Case Study 2.2 Wrecking the Rec Center Strong Lives, a regional nonprofit, operates the recreation center for the Minnesota town of Forest Lake. The city subsidizes the center's operation and residents who join pay a membership fee. The facility houses cardio and weight equipment, a swimming pool and teen center, exercise classrooms, and a large community room. Low income residents pay less for their memberships, which are subsidized through donations. Those with physical and mental disabilities use the equipment weekly. Members can take a variety of exercise and health classes and a number of community groups (Alcoholics Anonymous, ALANON, book clubs, job- seeker groups, mental health support groups, seniors) make regular use of the large meeting room. A survey found strong support for the recreation center, with 80% of the town's residents approving of current operations. When Strong Lives' 20-year contract with Forest Lake came up for renewal, the mayor and several city council members objected to continuing the partnership. They claimed that too much of the money paid by the city went to support Strong Lives operations in other towns. They argued that the town could reduce its costs by contracting with a private health club like Planet Fitness or Gold's Gym. The council then solicited bids for the new contract. The winning (lowest) bid came from Northern Healthy, which operates a network of private health clubs in the upper Midwest. Strong Lives came in second. In order to operate at reduced cost, Northern Healthy would eliminate programs for special needs and low income residents and would convert the community room into additional work out space. Membership rates would increase. Most of the current employees would be replaced and new ones hired at reduced salaries. Reaction to the council's decision was fast and furious. Opponents bombarded council members with e-mails not only protesting the membership fee increase but pointing out that the recreation center was really a community activity center and that service to the needy would end if Northern Healthy took over operations. The council held firm, however, defending its decision based on the potential cost savings. Frustrated with the mayor and those who voted for the new contract, the opposition launched a successful recall drive. The mayor and her supporters were removed from office. The new mayor and replacement council members cancelled the contract with Northern Healthy and renewed the agreement with Strong Lives