Decision delayed on fitness facility at Newmarket's Magna Centre

Yorkregion.com
Dec. 21, 2015
By Chris Simon

Newmarket council will not decide the fate of the Magna Centre restaurant before the end of the year.

Council deferred a decision on plans to convert the restaurant at the Mulock Drive recreation complex into a town-operated fitness facility until January. The delay comes after the current restaurant operator, Sabrina's Pizzeria Bar and Grill owner Sabrina Rezaiy, made an impassioned deputation to council Monday, asking the town to rethink its proposal.

"We built a strong customer relationship, expanded our menu and offered package deals to hockey teams," she said, noting news of the restaurant closure is already negatively affecting business. "We build a strong, loyal base of customers. During all these years of business, we've had no major complaints, health inspections are up-to-date and rent is always on time with no default in payment."

The restaurant has had a working relationship with the town for nearly nine years, Rezaiy said.

Should the town plan be approved as presented, the space would be transformed into a teaching kitchen and 2,500 to 3,000-square-foot fitness area.

A fitness facility would be membership-based, though day passes would be available. A cardiac rehab membership would also be created, in partnership with Southlake Regional Health Centre, to aid patient recovery. Membership fees would also be competitive within the existing marketplace and a financial assistance model will be introduced to help needy residents afford entry.

By the third year of operation, the Magna facility should generate more than $105,000 in net profit. It could accommodate 3,000 members, though the financial structure is based on a “conservative” nearly 1,400, recreation and culture director Colin Service said.

The town currently leases the restaurant space for about $35,000 per year. But the restaurant and concession space has consistently struggled, with the current leaseholders regularly requesting a reduction in rent, Service said.

Rezaiy disputes the restaurant is "struggling" or seeking lower rental rates.

"This seems like an attack on my business," she said. "(Service’s) report does not have any information on whether a gym would be successful over my business operations. This was not professional."

Some councillors have also expressed concern over the profitability of a municipally run fitness centre and the implications on private venues in the area.

However, council needs to decide on the matter fairly soon because the lease is set to expire at the end of May. Start-up money also needs to be allocated in the 2016 capital budget so the facility can be constructed in time for the critical January sign-up period that comes after New Year's resolutions are made. It would cost about $300,000 to convert the space, Service said.

The desire for a fitness facility at Magna was also expressed through the recently approved Recreation Playbook master plan document, he said.