City Introduces Lease Agreement with Swim Inc. for New Outdoor Pool Operations

Proposed operating arrangement maintains nonprofit management while establishing city oversight and protections

Worthington City Council introduced an ordinance Monday night that would authorize a lease agreement with Swim Inc. to operate the city's new outdoor pool facility once construction is complete. The arrangement mirrors the city's relationship with the McConnell Arts Center, where the city owns the facility but a nonprofit organization handles day-to-day operations.

The ordinance is scheduled for a public hearing on December 8, 2025.

Why a Lease Instead of a Management Contract?

City Manager Robyn Stewart explained the rationale: "Our proposal to the voters was to keep us out of the day-to-day operations of the pool and out of an operating subsidy."

Under a typical management contract, the city would pay a company to run the pool and absorb any operating losses. Under this lease arrangement, the city owns the land and facility, but Swim Inc.—the nonprofit that has operated Worthington's pool for 70 years—handles programming, operations, and day-to-day maintenance, covering their costs through user fees.

This means Swim Inc. will set membership and usage rates at levels sufficient to cover operating costs, without requiring taxpayer subsidies. Council Member David Robinson noted that Worthington's current membership rates are "almost twice as much as Dublin." Stewart confirmed this reflects the subsidy model difference: "Those cities put more money into their pools."

Key Lease Terms

Responsibilities:

  • Swim Inc. handles day-to-day operations, programming, staffing, and routine maintenance
  • The city handles major systems maintenance including HVAC, buildings, and major infrastructure
  • The pool remains a public facility with continued swim lessons available

Three-Tiered Rate Structure:

  • City of Worthington residents pay the lowest rates
  • Worthington School District residents (outside city limits) pay at least 15% more
  • Non-residents of the school district pay at least 15% more than district residents

Financial Provisions:

  • Annual lease payments of $10,000 begin in December 2031 (five-year delay from pool opening)
  • Swim Inc. must provide annual financial statements and audit reports
  • If Swim Inc. maintains reserves at 50% of average annual operating expenses, the city may request additional payments

Oversight:

  • The city has two seats on the Swim Inc. board (established in 2025)
  • City representatives participated in a board retreat focused on nonprofit best practices
  • Swim Inc. invited the Red Cross to evaluate and enhance training and certification protocols

Coordination:

  • Swim Inc. must coordinate with Worthington Schools on scheduling large events due to shared parking and access
  • The nonprofit currently also manages the school district's natatorium

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Why the Five-Year Delay on Lease Payments?

The delayed start for lease payments reflects several factors:

  • No outdoor pool operations during summer 2026 due to construction
  • Swim Inc. is fundraising and contributing to fixtures and components not covered by city funding
  • The organization's financial reserves are expected to be low by the time the new pool opens

The delay allows Swim Inc. to rebuild reserves before making lease payments to the city.

Termination Provisions

The lease includes multiple scenarios where the city can terminate the agreement:

  • Swim Inc. declares bankruptcy
  • Failure to maintain nonprofit status
  • Inactivity for more than six months
  • Ceasing to manage the high school natatorium (the city would evaluate whether this impacts outdoor pool operations)
  • Breach of lease terms
  • Mutual written agreement
  • Upon 180 days written notice by either party

Council Member Robinson initially expressed concern about the city's ability to terminate the lease, but was satisfied when City Manager Stewart confirmed the city can exit with 180 days notice without requiring mutual agreement.

What Residents Should Know

The city closed on the purchase of the pool property from Worthington Schools last week, officially taking ownership of the footprint where the new facility will be built. With the construction appropriation also approved the same evening, the project is now moving forward on multiple fronts.

Residents with questions or concerns about the operating arrangement will have an opportunity to provide input at the public hearing on December 8, 2025.

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