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SARC must succeed without competing with private clubs

Published on Thu, Dec 10, 2009 by Kristin Lamoure

Read More Guest Opinion

Legitimate choice and competition in the private business sector is favorable for consumers. But when taxpaying businesses are seen as "competitive encroachment" by nonprofit agencies that were built with donations and taxpayer dollars, ultimately the community suffers.

This is particularly true in the case of facilities that promote wellness and physical activity.

New gyms, martial arts and dance studios in town have given community members lots of choices for fitness. These private businesses also hire quality people at higher wages and pay taxes. Memberships have increased at all locations. That means more people than ever are making decisions to become fit. Therefore, these businesses benefit the physical and economical health of our area.

So I am always surprised when I read articles and letters quoting recent SARC candidates who seemed threatened by these local, private ventures. Some candidates recommended that SARC aggressively copy and "compete" with these taxpaying businesses.

They spoke of proposals to use SARC's $1,000,000 surplus and nonprofit status to attempt to imitate every current fitness program already in the community, including class types, 24/7 access, pricing and more. SARC has attempted to imitate some programs already.

"Fear of losing revenue" is the reason given for these attempts and recommendations for mimicking existing businesses. But these actions create unfair competition with private businesses that were not originally set up with taxpayer dollars.



Public vs private

If these businesses decided to close, the SARC board may relax their concerns of solvency. Yet a government-run entity can never completely imitate the positive results of a focused, fully invested private business owner. So they shouldn't try.

If SARC became the only choice for indoor physical activity, incentives to improve would disappear, prices would increase and fewer people would become fit as a result of reduced choices.

It is important for SARC patrons and citizens to remember that private fitness facilities started their ventures by offering programs, ideas and equipment not already existing at SARC. As an owner of a local gym, my goal never has been "competitive encroachment" of SARC, as some have suggested. Even Susan Sorensen, a re-elected board member, stated that we "filled niches and that is why (we) have grown."

SARC does need to maintain a desirable facility to stay solvent. I believe this can and should be done by filling niches that private businesses cannot do. Providing a place where families can play and swim seems to be synonymous with a facility managed through a park district. A family friendly facility could be its greatest draw.



Nonprofit advantages

From my research, it appears that SARC was not built to be a fitness center, but a recreation center and community pool. When the SARC board openly tries to copy or compete against the already existing programs of other taxpaying fitness businesses, they are clearly out of bounds for their nonprofit status.

This nonprofit status gives SARC clear financial advantages over taxpaying businesses. These advantages should never be used as a competitive edge against private fitness ventures.

SARC may be self-maintaining through current dues, but it has a $1,000,000 surplus resulting from previous levies and donations. Comparably, private business operates with a much smaller capital budget.

SARC has no rent because a bond built the facility. SARC does not have the tax liability of a private business. SARC has more visibility than its so-called "competition."

Because SARC is a taxing park district, it receives year-round free exposure through government phone listings, street signage and frequent news coverage.

SARC also saves on accounting fees, as the parks department serves as treasurer.



Public purpose paramount

Citizens should remember that SARC is a nonprofit tax district institution. As such, it must serve a public purpose. This does not include competing with local private businesses.

When I was an employee there, my checks were signed by the Clallam County Parks Department. SARC may be self-maintaining, but it is a government entity. It has a publicly elected board, chosen to represent the needs of all in the entire taxing park district, whether they are members of SARC or not.

Because of its nonprofit status, SARC cannot promote any private business. But it also should not be competing against any business that supports efforts to bring health and vitality to this area.

I applaud the SARC board's efforts to maintain a treasured facility without further tax burdens. While improvements may need to be made, they should not be haphazard reactions to imitate other local fitness business ideas, panicking every time a new facility opens. More focus on SARC's role as a family friendly recreation facility, serving the entire public of this district, will keep SARC solvent and attract community support. To truly "strengthen the community," as SARC's motto suggests, the board must avoid actions designed to unfairly hurt facilities that are doing a great job of that kind of strengthening already.



Kristin LaMoure is a certified personal trainer and fitness instructor with 25 years' experience. She owns the Sequim Gym.



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