The city is spending $113,000 to buy sports equipment at the Canada Games Centre from Peak Fitness.

Details of the announcement that Peak was pulling out of the Games centre, and the price tag of the sports equipment which is being paid out of a budget earmarked for a city project, emerged Wednesday.

That followed information coming out of city hall Monday evening that the negotiations between the two parties were 'confidential' under the Municipal Act.

Senior management said Monday the price for the equipment was being kept secret at Peak's request.

In an interview this morning, Peak owner Lee Randell said he's not sure why city officials kept the information secret.

'I don't remember it that way at all; (the price paid for the equipment) was certainly no concern of mine,' he said.

'I think that people should know what they're paying for.'

The price the city paid for the equipment, he added, was less than what Peak had paid for it.

Randell said he did not want to comment on the exact price Peak originally paid for the equipment.

The sports equipment includes eight stairmasters, eight stationary bikes, six elliptical machines, four rowing machines, six treadmills, two universal gyms, two stacks of handheld weights, four workout benches and four padded workout chairs. It's located in the Canada Games wellness centre (weight room).

Peak and the city inked a deal on March 15, 2005 which called for Peak leasing equipment to the city for a share of the profits from the Games centre's monthly pass sales.

The contract was scheduled to end on Aug. 1, 2008.

Randell said he had asked the city to pull out of the contract because the Canada Games Centre was not getting as many people signing up for monthly passes as was originally projected.

According to the agreement, Peak was to receive 'five per cent of the revenues ... of the total monthly membership until such time as the total monthly membership exceeds 1,900 members.'

Once monthly membership sales exceeded 1,900, according to the contract, Peak was to receive seven per cent.

If memberships exceeded 2,000, Peak was to receive 10 per cent of the revenues.

According to Linda Rapp, the city's Parks and Recreation Department manager, monthly memberships at the Games centre have peaked at an average of 1,500.

'Over the summer, it dropped to a low of about 900 ... we're anticipating that those numbers will go back up,' Rapp said this morning.

City manager Dennis Shewfelt said the decision to release the information comes after a city legal review and 'misleading' reports that appeared in the media this week.

'Our lawyer told us there was no reason from a legal perspective to withhold that information now that negotiations had concluded,' Shewfelt said, '(also) information that came out in the press was misleading.'

City officials felt that media reports, Shewfelt explained, may have led Whitehorse citizens to believe Peak was receiving the entire $250,000 previously budgeted for the construction of a staircase between the Games centre and the Mt. McIntyre Recreation Centre.

'We felt that reports in the press were misleading.'

While Peak's $113,000 is coming out of the staircase budget, Shewfelt added, other parts of the budget were being used on things such as leasehold improvements at the Games centre.

The staircase project, Mayor Ernie Bourassa said earlier this week, was cancelled earlier in the summer.

The city considered the cost of the equipment to be a good deal, Shewfelt added.

'The settlement price of $113,000 is less than what it would have cost us to replace the equipment.'

The equipment will also receive full maintenance and service inspection by the manufacturer, he added.

'The warranty is also being transferred to us.'

Shewfelt said while the city may consider hiring a person to look after the wellness centre, having people look after the area would likely be achieved through a staffing adjustment.

Mayor Ernie Bourassa said this morning he didn't understand Randell's comments. 'That's news to me. He wanted it kept private as far as I'm aware.'