Common Questions about The Wartburg-Waverly Sports & Wellness Center

Why did the college partner with the City of Waverly to build The W?

The College’s athletic building (Knights Gym) and physical education center (PEC) had outlived their useful life and needed significant repairs or replacement. The City of Waverly wanted a recreation center, but needed help.

The College and the City agreed to partner on a joint-use facility, giving both entities the opportunity to be more efficient with resources. Although we worked jointly with the City, The W is simply a part of the College’s overall operations, not a separate legal entity.  

How is the facility different than what the college might have built on its own?

Not considering community needs, the college would have required a facility of at least 140,000 square feet. The entire cost of building and operation would have fallen on the College.

Using 140,000 square feet as a minimum for the College’s share means the College built an additional space of approximately 55,000 square feet to accommodate community members and needs. Students, faculty, and staff also use this additional space.

Didn’t building a bigger facility than the college needed increase the cost?

It is anticipated that the College will recoup all of the costs associated with the extra space, and earn much more beyond that in revenue, over the life of the debt. Partnering with the City and providing community programming is expected to net approximately $8 million beyond the original costs of building, maintaining, and operating the additional space and programming. The College is in the process of refinancing the debt, and if it is successful, this number will increase to at least $9 million.

What financial commitment did the City make to operate The W?

The City agreed to pay the College $150,000 per year for eight years, for a total of $1.2 million, to operate a portion of the community’s parks and recreation program. The last year for this payment is 2014-15. It also committed $600,000 per year for eight years, for a total of $4.8 million, as a revenue guarantee for community memberships and programs. The last year for this payment is 2015-16.

What other commitments have contributed to the building and operational costs of The W?

The State of Iowa provided a $666,000 Cultural Attraction and Tourism (CAT) grant, because the facility is open to the public.

Waverly Light and Power committed $120,000 per year for 15 years, for a total of $1.8 million, to secure the CAT grant.

A student fee was increased to help cover the costs of providing such a facility to our students.

Many gifts from individual donors were received.

What were the original revenue projections for membership fees from community members?

Community-related revenues have fallen short of yearly estimates made in 2005, before the facility opened. The revenue that has not materialized would have helped fund the College's portion of the facility.

As an example, the projections for the fiscal year ending May 31, 2014, were approximately $2.2 million, while actual community-related revenues were approximately $0.9 million, or $1.3 million less than projected. In each of the first eight years of full operation, $600,000 of the shortfall amount is being covered by the City’s revenue guarantee. Less activity also has meant lower costs.

What will the College do when the $600,000 revenue guarantee from the City goes away after 2015-16?

The college was able to set aside gifts from fundraising efforts begun when plans for The W were first announced. The college intends to use some of those gifts to help offset the expiration of the guarantee while incrementally building a replacement $600,000 into the budget over a four-year period.

Has the College overcommitted resources to The W?

The W has never been a separate operating entity and was never expected to fund itself; no other building on campus does so. The space and programming beyond the College’s needs is not only paying for itself, but is bringing in millions to help pay for the rest of the facility.