring system with real time analytics app for pools, ponds, fountains, etc. • Automated irrigation system with app • Sound system in the facility and specific room controls for events/presentations • Technology should be reviewed regularly for opportunities to enhance experience. 142 ## The Marsh Business Plan 47 ## CHAPTER FOUR - FINANCIAL PLAN ## 4.1 FINANCIAL ASSUMPTIONS • An average of 9 months of Marsh membership data was used to project the 3 months where no data is available. Then compiled for an approximation of weekly and annual memberships within the pro forma for each membership category. • Non-residents were calculated to be 15% of the total annual and monthly memberships in each category • Merchandise sales will be open and operated from the bike and snow shoe rental/concession that includes accessories related to branding, onsite activities, and Marsh services. • Grants are not included as operating income as they are opportunity driven and not a guaranteed revenue source. • All pricing will be maintained for services, leases, permits, food services, exhibitor fees, program fees, and sponsorships. Pricing will be set by the City Council and require annual review to determine if financial terms need to increase from operational cost increases. • The Department should use the pro forma as a living document and update the size of spaces, rate of inflation, and other pertinent details to accurately reflect what will be developed. • To forecast the financial implications of operating the facility, o Full-time staff salaries are mid-range of the pay scale provided by the Department. o Part-time wages are calculated at $16/hr. Minnesota minimum wage is $10.85 as of Jan 2024. • Existing partnerships will continue in the current capacity or be expanded as the experience on site expands. Fees adjustments should be considered with the improvements. • The Department will explore and implement new partnerships to help increase access to the Marsh for unserved and underserved populations. • Marketing costs are calculated at 3-5% of expenditure, 5% for at least the first two years. ## • Casual Dining Restaurant: o Average Meal cost per individual  Food Service - Individual Meal Average ($10 or less) ##  Food Service - Individual Meal Average ($11-$20) ##  Food Service - Individual Meal Average ($21-$30) ##  Food Service - Individual Meal Average ($31-$40) ##  Food Service - Beverage Average Breakfast/Lunch ##  Food Service - Beverage Average Dinner o If leased to concessionaire, lease will be 10% of the net. ## 4.2 PRICING STRATEGY Pricing strategies, when intentional, have many inherent benefits to the outcomes the Department is trying to achieve. Overall, a well-designed dynamic pricing strategy can help improve access, increase utilization, increase revenue, and improve customer satisfaction. • Increase access: By offering a variety of price points, Marsh can make it more accessible to people of all income levels for spa-related services. • Improve utilization: By offering different prices for different times of day and days of the week, it encourages people to use the Marsh during off-peak hours. 143 48 • Increase revenue: By charging different prices for different types of users, events, and activities, Marsh can generate more revenue than a flat rate structure. This increases the sustainability of the Marsh through the attraction of non-members to programs and events. • Increased customer satisfaction: By offering a variety of pricing options, it can give customers more control over how they spend. The following services and pricing are based off the current services, activating the spaces within the Marsh, and incorporate new elements to the facility. The pricing strategy is as follows: ## Pro Forma Pricing Strategy ## Minnetonka Community Facilities Study - The Marsh ## DIVISION: Membership/AdmissionsACCOUNT TITLE ## PRICE Marsh Membership - Annual (Resident)Individual (Ages 22+) $693.60 Marsh Membership - Annual (Resident)Dual (two people, same residency) $958.80 ## Marsh Membership - Annual (Resident) ## Household $1,101.60 ## Marsh Membership - Annual (Resident) Senior (Ages 60+) $479.40 Marsh Membership - Annual (Resident)Senior Dual (Both 60+, same residency) $693.60 Marsh Membership - Annual (Resident)Student (Ages 15-21) $550.80 Marsh Membership - Annual (Non-resident)Individual (Ages 22+) $856.80 Marsh Membership - Annual (Non-resident)Dual (two people, same residency) $1,193.40 ## Marsh Membership - Annual (Non-resident)Household $1,377.00 Marsh Membership - Annual (Non-resident)Senior (Ages 60+) $622.20 Marsh Membership - Annual (Non-resident)Senior Dual (Both 60+, same residency) $856.80 Marsh Membership - Annual (Non-resident)Student (Ages 15-21) $693.60 Marsh & Williston Membership - Annual (Resident)Individual (Ages 22+) $1,030.20 Marsh & Williston Membership - Annual (Resident)Dual (two people, same residency) $1,448.40 ## Marsh & Williston Membership - Annual (Resident)Household $1,662.60 ## Marsh & Williston Membership - Annual (Resident) Senior (Ages 60+) $714.00 Marsh & Williston Membership - Annual (Resident)Senior Dual (Both 60+, same residency) $1,030.20 Marsh & Williston Membership - Annual (Resident)Student (Ages 15-21) $979.20 ## Marsh & Williston Membership - Annual (Non-resident) Individual (Ages 22+) $1,285.20 Marsh & Williston Membership - Annual (Non-resident)Dual (two people, same residency) $1,785.00 ## Marsh & Williston Membership - Annual (Non-resident) ## Household $2,060.40 Marsh & Williston Membership - Annual (Non-resident)Senior (Ages 60+) $928.20 Marsh & Williston Membership - Annual (Non-resident)Senior Dual (Both 60+, same residency) $1,285.20 ## Marsh & Williston Membership - Annual (Non-resident) Student (Ages 15-21) $1,030.20 Membership - Monthly (Resident) Individual (Ages 22+) $68.00 Membership - Monthly (Resident)Dual (two people, same residency) $94.00 Membership - Monthly (Resident)Household $108.00 Membership - Monthly (Resident) Senior (Ages 60+) $47.00 Membership - Monthly (Resident)Senior Dual (Both 60+, same residency) $68.00 Membership - Monthly (Resident)Student (Ages 15-21) $54.00 Membership - Monthly (Non-resident)Individual (Ages 22+) $84.00 Membership - Monthly (Non-resident)Dual (two people, same residency) $117.00 Membership - Monthly (Non-resident)Household $135.00 Membership - Monthly (Non-resident)Senior (Ages 60+) $61.00 Membership - Monthly (Non-resident)Senior Dual (Both 60+, same residency) $84.00 Membership - Monthly (Non-resident)Student (Ages 15-21) $68.00 Marsh & Williston Membership - Monthly (Resident)Individual (Ages 22+) $101.00 Marsh & Williston Membership - Monthly (Resident)Dual (two people, same residency) $142.00 ## Marsh & Williston Membership - Monthly (Resident)Household $163.00 Marsh & Williston Membership - Monthly (Resident)Senior (Ages 60+) $70.00 Marsh & Williston Membership - Monthly (Resident)Senior Dual (Both 60+, same residency) $101.00 Marsh & Williston Membership - Monthly (Resident)Student (Ages 15-21) $96.00 Marsh & Williston Membership - Monthly (Non-resident)Individual (Ages 22+) $126.00 Marsh & Williston Membership - Monthly (Non-resident)Dual (two people, same residency) $175.00 ## Marsh & Williston Membership - Monthly (Non-resident)Household $202.00 Marsh & Williston Membership - Monthly (Non-resident)Senior (Ages 60+) $91.00 Marsh & Williston Membership - Monthly (Non-resident)Senior Dual (Both 60+, same residency) $126.00 Marsh & Williston Membership - Monthly (Non-resident)Student (Ages 15-21) $101.00 l d h ## F 144 ## The Marsh Business Plan 49 ## Pro Forma Pricing Strategy ## Minnetonka Community Facilities Study - The Marsh ## DIVISION: Spa & TherapyACCOUNT TITLE ## PRICE ## Spa/TherapyLeased Space-Physical Therapy $2.53 ## Spa/Therapy ## Swedish Massage $80.00 ## Spa/TherapyDeep Tissue Massage $100.00 ## Spa/TherapySports Massage $100.00 ## Spa/Therapy ## Hot Stone Massage $100.00 ## Spa/Therapy ## Prenatal Massage $90.00 ## Spa/TherapyFacial $60.00 ## Spa/Therapy ## Body Scrub $60.00 ## Spa/TherapyBody Wrap $75.00 ## Spa/TherapyHydrotherapy $40.00 ## Spa/TherapyWhirlpool Bath $30.00 ## Spa/Therapy Sauna/Steam Room (common area) $30.00 Spa/Therapy - ReservationsPrivate Sauna/Plunge (Small up to 4 people) M-TH$75.00 Spa/Therapy - ReservationsPrivate Sauna/Plunge (Small up to 4 people) FRI-SUN $100.00 Spa/Therapy - ReservationsPrivate Sauna/Plunge (Large (min. 5) up to 10 people) M-TH$150.00 Spa/Therapy - ReservationsPrivate Sauna/Plunge (Large (min. 5) up to 10 people) FRI-SUN $225.00 ## Spa/Therapy - ReservationsSolitude Cabins$169.00 ## Spa/Therapy - Product ## Products ## Calculated in Revenue Model ## Spa/Therapy - ProductTax, Charge ## Calculated in Revenue Model ## Spa/Therapy - Gift CardGift Certificates$75.00 ## Spa/Therapy - PackagesPackages$130.00 ## DIVISION: Dining: Leased to Concessionnaire ## ACCOUNT TITLE ## PRICE ## Dining- LeaseProfit Share (10%)10% ## DIVISION: Reservations & EventsACCOUNT TITLE ## PRICE ## Reservations ## Event Center M-TH (all rooms) $275.00 ## Reservations ## Event Center FRI-SUN (all rooms) $375.00 ## Reservations ## Small Event Meeting Room (<300 sf) M-TH $15.00 ## Reservations ## Small Event Meeting Room (<300 sf) FRI-SUN $20.00 ## Reservations ## Medium Event Meeting Room (>300 sf) M-TH$20.00 ## Reservations ## Medium Event Meeting Room (>300 sf) FRI-SUN $30.00 ## Reservations ## Dragon Room M-TH$30.00 ## Reservations ## Dragon Room FRI-SUN $45.00 ## Reservations ## Large Venue Space (Non-Saturday)$700.00 ## Reservations ## Large Venue Space (Saturday)$1,000.00 ## Reservations ## Large Venue Space & Reception (Non-Saturday) $1,200.00 ## Reservations ## Large Venue Space & Reception (Non-Saturday) $1,800.00 ## Reservations ## Spa Services/Large Venue Space/Reception (Non-Saturday) $3,000.00 ## Reservations ## Spa Services/Large Venue Space/Reception (Saturday) $4,500.00 ## Reservations ## Spa Services & Large Venue Space w/o Reception (Non-Saturday) $2,000.00 ## Reservations ## Spa Services & Large Venue w/o Reception (Saturday)$3,000.00 ## Reservations ## Sheltered Terrace M-TH$30.00 ## Reservations ## Sheltered Terrace FRI-SUN $45.00 145 50 ## Pro Forma Pricing Strategy ## Minnetonka Community Facilities Study - The Marsh ## DIVISION: Membership/AdmissionsACCOUNT TITLE ## PRICE ## Programs & Events - Wellness Mental health – Support Groups (dementia, Parkinson’s, loss of spouse, etc.) ## Free Programs & Events - WellnessImportance of socializing$10.00 ## Programs & Events - Wellness Importance of exercising$10.00 Programs & Events - WellnessMake time for Nature$10.00 Programs & Events - Wellness"Stretch" out your Life$10.00 ## Programs & Events - Nature Bird migration$10.00 Programs & Events - NatureMarsh life$10.00 Programs & Events - NatureMacroinvertebrates of the Marsh$10.00 ## Programs & Events - Nature Marsh habitats$10.00 Programs & Events - NatureMarsh amphibians$10.00 Programs & Events - NatureBirds of the upper Mississippi River$10.00 Programs & Events - NatureMinnetonka’s four watersheds$10.00 ## Programs & Events - Nutrition & Culinary Nutrition by age$10.00 Programs & Events - Nutrition & Culinary Understanding food labels$10.00 Programs & Events - Nutrition & Culinary Meals for one$10.00 ## Programs & Events - Nutrition & Culinary Bad food habits$10.00 ## Programs & Events - Nutrition & Culinary Holiday meals$10.00 ## Programs & Events - Nutrition & Culinary Minnetonka ethnic foods$16.00 Programs & Events - Nutrition & Culinary How many ways to cook chicken?$10.00 ## Programs & Events - Nutrition & Culinary friend and fellowship meals$20.00 ## Programs & Events - Nutrition & Culinary cooking tools – Must have$6.00 Programs & Events - Arts & EnrichmentFowl painting$65.00 ## Programs & Events - Arts & Enrichment Nature photography$20.00 Programs & Events - Arts & EnrichmentGreeting card making$30.00 Programs & Events - Arts & EnrichmentGarden art$15.00 ## Programs & Events - Arts & Enrichment ## Watercolors$35.00 ## Programs & Events - Arts & EnrichmentAcrylics$40.00 ## Programs & Events - Arts & Enrichment ## Dancing$50.00 ## Programs & Events - Arts & Enrichment ## Music Lessons$50.00 ## Programs & Events - Arts & EnrichmentHome Organization$5.00 ## Programs & Events - Arts & Enrichment ## Home Safety Smart$5.00 ## Programs & Events - Aquatics/FitnessAdult Swim Lessons - Individual/Group$60.00 ## Programs & Events - Aquatics/FitnessAqua FitnessMembership ## Programs & Events - Aquatics/Fitness ## Terrace YogaMembership ## Programs & Events - Aquatics/FitnessCardio+StrengthMembership ## Programs & Events - Aquatics/FitnessMind/BodyMembership ## Programs & Events - Aquatics/FitnessStrengthMembership ## Programs & Events - Aquatics/FitnessDance FitnessMembership ## Programs & Events - Aquatics/FitnessPersonal Training (1 Session - Member)$65.00 ## Programs & Events - Aquatics/FitnessPersonal Training (1 Session - Non-Member)$75.00 ## Programs & Events - Aquatics/FitnessPersonal Training (4 Sessions - Member)$240.00 ## Programs & Events - Aquatics/FitnessPersonal Training (4 Sessions - Non-Resident)$280.00 ## Programs & Events - Aquatics/FitnessPersonal Training (8 Sessions - Resident)$440.00 ## Programs & Events - Aquatics/FitnessPersonal Training (8 Sessions - Non-Resident)$520.00 ## Programs & Events - Aquatics/FitnessPersonal Training (12 Sessions - Resident)$600.00 ## Programs & Events - Aquatics/FitnessPersonal Training (12 Sessions - Non-Resident)$720.00 ## Programs & Events - Aquatics/FitnessPilates$60.00 ## Programs & Events - Special Events ## Have a Ball - Ballroom Dancing$60.00 ## Programs & Events - Special EventsConcert SeriesFree ## Programs & Events - Special EventsCornhole Tournaments$40.00 ## Programs & Events - Special EventsEarth DayFree ## Programs & Events - Special EventsNational Wildflower WeekFree ## Programs & Events - Special EventsMigratory Bird Day$5.00 ## Programs & Events - Special EventsReptile Awareness$5.00 ## Programs & Events - Special EventsBike WeekFree ## Programs & Events - Special EventsWine Tasting$60.00 Programs & Events - Special EventsBeer is Beer, what's the diference$40.00 ## Programs & Events - Special EventsArt ExhibitsFree ## DIVISION: OtherACCOUNT TITLE ## PRICE Other - Merchandise SalesVenue items, products, accessories to programs/activities, etc.10% of total revenues ## Other - Bike/SnowshoeIndividual Bike Rentals (hourly) $20.00 ## Other - Bike/SnowshoeSnowshoe Rental $15.00 ## Other - SponsorshipDigital Signs, programming, Events $10,000.00 146 ## The Marsh Business Plan 51 ## 4.3 FIVE-YEAR PRO FORMA ## Pro Forma Revenues & Expenditures ## Minnetonka Community Facilities Study - The Marsh ## BASELINE: REVENUES AND EXPENDITURES ## Revenues 1st Ye ar2nd Year3rd Ye ar 4th Ye ar5th Ye ar ## Marsh Management$10,000.00 $10,300.00 $10,763.50$11,301.68 $11,979.78 ## Membership & Passes$579,521.85$596,907.51$623,768.35$654,956.76$694,254.17 ## Spa & Therapy$1,398,548.74$1,440,505.21$1,505,327.94$1,580,594.34$1,675,430.00 Dining $91,189.80$93,925.49$98,152.14$103,059.75$109,243.33 ## Events & Reservations$222,885.00$229,571.55$239,902.27$251,897.38$267,011.23 ## Programs & Events$260,770.00$268,593.10$280,679.79$294,713.78$312,396.61 ## Other$113,569.26$116,976.34$122,240.27$128,352.29$136,053.42 Total $2,676,484.66$2,756,779.20$2,880,834.26$3,024,875.97$3,206,368.53 ## Expenditures1st Ye ar2nd Year 3rd ye ar4th ye ar5th ye ar ## Marsh Management$314,671.84$327,258.71 $340,349.06$368,121.55 $382,846.41 ## Membership & Passes$445,153.38 $462,959.51$481,477.89$520,766.49$541,597.15 ## Spa & Therapy$1,018,715.79$1,059,464.42$1,101,843.00$1,191,753.39$1,239,423.52 Dining $37,165.61$38,652.24$40,198.33$43,478.51$45,217.65 ## Events & Reservations$207,170.89$211,314.31$215,540.60$224,248.44$228,733.40 ## Programs & Events$255,211.34$260,315.56$265,521.88$276,248.96$281,773.94 ## Other$106,701.06$109,902.09$113,199.16$120,092.99$123,695.77 Total $2,384,789.91$2,469,866.85$2,558,129.91$2,744,710.31$2,843,287.85 ## Net$291,694.74$286,912.34$322,704.35$280,165.66$363,080.68 ## Total Cost Recovery112%112%113%110%113% 147 52 ## APPENDIX ## NATIONAL CORE VS. NON-CORE PARTICIPATION TRENDS ## GENERAL SPORTS #%#%#% ## Basketball23,401100%27,135100%28,149100%20.3%3.7% Casual (1-12 times)8,546 37%11,01941%13,00046%52.1%18.0% Core(13+ times)14,856 63% 16,019 59% 15,149 54%2.0%-5.4% Golf (9 or 18-Hole Course)23,829100%25,111100%25,566100%7.3%1.8% ## Tennis17,683100%22,617100%23,595100%33.4%4.3% ## Golf (Entertainment Venue)8,345100%12,362100%15,540100%86.2%25.7% ## Baseball15,642100%15,587100%15,478100%-1.0%-0.7% Casual (1-12 times)6,405 41%7,39247%7,90851%23.5%7.0% Core (13+ times)9,238 59% 8,19553%7,57049%-18.1%-7.6% Soccer (Outdoor)11,924100%12,556100%13,018100%9.2%3.7% Casual (1-25 times)6,66556%7,586 60% 7,66659%15.0%1.1% Core (26+ times)5,25944%4,970 40% 5,35241%1.8%7.7% ## Pickleball3,132100%4,819 100% 8,949 100%185.7%85.7% Casual (1-12 times)1,92361%3,454 72% 6,64774% 245.7%92.4% Core(13+ times)1,21039%1,365 28%2,30226% 90.2%68.6% Football (Flag)6,551100%6,889100%7,104100%8.4%3.1% Casual (1-12 times)3,57255%4,137 60%4,573 64%28.0%10.5% Core(13+ times)2,97945%2,752 40% 2,53136% -15.0%-8.0% Core Age 6 to 17 (13+ times)1,56524%1,574 23% 1,55222% -0.8%-1.4% ## Badminton6,430100%6,061100%6,490100%0.9%7.1% Casual (1-12 times)4,564 71% 4,25170% 4,63671% 1.6%9.1% Core(13+ times)1,867 29% 1,81030% 1,85529%-0.6%2.5% Volleyball (Court)6,317100%5,849100%6,092100%-3.6%4.2% Casual (1-12 times)2,93947%2,465 42%2,79846%-4.8%13.5% Core(13+ times)3,37853%3,384 58%3,293 54%-2.5%-2.7% ## Softball (Slow Pitch)7,283100%6,008100%6,036100%-17.1%0.5% Casual (1-12 times)3,06042%2,72945%2,66644%-12.9%-2.3% Core(13+ times)4,22358%3,27955%3,37056%-20.2%2.8% Soccer (Indoor)5,399100%5,408100%5,495100%1.8%1.6% Casual (1-12 times)2,65749%3,054 56%3,14457% 18.3%2.9% Core(13+ times)2,74251%2,354 44% 2,35143%-14.3%-0.1% Football (Tackle)5,224100%5,228100%5,436100%4.1%4.0% Casual (1-25 times)2,145 41%2,64251%3,12057%45.5%18.1% Core(26+ times)3,078 59%2,58649%2,31643%-24.8%-10.4% Core Age 6 to 17 (26+ times)2,427 46%2,11040%2,08838%-14.0%-1.0% Football (Touch)5,629100%4,884100%4,843100%-14.0%-0.8% Casual (1-12 times)3,332 59%3,171 65%3,20166%-3.9%0.9% Core(13+ times)2,297 41%1,71335% 1,64234%-28.5%-4.1% ## Gymnastics4,805100%4,268100%4,569100%-4.9%7.1% Casual (1-49 times)3,139 65%2,78765% 3,09568%-1.4%11.1% Core(50+ times)1,666 35%1,48235%1,473 32%-11.6%-0.6% Volleyball (Sand/Beach)4,947100%4,184100%4,128100%-16.6%-1.3% Casual (1-12 times)3,544 72%2,91870% 2,977 72% -16.0%2.0% Core(13+ times)1,403 28%1,26530%1,15228%-17.9%-8.9% ## Track and Field4,161100%3,587100%3,690100%-11.3%2.9% Casual (1-25 times)2,04049%1,71248%1,89651%-7.1%10.7% Core(26+ times)2,12151%1,87552%1,79449%-15.4%-4.3% ## Racquetball3,526100%3,260100%3,521100%-0.1%8.0% Casual (1-12 times)2,451 70%2,27070%2,58373%5.4%13.8% Core(13+ times)1,075 30%99030%93827%-12.7%-5.3% ## Participation Levels ## National Core vs Casual Participatory Trends - General Sports % Change 2021 ## 5-Year Trend1-Year Trend 20222017Activity 148 ## The Marsh Business Plan 53 ## GENERAL SPORTS (CONTINUED) #%#%#% ## C heerleading3,816100%3,465100%3,507100%-8.1%1.2% Casual (1-25 times)2,164 57%2,03059%2,092 60% -3.3%3.1% Core(26+ times)1,653 43%1,435 41%1,415 40% -14.4%-1.4% ## Ice Hockey2,544100%2,306100%2,278100%-10.5%-1.2% Casual (1-12 times)1,22748%1,20652%1,20953%-1.5%0.2% Core(13+ times)1,31752%1,10148%1,06847%-18.9%-3.0% ## Softball (Fast Pitch)2,309100%2,088100%2,146100%-7.1%2.8% Casual (1-25 times)1,07747%93445%1,00247%-7.0%7.3% Core(26+ times)1,23253%1,15455%1,14453%-7.1%-0.9% ## Ultimate Frisbee3,126100%2,190100%2,142100%-31.5%-2.2% Casual (1-12 times)2,270 73%1,441 66% 1,438 67%-36.7%-0.2% Core(13+ times)856 27%74934%703 33%-17.9%-6.1% ## Wrestling1,896100%1,937100%2,036100%7.4%5.1% Casual (1-25 times)1,179 62%1,290 67%1,452 71%23.2%12.6% Core(26+ times)717 38%647 33% 585 29%-18.4%-9.6% ## Lacrosse2,171100%1,892100%1,875100%-13.6%-0.9% Casual (1-12 times)1,14253%1,00953%99953%-12.5%-1.0% Core(13+ times)1,03047%88347%87647%-15.0%-0.8% ## Roller Hockey1,834100%1,425100%1,368100%-25.4%-4.0% Casual (1-12 times)1,419 77%1,08876%1,06578% -24.9%-2.1% Core(13+ times)415 23%33724% 303 22%-27.0%-10.1% ## Squash1,492100%1,185100%1,228100%-17.7%3.6% Casual (1-7 times)1,044 70%72061%816 66%-21.8%13.3% Core(8+ times)447 30%46639%41334%-7.6%-11.4% ## Rugby1,621100%1,238100%1,166100%-28.1%-5.8% Casual (1-7 times)1,097 68%77863%75865%-30.9%-2.6% Core(8+ times)524 32%46037% 40835%-22.1%-11.3% ## Participation Levels ## Core vs Casual Distribution: ## Moderate Amount of Participants (56-74%) ## Large Increase (greater than 25%) ## Evenly Divided between Core and ## Casual Participants (45-55%) ## Moderate Increase (0% to 25%) ## Large Decrease (less than -25%) ## Moderate Decrease (0% to -25%) ## National Core vs Casual Participatory Trends - General Sports % Change 2021 ## 5-Year Trend1-Year Trend 2022 2017 ## Activity ## Majority Amount of Participants (75% or greater) NOTE: Participation figures are in 000's for the US population ages 6 and over ## Participation Growth/Decline: 149 54 ## GENERAL FITNESS #%#%#% ## W alking for Fitness110,805100%115,814100%114,759100%3.6%-0.9% Casual (1-49 times)35,32632%39,03634%38,11533%7.9%-2.4% Core(50+ times)75,47968%76,77866%76,64467%1.5%-0.2% Treadmill 52,966100%53, 627100%53,589100%1.2%-0.1% Casual (1-49 times)24,44446%25, 35347%26,40149%8.0%4.1% Core(50+ times)28,52354%28, 27453%27,18951%-4.7%-3.8% ## Free Weights (Dumbbells/Hand Weights)52,217100%52, 636100%53,140100%1.8%1.0% Casual (1-49 times)18,86636%21,56041%22,42842%18.9%4.0% Core(50+ times)33,35164%31,07659%30,71258%-7.9%-1.2% Running/Jogging 50,770100%48, 977100%47,816100%-5.8%-2.4% Casual (1-49 times) 24,00447%23,44148%23,77650%-0.9%1.4% Core(50+ times)26,76653%25, 53752%24,04050%-10.2%-5.9% ## Yoga27,354100%34,347100%33,636100%23.0%-2.1% Casual (1-49 times)16,45460%20,11059%20,40961%24.0%1.5% Core(50+ times)10,90040%14,23741%13,22839%21.4%-7.1% ## Stationary Cycling (Recumbent/Upright)36,035100%32,453100%32,102100%-10.9%-1.1% Casual (1-49 times)18,44751%15,12447%15,42448%-16.4%2.0% Core(50+ times)17,58849%17,33053%16,67852%-5.2%-3.8% ## Weight/Resistant Machines 36,291100%30,577100%30,010100%-17.3%-1.9% Casual (1-49 times)14,49640%11,95339%12,38741%-14.5%3.6% Core(50+ times)21,79560%18,62461%17,62359%-19.1%-5.4% Free Weights (Barbells) 27,444100%28,243100%28,678100%4.5%1.5% Casual (1-49 times)10,86840%12,64945%13,57647%24.9%7.3% Core(50+ times)16,57660%15,59555%15,10353%-8.9%-3.2% ## Elliptical Motion/Cross-Trainer32,283100%27,618100%27,051100%-16.2%-2.1% Casual (1-49 times)15,85449%14,15651%14,96855%-5.6%5.7% Core(50+ times)16,43051%13,46149%12,08345%-26.5%-10.2% ## Dance, Step, & Choreographed Exercise22,616100%24,752100%25,163100%11.3%1.7% Casual (1-49 times)14,86766%16,62267%17,09668%15.0%2.9% Core(50+ times)7,74834%8,13033%8,06732%4.1%-0.8% ## Bodyweight Exercise24,454100%22,629100%22,034100%-9.9%-2.6% Casual (1-49 times)10,09541%9,91544%9,51443%-5.8%-4.0% Core(50+ times)14,35959%12,71456%12,52057%-12.8%-1.5% ## High Impact/Intensity Training21,476100%21,973100%21,821100%1.6%-0.7% Casual (1-49 times)12,10556%12,49057%12,59358%4.0%0.8% Core(50+ times)9,37044%9,48343%9,22842%-1.5%-2.7% ## Trail Running 9,149100%12,520100%13,253100%44.9%5.9% Casual (1-25 times)7,08577%10,05280%10,79281%52.3%7.4% Core(26+ times)2,06423%2,46820%2,46119%19.2%-0.3% ## Rowing Machine11,707100%11,586100%11,893100%1.6%2.6% Casual (1-49 times)7,27662%7,11161%7,87566%8.2%10.7% Core(50+ times)4,43138%4,47539%4,01734%-9.3%-10.2% ## Stair Climbing Machine 14,948100%11,786100%11,677100%-21.9%-0.9% Casual (1-49 times)9,50164%7,33262%7,56965%-20.3%3.2% Core(50+ times)5,44736%4,45338%4,10835%-24.6%-7.7% ## Pilates Training 9,047100%9,745100%10,311100%14.0%5.8% Casual (1-49 times)5,69863%6,61168%7,37772%29.5%11.6% Core(50+ times)3,34837%3,13332%2,93528%-12.3%-6.3% 2022Activity ## Participation Levels ## National Participatory Trends - General Fitness % Change ## 5-Year Trend1-Year Trend 20172021 150 ## The Marsh Business Plan 55 ## GENERAL FITNESS (CONTINUED) #%#%#% ## Cross-Training Style Workout13,622100%9,764100%9,248100%-32.1%-5.3% Casual (1-49 times)6,89051%4,17943%4,28146%-37.9%2.4% Core(50+ times)6,73249%5,58557%4,96854%-26.2%-11.0% ## Martial Arts5,838100%6,186100%6,355100%8.9%2.7% Casual (1-12 times)2,02135%2,72844%3,11449%54.1%14.1% Core(13+ times)3,81665%3,45856%3,24151%-15.1%-6.3% ## Stationary Cycling (Group)9,409100%5,939100%6,268100%-33.4%5.5% Casual (1-49 times)6,02364%3,13453%3,92563%-34.8%25.2% Core(50+ times)3,38636%2,80547%2,34437%-30.8%-16.4% ## Cardio Kickboxing6,693100%5, 099100%5,531100%-17.4%8.5% Casual (1-49 times)4,67170%3,32865%3,95872%-15.3%18.9% Core(50+ times)2,02230%1,77135%1,57328%-22.2%-11.2% ## Boxing for Fitness5,157100%5,237100%5,472100%6.1%4.5% Casual (1-12 times)2,73853%2,98557%3,38362%23.6%13.3% Core(13+ times)2,41947%2,25243%2,08938%-13.6%-7.2% ## Boot Camp Style Cross-Training6,651100%5,169100%5,192100%-21.9%0.4% Casual (1-49 times)4,63770%3,46167%3,69171%-20.4%6.6% Core(50+ times)2,01430%1,70933%1,50029%-25.5%-12.2% ## Barre3,436100%3,659100%3,803100%10.7%3.9% Casual (1-49 times)2,70179%2,82277%3,02279%11.9%7.1% Core(50+ times)73521%83723%78121%6.3%-6.7% ## Tai Chi3,787100%3,393100%3,394100%-10.4%0.0% Casual (1-49 times)2,32961%2,00159%2,13963%-8.2%6.9% Core(50+ times)1,45839%1,39341%1,25537%-13.9%-9.9% Triathlon (Traditional/Road)2,162100%1,748100%1,780100%-17.7%1.8% ## Triathlon (Non-Traditional/Off Road)1,878100%1,304100%1,350100%-28.1%3.5% 2022 ## Moderate Decrease (0% to -25%) ## Moderate Increase (0% to 25%) ## Activity ## Core vs Casual Distribution: ## Evenly Divided between Core and ## Casual Participants (45-55%) ## Large Increase (greater than 25%) ## Participation Levels ## Moderate Amount of Participants (56-74%) ## Majority Amount of Participants (75% or greater) ## National Participatory Trends - General Fitness % Change NOTE: Participation figures are in 000's for the US population ages 6 and over ## Participation Growth/Decline: ## 5-Year Trend1-Year Trend ## Large Decrease (less than -25%) 20172021 151 56 ## OUTDOOR/ADVENTURE RECREATION #%#%#% Hiking (Day) 44,900100%58,697100%59,578100%32.7%1.5% Casual (1-7 times)35,06878%44,18375%44,15474%25.9%-0.1% Core(8+ times)9,83222%14,51425%15,42426%56.9%6.3% Bicycling (Road)38,866100%42,775100%43,554100%12.1%1.8% Casual (1-25 times)20,21252%22,28052%23,27853%15.2%4.5% Core(26+ times)18,65448%20,49548%20,27647%8.7%-1.1% Fishing (Freshwater)38,346100%40,853100%41,821100%9.1%2.4% Casual (1-7 times)19,97752%22,45155%23,43056%17.3%4.4% Core(8+ times)18,36948%18,40345%18,39144%0.1%-0.1% ## Camping26,262100%35,985100%37,431100%42.5%4.0% Casual (1-7 times)19,85476%27,59077%28,45976%43.3%3.1% Core(8+ times)6,40924%8,39423%8,97224%40.0%6.9% Wildlife Viewing (>1/4 mile of Vehicle/Home)20,351100%20,452100%20,615100%1.3%0.8% ## Camping (Recreational Vehicle)16,159100%16,371100%16,840100%4.2%2.9% Casual (1-7 times)9,33258%9,68859%10,28661%10.2%6.2% Core(8+ times)6,82642%6,68341%6,55339%-4.0%-1.9% Birdwatching (>1/4 mile of Vehicle/Home)12,296100%14,815100%15,818100%28.6%6.8% Fishing (Saltwater)13,062100%13,790100%14,344100%9.8%4.0% Casual (1-7 times)7,62558%8,54362%9,15164%20.0%7.1% Core(8+ times)5,43742%5,24638%5,19236%-4.5%-1.0% ## Backpacking Overnight10,975100%10,306100%10,217100%-6.9%-0.9% Skateboarding 6,382100%8,747100%9,019100%41.3%3.1% Casual (1-25 times)3,97062%6,18171%6,46972%62.9%4.7% Core(26+ times)2,41138%2,56629%2,55928%6.1%-0.3% Bicycling (Mountain)8,609100%8,693100%8,916100%3.6%2.6% Casual (1-12 times)4,38951%4,51752%4,89655%11.6%8.4% Core(13+ times)4,22049%4,17648%4,02045%-4.7%-3.7% Fishing (Fly)6,791100%7,458100%7,631100%12.4%2.3% Casual (1-7 times)4,44865%4,76264%4,99365%12.3%4.9% Core(8+ times)2,34435%2,69636%2,63835%12.5%-2.2% ## Archery7,769100%7,342100%7,428100%-4.4%1.2% Casual (1-25 times)6,60285%6,05482%6,20283%-6.1%2.4% Core(26+ times)1,16715%1,28818%1,22717%5.1%-4.7% Climbing (Sport/Boulder)2,103100%2,301100%5,778100%174.8%151.1% ## Roller Skating, In-Line 5,268100%4,940100%5,173100%-1.8%4.7% Casual (1-12 times)3,85373%3,52571%3,76373%-2.3%6.8% Core(13+ times)1,41527%1,41529%1,41027%-0.4%-0.4% Bicycling (BMX) 3,413100%3,861100%4,181100%22.5%8.3% Casual (1-12 times)2,03960%2,46664%2,79267%36.9%13.2% Core(13+ times)1,37440%1,39636%1,38933%1.1%-0.5% Climbing (Indoor)5,045100%5,684100%2,452100%-51.4%-56.9% Climbing (Traditional/Ice/Mountaineering)2,527100%2,374100%2,452100%-3.0%3.3% ## Adventure Racing2,529100%1,826100%1,714100%-32.2%-6.1% Casual (1 time)89936%31217%23614% -73.7%- 24.4% Core(2+ times)1,63064%1,51483%1,47886%-9.3%-2.4% ## National Participatory Trends - Outdoor / Adventure Recreation ## Activity % Change NOTE: Participation figures are in 000's for the US population ages 6 and over 201720212022 ## Participation Levels ## 5-Year Trend1-Year Trend ## Large Decrease (less than -25%) ## Core vs Casual Distribution: ## Evenly Divided between Core and ## Casual Participants (45-55%) ## Moderate Amount of Participants (56-74%) ## Participation Growth/Decline: ## Majority Amount of Participants (75% or greater) ## Large Increase (greater than 25%) ## Moderate Increase (0% to 25%) ## Moderate Decrease (0% to -25%) 152 ## The Marsh Business Plan 57 ## AQUATICS #%#%#% Swimming (Fitness)27,135100%25,620100%26,272100%-3.2%2.5% Casual (1-49 times)18,31968%17,59869%18,82772%2.8%7.0% Core(50+ times)8,81532%8,02231%7,44528%-15.5%-7.2% ## Aquatic Exercise 10,459100%10,400100%10,676100%2.1%2.7% Casual (1-49 times)7,22269%8,34780%8,62681%19.4%3.3% Core(50+ times)3,23731%2,05320%2,05019%-36.7%-0.1% Swimming on a Team3,007100%2,824100%2,904100%-3.4%2.8% Casual (1-49 times)1,66455%1,70860%1,91666%15.1%12.2% Core(50+ times)1,34345%1,11640%98834%-26.4%-11.5% ## 5-Year Trend1-Year Trend ## Participation Levels ## Large Increase (greater than 25%) ## Moderate Increase (0% to 25%) ## Moderate Decrease (0% to -25%) 20212022 ## Core vs Casual Distribution: ## Evenly Divided between Core and Casual Participants (45-55%) ## Moderate Amount of Participants (56-74%) Majority Amount of Participants (75% or greater) ## Large Decrease (less than -25%) ## National Participatory Trends - Aquatics ## Activity % Change NOTE: Participation figures are in 000's for the US population ages 6 and over ## Participation Growth/Decline: 2017 153 58 ## WATER SPORTS/ACTIVITIES #%#%#% Kayaking (Recreational)10,533100%13,351100%13,561100%28.7%1.6% ## Canoeing9,220100%9,199100%9,521100%3.3%3.5% ## Snorkeling8,384100%7,316100%7,376100%-12.0%0.8% Casual (1-7 times)6,72180%5,98982%6,00581%-10.7%0.3% Core(8+ times)1,66320%1,32618%1,37119%-17.6%3.4% ## Jet Skiing5,418100%5,062100%5,445100%0.5%7.6% Casual (1-7 times)3,92872%3,78075%4,15176%5.7%9.8% Core(8+ times)1,49028%1,28125%1,29424%-13.2%1.0% ## Stand-Up Paddling3,325100%3,739100%3,777100%13.6%1.0% ## Surfing2,680100%3,463100%3,692100%37.8%6.6% Casual (1-7 times)1,70564%2,15862%2,44466%43.3%13.3% Core(8+ times)97536%1,30538%1,24834%28.0%-4.4% ## Sailing3,974100%3,463100%3,632100%-8.6%4.9% Casual (1-7 times)2,72068%2,41870%2,63372%-3.2%8.9% Core(8+ times)1,25432%1,04530%99928%-20.3%-4.4% Rafting 3,479100%3,383100%3,595100%3.3%6.3% ## Water Skiing3,572100%3,058100%3,040100%-14.9%-0.6% Casual (1-7 times)2,57572%2,20972%2,18572%-15.1%-1.1% Core(8+ times)99728%84928%85528%-14.2%0.7% ## Wakeboarding3,005100%2,674100%2,754100%-8.4%3.0% Casual (1-7 times)2,10170%1,90271%2,07575%-1.2%9.1% Core(8+ times)90330%77229%67925%-24.8%-12.0% ## Kayaking (White Water)2,500100%2,587100%2,726100%9.0%5.4% ## Scuba Diving2,874100%2,476100%2,658100%-7.5%7.4% Casual (1-7 times)2,11374%1,79572%2,01276%-4.8%12.1% Core(8+ times)76126%68027%64624%-15.1%-5.0% Kayaking (Sea/Touring)2,955100%2,587100%2,642100%-10.6%2.1% ## Boardsailing/Windsurfing1,573100%1,297100%1,391100%-11.6%7.2% Casual (1-7 times)1,28982%1,00277%1,10379%-14.4%10.1% Core(8+ times)28418%29523%28821%1.4%-2.4% 2021 2022 ## Participation Levels Majority Amount of Participants (75% or greater) ## Large Increase (greater than 25%) ## Moderate Increase (0% to 25%) ## Moderate Decrease (0% to -25%) ## Activity ## 5-Year Trend1-Year Trend 2017 ## Large Decrease (less than -25%) ## Core vs Casual Distribution: ## Evenly Divided between Core and Casual Participants (45-55%) ## Moderate Amount of Participants (56-74%) ## National Participatory Trends - Water Sports / Activities % Change NOTE: Participation figures are in 000's for the US population ages 6 and over ## Participation Growth/Decline: 154 ## The Marsh Business Plan 59 ## REVENUE MODEL ## Pro Forma Revenue Model ## Minnetonka Community Facilities Study - The Marsh ## DIVISION: Membership/AdmissionsACCOUNT TITLE ## PRICEUNITSREVENUES Marsh Membership - Annual (Resident)Individual (Ages 22+) $693.605 $3,468.00 Marsh Membership - Annual (Resident)Dual (two people, same residency)$958.804 $3,835.20 ## Marsh Membership - Annual (Resident)Household $1,101.605 $5,508.00 Marsh Membership - Annual (Resident)Senior (Ages 60+) $479.407 $3,355.80 Marsh Membership - Annual (Resident)Senior Dual (Both 60+, same residency) $693.60 9 $6,242.40 Marsh Membership - Annual (Resident)Student (Ages 15-21)$550.802 $1,101.60 Marsh Membership - Annual (Non-resident)Individual (Ages 22+) $856.803 $2,570.40 Marsh Membership - Annual (Non-resident)Dual (two people, same residency) $1,193.40 3 $3,580.20 Marsh Membership - Annual (Non-resident)Household$1,377.003 $4,131.00 Marsh Membership - Annual (Non-resident)Senior (Ages 60+) $622.20 3 $1,866.60 Marsh Membership - Annual (Non-resident)Senior Dual (Both 60+, same residency)$856.80 3 $2,570.40 Marsh Membership - Annual (Non-resident)Student (Ages 15-21) $693.602 $1,387.20 Marsh & Williston Membership - Annual (Resident)Individual (Ages 22+)$1,030.203 $3,090.60 Marsh & Williston Membership - Annual (Resident)Dual (two people, same residency) $1,448.40 5 $7,242.00 Marsh & Williston Membership - Annual (Resident)Household$1,662.604 $6,650.40 Marsh & Williston Membership - Annual (Resident)Senior (Ages 60+) $714.003 $2,142.00 Marsh & Williston Membership - Annual (Resident)Senior Dual (Both 60+, same residency) $1,030.20 4 $4,120.80 Marsh & Williston Membership - Annual (Resident)Student (Ages 15-21)$979.202 $1,958.40 Marsh & Williston Membership - Annual (Non-resident)Individual (Ages 22+)$1,285.202 $2,570.40 Marsh & Williston Membership - Annual (Non-resident)Dual (two people, same residency)$1,785.002 $3,570.00 Marsh & Williston Membership - Annual (Non-resident)Household$2,060.402 $4,120.80 Marsh & Williston Membership - Annual (Non-resident)Senior (Ages 60+)$928.202 $1,856.40 Marsh & Williston Membership - Annual (Non-resident)Senior Dual (Both 60+, same residency)$1,285.202 $2,570.40 Marsh & Williston Membership - Annual (Non-resident)Student (Ages 15-21)$1,030.202 $2,060.40 Membership - Monthly (Resident)Individual (Ages 22+)$68.00912 $62,016.00 Membership - Monthly (Resident)Dual (two people, same residency)$94.00619 $58,163.21 Membership - Monthly (Resident)Household$108.00176 $19,002.60 Membership - Monthly (Resident)Senior (Ages 60+)$47.001,152 $54,138.64 Membership - Monthly (Resident)Senior Dual (Both 60+, same residency)$68.00537 $36,492.03 Membership - Monthly (Resident)Student (Ages 15-21)$54.0055 $2,977.07 Membership - Monthly (Non-resident)Individual (Ages 22+)$84.00608 $51,072.42 Membership - Monthly (Non-resident)Dual (two people, same residency)$117.00413 $48,263.09 Membership - Monthly (Non-resident)Household$135.00117 $15,835.50 Membership - Monthly (Non-resident)Senior (Ages 60+)$61.00768 $46,843.36 Membership - Monthly (Non-resident)Senior Dual (Both 60+, same residency)$84.00358 $30,052.26 Membership - Monthly (Non-resident)Student (Ages 15-21)$68.0037 $2,499.27 Marsh & Williston Membership - Monthly (Resident)Individual (Ages 22+)$101.0018 $1,818.00 Marsh & Williston Membership - Monthly (Resident)Dual (two people, same residency)$142.007 $994.00 Marsh & Williston Membership - Monthly (Resident)Household$163.0018 $2,934.00 Marsh & Williston Membership - Monthly (Resident)Senior (Ages 60+)$70.008 $560.00 Marsh & Williston Membership - Monthly (Resident)Senior Dual (Both 60+, same residency)$101.0019 $1,919.00 Marsh & Williston Membership - Monthly (Resident)Student (Ages 15-21)$96.003 $288.00 Marsh & Williston Membership - Monthly (Non-resident)Individual (Ages 22+)$126.004 $504.00 Marsh & Williston Membership - Monthly (Non-resident)Dual (two people, same residency)$175.002 $350.00 Marsh & Williston Membership - Monthly (Non-resident)Household$202.004 $808.00 Marsh & Williston Membership - Monthly (Non-resident)Senior (Ages 60+)$91.002 $182.00 Marsh & Williston Membership - Monthly (Non-resident)Senior Dual (Both 60+, same residency)$126.004 $504.00 Marsh & Williston Membership - Monthly (Non-resident)Student (Ages 15-21)$101.002 $202.00 Daily AdmissionsAges 0 - 11 MonthsFreeFree Daily AdmissionsAges 1-14 yrs.$7.0034 $238.00 Daily AdmissionsAges 15+ yrs.$12.00224 $2,688.00 Renew ActiveReimbursement$4.004,526 $18,104.00 Silver SneakersReimbursement$4.008,321 $33,284.00 Registration FeeOne time$30.00174 $5,220.00 ## TOTAL MEMBERSHIP/ADMISSION REVENUES 19,203 $579,521.85 155 60 ## Pro Forma Revenue Model ## Minnetonka Community Facilities Study - The Marsh ## DIVISIONACCOUNT TITLE ## UNITSREVENUES ## Spa & TherapyAvg PriceSF/SessionsParticipants Spa/TherapyLeased Space-Physical Therapy $2.5312 12 $54,101.52 Spa/TherapySwedish Massage$80.0020 $83,200.00 Spa/TherapyDeep Tissue Massage$100.0020 $104,000.00 Spa/TherapySports Massage$100.0020 $104,000.00 Spa/TherapyHot Stone Massage$100.0020 $104,000.00 Spa/TherapyPrenatal Massage$90.0020 $93,600.00 Spa/TherapyFacial$60.0020 $62,400.00 Spa/TherapyBody Scrub$60.0020 $62,400.00 Spa/TherapyBody Wrap$75.0020 $78,000.00 Spa/TherapyHydrotherapy$40.0020 $41,600.00 Spa/TherapyWhirlpool Bath$30.0020 $31,200.00 Spa/TherapySauna/Steam Room (common area)$30.0020 $31,200.00 ## Spa/Therapy - Reservations Private Sauna/Plunge (Small up to 4 people) M-TH$75.00$84,564.00 Spa/Therapy - ReservationsPrivate Sauna/Plunge (Small up to 4 people) FRI-SUN$100.00$61,320.00 ## Spa/Therapy - Reservations Private Sauna/Plunge (Large (min. 5) up to 10 people) M- ## TH $150.00 $65,550.00 ## Spa/Therapy - Reservations Private Sauna/Plunge (Large (min. 5) up to 10 people) ## FRI-SUN $225.00 $69,174.00 ## Spa/Therapy - Product Solitude Cabin$169.00104 $52,728.00 ## Spa/Therapy - ProductProducts$80,695.00 ## Spa/Therapy - ProductTax, Charge$11,741.22 ## Spa/Therapy - Gift CardGift Certificates$75.00$21,675.00 ## Spa/Therapy - PackagesPackages$130.00$101,400.00 ## TOTAL SPA/THERAPY $1,398,548.74 ## DIVISIONACCOUNT TITLE ## PRICEPRICE UNITUNITSREVENUES ## Dining: Leased to ConcessionnaireREVENUES ## Dining- LeaseProfit Share (10%)$91,189.80 ## TOTAL LEASED DINING $91,189.80 ## DIVISIONACCOUNT TITLE ## PRICEAve. RentalUNITSREVENUES ## Reservation & EventsREVENUES ReservationsEvent Center M-TH (all rooms)$275.0039 $7,425.00 ReservationsEvent Center FRI-SUN (all rooms)$375.00315 $16,875.00 ReservationsSmall Event Meeting Room (<300 sf) M-TH$15.00363 $2,835.00 ReservationsSmall Event Meeting Room (<300 sf) FRI-SUN $20.00342 $2,520.00 ReservationsMedium Event Meeting Room (>300 sf) M-TH$20.00353 $3,180.00 ReservationsMedium Event Meeting Room (>300 sf) FRI-SUN $30.00339 $3,510.00 ReservationsDragon Room M-TH$30.00337 $3,330.00 ReservationsDragon Room FRI-SUN $45.00348 $6,480.00 ReservationsLarge Venue Space (Non-Saturday)$700.00110 $7,000.00 ReservationsLarge Venue Space (Saturday)$1,000.0016 $6,000.00 ReservationsLarge Venue Space & Reception (Non-Saturday)$1,200.0018 $9,600.00 ReservationsLarge Venue Space & Reception (Non-Saturday)$1,800.0019 $16,200.00 ## Reservations ## Spa Services/Large Venue Space/Reception (Non- ## Saturday) $3,000.00 1 10 $30,000.00 ## Reservations Spa Services/Large Venue Space/Reception (Saturday)$4,500.00114 $63,000.00 ## Reservations ## Spa Services & Large Venue Space w/o Reception (Non- ## Saturday) $2,000.00 1 4 $8,000.00 ## Reservations Spa Services & Large Venue w/o Reception (Saturday)$3,000.00110 $30,000.00 ReservationsSheltered Terrace M-TH$30.00323 $2,070.00 ReservationsSheltered Terrace FRI-SUN $45.00336 $4,860.00 ## TOTAL RESERVATIONS REVENUES $222,885.00 156 ## The Marsh Business Plan 61 ## Pro Forma Revenue Model ## Minnetonka Community Facilities Study - The Marsh ## DIVISIONACCOUNT TITLE ## UNITSREVENUES ## Programs and EventsREVENUES ## Programs & Events - Wellness ## Mental health – Support Groups (dementia, Parkinson’s, loss of spouse, etc.) ## FreeFree Programs & Events - WellnessImportance of socializing$10.002 10 $200.00 Programs & Events - WellnessImportance of exercising$10.002 10 $200.00 Programs & Events - WellnessMake time for Nature$10.002 10 $200.00 Programs & Events - Wellness"Stretch" out your Life$10.002 10 $200.00 Programs & Events - NatureBird migration$10.002 10 $200.00 Programs & Events - NatureMarsh life$10.002 10 $200.00 Programs & Events - NatureMacroinvertebrates of the Marsh$10.002 10 $200.00 Programs & Events - NatureMarsh habitats$10.002 10 $200.00 Programs & Events - NatureMarsh amphibians$10.002 10 $200.00 Programs & Events - NatureBirds of the upper Mississippi River$10.002 10 $200.00 Programs & Events - NatureMinnetonka’s four watersheds$10.002 10 $200.00 Programs & Events - Nutrition & Culinary Nutrition by age$10.002 10 $200.00 Programs & Events - Nutrition & Culinary Understanding food labels$10.002 10 $200.00 Programs & Events - Nutrition & Culinary Meals for one$10.002 10 $200.00 Programs & Events - Nutrition & Culinary Bad food habits$10.002 10 $200.00 Programs & Events - Nutrition & Culinary Holiday meals$10.002 10 $200.00 Programs & Events - Nutrition & Culinary Minnetonka ethnic foods$16.002 10 $320.00 Programs & Events - Nutrition & Culinary How many ways to cook chicken?$10.002 10 $200.00 Programs & Events - Nutrition & Culinary friend and fellowship meals$20.002 10 $400.00 Programs & Events - Nutrition & Culinary cooking tools – Must have$6.002 10 $120.00 Programs & Events - Arts & EnrichmentFowl painting$65.002 10 $1,300.00 Programs & Events - Arts & EnrichmentNature photography$20.002 10 $400.00 Programs & Events - Arts & EnrichmentGreeting card making$30.002 10 $600.00 Programs & Events - Arts & EnrichmentGarden art$15.002 10 $300.00 Programs & Events - Arts & EnrichmentWatercolors$35.002 10 $700.00 Programs & Events - Arts & EnrichmentAcrylics$40.002 10 $800.00 Programs & Events - Arts & EnrichmentDancing$50.002 10 $1,000.00 Programs & Events - Arts & EnrichmentMusic Lessons$50.002 10 $1,000.00 Programs & Events - Arts & EnrichmentHome Organization$5.002 10 $100.00 Programs & Events - Arts & EnrichmentHome Safety Smart$5.002 10 $100.00 Programs & Events - Aquatics/FitnessAdult Swim Lessons - Individual/Group$60.004 10 $2,400.00 Programs & Events - Aquatics/FitnessAqua FitnessMembership12 10 Membership Programs & Events - Aquatics/FitnessTerrace YogaMembership8 10 Membership Programs & Events - Aquatics/FitnessCardio+StrengthMembership12 10 Membership Programs & Events - Aquatics/FitnessMind/BodyMembership12 10 Membership Programs & Events - Aquatics/FitnessStrengthMembership12 10 Membership Programs & Events - Aquatics/FitnessDance FitnessMembership12 10 Membership Programs & Events - Aquatics/FitnessPersonal Training (1 Session - Member)$65.00377 1 $24,518.00 Programs & Events - Aquatics/FitnessPersonal Training (1 Session - Non-Member)$75.00151 1 $11,316.00 Programs & Events - Aquatics/FitnessPersonal Training (4 Sessions - Member)$240.00123 1 $29,520.00 Programs & Events - Aquatics/FitnessPersonal Training (4 Sessions - Non-Resident)$280.0049 1 $13,776.00 Programs & Events - Aquatics/FitnessPersonal Training (8 Sessions - Resident)$440.0093 1 $40,920.00 Programs & Events - Aquatics/FitnessPersonal Training (8 Sessions - Non-Resident)$520.0018 1 $9,360.00 Programs & Events - Aquatics/FitnessPersonal Training (12 Sessions - Resident)$600.0069 1 $41,400.00 Programs & Events - Aquatics/FitnessPersonal Training (12 Sessions - Non-Resident)$720.0046 1 $33,120.00 Programs & Events - Aquatics/FitnessPilates$60.00312 10 $37,440.00 Programs & Events - Special EventsHave a Ball - Ballroom Dancing$60.002 10 $1,200.00 ## Programs & Events - Special EventsConcert SeriesFreeFree Programs & Events - Special EventsCornhole Tournaments$40.004 16 $2,560.00 ## Programs & Events - Special EventsEarth DayFreeFree ## Programs & Events - Special EventsNational Wildflower WeekFreeFree Programs & Events - Special EventsMigratory Bird Day$5.002 10 $100.00 Programs & Events - Special EventsReptile Awareness$5.002 10 $100.00 ## Programs & Events - Special EventsBike WeekFreeFree Programs & Events - Special EventsWine Tasting$60.001 25 $1,500.00 Programs & Events - Special EventsBeer is Beer, what's the diference$40.001 25 $1,000.00 ## Programs & Events - Special EventsArt ExhibitsFreeFree ## TOTAL OTHER REVENUES 484 $260,770.00 ## DIVISIONACCOUNT TITLE ## PRICEUNITSREVENUES ## OtherREVENUES ## Other - Merchandise Sales Venue items, products, accessories to programs/activities, etc. 5%1,477,158 $73,857.90 Other - Bike/SnowshoeIndividual Bike Rentals (hourly)$20.001 1,444 $28,881.36 Other - Bike/SnowshoeSnowshoe Rental$15.002 361 $10,830.00 ## Other - SponsorshipDigital Signs, programming, Events$10,000.00$10,000.00 ## TOTAL OTHER REVENUES $123,569.26 ## TOTAL REVENUE $2,676,484.66 157 62 ## EXPENDITURE MODELS ## The Marsh Management Revenues & Expenditures ## Minnetonka Community Facilities Study - The Marsh ## ACCOUNT TITLE ## BUDGETEXPLANATION ## TOTAL REVENUES$10,000.00 ## PERSONNEL SERVICES ## Marsh Fulltime Staff$55.39$76,446.24 Manager (30% of salary) ## Part-time Staff/Interns$10,000.00 ## Intern ## Overtime ## Payroll Benefits$6,786.03 7.85% of Salaries and Wages for all Staff ## Additional Full-Time Benefits$29,049.57 38% of Fulltime Salaries (30+ hours/week) ## Total ## Personnel Services $122,281.84 ## SUPPLIES ## Office Supplies$3,000.00 Based on % of past actuals ## Janitorial$9,300.00 Based on % of past actuals ## Chemicals$0.00 Based on % of past actuals ## Clothing$1,350.00 Based on % of past actuals ## Building$18,630.00 Based on % of past actuals ## Machinery & Auto$3,600.00 Based on % of past actuals ## Small Tools & Minor Equipment$300.00 Based on % of past actuals ## TotalOperations$36,180.00 ## OTHER SERVICES & CHARGES ## Telecommunications$360.00 Based on % of past actuals ## Credit Card$300.00 3% of revenues ## Conferences & Subsistence$2,400.00 Based on % of past actuals ## Natural Gas$12,000.00 Based on % of past actuals ## Electricity$38,700.00 Based on % of past actuals ## Waste Disposal$2,250.00 Based on % of past actuals ## Building Maintenance Services]$32,100.00 Based on % of past actuals ## Equipment Repair & Maintenance$3,000.00 Based on % of past actuals ## Service Contracts$32,000.00 Based on % of past actuals ## Dues. Subscriptions, & Memberships$1,200.00 Based on % of past actuals ## Premiums$15,600.00 Based on % of past actuals ## Other Misc. Service Expenditures$15,300.00 Based on % of past actuals ## Marketing$500.00 5% first three years ## TotalOther Services$155,710.00 ## CAPTIAL OUTLAY ## Furniture & Equipment ## Lifecycle Replacement Reserve$500.00 5% of revenues ## Utilities$500.00 ## TOTAL EXPENSES ## TOTAL EXPENSES$314,671.84 ## NET REVENUE/(LOSS)($304,671.84) cost recovery**3.2% 158 ## The Marsh Business Plan 63 ## Membership & PassesPro Forma Revenues & Expenditures ## Minnetonka Community Facilities Study - The Marsh ## ACCOUNT TITLE ## BUDGETEXPLANATION ## TOTAL REVENUES$579,521.85 ## ACCOUNT TITLE ## BUDGET ## EXPLANATION ## PERSONNEL SERVICES ## Full Time$108,459.52 Mgr, GS, MFM at 20% / Sr Fi t at 60% ## Part-time $78,208.00 4 at $16/hr. for 4,888 total hours annually ## Overtime ## Employer's Share of Medicare $14,653.40 7.85% of Salaries and Wages for all Staff ## Additional Full-Time Benefits$41,214.62 38% of Fulltime Salaries (30+ hours/week) ## Total ## Personnel Services$242,535.54 ## SUPPLIES ## Office Supplies$600.00 Based on % of past actuals ## Janitorial$6,200.00 Based on % of past actuals ## Chemicals$0.00 Based on % of past actuals ## Clothing$900.00 Based on % of past actuals ## Building$12,420.00 Based on % of past actuals ## Machinery & Auto$2,400.00 Based on % of past actuals ## Small Tools & Minor Equipment $300.00 Based on % of past actuals ## TotalOperations$22,820.00 ## OTHER SERVICES & CHARGES ## Telecommunications$240.00 Based on % of past actuals ## Credit Card$17,385.66 3% of revenues ## Conferences & Subsistence$480.00 Based on % of past actuals ## Natural Gas $8,000.00 Based on % of past actuals ## Electricity$25,800.00 Based on % of past actuals ## Waste Disposal$1,500.00 Based on % of past actuals ## Building Maintenance Services]$21,400.00 Based on % of past actuals ## Equipment Repair & Maintenance$600.00 Based on % of past actuals ## Service Contracts$25,600.00 Based on % of past actuals ## Dues. Subscriptions, & Memberships$240.00 Based on % of past actuals ## Premiums$10,400.00 Based on % of past actuals ## Other Misc. Service Expenditures$10,200.00 Based on % of past actuals ## Marketing$28,976.09 5% first three years ## TotalOther Services$150,821.75 ## CAPTIAL OUTLAY ## Furniture & Equipment ## Lifecycle Replacement Reserve$28,976.09 5% of revenues ## Utilities$28,976.09 ## TOTAL EXPENSESTOTAL EXPENSES$445,153.38 ## NET REVENUE/(LOSS)$134,368.47 cost recovery**130.2% 159 64 ## Spa & Therapy Revenues & Expenditures ## Minnetonka Community Facilities Study - The Marsh ## ACCOUNT TITLE ## BUDGET ## EXPLANATION ## REVENUES ## Leased Space-Physical Therapy $2.53$54,101.52 12 months of leased space ## Swedish Massage $80.00$83,200.00 Average of 20 sessions a week ## Deep Tissue Massage $100.00 $104,000.00 Average of 20 sessions a week ## Sports Massage$100.00 $104,000.00 Average of 20 sessions a week ## Hot Stone Massage$100.00 $104,000.00 Average of 20 sessions a week ## Prenatal Massage$90.00 $93,600.00 Average of 20 sessions a week ## Facial $60.00$62,400.00 Average of 20 sessions a week ## Body Scrub$60.00$62,400.00 Average of 20 sessions a week ## Body Wrap$75.00 $78,000.00 Average of 20 sessions a week ## Hydrotherapy $40.00$41,600.00 Average of 20 sessions a week ## Whirlpool Bath$30.00 $31,200.00 Average of 20 sessions a week Sauna/Steam Room (common area) $30.00 $31,200.00 Average of 20 sessions a week Private Sauna/Plunge (Small up to 4 people) M- ## TH $75.00$84,564.00 Private Sauna/Plunge (Small up to 4 people) ## FRI-SUN $100.00 $61,320.00 Private Sauna/Plunge (Large (min. 5) up to 10 people) M-TH $150.00 $65,550.00 Private Sauna/Plunge (Large (min. 5) up to 10 people) FRI-SUN $225.00$69,174.00 ## Solitude Cabins (3)$169.00 $52,728.00 ## Products $80,695.00 ## Tax, Charge$11,741.22 ## Gift Certificates$75.00 $21,675.00 $75 on ave rage /289 annual l y ## Packages $130.00$101,400.00 $130 ave rage , 20 we e kl y, 52 we e ks ## TOTAL REVENUES $1,398,548.74 ## PERSONNEL SERVICES ## Fulltime Staff$138,982.08 Mgr, GS, MFM at 10% - Spa Mge r & tre atme nt ## Part Time $36,704.00 4 at $16/hr. f or total of 4,888 hours annual l y $437,465.60 Masseuse salaries/ 11440 hours annually ## Payroll Benefits $13,791.36 7.85% of Salaries and Wages for all Staff ## Additional Full-Time Benefits $52,813.19 38% of Ful l ti me Sal ari e s ( 30+ hours/we e k) 2 staf f ## TotalPersonnel Services$679,756.23 ## OPERATIONS ## Office Supplies$300.00 Based on % of past actuals ## Janitorial$3,100.00 Based on % of past actuals ## Chemicals $14,000.00 Based on % of past actuals ## Clothing$450.00 Based on % of past actuals ## Building$6,210.00 Based on % of past actuals ## Machinery & Auto $1,200.00 Based on % of past actuals ## Small Tools & Minor Equipment$300.00 Based on % of past actuals ## Total ## Operations$25,560.00 160 ## The Marsh Business Plan 65 ## Dining (Leased) Pro Forma Revenues & Expenditures ## Minnetonka Community Facilities Study - The Marsh ## ACCOUNT TITLE ## BUDGETEXPLANATION ## TOTAL REVENUES$91,189.80 ## PERSONNEL SERVICES ## Fulltime$25,482.08 ## Mgr, GS, MFM at 10% ## Part-time ## Payroll Benefits$2,000.34 7.85% of Salaries and Wages for all Staff ## Additional Full-Time Benefits$9,683.19 38% of Ful l ti me Sal ari e s ( 30+ hours/we e k) 2 staf f ## TotalPersonnel Services$37,165.61 ## OPERATIONS ## General Office Supplies ## TotalOperations$0.00 ## OTHER SERVICES & CHARGES ## Merchandise ## TotalOther Services$0.00 ## TOTAL EXPENSESTOTAL EXPENSES$37,165.61 ## NET REVENUE/(LOSS)$54,024.19 cost recovery**245.4% 161 66 ## Event & Reservation Pro Forma Revenues & Expenditures ## Minnetonka Community Facilities Study - The Marsh ## ACCOUNT TITLE ## BUDGET ## EXPLANATION ## TOTAL REVENUES$222,885.00 ## PERSONNEL SERVICES ## Full Time Regular$60,384.48 ## Mgr, GS, MFM at 10% / Program & Events Coord @50% ## Part Time $30,208.00 4 at $16/hr. for total of 1,888 hours annually ## Overtime ## Payroll Benefits$7,111.51 7.85% of Salaries and Wages for all Staff ## Additional Full-Time Benefits$22,946.10 38% of Ful l ti me Sal ari e s ( 30+ hours/we e k) 2 staf f ## Total ## Personnel Services$120,650.09 ## OPERATIONS ## Office Supplies $300.00 Based on % of past actuals ## Janitorial $3,100.00 Based on % of past actuals ## Chemicals$0.00 Based on % of past actuals ## Clothing $450.00 Based on % of past actuals ## Building $6,210.00 Based on % of past actuals ## Machinery & Auto$0.00 Based on % of past actuals ## Small Tools & Minor Equipment $0.00 Based on % of past actuals ## Total ## Operations$10,060.00 ## OTHER SERVICES & CHARGES ## Telecommunications $120.00 Based on % of past actuals ## Credit Card$6,686.55 3% of revenues ## Conferences & Subsistence$240.00 Based on % of past actuals ## Natural Gas$4,000.00 Based on % of past actuals ## Electricity$12,900.00 Based on % of past actuals ## Waste Disposal $750.00 Based on % of past actuals ## Building Maintenance Services] $10,700.00 Based on % of past actuals ## Equipment Repair & Maintenance $300.00 Based on % of past actuals ## Service Contracts$19,200.00 Based on % of past actuals ## Dues. Subscriptions, & Memberships$120.00 Based on % of past actuals ## Premiums$5,200.00 Based on % of past actuals ## Other Misc. Service Expenditures$5,100.00 Based on % of past actuals ## Marketing$11,144.25 5% first three years ## Total ## Other Services$76,460.80 ## CAPTIAL OUTLAY ## Furniture & Equipment ## Lifecycle Replacement Reserve ## Utilities$0.00 ## TOTAL EXPENSES ## TOTAL EXPENSES$207,170.89 ## NET REVENUE/(LOSS)$15,714.11 cost recovery**107.6% 162 ## The Marsh Business Plan 67 ## Concession & Rental Pro Forma Revenues & Expenditures ## Minnetonka Community Facilities Study - The Marsh ## ACCOUNT TITLE ## BUDGETEXPLANATION ## REVENUES ## TOTAL REVENUES$113,569.26 ## ACCOUNT TITLE ## BUDGET ## EXPLANATION ## PERSONNEL SERVICES ## Full Time$12,741.04 ## Mgr, GS, MFM at 10% ## Part-time $28,640.00 2-3 at $16/hr. for total of 1790 hours annually ## Overtime ## Employer's Share of Medicare$3,248.41 7.85% of Salaries and Wages for all Staff ## Additional Full-Time Benefits$4,841.60 38% of Ful l ti me Sal ari e s ( 30+ hours/we e k) 2 staf f ## TotalPersonnel Services $49,471.05 ## OPERATIONS ## Office Supplies$150.00 Based on % of past actuals ## Janitorial$1,550.00 Based on % of past actuals ## Chemicals Based on % of past actuals ## Clothing $225.00 Based on % of past actuals ## Building $3,105.00 Based on % of past actuals ## Machinery & Auto$600.00 Based on % of past actuals ## Small Tools & Minor Equipment$300.00 Based on % of past actuals ## TotalOperations$5,930.00 ## OTHER SERVICES & CHARGES ## Telecommunications$60.00 Based on % of past actuals ## Credit Card$3,407.07 3% of revenues ## Conferences & Subsistence$120.00 Based on % of past actuals ## Natural Gas$2,000.00 Based on % of past actuals ## Electricity$6,450.00 Based on % of past actuals ## Waste Disposal$375.00 Based on % of past actuals ## Building Maintenance Services] $5,350.00 Based on % of past actuals ## Equipment Repair & Maintenance$150.00 Based on % of past actuals ## Service Contracts$16,000.00 Based on % of past actuals ## Dues. Subscriptions, & Memberships$60.00 Based on % of past actuals ## Premiums$2,600.00 Based on % of past actuals ## Other Misc. Service Expenditures$2,550.00 Based on % of past actuals ## Marketing$5,678.45 5% first three years ## Sales Tax $6,499.50 8.80% ## TotalOther Services$51,300.02 ## CAPTIAL OUTLAY ## Furniture & Equipment ## Lifecycle Replacement Reserve 5% of revenues ## Utilities$0.00 ## TOTAL EXPENSESTOTAL EXPENSES$106,701.06 ## NET REVENUE/(LOSS)$6,868.20 cost recovery**106.4% 163 ## COST ESTIMATING 164 ## GLENN LAKE ACTIVITY CENTER - COST SUMMARY 165 ## MINNETONKA COMMUNITY CENTER - COST SUMMARY 166 ## WILLISTON FITNESS CENTER - COST SUMMARY 167 ## WILLISTON FITNESS CENTER - COST SUMMARY 168 ## THE MARSH - COST SUMMARY OF DEFERRED MAINTENANCE OVER 10 YEARS 169 ## THE MARSH - COST SUMMARY OF DEFERRED MAINTENANCE AND INTERIORS REFRESH 170 ## THE MARSH - COST SUMMARY OF INTERIOR RENOVATION AND PROGRAM EXPANSION 171 ## THE MARSH - COST SUMMARY OF EVENT PAVILION 172 173 ## EXTENSION CENTER FOR COMMUNITY VITALITY ## Local Option Sales Tax Analysis for ## Minnetonka, MN ## ESTIMATED CONTRIBUTIONS OF RESIDENTS AND NON-RESIDENTS TO A LOCAL OPTION SALES TAX ## Authored by Eric King ## REPORT SPONSOR: CITY OF MINNETONKA, MINNESOTA 174 Local Option Sales Tax Analysis for Minnetonka, MN 1 ## Report Reviewers: Kathryn Leys, Extension Educator, University of Minnesota Extension, Center for Community Vitality ## Sponsor: ## City of Minnetonka ## Local Option Sales Tax Analysis for ## Minnetonka ## ESTIMATED CONTRIBUTIONS OF RESIDENTS AND NON-RESIDENTS TO A LOCAL OPTION SALES TAX August 2023 Authored by Eric King, Extension Educator, University of Minnesota Extension Center for ## Community Vitality © 2022 Regents of the University of Minnesota. All rights reserved. University of Minnesota Extension is an equal opportunity educator and employer. In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Direct requests to 612-625-8233. Printed on recycled and recyclable paper with at least 10 percent postconsumer waste material. 175 Local Option Sales Tax Analysis for Minnetonka, MN 2 ## Table of Contents SUMMARY of findings ................................................................................................ 3 BACKGROUND AND METHODOLOGY .......................................................................... 6 ## TRADE AREA ANALYSIS BY MERCHANDISE CATEGORY ................................................ 7 Vehicles and Parts ................................................................................................... 7 Furniture Stores ...................................................................................................... 8 Electronics and Appliances ...................................................................................... 9 Building Materials ................................................................................................. 10 Food and Groceries ............................................................................................... 11 Health and Personal Items .................................................................................... 12 Gas/Convenience Stores ....................................................................................... 13 Apparel/Clothing................................................................................................... 14 Leisure Goods ....................................................................................................... 15 General Merchandise Stores ................................................................................. 16 Miscellaneous Retail ............................................................................................. 17 Amusement and Recreation .................................................................................. 18 Accommodations .................................................................................................. 19 Eating/Drinking Establishments ............................................................................ 20 Repair and Maintenance ....................................................................................... 21 Personal Services/Laundry .................................................................................... 22 Retail (Non-Store) and Other Services ................................................................... 23 ## Construction, Manufacturing, Utilities, Wholesale Operations, Transportation, and Sales Suppressed for Business Confidentiality ....................................................... 24 ## APPENDIX A: RESEARCH ON THE EFFECTS OF A LOCAL OPTION SALES TAX ............... 25 APPENDIX B: DEFINITIONS OF TERMS ....................................................................... 27 176 Local Option Sales Tax Analysis for Minnetonka, MN 3 ## SUMMARY OF FINDINGS University of Minnesota Extension conducted a study to estimate the proportion of sales proceeds attributed to both Minnetonka residents and non-residents. Using 2021 sales and use tax data available from the Minnesota Department of Revenue (MN Revenue), Extension estimated that non-residents account for 54.1 percent of taxable sales subject to a local option sales tax (LOST). In 2021, total taxable sales in Minnetonka were $1,003.17 million. MN Revenue analysts estimate that 97.7 percent of taxable sales would be subject to a LOST. With 54.1 percent of sales derived from non-resident spending, Extension estimated that Minnetonka residents spent $449.8 million of the total $980 million in taxable sales subject to a LOST. If the tax were in place in 2021, a 0.5 percent local option sales tax would have garnered $4,900,000 million in tax proceeds according to MN Department of Revenue analysts. Minnetonka residents would have contributed $2.25 million in taxes, and non-residents would have contributed $2.65 million. Based on these estimates, each Minnetonka resident would have paid, on average, an additional $41.11 in sales tax in 2021. This report is based on a trade area analysis comparing actual taxable sales to potential sales. Potential sales is calculated by multiplying the Minnetonka population in 2021 (MN Demographic Center) by the Minnesota average per capita sales for each category, and then adjusting for the county’s personal income factor. This initial analysis provided an estimate of retail and service purchases made by Minnetonka residents. For each merchandise group, the estimates for two types of purchasers—city residents and others—were calculated and adjusted considering the area economy. These adjustments were based on informed estimates and were aimed, in part, at reducing potential overestimates of the sales tax share attributable to non-residents. Assumptions and calculations are included for major retail and service categories so local decision makers can adjust totals if they have more nuanced insight. Several factors and features of Minnetonka’s economy helped frame the analysis for the different merchandise categories: • Residents of nearby communities can easily access Minnetonka businesses. For this analysis, cross-hauling has the net effect of increasing non- resident spending as Minnetonka is a central shopping hub in the region • Minnetonka has more workers entering the city for employment than residents who leave for work (Figure 1). In this dynamic, commuters often shop for goods and services near where they work and those commuting into the city purchase in the city. Figure 1: Minnetonka worker in-flow and out-flow Inflow and outflow of wage earners. ## Source: 2021 U.S. Census Bureau On-The-Map 177 Local Option Sales Tax Analysis for Minnetonka, MN 4 Figure 2 shows the estimated percentage of sales—across all merchandise categories— attributed to both residents and non-residents in 2021. These estimates are based on the adjusted analysis to more accurately reflect the city’s economic and consumption circumstances. Based on these findings, Extension estimates city residents represent 45.9 percent of all taxable retail and service sales subject to the tax ($450 million), and the remaining 54.1 percent ($530 million) are attributed to non-residents. The total taxable sales in the city increased steadily from 2012 to 2016, after which sales remained somewhat consistent through 2019 (Figure 3). Total sales decreased from $160 million during the pandemic in 2020 before rebounding to close to 2019 figures in 2021. This provides some sense of the stability of a LOST going forward. Extension forecasted taxable sales subject to the local tax for 2022, 2023, and 2024 using a simple exponential smoothing forecast model that employs a moving weighted average and a 95% confidence interval to provide an upper and lower bound to the estimate (Figures 5 and 6). This model estimates total tax proceeds in 2022 to be between an upper limit of $5.38 million and a lower limit of $4.25 million. Considering the historic disruption of the pandemic and its uneven effect on business categories, this forecast is an unlikely scenario based only on past trends. National evidence shows that home-focused businesses like food, building materials, furniture, and general merchandise did well through the pandemic, whereas dining, accommodations, and amusement saw record sales decreases. The sharp rebound in sales in 2021 further complicates any forecast. ## Figure 2: Estimated 2021 Taxable Sales Subject to LOST ## Taxable Sales Percent of Sales City residents $449,820,000 45.9% Non-residents $530,180,000 54.1% Figure 3: Total taxable sales in Minnetonka from 2012-2021 ## Source: Minnesota Department of Revenue $- $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00 2012201320142015201620172018201920202021 178 Local Option Sales Tax Analysis for Minnetonka, MN 5 Figure 5: Forecast for Tax Proceeds based on Past Trends 2012 to 2021 ## Figure 6: Forecast with Upper and Lower Bound 2022-25 ## Forecast Lower Bound Upper Bound 2022 $4,816,528 $4,253,357 $5,379,699 2023 $4,821,873 $4,241,233 $5,402,513 2024 $4,827,218 $4,229,486 $5,424,951 2025 $4,832,564 $4,218,084 $5,447,043 Use taxes also affect the tax proceeds from a local option sales tax. Use taxes derive from city businesses purchasing products from out-of-state sources and in other Minnesota locations. Use taxes are often less consistent and more difficult to estimate accurately than sales taxes. In 2021, the city received $5,023,839 in use (not sales) tax proceeds. It would have garnered $372,136 for a LOST at the 0.5 percent rate. Policymakers must also consider the impacts that a LOST may have on consumer purchasing behavior, particularly whether it will result in a loss of consumer purchases to other jurisdictions. Extension examined records of 11 cities that enacted a local option sales tax between 1999 and 2006 (information available on the Minnesota Department of Revenue website). Records do not indicate a major purchasing change due to the additional sales tax, and most of the jurisdictions have shown continued sales growth (see Appendix A). These communities, however, may not be comparable to Minnetonka. All communities included in this analysis are located outside the Twin Cities metro area and may retain more shoppers than communities in the metro area where one can easily switch spending from one jurisdiction to another. $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 20122013201420152016201720182019202020212022202320242025 ## ValuesForecastLower Confidence BoundUpper Confidence Bound 179 Local Option Sales Tax Analysis for Minnetonka, MN 6 ## BACKGROUND AND METHODOLOGY Community economics educators at University of Minnesota Extension provide applied research and education to help community and business partners make better informed decisions. In recent years, Minnesota has adopted laws enabling local governments to enact a local option sales tax. Extension has assisted these administrations in estimating their potential tax proceeds and the portion of taxes paid by local residents. This report estimates the proportion of tax proceeds generated by Minnetonka residents compared to non-residents. The most recently available state sales tax data (2021) from the Minnesota Department of Revenue (MN Revenue) was used. ## Trade Area Analysis and Calculations Extension conducted a trade area analysis of retail and service sales in select merchandise categories, estimating the amount of taxable sales subject to sales taxes made by both local residents and non-residents. Use tax is a much smaller portion of the total collection compared to sales tax proceeds. It is also estimated using a different formula. Extension calculated potential sales for the city in each merchandise category and compared this calculation to actual taxable sales from the Minnesota Department of Revenue sales tax statistics for the same category. Actual sales greater than potential sales indicate the county attracts sales from outside its boundaries or has sales greater than one would expect from its residents. Extension used the difference between potential and actual sales to set reasonable estimates of spending by residents and non-residents across all categories. These estimates also helped inform adjustments for each category. Potential sales calculations are based on average statewide spending by merchandise category and the population of the county, then adjusted by the level of income in Minnetonka. Specifically, potential sales result from county population, state per capita taxable sales, and the index of income (see sidebar and Appendix B). The following section details the initial and adjusted trade area calculations for all merchandise categories. The sections labeled “Analysis with Adjustments” lists the final estimate of sales generated by non-residents. A rationale for adjustments and conclusions is also included. Potential sales estimate the dollar amounts for purchases made by local residents if local residents spend as much as the average Minnesota resident. Potential sales are calculated by the following formula: (T ÷ PMn) x PO x (YWC ÷YMn) = potential sales T = Total Minnesota taxable sales for a merchandise category PMn = 2021 population of Minnesota (5,742,036) PO = 2021 population of Minnetonka (54,704) YWC = Per capita income of Hennepin County residents ($85,505) YMn = Per capita income of Minnesota residents ($66,280) 180 Local Option Sales Tax Analysis for Minnetonka, MN 7 ## TRADE AREA ANALYSIS BY MERCHANDISE CATEGORY The following pages provide detailed analysis by merchandise category. ## Vehicles and Parts 9.8 percent of total taxable retail and service sales The 29 businesses in this retail category include repair parts, snowmobiles, boats, trailers, and recreational vehicles. Sales of cars and other on-road vehicles are not included in this category since they are subject to a different tax. ($Millions) Actual taxable sales $88.94 -Potential sales $47.43 = $ variance $41.51 = as % of potential 87.5% ## Unadjusted Trade Area Analysis Potential taxable sales to residents $47.43 ## Surplus $41.51 ## Total $88.94 Surplus percentage 46.7% ## Analysis with Adjustments Capture rate of Minnetonka residents 75% Residents' $ share $35.57 Non-Residents' $ share $53.36 ## Total $88.94 Non-resident share per group 60.0% ## Analysis for Vehicles and Parts Extension’s trade area analysis illustrates a robust surplus of sales in this category which accounts for just under 10 percent of total sales. With the surplus being considerable, Extension estimated that 60 percent of the sales are attributed to non-residents, while still capturing around 75 percent of Minnetonka resident spending in this category to allow for some leakage of more specialized purchases and repairs needed. The data suggests this is a thriving retail category. 181 Local Option Sales Tax Analysis for Minnetonka, MN 8 ## Furniture Stores 2.5 percent of total taxable retail and service sales These 26 businesses sell furniture, beds, carpeting, window coverings, kitchenware, and wood-burning stoves. ($Millions) Actual taxable sales $22.80 Potential sales $27.88 = $ variance ($5.08) = as % of potential -18.2% ## Unadjusted Trade Area Analysis Potential sales to residents $27.88 ## Surplus ($5.08) ## Total $22.80 Non-resident share per group -22.3% ## Analysis with Adjustments Capture rate of Minnetonka residents 41% Residents' $ share $11.40 Non-Residents' $ share $11.40 ## Total $22.80 Non-resident share per group 50.0% ## Analysis for Furniture Stores At 2.5 percent of total sales, furniture stores are a moderately sized category in Minnetonka. Extension estimates residents' spending contributing $11.4 million, and non-residents' spending contributing $11.4 million to the total sales of $22.80 million. The non-resident share per group was adjusted to 50 percent. A capture rate of 41 percent is estimated for local spending within the community in a category in which leakage can be expected for larger and more specialized purchases in a competitive market. 182 Local Option Sales Tax Analysis for Minnetonka, MN 9 ## Electronics and Appliances 8.4 percent of total taxable retail and service sales* These 27 businesses primarily include household-type appliances, sewing machines, cameras, computers, and other electronic goods. ($Millions) Actual taxable sales $76.34 -Potential sales $27.00 = $ variance $49.33 = as % of potential 182.7% ## Unadjusted Trade Area Analysis Potential sales to residents $27.00 ## Surplus $49.33 ## Total $76.34 Non-resident share per group 64.6% ## Analysis with Adjustments Capture rate of Minnetonka residents 71% Residents' $ share $19.08 Non-residents' $ share $57.25 ## Total $76.34 Non-resident share per group 75.0% ## Analysis for Electronics and Appliances Taxable sales are higher than expected in the electronics and appliances category, resulting in a surplus of just under $50 million from expected sales. Accounting for 8.4 percent of all retail and service taxable sales totaling $76.34 million, it is a larger category within the Minnetonka retail landscape. A 75 percent non-resident spending was estimated in this category, resulting in a capture rate of approximately 71 percent of local spending. 183 Local Option Sales Tax Analysis for Minnetonka, MN 10 ## Building Materials 3.6 percent of total taxable retail and service sales These 13 businesses sell lumber, hardware, paint, wallpaper, tile, hardwood floors, roofing, fencing, ceiling fans, lawn equipment, and garden items. ($Millions) Actual taxable sales $32.67 Potential sales $101.48 = $ variance ($68.81) = as % of potential -67.8% ## Unadjusted Trade Area Analysis Potential sales to residents $101.48 ## Surplus ($68.81) ## Total $32.67 Non-resident share per group -210.6% ## Analysis with Adjustments Capture rate of Minnetonka residents 29% Residents' $ share $29.41 Non-residents' $ share $3.27 ## Total $32.67 Non-resident share per group 10.0% ## Analysis for Building Materials Building materials is a moderate category in Minnetonka, accounting for 3.6 percent of all retail and service taxable sales. Actual sales fell far short of potential sales estimates, equating to a $68 million deficit. Extension set the non-resident share of taxable sales at 10% to account for some portion of non-resident spending in a category underperforming, while estimating a moderate capture rate of 29% of Minnetonka resident spending in this category. 184 Local Option Sales Tax Analysis for Minnetonka, MN 11 ## Food and Groceries 9.3 percent of total taxable retail and service sales The 27 businesses in this merchandise group include grocery stores, delis, bakeries, and butcher shops that sell food to be prepared at home. Liquor stores are also included in this group. ($Millions) Actual taxable sales $84.62 - Potential sales $52.12 = $ variance $32.50 = as % of potential 62.4% ## Unadjusted Trade Area Analysis Potential sales to residents $52.12 ## Surplus $32.50 ## Total $84.62 Non-resident share per group 38.4% ## Analysis with Adjustments Capture rate of Minnetonka residents 73% Residents' $ share $38.08 Non-residents' $ share $46.54 ## Total $84.62 Non-resident share per group 55.0% ## Analysis for Food and Groceries Extension’s trade area analysis estimated a $32.5 million surplus in the food and liquor category in this category. Extension set the non-resident share at 55 percent, primarily to allow for some reasonable portion of out-shopping by Minnetonka residents. The Minnetonka capture rate remains at a conservative 73 percent in this category to allow for some purchasing outside of the city for travel, work, etc. 185 Local Option Sales Tax Analysis for Minnetonka, MN 12 ## Health and Personal Items 2.3 percent of total taxable retail and service sales Stores selling prescription drugs, food supplements, vision supplies, cosmetics, and hearing aids are among the 30 businesses included in this merchandise group. ($Millions) Actual taxable sales $20.56 Potential sales $12.78 = $ variance $7.78 = as % of potential 60.9% ## Unadjusted Trade Area Analysis Potential sales to residents $12.78 ## Surplus $7.78 ## Total $20.56 Non-resident share per group 37.9% ## Analysis with Adjustments Capture rate of Minnetonka residents 64% Residents' $ share $8.23 Non-residents' $ share $12.34 ## Total $20.56 Non-resident share per group 60.0% ## Analysis for Health and Personal Items The category accounts for 2.3 percent of taxable retail and service sales in Minnetonka. Taxable sales are higher than would be expected for the size of the community with an almost $8 million surplus. Extension set the non-resident share at a modest 60 percent, which translates into a 64 percent capture rate of local resident spending. In a competitive metro market, a certain amount of leakage from the community is to be expected. 186 Local Option Sales Tax Analysis for Minnetonka, MN 13 ## Gas/Convenience Stores 0.8 percent of total taxable retail and service sales This merchandise group covers 20 businesses selling convenience items at a store that also sells fuel. ($Millions) Actual taxable sales $7.41 -Potential sales $19.53 = $ variance ($12.12) = as % of potential -62.0% ## Unadjusted Trade Area Analysis Potential sales to residents $19.53 ## Surplus ($12.12) ## Total $7.41 Non-resident share per group -163.5% ## Analysis with Adjustments Capture rate of Minnetonka residents 30% Residents' $ share $5.93 Non-residents' $ share $1.48 ## Total $7.41 Non-resident share per group 20.0% ## Analysis for Gas/Convenience Stores Minnetonka has a sizeable deficit in the gas and convenience store category, netting $12.12 million less than potential sales calculations. Extension set the non-resident share at a conservative 20 percent to account for non-resident spending when traveling along major thoroughfares and visiting the city for work or play. A capture rate of 30 percent for residents of Minnetonka was estimated in a category where work, travel and entertainment can pull dollars from the community. The data suggests this category is underperforming. 187 Local Option Sales Tax Analysis for Minnetonka, MN 14 ## Apparel/Clothing 4.4 percent of total taxable retail and service sales This merchandise group includes 64 businesses selling new clothing and accessories, jewelry, shoes, bridal items, clocks, and luggage. ($Millions) Actual taxable sales $40.03 Potential sales $13.54 = $ variance $26.49 = as % of potential 195.7% ## Unadjusted Trade Area Analysis Potential sales to residents $13.54 ## Surplus $26.49 ## Total $40.03 Non-resident share per group 66.2% ## Analysis with Adjustments Capture rate of Minnetonka residents 59% Residents' $ share $8.01 Non-residents' $ share $32.03 ## Total $40.03 Non-resident share per group 80.0% ## Analysis for Apparel/Clothing Extension’s trade area analysis estimates that there is an extremely large surplus in this category. Extension adjusted the non-resident share to 80 percent, resulting in a local capture rate of 59 percent to allow for some leakage outside of the community as well in a competitive and at times niche category. 188 Local Option Sales Tax Analysis for Minnetonka, MN 15 ## Leisure Goods 6.5 percent of total taxable retail and service sales The 40 businesses in this merchandise group sell sporting goods, books, music, hobby items, fabrics, and toys. ($Millions) Actual taxable sales $58.92 Potential sales $21.00 = $ variance $37.93 = as % of potential 180.6% ## Unadjusted Trade Area Analysis Potential sales to residents $21.00 ## Surplus $37.93 ## Total $58.92 Non-resident share per group 64.4% ## Analysis with Adjustments Capture rate of Minnetonka residents 67% Residents' $ share $14.14 Non-Residents' $ share $44.78 ## Total $58.92 Non-resident share per group 76.0% ## Analysis for Leisure Goods Extension’s trade area analysis estimates that the city has a $37.93 million surplus in this category which is focused on specialized retail. Extension set the non-resident share at 76 percent and a capture rate of 67 percent for Minnetonka residents. The surplus in this category suggests that people are coming from outside of Minnetonka to purchase goods within the city. 189 Local Option Sales Tax Analysis for Minnetonka, MN 16 ## General Merchandise Stores 10.6 percent of total taxable retail and service sales* The 11 businesses in this category sell general merchandise and are unique because they have the equipment and staff needed to sell a large variety of goods from a single location. This includes department stores, superstores, dollar stores, and variety stores. ($Millions) Actual taxable sales $96.05 potential sales $96.45 = $ variance ($0.40) = as % of potential -0.4% ## Unadjusted Trade Area Analysis Potential sales to residents $96.45 ## Surplus ($0.40) ## Total $96.05 Non-resident share per group -0.4% ## Analysis with Adjustments Capture rate of Minnetonka residents 67% Residents' $ share $64.35 Non-Residents' $ share $31.70 ## Total $96.05 Non-resident share per group 33.0% ## Analysis for General Merchandise Stores Extension estimates this category is performing at levels equal to what would be expected for a community of this composition. Extension estimated 33 percent of sales in this category come from non-residents and a capture rate of 67 percent for residents was estimated. These estimates account for leakage into other communities with specialized stores such as Costco, etc. 190 Local Option Sales Tax Analysis for Minnetonka, MN 17 ## Miscellaneous Retail 4.0 percent of total taxable retail and service sales 100 businesses are part of this group, including florists, used merchandise stores, pet supply stores, and other retailers. ($Millions) Actual taxable sales $35.91 Potential sales $28.69 = $ variance $7.22 = as % of potential 25.2% ## Unadjusted Trade Area Analysis Potential sales to residents $28.69 ## Surplus $7.22 ## Total $35.91 Non-resident share per group 20.1% ## Analysis with Adjustments Capture rate of Minnetonka residents 65% Residents' $ share $18.67 Non-residents' $ share $17.24 ## Total $35.91 Non-resident share per group 48.0% ## Analysis for Miscellaneous Retail Extension’s trade area analysis estimates that Minnetonka had a $7.22 million surplus in the miscellaneous retail category. Extension set the non-resident share to 48 percent, resulting in a capture rate of 65 percent of Minnetonka resident spending. These estimates take into account local commuting patterns and niche purchases made in a competitive metro market. 191 Local Option Sales Tax Analysis for Minnetonka, MN 18 ## Amusement and Recreation 1.0 percent of total taxable retail and service sales* The 22 businesses in this group include casinos, bowling lanes, water parks, amusement parks, arcades, bingo halls, golf courses, ski slopes, marinas, dance or fitness centers, recreational clubs, ice rinks, swimming pools, roller rinks, etc. ($Millions) Actual taxable sales $8.81 Potential sales $25.33 = $ variance ($16.52) = as % of potential -65.2% ## Unadjusted Trade Area Analysis Potential sales to residents $25.33 ## Surplus ($16.52) ## Total $8.81 Non-resident share per group -187.6% ## Analysis with Adjustments Capture rate of Minnetonka residents 24% Residents' $ share $6.16 Non-residents' $ share $2.64 ## Total $8.81 Non-resident share per group 30.0% ## Analysis for Amusement and Recreation Extension’s trade area analysis estimates that the city has a deficit of potential sales in this category of $16.52 million. Minnetonka is home to some regional attractions to draw in non- residents and visitors. In this case, even despite the deficit, Extension set the non-resident share at 30 percent and a local capture rate of 24 percent to account for significant leakage in a competitive market. 192 Local Option Sales Tax Analysis for Minnetonka, MN 19 ## Accommodations 1.5 percent of total taxable retail and service sales These 9 businesses provide lodging or short-term accommodations for travelers, vacationers, and others. Included are hotels, motels, lodges, bed & breakfasts, campgrounds, fraternities, boarding houses, and dormitories. ($Millions) Actual taxable sales $13.66 Potential sales $22.11 = $ variance ($8.45) = as % of potential -38.2% ## Unadjusted Trade Area Analysis Potential sales to residents $22.11 ## Surplus ($8.45) ## Total $13.66 Non-resident share per group -61.9% ## Analysis with Adjustments Capture rate of Minnetonka residents 6% Residents' $ share $1.23 Non-residents' $ share $12.43 ## Total $13.66 Non-resident share per group 91.0% ## Analysis for Accommodations Logically, a significant percentage of lodging sales are from non-residents visiting the area or staying overnight for business or vacation. As with previous LOST analyses, Extension set the non-resident share above 90 percent of sales to allow for resident spending related to events, facility charges, and ‘staycations.’ A capture rate of 6 percent of Minnetonka resident spending in this category was estimated. Extension estimates a slight deficit in this category, suggesting it is slightly underperforming from what is expected. 193 Local Option Sales Tax Analysis for Minnetonka, MN 20 ## Eating/Drinking Establishments 13.9 percent of total taxable retail and service sales These 112 businesses sell food at full-service or limited-service establishments. The group includes cafeterias, bagel shops, ice cream parlors, snack bars, food service contractors, caterers, lunch wagons, and street vendors. It also includes bars, taverns, and nightclubs. ($Millions) Actual taxable sales $125.64 Potential sales $120.42 = $ variance $5.21 = as % of potential 4.3% ## Unadjusted Trade Area Analysis Potential sales to residents $120.42 ## Surplus $5.21 ## Total $125.64 Non-resident share per group 4.2% ## Analysis with Adjustments Capture rate of Minnetonka residents 47% Residents' $ share $56.54 Non-residents' $ share $69.10 ## Total $125.64 Non-resident share per group 55.0% ## Analysis for Eating/Drinking Establishments The eating and drinking category—which includes all bars, restaurants, and other food service—is a significant category with $125 million in taxable sales with a surplus of over $5 million. This is also the category with the highest percentage of total retail and service sales in Minnetonka at 13.9 percent. Many well-respected dining establishments that draw non- residents to the community as well as retain in-commuters who work in Minnetonka. However, like the general merchandise category, competition for other dining options, traveling and commuting all draw money from Minnetonka residents outside of the community. In this context, Extension set the non-resident share to a conservative 55 percent and a local capture rate of 47 percent for Minnetonka resident spending. 194 Local Option Sales Tax Analysis for Minnetonka, MN 21 ## Repair and Maintenance 1.3 percent of total taxable retail and service sales The 52 businesses in this group restore machinery, equipment, and other products. The group does not include plumbing or electrical repair services but does encompass auto repair, cameras, televisions, computers, copiers, appliances, lawn mowers, specialized equipment, small engines, furniture, shoes, guns, etc. ($Millions) Actual taxable sales $11.81 Potential sales $22.61 = $ variance ($10.80) = as % of potential -47.8% ## Unadjusted Trade Area Analysis Potential sales to residents $22.61 ## Surplus ($10.80) ## Total $11.81 Non-resident share per group -91.4% ## Analysis with Adjustments Capture rate of Minnetonka residents 50% Residents' $ share $11.22 Non-residents' $ share $0.59 ## Total $11.81 Non-resident share per group 5.0% ## Analysis for Repair and Maintenance At 1.3 percent of total taxable sales, repair and maintenance is a relatively small category in Minnetonka. The large deficit that exists in this category suggests this category is underperforming and failing to draw in non-residents for this type of service. As a result, a very conservative 5 percent non-resident share was estimated by Extension, resulting in a capture rate of 50 percent local spending of Minnetonka residents. 195 Local Option Sales Tax Analysis for Minnetonka, MN 22 ## Personal Services/Laundry 2.5 percent of total taxable retail and service sales The 103 businesses in this merchandise group include barber shops and beauty parlors, death care services, laundry and dry-cleaning services, and a wide range of other personal services, such as pet care (except veterinary), photofinishing, temporary parking, and dating services. ($Millions) Actual taxable sales $22.50 ## Potential Sales $12.24 =$ variance $10.26 = as % of potential 83.8% ## Unadjusted Trade Area Analysis Potential sales to residents $12.24 ## Surplus $10.26 ## Total $22.50 Non-resident share per group 45.6% ## Analysis with Adjustments Capture rate of Minnetonka residents 74% Residents' $ share $9.00 Non-residents' $ share $13.50 ## Total $22.50 Non-resident share per group 60.0% ## Analysis for Personal Services/Laundry This category includes businesses that typically serve a local market, such as barbers, hair salons, and dry-cleaning operations. At 2.5 percent of total sales, this category is not significant in terms of total taxable sales but the 103 businesses over perform, bringing in a $10.26 million surplus. Extension set the non-resident share at 60 percent, which translates into a 74 percent capture rate of local spending to allow for some leakage into adjacent markets. 196 Local Option Sales Tax Analysis for Minnetonka, MN 23 ## Retail (Non-Store) and Other Services This section includes taxable sales attributed to North American Industrial Classification System categories 511-813 released by MN Revenue. ($Millions) Actual taxable sales $158.97 % of total taxable retail and service sales ## In Minnetonka 17.6% ## Analysis with Adjustments ($Millions) Residents' $ share $103.33 Non-residents' $ share $55.64 ## Total $158.97 Non-resident share per group 35% ## Analysis for Retail and Other Services This group includes non-store retailers (such as direct selling operations), healthcare, waste management, rental/lease services, administrative support, and the performing arts. Some of these categories serve primarily a local market, whereas categories like 541 (professional and technical services) often serve a non-local market. This mix of business types is too diverse to run a trade area analysis for, but Extension estimated an aggregate 35 percent of these sales are to non-resident customers. The categories of sales are shown below: ## CATEGORY TAXABLE SALES % NON-LOCAL NON-LOCAL $ ## 454 RETL -NONSTORE RETAILERS $1,946,739 50% $973,370 ## 488 TRANSPORTATION -SUPPORT $1,592,738 40% $637,095 ## 511 INFO -PUBLISHING INDUSTRY $176,911 40% $70,764 ## 512 INFO -MOVIES, MUSIC IND $15,920 40% $6,368 ## 517 INFO -TELECOMMUNICATIONS $12,424,710 30% $3,727,413 ## 518 INFO -DATA PROCESSING $14,523,122 40% $5,809,249 ## 519 INFO -OTHER SERVICES $2,507,913 30% $752,374 ## 522 CREDIT INTERMEDIATION $1,084 40% $434 ## 523 SECURITIES, COMMODITIES $0 40% $0 ## 524 INSURANCE CARRIERS $157,134 30% $47,140 ## 531 REAL ESTATE $1,322,264 40% $528,906 ## 532 RENTAL, LEASING SERVICES $7,169,779 30% $2,150,934 ## 541 PROF,SCIENTIFIC,TECH SERV $49,021,926 40% $19,608,770 ## 551 MGMT OF COMPANIES $17,094,980 30% $5,128,494 ## 561 ADMIN, SUPPORT SERVICES $43,659,460 30% $13,097,838 ## 611 EDUCATIONAL SERVICES $644,075 20% $128,815 ## 621 HEALTH -AMBULATORY CARE $3,520,234 40% $1,408,094 ## 623 HEALTH -NURSING,HOME CARE $52,806 20% $10,561 ## 624 HEALTH -SOCIAL ASSISTANCE $324,358 20% $64,872 ## 711 PERF ART, SPECTATOR SPRTS $2,149,205 40% $859,682 ## 813 RELIGIOUS,CIVIC,PROF ORGS $663,332 40% $265,333 ## TOTAL $158,968,690 35% $55,276,505 197 Local Option Sales Tax Analysis for Minnetonka, MN 24 ## Construction, Manufacturing, Utilities, Wholesale Operations, Transportation, and ## Sales Suppressed for Business Confidentiality A diverse mix of businesses fall into these non-retail categories, and a portion of sales are within a suppressed or non-disclosed subcategory. These industries and services generate $97.53 million in taxable sales, or 9.7 percent of total taxable sales in Minnetonka. A significant portion of this amount would be subject to any new sales taxes, including a local option sales tax. This category includes utilities that primarily serve a local market and are subject to a local option sales tax. The diversity of firm types included in this category makes it difficult to understand the customer mix of these businesses; however, Extension broke out each known subcategory with an assumption of whether customers paying the taxable sales were non- local: Category Taxable Sales % non-local $ non-local ## CONSTRUCTION $15,177,666 60% $9,106,599.60 ## MANUFACTURING $56,483,681 90% $50,835,312.90 ## WHOLESALE $14,350,575 80% $11,480,460.00 ## UNDESIGNATED/SUPPRESSED $11,513,550 50% $5,756,775.00 ## Total $97,525,472 79% $77,179,147.50 Extension estimated that, overall, 79 percent of sales are to non-residents. This analysis assumes that some subcategories, such as manufacturing sell primarily (90 percent) to non- resident customers, whereas subcategories like construction split sales between resident and non-resident customers. ## Analysis with Adjustments ($Millions) Residents’ $ share $20.48 Non-residents $ share $77.05 Total $97.53 Non-resident share 79% 198 Local Option Sales Tax Analysis for Minnetonka, MN 25 ## APPENDIX A: RESEARCH ON THE EFFECTS OF A LOCAL OPTION SALES TAX Policymakers are often concerned that enacting a local sales tax will result in a loss of consumer purchases to neighboring communities that have not adopted the tax. The Minnesota Department of Revenue records the tax collected from a set of Minnesota jurisdictions that have had a local sales or use tax in effect for at least eight years. Most of these cities show continued sales growth. A comparison that includes 11 Minnesota cities adopting a 0.5 percent local option sales tax is offered below (refer to Figures 4, 5, 6, and 7). Policymakers must determine the best allowable method to raise revenue from a variety of options. One option is raising property taxes, which is not directly related to a household’s current income and raises the financial burden of low-income or retired homeowners. Sales taxes raise revenues based on household expenditures, which, in Minnesota, excludes the basic necessities of food and clothing. However, since sales tax raises revenues from non- residents who shop in Minnetonka, resident contributions to tax revenues are significantly lower than a tax generated exclusively by local residents, such as a property tax. Policymakers must carefully consider these and other factors before making a decision about enacting a local sales tax. Figure 4: Taxable retail and service sales by communities that began collecting a local option sales tax from 1999 to 2006 Figure 5: Data table for example communities, taxable retail and service sales (in millions) $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $800,000,000 $900,000,000 $1,000,000,000 199019952000200320042005200620072008200920102015 ## Albert LeaBaxterBemidjiNew UlmWorthington ## Town Name 2015 ## Population ## Year ## LOST 90 95 00 03 04 05 06 07 08 09 10 15 Albert Lea 18,356 2006 $264 $344 $397 $407 $521 $502 $551 $555 $588 $519 $541 $696 Baxter 8,065 2006 $432 $473 $556 $605 $650 $630 $612 $676 $900 Bemidji 11,917 2005 $257 $362 $457 $428 $410 $437 $495 $596 $570 $563 $581 $837 New Ulm 13,594 1999 $109 $165 $204 $233 $236 $259 $261 $280 $303 $295 $329 $417 Worthington 11,283 2005 $77 $77 $91 $99 $102 $103 $103 $108 $107 $108 $114 $121 199 Local Option Sales Tax Analysis for Minnetonka, MN 26 Figure 6: Taxable retail and service sales by communities that began collecting a local option sales tax between 2011- 2012 Figure 7: Data table for example communities, taxable retail and service sales (in millions) ## Town Name 2015 ## Pop ## Year ## LOST 90 95 00 05 09 10 11 12 13 14 15 Brainerd 13,178 2011 $302 $479 $623 $458 $362 $324 $311 $330 $332 $338 $341 Cloquet 11,201 2011 $93 $124 $175 $244 $260 $273 $290 $303 $296 $308 $284 Fergus Falls 13,471 2011 $192 $263 $386 $523 $467 $486 $551 $591 $568 $558 $534 Hermantown 7,448 1996 - increase 2012 $43 $164 $137 $430 $393 $423 $489 $576 $607 $637 $659 Hutchinson 13,080 2011 $122 $191 $269 $471 $609 $374 $425 $409 $389 $415 $424 Minnetonka 12,735 2011 $176 $283 $343 $398 $371 $380 $440 $447 $457 $463 $428 $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 19901995200020052009201020112012201320142015 ## BrainerdCloquetFergus FallsHermantownHutchinsonMarshall 200 Local Option Sales Tax Analysis for Minnetonka, MN 27 ## APPENDIX B: DEFINITIONS OF TERMS Gross sales Gross sales include taxable sales and exempt businesses with sales and use tax permits. This is the most inclusive indicator of business activity for reporting jurisdictions, but it can be misleading when used in comparisons. At times, non-taxable commodity items (e.g., gasoline) can have large price variations, creating huge swings in gross sales. Taxable sales Taxable sales are sales subject to sales tax. Taxable sales exclude exempt items, items sold for resale, items sold for exempt purposes, and items sold to exempt organizations. For the purpose of this study, taxable sales were the focus of the analysis. For more information on what is taxed in Minnesota, see the "Minnesota Sales and Use Tax Instruction Booklet" available at https://www.revenue.state.mn.us/minnesota-tax-handbooks Taxable retail and service sales In this study and other retail trade analyses conducted by University of Minnesota Extension, the term “taxable retail and service sales” refers to the North American Industry Classification System (NAICS) numbers of 441 to 454 (retail) and 511 to 812 (most service industries) released by the Minnesota Department of Revenue for a geographic area. Current and constant dollar sales Current dollar (or “nominal dollar”) sales are those reported by the state. No adjustment has been made for price inflation. In general, this measure of sales is not satisfactory for comparisons over long periods of time since it does not account for changes in population, inflation, or the state's economy. Constant dollar (or “real dollar”) sales reflect changes in price inflation by adjusting current dollar sales according to the Consumer Price Index (CPI). Constant dollar sales indicate the real sales level with respect to a base year. This is a more realistic method of evaluating sales over time than current dollar comparisons, but it still does not take into consideration changes in population or the state’s economy. Number of businesses The number of sales and use tax permit holders who filed one or more tax returns for the year. Index of income This index provides a relative measure of income, calculated by dividing local per capita income by state per capita income. The base is 1.00. For example, a 1.20 index of income indicates that per capita income in the area is 20 percent above the state average. Potential sales Potential sales are an estimate of the amount of money spent on retail goods and services by residents of a county or county. It is the product of county population, state per capita sales, and the index of income (based on the county personal per capita income). Actual sales For this study, the Minnesota Department of Revenue’s 2019 sales data for Minnetonka provides the actual sales numbers used. 201 Local Option Sales Tax Analysis for Minnetonka, MN 28 Variance between actual and potential sales The variance between actual and expected sales is the difference in sales from the “norm” (i.e., the amount above or below the standard established by the expected sales formula). When actual sales exceed expected sales, the county has a “surplus” of retail sales. When actual sales fall short of expected sales, the county has a retail sales “leakage.” Discrepancies between expected and actual sales occur for a variety of reasons. For this study, we use potential sales per merchandise group to create a first-cut estimate of residents’ purchase activities. ## Cautions Gross sales Gross sales are a comprehensive measure of business activity, but it should be noted the numbers in this report are self-reported. Furthermore, gross sales are not audited by the state of Minnesota. It is believed that gross sales figures are generally reliable, but there is the possibility of distortions, especially in smaller cities where misreporting may have occurred. ## Misclassification Holders of sales and use tax permits select the North American Industry Classification System (NAICS) category that best fits their business. All sales reported by a business is attributed to that selected NAICS category. Regardless of who makes this classification, errors are occasionally made. Also, sometimes a business will start out as one type but evolve over time to a considerably different type. Misclassifications can distort sales among business categories, especially in smaller cities. For example, a furniture store that is classified as a general merchandise store will underreport sales in the furniture store category and over-report sales in the general merchandise category. Suppressed data The sales data for merchandise categories that have less than four reporting firms are not reported. This is a measure taken by most states to protect the confidentiality of sales tax permit holders. Sales for suppressed retail categories are placed into the miscellaneous retail category (NAICS 999) and included in total sales but not total sales of a typical retail trade analysis. For this report, however, all taxable sales—including NAICS 999—are part of calculating the amount of special taxes collected. Consolidated reporting Vendors with more than one location in Minnesota have the option of filing a separate return for each location or filing one consolidated return for all locations. The consolidated return shows sales made, tax due, and location by county, and county for each business. Data for consolidated filers are combined with data for single-location filers to produce the figures in this report. Occasionally, consolidated reports may not be properly deconstructed, and all sales for a company may be reported for one town or county. Whenever misreporting is discovered, the Minnesota Department of Revenue is contacted to clarify the situation. 202 ## Local Sales and Use Taxes ## Including Special Local Taxes* Effective 1/1/2026 – 3/31/2026 1 ## Minnesota Revenue, Local Sales and Use Taxes ## City/CountyType of TaxBegin DateRate ## Albert LeaSales and Use Tax4/1/060.50% ## Anoka CountyTransit Sales and Use Tax10/1/170.25% ## AustinSales and Use Tax4/1/070.50% ## AvonSales and Use Tax10/1/190.50% ## BaxterSales and Use Tax10/1/060.50% ## Becker CountyTransit Sales and Use Tax7/1/140.50% ## Beltrami County ## Sales and Use Tax ## Transit Sales and Use Tax 7/1/24 4/1/14 0.625% 0.50% ## BemidjiSales and Use Tax1/1/060.50% ## Benton CountyTransit Sales and Use Tax10/1/190.50% ## BlackduckSalesand Use Tax4/1/250.50% ## BloomingtonSales and Use Tax4/1/240.50% ## Blue EarthSales and Use Tax10/1/190.50% ## Blue Earth CountyTransit Sales and Use Tax4/1/160.50% ## BrainerdSales and Use Tax4/1/070.50% ## Brown CountyTransit Sales and Use Tax4/1/160.50% ## CambridgeSales andUse Tax10/1/190.50% ## Carlton County ## Transit Sales and Use Tax ## Sales and Use Tax 4/1/15 4/1/23 0.50% 0.50% ## Carver CountyTransit Sales and Use Tax10/1/170.50% ## Cass CountyTransit Sales and UseTax4/1/160.50% ## ChanhassenSales and Use Tax4/1/250.50% ## Chippewa CountyTransit Sales and Use Tax1/1/250.50% ## Chisago CountyTransit Sales and Use Tax4/1/160.50% ## Clay CountySales and UseTax10/1/170.50% ## ClearwaterSales andUse Tax10/1/080.50% ## CloquetSales and Use Tax 4/1/23 4/1/13 – 3/31/23 1.00% 0.50% ## Cook County ## Sales and Use Tax ## Transit Sales and Use Tax 4/1/10 1/1/17 1.00% 0.50% ## Cottage GroveLodging Tax7/1/253.00% ## Crow Wing CountyTransit Sales and Use Tax4/1/160.50% ## Dakota CountyTransit Sales and Use Tax10/1/170.25% ## Detroit Lakes ## Food and Beverage Tax* ## Sales and Use Tax 4/1/11 4/1/25 10/1/19 – 6/30/23 1.00% 0.50% 0.50% ## DilworthSales and Use Tax4/1/250.50% ## Dodge CountyTransit Sales and Use Tax1/1/190.50% ## Douglas CountyTransit Sales and Use Tax10/1/140.50% ## DuluthSales and Use Tax 10/1/19 1/1/70 – 9/30/19 1.50% 1.00% ## East Grand Forks ## Sales and Use Tax7/1/25 1/1/18 – 9/30/20 1.00% ## EdinaSales and Use Tax4/1/230.50% ## Elk RiverSales and Use Tax10/1/190.50% ## ExcelsiorSales and Use Tax10/1/190.50% ## FairmontSales and Use Tax10/1/170.50% 203 ## Local Sales and Use Taxes ## Including Special Local Taxes* Effective 1/1/2026 – 3/31/2026 2 ## Minnesota Revenue, Local Sales and Use Taxes ## City/CountyType of TaxBegin DateRate ## FaribaultLodging Tax*1/1/263.00% ## Fergus FallsSales and UseTax 10/1/23 1/1/18 – 9/30/22 1/1/12 – 12/31/16 0.50% 0.50% 0.50% ## Fillmore CountyTransit Sales and Use Tax1/1/150.50% ## Freeborn CountyTransit Sales and Use Tax1/1/160.50% ## Garrison, Kathio, West Mille ## Lacs Sanitary District (GKWMLL ## Sanitary District) ## Sales and Use Tax1/1/181.00% ## Giants Ridge Recreation Area ## Admissions and Recreation Tax* ## Food and Beverage Tax* ## Lodging Tax* 7/1/11 7/1/11 7/1/11 2.00% 1.00% 2.00% ## GlenwoodSalesand Use Tax1/1/200.50% ## Golden ValleySales and Use Tax4/1/241.25% ## Goodhue CountyTransit Sales and Use Tax1/1/190.50% ## Grand Rapids ## Sales and Use Tax ## Lodging Tax* 4/1/23 1/1/25 0.50% 3.00% ## HendersonSales andUse Tax4/1/250.50% ## Hennepin County ## Sales and Use Tax ## Transit Sales and Use Tax 1/1/07 10/1/17 0.15% 0.50% ## HermantownSales and Use Tax 4/1/23 4/1/13 – 3/31/23 1/1/00 – 3/31/13 1.50% 1.00% 0.50% ## HibbingSales and Use Tax4/1/250.50% ## Hubbard CountyTransit Sales and Use Tax7/1/150.50% ## HutchinsonSales and UseTax1/1/120.50% ## International FallsSales and Use Tax10/1/191.00% ## Isanti CountyTransit Sales and Use Tax7/1/190.50% ## Itasca CountySales and Use Tax4/1/231.00% ## Jackson CountySales and Use Tax4/1/251.00% ## Kanabec CountyTransit Sales and Use Tax1/1/200.50% ## Kandiyohi CountyTransit Sales and Use Tax4/1/180.50% ## Koochiching CountyTransit Sales and Use Tax4/1/220.50% ## Lake County ## Transit Sales and Use Tax ## Lodging Tax* 4/1/17 10/1/20 0.50% 4.00% ## Lake of the Woods County (Does not include lodging establishments located within the Baudette city limits effective 6/30/22.) ## Lodging Tax*1/1/213.00% ## Lake Vermilion AreaLodging Tax10/1/253.00% LanesboroSales and Use Tax1/1/12 – 12/31/240.50% ## Le Sueur CountyTransit Sales and Use Tax4/1/210.50% ## LitchfieldSales and Use Tax7/1/230.50% ## Lyon CountyTransit Sales and UseTax10/1/15 – 6/30/200.50% 204 ## Local Sales and Use Taxes ## Including Special Local Taxes* Effective 1/1/2026 – 3/31/2026 3 ## Minnesota Revenue, Local Sales and Use Taxes ## City/CountyType of TaxBegin DateRate ## Mankato ## Sales Tax4/1/920.50% ## Use Tax1/1/000.50% ## Food and Beverage Tax*4/1/090.50% ## Entertainment Tax*4/1/090.50% ## Lodging Tax*10/1/213.00% ## Maple GroveSales and Use Tax4/1/230.50% ## Marshall ## Sales and Use Tax4/1/130.50% ## Food and Beverage Tax*7/1/131.50% ## Martin CountyTransit Sales and Use Tax1/1/260.50% ## McLeod CountyTransit Sales and Use Tax1/1/200.50% ## MedfordSales and Use Tax4/1/130.50% ## Metro Area Sales and Use Tax for Housing (Includes the counties of Anoka, ## Carver, Dakota, Hennepin, ## Ramsey, Scott, and ## Washington) ## Sales and Use Tax10/1/230.25% ## Metro Area Transportation (Includes the counties of Anoka, ## Carver, Dakota, Hennepin, ## Ramsey, Scott, and ## Washington) ## Sales and Use Tax10/1/230.75% ## Mille Lacs CountyTransit Sales and Use Tax1/1/170.50% ## Minneapolis ## Sales and Use Tax ## Downtown Liquor Tax* ## Downtown Restaurant Tax* ## Entertainment Tax* ## Lodging Tax* 2/1/87 2/1/87 2/1/87 10/1/69 10/1/19 10/1/17 – 9/30/19 4/1/02 – 9/30/17 0.50% 3.00% 3.00% 3.00% 3.00% 2.125% 2.625% ## MonticelloSales andUse Tax4/1/250.50% ## MoorheadSales andUse Tax4/1/230.50% ## Moose LakeSales and UseTax10/1/170.50% ## Morrison CountyTransit Sales and Use Tax1/1/180.50% ## Mower CountyTransit Sales and Use Tax1/1/180.50% New LondonSales and Use Tax10/1/17 – 12/31/25 0.50% ## New UlmSales and Use Tax4/1/010.50% ## Nicollet CountyTransit Sales and Use Tax1/1/180.50% ## Nobles CountyTransit Sales and Use Tax1/1/210.50% ## Norman CountyTransit Sales and Use Tax7/1/220.50% ## North Mankato ## Sales and Use Tax ## Food and Beverage Tax* 10/1/08 4/1/20 0.50% 0.50% ## OakdaleSales and Use Tax4/1/230.50% ## Olmsted CountyTransit Sales and Use Tax 7/1/17 1/1/14 – 6/30/17 0.50% 0.25% ## OrtonvilleLodging Tax4/1/243.00% ## Otter Tail CountyTransit Sales and Use Tax1/1/160.50% OwatonnaSales andUse Tax4/1/07 – 6/30/110.50% 205 ## Local Sales and Use Taxes ## Including Special Local Taxes* Effective 1/1/2026 – 3/31/2026 4 ## Minnesota Revenue, Local Sales and Use Taxes ## City/CountyType of TaxBegin DateRate ## PerhamSales and Use Tax1/1/200.50% ## Pine CountyTransit Sales andUse Tax1/1/170.50% ## PlymouthLodging Tax*7/1/243.00% ## Polk CountyTransit Sales andUse Tax 4/1/24 1/1/18 – 3/31/24 0.50% 0.25% ## Proctor ## Sales and Use Tax ## Food and Beverage Tax* 7/1/25 10/1/17 – 6/30/25 4/1/00 – 9/30/17 4/1/15 1.50% 1.00% 0.50% 1.00% ## Ramsey CountyTransit Sales and Use Tax10/1/170.50% ## Redwood CountyTransit Sales and Use Tax4/1/190.50% ## Renville CountyTransit Sales and Use Tax1/1/230.50% ## Rice CountyTransit Sales andUse Tax1/1/140.50% ## Richfield ## Sales and Use Tax ## Lodging Tax* 4/1/25 1/1/26 0.50% 3.00% ## Rochester ## Sales and Use Tax ## Lodging Tax* 1/1/16 1/1/93 – 12/31/15 9/1/71 0.75% 0.50% 7.00% ## RogersSales and Use Tax10/1/190.25% ## Roseau CountyTransit Sales and Use Tax1/1/220.50% ## RosevilleSales and Use Tax7/1/250.50% ## St. Cloud ## Liquor Tax* ## Food Tax* 2/1/87 2/1/87 1.00% 1.00% ## St. Cloud Area (Includes the cities of St. ## Augusta, St. Cloud, St. Joseph, ## Sartell, Sauk Rapids, and Waite ## Park) ## Sales and Use Tax1/1/030.50% ## St. Louis CountyTransit Sales and Use Tax4/1/150.50% ## St. Paul ## Sales and Use Tax ## Sales Tax Lodging Tax less than 50 rooms* Lodging Tax 50+ rooms* 4/1/24 1/1/00 – 3/31/24 9/1/93 – 12/31/99 4/1/04 10/1/19 4/1/04 – 09/30/19 1.50% 0.50% 0.50% 3.00% 7.00% 6.00% ## St. PeterSales and Use Tax7/1/220.50% ## Sauk CentreSales and UseTax1/1/200.50% ## ScanlonSales and Use Tax1/1/200.50% ## Scott CountyTransit Sales and Use Tax10/1/150.50% ## Sherburne CountyTransit Sales and Use Tax1/1/190.50% ## Sibley CountyTransit Sales and Use Tax1/1/260.50% ## SpicerSales and Use Tax10/1/170.50% ## StaplesSales and Use Tax4/1/230.50% ## Stearns County ## Sales and Use Tax ## Transit Sales and Use Tax 4/1/25 1/1/18 0.375% 0.25% ## Steele CountyTransit Sales and Use Tax4/1/150.50% ## StillwaterSales and Use Tax4/1/250.50% 206 ## Local Sales and Use Taxes ## Including Special Local Taxes* Effective 1/1/2026 – 3/31/2026 5 ## Minnesota Revenue, Local Sales and Use Taxes ## City/CountyType of TaxBegin DateRate ## Todd CountyTransit Sales and Use Tax1/1/150.50% ## Transit Improvement Area (Includes the counties of Anoka, ## Dakota, Hennepin, Ramsey, and Washington) Sales and Use Tax7/1/08 – 9/30/170.25% ## Two Harbors ## Sales and Use Tax ## Lodging Tax 10/1/19 4/1/99 – 9/30/19 10/1/20 1.00% 0.50% 1.00% ## VirginiaSales and Use Tax1/1/201.00% ## Wabasha CountyTransit Sales and Use Tax4/1/160.50% ## Wadena CountyTransit Sales and Use Tax4/1/140.50% ## Waite ParkSalesand Use Tax4/1/230.50% ## WalkerSales and Use Tax1/1/181.50% ## WarrenSales and Use Tax4/1/230.50% ## Waseca CountyTransit Sales and Use Tax4/1/190.50% ## Washington CountyTransit Sales and Use Tax 10/1/21 10/1/17-9/30/21 0.50% 0.25% ## Watonwan CountyTransit Sales and Use Tax1/1/250.50% ## West St. PaulSales and Use Tax1/1/200.50% ## WillmarSales and Use Tax 10/1/19 1/1/06 – 12/31/12 0.50% 0.50% ## Winona County ## Sales and Use Tax ## Transit Sales and Use Tax 4/1/25 1/1/17 0.25% 0.50% ## Woodbury ## Sales and Use Tax ## Lodging Tax 4/1/25 4/1/23 0.50% 3.00% ## WorthingtonSales and Use Tax 1/1/20 4/1/09 – 9/30/18 0.50% 0.50% ## Wright CountyTransit Sales and Use Tax10/1/170.50% 207 ## Metro Counties Sales and Use Tax Rate Guide Effective 1/1/2026 – 3/31/2026 1 ## Metro Counties Sales and Use Tax Rate Guide Local tax rates are listed in the following table. This table does not include special local taxes (admissions, entertainment, food and beverage, lodging, liquor, restaurant). For a complete breakdown of each tax, see our Sales Tax Rate Calculator or Map on our website. · Cities with an asterisk may fall within multiple taxing areas. · New local tax changes are highlighted in blue. · Rate increases are highlighted in orange. · Local taxes that have ended are highlighted in green. · ^The Metro Area Rate column includes the:  Metro Area Sales and Use Tax for Housing (0.25%) ##  Metro Area Transportation Sales and Use Tax (0.75%)  Both metro area sales and use taxes: o Are general local sales and use taxes. They follow the same rules as all local sales taxes. o Apply to taxable sales and purchases made in the seven-county Twin Cities area: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington counties. The information in this table does not relieve you of your responsibility to charge and remit the correct sales tax rate. To get the correct sales tax rate, use the Sales Tax Rate Calculator or Map on our website. For more information on local and special taxes, see: ## · Local Sales and Use Tax Guide ## · Special Local Taxes Fact Sheet 164S ## · Minneapolis Special Local Taxes Fact Sheet 164M 208 ## Metro Counties Sales and Use Tax Rate Guide Effective 1/1/2026 – 3/31/2026 2 ## County/City ## Other ## Local ## Rate ## Metro ## Area ## Rate^ ## City ## Rate ## County ## Transit ## Rate ## State ## Rate ## Combined ## Sales Tax ## Rate ## Anoka County Andover1.00%0.25% 6.875%8.125% Anoka1.00%0.25% 6.875%8.125% Bethel1.00%0.25% 6.875%8.125% Blaine*1.00%0.25% 6.875%8.125% Centerville1.00%0.25% 6.875%8.125% ## Circle Pines1.00%0.25% 6.875%8.125% ## Columbia Heights1.00%0.25% 6.875%8.125% Columbus1.00%0.25% 6.875%8.125% ## Coon Rapids1.00%0.25% 6.875%8.125% ## East Bethel1.00%0.25% 6.875%8.125% Fridley1.00%0.25% 6.875%8.125% ## Ham Lake1.00%0.25% 6.875%8.125% Hilltop1.00%0.25% 6.875%8.125% Lexington1.00%0.25% 6.875%8.125% ## Lino Lakes1.00%0.25% 6.875%8.125% Nowthen1.00%0.25% 6.875%8.125% ## Oak Grove1.00%0.25% 6.875%8.125% Ramsey1.00%0.25% 6.875%8.125% ## St Francis1.00%0.25% 6.875%8.125% ## Spring Lake Park*1.00%0.25% 6.875%8.125% ## Townships: Linwood1.00%0.25% 6.875%8.125% ## Carver County Carver1.00%0.50% 6.875%8.375% Chanhassen*(Beginning April 1, 2025)1.00% 0.50%0.50% 6.875%8.875% Chaska1.00%0.50% 6.875%8.375% Cologne1.00%0.50% 6.875%8.375% Hamburg1.00%0.50% 6.875%8.375% Mayer1.00%0.50% 6.875%8.375% ## New Germany1.00%0.50% 6.875%8.375% ## Norwood Young America1.00%0.50% 6.875%8.375% Victoria1.00%0.50% 6.875%8.375% Waconia1.00%0.50% 6.875%8.375% Watertown1.00%0.50% 6.875%8.375% ## Townships: Benton, Camden, Dahlgren, ## Hancock, Hollywood, Laketown, San ## Francisco, Waconia, Watertown, Young ## America 1.00%0.50% 6.875% 8.375% ## Dakota County ## Apple Valley1.00%0.25% 6.875%8.125% Burnsville1.00%0.25% 6.875%8.125% Coates1.00%0.25% 6.875%8.125% Eagan1.00%0.25% 6.875%8.125% Empire1.00%0.25% 6.875%8.125% Farmington1.00%0.25% 6.875%8.125% Hampton1.00%0.25% 6.875%8.125% Hastings*1.00%0.25% 6.875%8.125% 209 ## Metro Counties Sales and Use Tax Rate Guide Effective 1/1/2026 – 3/31/2026 3 ## County/City ## Other ## Local ## Rate ## Metro ## Area ## Rate^ ## City ## Rate ## County ## Transit ## Rate ## State ## Rate ## Combined ## Sales Tax ## Rate ## Inver Grove Heights1.00%0.25% 6.875%8.125% Lakeville1.00%0.25% 6.875%8.125% Lilydale1.00%0.25% 6.875%8.125% Mendota1.00%0.25% 6.875%8.125% ## Mendota Heights1.00%0.25% 6.875%8.125% Miesville1.00%0.25% 6.875%8.125% ## New Trier1.00%0.25% 6.875%8.125% Northfield*1.00%0.25% 6.875%8.125% Randolph1.00%0.25% 6.875%8.125% Rosemount1.00%0.25% 6.875%8.125% ## South St Paul1.00%0.25% 6.875%8.125% ## Sunfish Lake1.00%0.25% 6.875%8.125% Vermillion1.00%0.25% 6.875%8.125% ## West St Paul1.00% 0.50%0.25% 6.875%8.625% ## Townships: Castle Rock, Douglas, Eureka, ## Greenvale, Hampton, Marshan, Nininger, ## Randolph, Ravenna, Sciota, Vermillion, ## Waterford 1.00%0.25% 6.875%8.125% ## Hennepin County ## Bloomington0.15%1.00%0.50%0.50%6.875%9.025% ## Brooklyn Center0.15%1.00%0.50%6.875%8.525% ## Brooklyn Park0.15%1.00%0.50%6.875%8.525% ## Champlin0.15%1.00%0.50%6.875%8.525% Chanhassen*(Beginning April 1, 2025)0.15%1.00%0.50%0.50%6.875%9.025% ## Corcoran0.15%1.00%0.50%6.875%8.525% ## Crystal0.15%1.00%0.50%6.875%8.525% ## Dayton*0.15%1.00%0.50%6.875%8.525% ## Deephaven0.15%1.00%0.50%6.875%8.525% ## Eden Prairie0.15%1.00%0.50%6.875%8.525% ## Edina0.15%1.00%0.50%0.50%6.875%9.025% ## Excelsior0.15%1.00%0.50%0.50%6.875%9.025% ## Golden Valley0.15%1.00%1.25%0.50%6.875%9.775% ## Greenfield0.15%1.00%0.50%6.875%8.525% ## Hanover*0.15%1.00%0.50%6.875%8.525% ## Hopkins0.15%1.00%0.50%6.875%8.525% ## Independence0.15%1.00%0.50%6.875%8.525% ## Long Lake0.15%1.00%0.50%6.875%8.525% ## Loretto0.15%1.00%0.50%6.875%8.525% ## Maple Grove0.15%1.00%0.50%0.50%6.875%9.025% ## Maple Plain0.15%1.00%0.50%6.875%8.525% ## Medicine Lake0.15%1.00%0.50%6.875%8.525% ## Medina0.15%1.00%0.50%6.875%8.525% ## Minneapolis0.15%1.00%0.50%0.50%6.875%9.025% ## Minneapolis St Paul International Airport*0.15%1.00%0.50%6.875%8.525% ## Minnetonka0.15%1.00%0.50%6.875%8.525% ## Minnetonka Beach0.15%1.00%0.50%6.875%8.525% ## Minnetrista0.15%1.00%0.50%6.875%8.525% 210 ## Metro Counties Sales and Use Tax Rate Guide Effective 1/1/2026 – 3/31/2026 4 ## County/City ## Other ## Local ## Rate ## Metro ## Area ## Rate^ ## City ## Rate ## County ## Transit ## Rate ## State ## Rate ## Combined ## Sales Tax ## Rate ## Mound0.15%1.00%0.50%6.875%8.525% ## New Hope0.15%1.00%0.50%6.875%8.525% ## Orono0.15%1.00%0.50%6.875%8.525% ## Osseo0.15%1.00%0.50%6.875%8.525% ## Plymouth0.15%1.00%0.50%6.875%8.525% Richfield(Beginning April 1, 2025)0.15%1.00%0.50%0.50%6.875%9.025% ## Robbinsdale0.15%1.00%0.50%6.875%8.525% ## Rockford*0.15%1.00%0.50%6.875%8.525% ## Rogers*0.15%1.00%0.25%0.50%6.875%8.775% ## St. Anthony0.15%1.00%0.50%6.875%8.525% ## St. Bonifacious*0.15%1.00%0.50%6.875%8.525% ## St. Louis Park0.15%1.00%0.50%6.875%8.525% ## Shorewood0.15%1.00%0.50%6.875%8.525% ## Spring Park0.15%1.00%0.50%6.875%8.525% ## Tonka Bay0.15%1.00%0.50%6.875%8.525% ## Waconia0.15%1.00%0.50%6.875%8.525% ## Watertown0.15%1.00%0.50%6.875%8.525% ## Wayzata0.15%1.00%0.50%6.875%8.525% ## Woodland0.15%1.00%0.50%6.875%8.525% ## Ramsey County ## Arden Hills1.00%0.50%6.875%8.375% ## Blaine*1.00%0.50%6.875%8.375% ## Falcon Heights1.00%0.50%6.875%8.375% ## Gem Lake1.00%0.50%6.875%8.375% ## Lauderdale1.00%0.50%6.875%8.375% ## Little Canada1.00%0.50%6.875%8.375% ## Maplewood1.00%0.50%6.875%8.375% ## Mounds View1.00%0.50%6.875%8.375% ## New Brighton1.00%0.50%6.875%8.375% ## North Oaks1.00%0.50%6.875%8.375% ## North St. Paul1.00%0.50%6.875%8.375% Roseville(Beginning July 1, 2025)1.00%0.50%0.50%6.875%8.875% ## St. Anthony*1.00%0.50%6.875%8.375% ## St. Paul1.00%1.50%0.50%6.875%9.875% ## Shoreview1.00%0.50%6.875%8.375% ## Spring Lake Park*1.00%0.50%6.875%8.375% ## Vadnais Heights1.00%0.50%6.875%8.375% ## White Bear Lake*1.00%0.50%6.875%8.375% ## Townships: White Bear1.00%0.50%6.875%8.375% ## Scott County ## Belle Plaine1.00%0.50%6.875%8.375% ## Elko1.00%0.50%6.875%8.375% ## New Market1.00%0.50%6.875%8.375% ## Jordan1.00%0.50%6.875%8.375% ## New Prague*1.00%0.50%6.875%8.375% ## Prior Lake1.00%0.50%6.875%8.375% ## Savage1.00%0.50%6.875%8.375% 211 ## Metro Counties Sales and Use Tax Rate Guide Effective 1/1/2026 – 3/31/2026 5 ## County/City ## Other ## Local ## Rate ## Metro ## Area ## Rate^ ## City ## Rate ## County ## Transit ## Rate ## State ## Rate ## Combined ## Sales Tax ## Rate ## Shakopee1.00%0.50%6.875%8.375% ## Townships: Belle Plaine, Blakeley, Cedar ## Lake, Credit River, Helena, Jackson, Louisville, New Market, Sand Creek, Spring Lake, St. ## Lawrence 1.00%0.50%6.875%8.375% ## Washington County ## Afton1.00%0.50%6.875%8.375% ## Bayport1.00%0.50%6.875%8.375% ## Birchwood Village1.00%0.50%6.875%8.375% ## Cottage Grove1.00%0.50%6.875%8.375% ## Dellwood1.00%0.50%6.875%8.375% ## Forest Lake1.00%0.50%6.875%8.375% ## Grant1.00%0.50%6.875%8.375% ## Hastings*1.00%0.50%6.875%8.375% ## Hugo1.00%0.50%6.875%8.375% ## Lake Elmo1.00%0.50%6.875%8.375% ## Lake St. Croix Beach1.00%0.50%6.875%8.375% ## Lakeland1.00%0.50%6.875%8.375% ## Lakeland Shore1.00%0.50%6.875%8.375% ## Landfall1.00%0.50%6.875%8.375% ## Lakeland Shores1.00%0.50%6.875%8.375% ## Landfall1.00%0.50%6.875%8.375% ## Mahtomedi1.00%0.50%6.875%8.375% ## Marine on St. Croix1.00%0.50%6.875%8.375% ## Newport1.00%0.50%6.875%8.375% ## Oak Park Heights1.00%0.50%6.875%8.375% ## Oakdale1.00%0.50%0.50%6.875%8.875% ## Pine Springs1.00%0.50%6.875%8.375% ## St. Mary’s Point1.00%0.50%6.875%8.375% ## St. Paul Park1.00%0.50%6.875%8.375% ## Scandia1.00%0.50%6.875%8.375% Stillwater(Beginning April 1, 2025)1.00%0.50%0.50%6.875%8.875% ## Willernie1.00%0.50%6.875%8.375% ## White Bear Lake*1.00%0.50%6.875%8.375% Woodbury(Beginning April 1, 2025)1.00%0.50%0.50%6.875%8.875% ## Townships: Baytown, Denmark, Grey Cloud ## Island, May, Stillwater, West Lakeland 1.00%0.50%6.875%8.375% ## Wright County ## Albertville0.50%6.875%7.375% ## Annandale0.50%6.875%7.375% ## Buffalo0.50%6.875%7.375% ## Clearwater*0.50%0.50%6.875%7.875% ## Cokato0.50%6.875%7.375% ## Dayton*0.50%6.875%7.375% ## Delano0.50%6.875%7.375% ## Hanover*0.50%6.875%7.375% ## Howard Lake0.50%6.875%7.375% 212 ## Metro Counties Sales and Use Tax Rate Guide Effective 1/1/2026 – 3/31/2026 6 ## County/City ## Other ## Local ## Rate ## Metro ## Area ## Rate^ ## City ## Rate ## County ## Transit ## Rate ## State ## Rate ## Combined ## Sales Tax ## Rate ## Maple Lake0.50%6.875%7.375% Monticello(Beginning April 1, 2025)0.50%0.50%6.875%7.875% ## Montrose0.50%6.875%7.375% ## Otsego0.50%6.875%7.375% ## Rockford0.50%6.875%7.375% ## South Haven0.50%6.875%7.375% ## St. Michael0.50%6.875%7.375% ## Waverly0.50%6.875%7.375% ## Townships: Albion, Buffalo, Chatham, ## Clearwater, Cokato, Corinna, Franklin, French ## Lake, Maple Lake, Marysville, Middleville, ## Monticello, Rockford, Silver Creek, Southside, ## Stockholm, Victor, Woodland 0.50%6.875%7.375% 213 ## City Council Agenda Item 3.B Meeting of December 22, 2025 Title:2026 city council study session work plan ## Report from:Sarissa Seracki, Senior Management Coordinator ## Submitted through:Erik Nilsson, City Attorney ## Moranda Dammann, Assistant City Manager ## Mike Funk, City Manager ## Presenter:Mike Funk, City Manager Action Requested:Finalize 2026 study session work plan. ## Summary Statement The Minnetonka City Council will review and finalize the 2026 study session work plan. ## Strategic Plan Relatability ## N/A ## Background The Minnetonka City Council is scheduled to hold eleven (11) study sessions in 2026. Study sessions are intended to provide an informal platform for the city council to discuss matters of public policy or interest. In order to maximize these meetings, it is important for the city council to establish a list of items and agree on prioritization. Staff documented topics that have been raised by councilmembers throughout the course of the last year, including recommendations from staff, for the council's consideration. Provided within this report is the list of topics. After this work plan is completed and approved at a regular council meeting in January 2026, at each proceeding study session, topics for the upcoming study session will be provided. 2026 study session items: Annual procedure items: 2026 community survey 2027 council and staff appointments 2027 budget items 2027 Legislative priorities 2027 Strategic Plan action steps 2027 study session work plan ## Housing Zoning rewrite update Items recommended by staff and items submitted previously by council members: Trail, street and project overview Review developer refinancing policy Review council policies/rearrangement of the regular meeting agenda (Click HERE for policy) 214 Short-term rentals/VRBO ordinance Review and status of the public safety master plan implementation/service level objectives Substance regulations Candidate filing fees Group home clustering ## Crypto currency/crypto ATM’s Digital accessibility mandate Purgatory Park – off leash dog review (June) - other dog park locations Marsh operations update - philosophical discussion on recreational amenities (self- sustaining vs community funded) OPUS placemaking ## Drive-thrus Federal/State enforcement concerns locally ## E-Bikes City council discussed the list of topics at the Dec. 15, 2025 study session and began prioritizing topics for 2026 by utilizing Mentimeter. Staff drafted the attached 2026 study session work plan based upon those items that received the highest Mentimeter scores. ## Discussion Questions Does the city council have suggested adjustments to the drafted 2026 study session work plan? ## ATTACHMENTS: ## 2026 Draft Study Session Work Plan ## Mentimeter Results 215 ## JAN. 26  Park board and planning commission interviews  Long-term asset planning ## FEB. 9  2026 community survey planning discussion  2026/2027 Trail, street, and major CIP project review ## MARCH 2  Policy/Ordinance ## Review: ## - Council Policies: - rearrangement of the regular meeting agenda - Substance regulations - Short-term rentals/VRBO ## APRIL 20  2027 director budget presentations  Public safety master plan – implementation review  30-minute open time ## MAY 11  2027 budget kick-off discussion: - Marsh operations - philosophical discussion on funding rec amenities ## - Priority Based ## Budgeting  2026 community survey results ## JUNE 15  2027 Capital Improvement Plan (CIP)  Purgatory Park –off leash dog review ## JULY 20 ##  Economic Improvement ## Plan: - Housing - Review developer refinancing policy - Drive thru’s ## AUG. 17  2027 general fund budget and levy discussion ## - Priority Based ## Budgeting ## OCT. 12 ##  Zoning Code  30-minute open time ## NOV. 16  2027 general fund/enterprise/special revenue fund budget ## DEC. 14  2027 strategic plan action steps  2027 study session work plan  2027 legislative priorities  2027 council and staff appointments 216 ## JANUARY 2027  Boards and commissions interviews 217 ## Please select up to five topics you would prioritize 5 review 2 4 2 2 3 3 4 balat... 1 0 111 1 status of the safety master 0 date filling ## Crypto currend ## ATMSmando ## Purgatory ## Park aash dog rev ## S placemaking ## Drive-thrus ## E-bikes osophicaoncerr ## Mentimeter 6 218 ## City Council ## Agenda Item 3.C Meeting of December 22, 2025 Title:Closed session to conduct city manager performance evaluation; pursuant to Minnesota Statute § 13D.05, subd. 3(a) ## Report from:Moranda Dammann, Assistant City Manager ## Submitted Through:Erik Nilsson, City Attorney ## Presenter:Moranda Dammann, Assistant City Manager ## Action Requested:Motion ## Form of Action:Report Votes needed:4 votes ## Summary Statement The employment agreement between the city and City Manager Mike Funk requires the city council to conduct annual performance evaluations with the city manager in the same manner as other non-union employees. ## Recommended Action Motion to convene in closed session, pursuant to Minnesota State Statute § 13D.05, subd. 3(a), for the purpose of evaluating the performance of City Manager Mike Funk for the evaluation period Jan. 1, 2025, through Dec. 31, 2025. ## Strategic Plan Relatability ## N/A ## Financial Consideration ## No ## Background On June 27, 2022, the City of Minnetonka entered into an employment agreement with Mike Funk as city manager. The agreement requires the city council to conduct annual performance evaluations with the city manager in the same manner as other non-union employees. Minnesota Statutes § 13D.05, subd. 3(a) allows a public body to close a meeting to evaluate the performance of an individual who is subject to its authority. The public body must identify the individual to be evaluated prior to closing the regular portion of the meeting. However, state statute gives discretion to the employee to keep the meeting open. Mr. Funk has expressed his preference to keep the meeting closed. This agenda item will take place during the closed portion of the special study session, therefore it is appropriate the city council conduct the review, which includes goal setting, with the city manager during 219 this time. Minnesota Statutes § 13D.05, subd. 3(a) also requires the public body to summarize its conclusions regarding the evaluation at its next open meeting. The next open meeting is a council meeting scheduled for Monday, Jan. 12, 2026. The mayor will summarize the conclusions during the agenda item 7: ## 'Reports from City Manager & Council Members' After the council approves the motion and immediately prior to going into closed session, the mayor will need to announce the following two statements: 1.) that at the conclusion of the closed meeting, no other regular business of the city will be discussed and that the special study session is adjourned; and 2.) that Mayor Elect Schack will summarize the conclusions of the performance evaluation at the Jan. 12, 2026 regular council meeting. 220