A Gulf Shores public-private project built at the Alabama Gulf Coast Sportsplex will become a purely public venture as the city moves to take over the financially struggling but popular sports center.

“There was huge community interest and a lot of activity,” Director of Recreation and Cultural Affairs Grant Brown said. “Unfortunately, the original business model did not generate enough revenue to sustain the facility, the expenses and the cost of the financing. Operating expenses consistently exceeded income. The lease obligation to the board could not be met.”

With the city now in charge of that lease, it is looking at spending more than $600,000 a year to make the bond payments and is looking at substantial costs to improve the facility for different recreational uses. City council will consider taking over the facility at its regular session meeting on Nov. 10 at 4 p.m. at city hall.

The four-gymnasium complex was built to foster a thriving volleyball community in Gulf Shores. It includes five commercial spaces and outdoor sand volleyball courts.

“We would rent the facility from the board in an amount equaling the debt service annually, which is $633,000 a year,” Brown said. “Additional capital investment of nearly $1 million would be required to purchase equipment and make some facility improvements to turn it into more of a city-use facility, including purchasing cardio equipment, strength training equipment, installing adjustable basketball backboards.”

Annual operating costs would be $636,000 for maintenance, insurance, utilities and staffing, Brown said.

According to Brown, the Public Park and Recreation Board took on debt and issued bonds of more than $8 million to build the facility inspired by resident volleyball enthusiast Shawn Weaver.

“Shawn built an amazing facility,” Brown said. “We propose assuming the operation of the complex, converting it to a fully owned, city-managed and operated recreation facility. This transition will allow our city to establish this lease, which protects our investment and ensures the uninterrupted access to the facility. It safeguards the ongoing bond repayment schedule. We're obligated to pay off the note. It was roughly an $8 million note over a 30-year period and fulfill this identified recreation and wellness need.”

Part of the city’s future master plan north of the Intracoastal Waterway is for more recreation opportunities in the growing neighborhoods of northern Gulf Shores. Brown said the Gulf Coast Sports Center will address current recreation needs for the city.

“By integrating the Alabama Gulf Coast Sports Center into our rec program, it will address this explosive population growth in north Gulf Shores,” Brown said. “It provides relief to the overcrowding gym and fitness components to the Bodenhammer Recreation Center. We have nearly 400 children that have signed up to play in our recreation basketball season, and we are extremely short of gym space. This four-gymnasium complex will not completely solve, but mostly solve, our issues related to the city's use for gymnasium space.”

Initially, that main focus was for the Coastal Gateway Park on Coastal Gateway Boulevard, or formerly County Road 8, located about halfway between State Route 59 and the Foley Beach Express. The city produced ambitious plans for the park including spaces for a possible fire station as well as an elementary school.

In September of 2023, a $17 million plan was presented on two components of the new park by Ryan Collins with DixHite & Partners containing “a competition pool, covered seating and restroom building, concessions, a signature splash pad and pavilion” on the 127-acre property.

“We were scheduling to do this in conjunction with Coastal Gateway Park, which added significantly to the expense,” Brown said. “Now with moving this over here - not expected, but an opportunity to relocate it there - it makes Coastal Gateway Park much more viable to happen sooner rather than later. So, there's a lot of moving parks in here that make this very much a great opportunity that we decided to have the opportunity to take advantage of.”

Part of the property would also be used for a planned north-south connector road between Foley and Gulf Shores from Brinks Willis Road north to Oak Road East or County Road 6 on the south.

Five commercial spaces are currently occupied at the center by MVP Fitness, MVMT Pilates and Wellness, Refined Physical Therapy and Performance, Movement Myotherapy Massage and Beach Bumz Café.