Annie Nelson, who oversees the city community center, told a Lake City budget workshop the facility has generated deposits and reservations but operating expenses currently exceed revenues and that staff plan to hand day‑to‑day management to recreation staff next fiscal year.

Nelson said the center brought in about $15,000 in deposits from September through the most recent reporting period; those receipts primarily represent 50% deposits required to hold a room. She described a standard deposit/refund contract: customers pay a 50% deposit to reserve a date, the remaining balance is due 30 days before an event, and the contract states that refunds given less than 30 days before an event are forfeited.

Brandon Carter said the city is "in a red" overall on the center and that the facility is about $75,000 in the hole after several months of operation. Carter said the multipurpose project originally envisioned with county penny‑sales‑tax funds (about $3.5 million allocated for recreation upgrades) was intended to include a gym or multipurpose structure on Blandon Street, and he and other staff said funding for an additional multipurpose facility is currently frozen at the federal level and would likely require restarting advocacy.

Nelson and other staff detailed how the center is now being used: private events, committee meetings, banquets and cultural events; Nelson said she routinely provides tours and that demand is growing, with bookings into 2026. She described the facility's room structure (Sapphire Ballroom, Larva Room and three smaller rooms) and said revenues to date are a combination of completed events and pending deposits.

City staff described operational changes: Nelson, along with two staff members identified as Cynthia and another recreation staffer (Izzard/Isar), will assume management responsibilities for programs and revenue generation beginning next fiscal year. Staff discussed new programming ideas (movie nights, etiquette classes, summer and seasonal programs, senior‑focused events) and partnerships with local organizations (Chamber of Commerce, Black Chamber, Greater Lake City Alliance) to broaden usage and sponsorships.

During public discussion Council members and staff also reiterated that the center was not intended originally as a full gym for competitive youth sports; multiple speakers said a gymnasium and larger recreation facility had been planned for Blandon Street under earlier proposals and that some elements were altered during prior administrations. Several council members urged examining Blandon Street as the more appropriate site for a larger recreation complex.

No formal decision was taken to sell the building; Carter said selling the facility remains an option if council directs it, but staff emphasized they prefer trying revenue, programming and partnership strategies first. Council and staff scheduled follow‑up work to provide more detailed monthly operating costs, final deposit balances, and to present a plan tying programming to projected revenues before any disposition decision.