New London ― The city hopes to select an operator for its new community and recreation center later this year who will be responsible for overseeing the $40 million facility and making it financially self-sustaining within four years.

A request for proposal issued on Aug. 1 solicits bidders for the running of the as-yet-uncompleted 57,000-square-foot center located on the Fort Trumbull peninsula.

“Management of the (center) will be aggressively entrepreneurial to creatively generate revenue to offset the cost of operations and cross-subsidize the cost of programs and services for low- and moderate-income New London residents,” the bid documents state, adding revenue is expected to be collected via membership fees, corporate sponsorships, programming and donors.

The city lists several priorities for the new center, with the needs of New London residents and youth-oriented programming at the top of the list. The operator is expected to work with city officials, specifically those at the recreation department, to develop programming, membership and marketing strategies.

The bid package includes a financial model originally produced with a 2023 opening date in mind, though the center is now slated to welcome guests in July 2025. Despite the later opening date, the basic cost, revenue and membership projections and goals are still generally accurate, said Felix Reyes, the city’s director of planning and economic development, on Friday.

One model has costs for the facility’s first year of operation, including payroll, advertising, supplies and utilities, estimated at $1.76 million. It also expects to collect $1.15 million in revenue through admission and membership fees, along with rental, vendor, sponsorship and donor money ― a $607,000 loss.

By year four, the city expects center operating expenses to rise to $1.92 million and revenues to increase to $2.15 million, generating a $229,000 profit. Reyes said the city’s revenue expectations and length of contract terms will be hammered out during initial contract negotiations.

Reyes said it will be the job of the operator, who will be designated as a city department head, to figure out how to bring in enough revenue by the center’s fourth year of operation to offset expenses.

“We’ll present them with a model and our goals,” he said. “They don’t have to follow that model exactly, but we want them to get to that revenue finish line.”

Reaching that break-even financial ratio is partially predicated on steady membership growth.

Models break down visitors into two main categories: those residing within a 15-minute drive of the center and those up to 30 minutes away.

Participants are further identified as “frequent,” who are largely expected to buy annual passes; “occasional,” those purchasing either monthly or daily passes; and “infrequent” visitors, those almost exclusively buying daily passes.

Annual attendance for year one is expected to reach 162,000 and jump to 356,700 by 2028. Reyes said those figures were arrived at during a market analysis study that examined area income, employment and travel data.

The center will feature a two-court gym, fitness center and eight-lane pool, along with office and community space.

Bid proposals are due on Oct. 11 with an operator anticipated to be chosen by late fall.

j.penney@theday.com