Moves by the city’s recreation department to offer treadmills, elliptical equipment and personal trainers for free at the Civic Centre, have the owners of “The Gym” concerned about the city making a moving into their territory and potentially jeopardizing their business.
Richard Lutz appeared in front of city council on Monday evening, speaking on behalf of the two owners of the downtown fitness centre (located kitty corner to city hall as irony would have it) to express their concern over the incursion into the world of fitness training.
Linda Marshall-Lutz and Joe Gaber, the owners of The Gym first approached the city back in 2005 when thy heard rumours that the City was about to enter into competition with their centre. At that time, they believe they understood from Victor Kumar the then city administrator, that the city would not be a competitor for the sweat socks of the city’s treadmill aficionados.
During their presentation to council they outlined how two other fitness centres have recently gone out of business in the city which they attributed to the city’s declining population base, they also pointed out that the long rumoured promise of an increased population hasn’t yet materialized which is adversely affecting the city’s retail base.
Their concern is that in a time of financial struggles for many small businesses, to have the city offer for free, the same services that they charge a fee for will have a detrimental affect on their business and result in unemployment for some of their workers.
The contentious issue of free passes to the civic center for fire and police personnel also was raised in the course of the discussion, with residents wondering why the civil servants will receive free admission while the taxpayers are actually having their fees increased.
The Daily news provided some background on the situation as part of Thursday’s paper.
Free passes have gym owners in sweat
The Gym complains to council that civic centre is in direct competition
By Leanne Ritchie
The Daily News
Thursday February, 28, 2008
Pages one and five
The city of Prince Rupert is facing allegations that it is trying to muscle in on the fitness business.
On Monday night, the owners of the city’s only remaining private fitness facility, The Gym, appeared before council to ask why the civic centre has purchased treadmills and elliptical equipment, and is offering personal trainers and orientation for free, in direct competition with The Gym.
Richard Lutz, spoke on behalf of the business’ co-owner Linda Marshall Lutz and Joe Gaber. He said they met with former city administrator Victor Kumar three years ago when they heard rumours that the city’s civic centre was going to enter into competition with The Gym.
“Since we had recently gotten in to it, we were concerned that would jeopardize our business,” said Lutz.
“We left that meeting with the understanding we were not going to have competition with the city…”
However, with the recent addition of equipment and the option of personal trainers and professional orientation, the city has entered into direct competition with the private 7,000 square-foot facility.
“We would like to reiterate, this is what our business is and we consider this in direct competition with our business and we are concerned with that,” said Lutz.
He noted that in the past several years, two gyms have gone out of business, including The Club and Curves, alongside the population drop.
“Is it city council’s intention to put us out of business by competing with us by offering services we sell, for free, at the civic centre?
They, like many other business owners in town had been hoping that the advent of the container port might bring an upward population shift. Unfortunately, the present container port activity had done little to boost retail business.
They also expressed concern that the city was offering free passes to RCMP and firefighters, another point of contention.
In and earlier interview with the Daily News, Prince Rupert Mayor Herb Pond said the rational for implementing the free passes was to try and increase the presence of uniformed personnel at the civic centre in order to reduce vandalism and increase staff’s sense of safety during the evenings.
However, the program has been called into question, given the recent rate increase that has occurred for civic centre services.
“We are not concerned if you want to offer that (free passes) for other services at the civic centre, if you want to play basketball or hockey or whatever… but when it competes with us, that’s where we are concerned,” said Lutz.
“We have employees that are going to lose jobs and we have a business that is also jeopardized.”
Local resident Charlotte Rowse also questioned the city’s commitment to local businesses, and the decision to offer free passes to the city’s emergency personnel, while at the same time, raising rates for seniors.
“Aren’t we supposed to support local businesses? We’ve got enough empty stores on Third. It is beginning to look a bit much. And none of these people (RCMP, fire fighters) need free passes. I think the firefighters have their own gym,” she said. “And to top it off, the rates for the seniors went up. But the real thing is – support your local business. You are not doing that.
Pond noted that, so far, only seven people have taken the city up on the offer of a free pass. Staff will look into the issue and report back to council.
This is not the first time the city has been accused of stepping on the toes of local business. In the past, local jewelers have expressed their concern that the Museum of Northern B. C. gift shop was getting a free ride on taxes.
This year is the first year that neither the gift shop nor rental properties within the museum buildings will be tax exempt.
Richard Lutz appeared in front of city council on Monday evening, speaking on behalf of the two owners of the downtown fitness centre (located kitty corner to city hall as irony would have it) to express their concern over the incursion into the world of fitness training.
Linda Marshall-Lutz and Joe Gaber, the owners of The Gym first approached the city back in 2005 when thy heard rumours that the City was about to enter into competition with their centre. At that time, they believe they understood from Victor Kumar the then city administrator, that the city would not be a competitor for the sweat socks of the city’s treadmill aficionados.
During their presentation to council they outlined how two other fitness centres have recently gone out of business in the city which they attributed to the city’s declining population base, they also pointed out that the long rumoured promise of an increased population hasn’t yet materialized which is adversely affecting the city’s retail base.
Their concern is that in a time of financial struggles for many small businesses, to have the city offer for free, the same services that they charge a fee for will have a detrimental affect on their business and result in unemployment for some of their workers.
The contentious issue of free passes to the civic center for fire and police personnel also was raised in the course of the discussion, with residents wondering why the civil servants will receive free admission while the taxpayers are actually having their fees increased.
The Daily news provided some background on the situation as part of Thursday’s paper.
Free passes have gym owners in sweat
The Gym complains to council that civic centre is in direct competition
By Leanne Ritchie
The Daily News
Thursday February, 28, 2008
Pages one and five
The city of Prince Rupert is facing allegations that it is trying to muscle in on the fitness business.
On Monday night, the owners of the city’s only remaining private fitness facility, The Gym, appeared before council to ask why the civic centre has purchased treadmills and elliptical equipment, and is offering personal trainers and orientation for free, in direct competition with The Gym.
Richard Lutz, spoke on behalf of the business’ co-owner Linda Marshall Lutz and Joe Gaber. He said they met with former city administrator Victor Kumar three years ago when they heard rumours that the city’s civic centre was going to enter into competition with The Gym.
“Since we had recently gotten in to it, we were concerned that would jeopardize our business,” said Lutz.
“We left that meeting with the understanding we were not going to have competition with the city…”
However, with the recent addition of equipment and the option of personal trainers and professional orientation, the city has entered into direct competition with the private 7,000 square-foot facility.
“We would like to reiterate, this is what our business is and we consider this in direct competition with our business and we are concerned with that,” said Lutz.
He noted that in the past several years, two gyms have gone out of business, including The Club and Curves, alongside the population drop.
“Is it city council’s intention to put us out of business by competing with us by offering services we sell, for free, at the civic centre?
They, like many other business owners in town had been hoping that the advent of the container port might bring an upward population shift. Unfortunately, the present container port activity had done little to boost retail business.
They also expressed concern that the city was offering free passes to RCMP and firefighters, another point of contention.
In and earlier interview with the Daily News, Prince Rupert Mayor Herb Pond said the rational for implementing the free passes was to try and increase the presence of uniformed personnel at the civic centre in order to reduce vandalism and increase staff’s sense of safety during the evenings.
However, the program has been called into question, given the recent rate increase that has occurred for civic centre services.
“We are not concerned if you want to offer that (free passes) for other services at the civic centre, if you want to play basketball or hockey or whatever… but when it competes with us, that’s where we are concerned,” said Lutz.
“We have employees that are going to lose jobs and we have a business that is also jeopardized.”
Local resident Charlotte Rowse also questioned the city’s commitment to local businesses, and the decision to offer free passes to the city’s emergency personnel, while at the same time, raising rates for seniors.
“Aren’t we supposed to support local businesses? We’ve got enough empty stores on Third. It is beginning to look a bit much. And none of these people (RCMP, fire fighters) need free passes. I think the firefighters have their own gym,” she said. “And to top it off, the rates for the seniors went up. But the real thing is – support your local business. You are not doing that.
Pond noted that, so far, only seven people have taken the city up on the offer of a free pass. Staff will look into the issue and report back to council.
This is not the first time the city has been accused of stepping on the toes of local business. In the past, local jewelers have expressed their concern that the Museum of Northern B. C. gift shop was getting a free ride on taxes.
This year is the first year that neither the gift shop nor rental properties within the museum buildings will be tax exempt.
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