They claim the proposed pricing structure will undercut the area's existing gym businesses by at least 40 per cent.

In a submission to council as part of the public consultation currently underway, Onelife gym owner Tracy Innes urged council to look closely at prices of the existing fitness centres when making a decision.

"In the recent past whenever a [new fitness] centre opens, another closes," Ms Innes said.

"This is not a made-up statistic from somewhere else, this is what has happened in Batemans Bay over the past 12 years I have owned [Onelife]."

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In response to questions from the Bay Post, a spokesperson said council did not hold price discussions with any service providers in the area as part of the development of the draft fees and charges.

"Council engaged Otium Consulting, an industry specialist, to develop the business case and initial draft fees and charges, which have been reviewed and revised regularly during the project development," the spokesperson said.

"In addition, prior to going out to tender for the operation of the facility, council reviewed a range of facilities to consider the current range of services, programs and prices in the market.

"These included leisure centres (Ulladulla, Kiama, Chermside, Ballina), theatres and galleries (Orange, Griffith, Shoalhaven), as well as local and regional gyms."

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Yet the gym owners were adamant if council were to charge the proposed fees in a private commercial facility, it would not make a year of trade before going bankrupt.

As a result, they claimed council was in breach of Section 45 of the Australian Competition and Consumer Act which prohibits contracts from lessening competition in a market.

"It is our respectful submission that if the proposed contact or the fitness centre is to be entered into with a company, that contract would be in breach of Section 45," Ms Innes said.

"[It] would not be in the interests of the community given council funding will no doubt be used to subsidise the facility."

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While council would not confirm whether it would subsidize entry fees to the Bay Pavilions fitness facility, a spokesperson said the costs of a range of services already provided by council such as swimming pools, sporting fields and tennis courts were offset by fees, contributions and sometimes grants.

"The level of offset required is dependent on how much community members use the facility or service and operational costs," the spokesperson said.

"Aligned Leisure has been awarded the contract [of] the Bay Pavilions as one facility, with specific service areas within.

"The cost of running the facility will include management and general customer service as well as specialist staff all operating as one business unit, not separate businesses."

There are more than 80 proposed fees and charges for the fitness centre, pool and theatre space at the Bay Pavilions.

The closing date for submissions from the public is Wednesday, September 22 at 4pm.

Visit the council website for details on how to make a submission.