Maple Grove has reached an agreement with Life Time to take over its athletic club building and use it to expand the city’s community center. In exchange, the city will acquire land for the fitness chain to build a new facility.

City officials on Thursday announced the deal, which includes Maple Grove purchasing 17.5 acres of land for Life Time’s new athletic country club and other mixed-use development, south of Hwy. 610 at the intersection with Interstate 94. The land is part of the broader 100-acre Minnesota Health Village development, anchored by Maple Grove Hospital and medical offices.

Under the agreement, the city would acquire Life Time’s existing 70,000-square-foot building, which is connected to the Maple Grove Community Center. City officials plan to use nearly $11 million in capital funds to complete the deal. Life Time is seeking tax incentives for its new development, which would bring the city’s cost to $17.5 million.

City Administrator Heidi Nelson said the acquisition will add to the city’s $104 million, years-long plan to renovate its community center. The first phase, which is now underway, includes adding a third sheet of ice and expanding parking. Construction is expected to begin next year to renovate the aquatics area.

Voters in 2022 approved a local option sales tax to fund $90 million of the project, with state bonds and private contributions helping pay for the rest.

Nelson said the city could use the Life Time space for its teen center, a gymnasium and fitness equipment. The community center and Life Time already share indoor and outdoor pools. She said once the deal is approved, the city would enter into the design process for the space and finalize more details.

“We are excited to bring the fullest vision of the Maple Grove Community Center project to life,” Mayor Mark Steffenson said in a news release.

While Life Time constructs its new facility, the company would lease its current space so residents can continue using the fitness center. The company has yet to provide details on its plans for a new health club in the Minnesota Health Village area, which will be considered by the Maple Grove Planning Commission at its Nov. 25 meeting. The City Council would then consider the real estate agreement and tax abatement request on Dec. 2.