HomeMy WebLinkAbout2020-01-06 Stevens Estate Long Term Advisory Committee Minutes MINUTES: STEVENS ESTATE LONG TERM ADVISORY COMMITTEE JANUARY 6,2020
In Attendance: Chair James Lafond; Members Kevin Driscoll, CJ Gangi,Joseph Pelich,Jennifer Burns-Luz,
John Mabon, and Kathleen Stagno;Staff:Andrew Shapiro (Director of Community and Economic
Development) and Joanna Oullette (Estate Director)
Absent: No members were absent
The meeting was called to order at 7:02PM by James Lafond.
Appointment of Recording Secretary:
Chair Lafond requested that one of the Members of the Committee volunteer to act as Recording
Secretary and produce minutes for each public meeting. Seeing as there were no volunteers, Mr. Lafond
requested that Andrew Shapiro continue to record the minutes until such time that a Committee
Member was identified to become the Recording Secretary. Mr.Shapiro agreed.
Mr. Lafond then asked the Committee Members if there was any interest in electing a Vice Chair for the
Committee. Joseph Pelich said that he would be willing to serve in that capacity if there was support
from the Committee.
MOTION: Jennifer Burns-Luz made a motion to appoint Joseph Pelich as Vice Chair of the Stevens Estate
Long Term Advisory Committee,John Mabon seconded the motion. Vote: 7-0.
Andrew Shapiro then noted that because this was not an item on the agenda, he would post it on the
Committee's next agenda and would request that the Committee vote again to make the appointment
official.
Acceptance of Minutes from 12/23/19 Meeting:
rout e s of I e 1 2L231 to ns Est at L......................./.......................................................................................................................................................................................n T rrn its r mmiitte e mme tin were reviewed b the
Members present.
MOTION: Joseph Pelich made a motion to approve the 12/23/19 minutes as written, Kevin Driscoll
seconded the motion. Vote: 7-0.
Discussion Regarding Estate Operations with Director Joanna Ouellette:
Documents provided/reviewed:
1. P 0 o.kin g Re port
2. ......... i n. s t....
3. Social Events Rates
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4. Rates .s P . .......... y. �.... . .r ...... ............ ! ., ....................... .............. . .....
Chair Lafond introduced Joanna Oullete,the Director of the Stevens Estate. Mr.Shapiro noted that for
context, he provided the Committee with information regarding rates to book weddings and social
events respectively at the Estate, as well as a current report showing bookings for the past year and into
the next year(attached to these minutes).
Ms. Burns-Luz requested that in the future, all documents handed out at the meeting either be posted
with the minutes from that meeting, or prior to the meeting through a link on the agenda. Mr.Shapiro
agreed that he would ensure all future documents are posted publically and provided in advance of
meetings.
Ms. Oullette began her discussion, noting that she has been working at the Estate since July of 2015 and
has over 20 years of experience working in the hospitality industry—events, marketing, sales, etc. She
explained that from years 2015-2019,the Estate has generated over$700,000 in revenue that has been
able to be used for capital improvements. She developed a five-year strategic plan that took into
consideration a pricing strategy and area competition; it balances the ideas that the Estate can be both
an upscale event venue and a place where residents can come to visit, have small gatherings and
reunions. She said that the Estate can be highly profitable. In terms of staff running the venue,there is
herself, a part-time events manager, and casual bartenders. There is no custodian that services the
venue per se.
Ms. Oullette then circulated to the Committee a sheet comparing pricing at comparable venues in the
area (attached to these minutes). She noted that she is four and a half years into her aforementioned
five year plan. In the last three years,three bathrooms have been renovated; levels of service have
improved;the venue successfully competes with other high end properties. Ms. Oullette acknowledged
that local inquiries are way down, as are corporate events. She attributed this to "negative news." She
noted that people and parties that are from further outside of the Merrimack Valley are still booking the
venue. She stopped and offered to answer questions.
Joseph Pelich inquired as to whether the Committee could receive a copy of Ms. Oullette's five year
plan. She said that she would supply it to the Committee. Mr. Pelich said that he and his family have
attended many events at the Estate and he himself has booked it for events; he said that the events are
always run and managed very well. He then asked Ms. Oullette to offer her opinions as to how the
Town could potentially better manage the Stevens Estate and continue to operate it as an events venue,
given the significant capital costs—he referenced the information provided to Committee by Facilities
Director Stephen Foster at the last meeting—required to maintain it, bring it up to code,and even
improve it to make it more competitive. Ms. Oullette said that it costs$670 per day to run the Estate
based on salaries alone. She then said that the fact that the Estate is owned and operated by a public
entity(the Town) brings challenges; paying prevailing wage to contractors, union contracts, etc. If a
private and/or non-profit entity were to manage the venue on the Town's behalf, it could realize
approximately$120,000 per year in savings, based on an analysis that she has performed. This would
also allow the Estate to utilize currently unutilized areas of the Main House, such as the 2nd floor,which
could generate up to$1 million per year in additional revenue if it were to be rented out. Ms. Oullette
went on to note that operation of the facility via the municipality is a severe challenge; other
comparable venues aren't dealing with this. Mr. Pelich then asked if it would make more sense for an
outside organization,such as the Trustees of the Reservation,to manage and operate the facility. Mr.
Oullette again noted that not having operations run through the municipality would be beneficial.
Jennifer Burns-Luz then asked for more specificity about the challenges of running the Estate as a public
entity. Ms. Oullette said that as events are booked,the details and requirements for them change very
rapidly. If,for instance, a client requires something to be procured,the Town has to go through a
specific process of obtaining three quotes to procure those materials. That can be a slow process.
Another example she cited was needing to spend approximately a third more in costs to renovate the
bridal suite bathroom because of the requirement to pay prevailing wage,which would not have been
necessary if the management of the Estate was private. Ms. Burns-Luz said that she wants to better
understand the roadblocks that she is experiencing in managing and running the Estate; she
understands that there are challenges with respect to it running it as part of a municipality; she wants to
know more about staffing issues and resources, and also about any referenced plans for tiered pricing of
events. Specifically, she wanted to better understand Ms. Oullette's idea that if more funding were put
towards staff, and additional staff were hired,that the venue could generate an additional $1 million in
revenue. Ms. Oullette explained that she is the sole full-time employee of the Estate, responsible for
marketing,selling,financial oversight, purchasing, and various other day-to-day duties. There is no
commissioned salesperson. Willowdale for instance,a competitor, has three salespeople and someone
running marketing, in addition to event staff. Willowdale has an over$2 million budget though, but
granted,they charge more for events than does the Stevens Estate. They also have in-house catering,
which is another opportunity to capture more revenue. Ms. Burns-Luz asked where an additional
investment of resources could have the biggest impact. Sales, marketing, and prospecting could greatly
be improved by having additional resources dedicated to hiring staff to cover those aspects; more
corporate clients then could be attracted to book events at the Estate.
John Mabon asked what the end of the five year plan looks like. Ms. Oullette said that another plan
would need to begin once the current one concludes. But on the whole, it would result in being able to
book very high end weddings that bring in significantly more revenue—perhaps up to$40,000 per
weekend wedding—while also being able to have discounted rates for in-town residents. Ms. Mabon
asked what, besides the significant capital challenges is preventing us from getting there? Ms. Oullette
responded by saying that having more resources to hire more people to help in running the property
would be ideal. The budget for repairs/maintenance is$15,000,which limits the amount of work that
can be done to improve the property;that should be higher. The kitchen still has equipment left behind
by Boston University.
Mr. Pelich asked if it was her opinion that the Town should provide additional capital for operating
expenses. Ms. Oullette clarified that the Town does not provide such funds;they are provided through
the Estate's retained earnings (Enterprise Fund). But if$1 million were dedicated to improving the
second and third floors, it would monetize those spaces. Mr. Pelich said that would be a significant
undertaking, so how should the Town approach this issue. Ms. Oullette said that having a third party
lease or manage the Estate could be viable option and the Town could receive a lease payment. Mr.
Pelich agreed with Ms. Oullette.
At this point, Chair Lafond allowed public comment. Don Stewart, 52 Prospect Street, said that the cell
tower currently cited on the property should be generating income that goes to the Estate, not the
Town.
Mr. Lafond said that the Committee would need to understand and vet all sources of potential revenue
for the Estate, and make those known in their recommendation(s)to the Board of Selectmen. He
referenced the catering fee charged to caterers who work events at the Estate. Ms. Oullette
acknowledged that fee and noted that it was a percentage of the bill charged to the client. Mr. Lafond
pointed out that because the fee is being charged, it means that the Estate is generating revenue from
caterers even though the Estate has an in-house caterer. He said that perhaps those fee percentages
could be raised, and he would want to better understand how any/all fees could be enhanced if the
Town were to maintain management of the Estate.
Mr. Pelich asked Ms. Oullette if she was aware of an operating structure whereby a venue would be run
by a non-profit or private entity and managed by a Town official or employee. Ms. Oullette responded
by noting that Glen Magna Farms in Danvers is owned by the Town and operated by the Danvers
Historical Society.
Mr. Gangi inquired as to what the Stevens Estate number one competitor is. Ms. Oullette referenced
the competition study that she had circulated earlier in the meeting and noted "The Commons" in
Topsfield. That venue is owned by the Town but operated by a private vendor. Willowdale is a private,
for-profit, operation. Willow Springs is operated by a private vendor. She listed off a number of other
venues.
Kathleen Stagno inquired as to how Ms. Oullette suggested the rest of the property be operated—the
trails, acreage, etc.? Ms. Oullette explained that currently,the trails are maintained by volunteers and
that schools and other organizations make use of the grounds for programming. Developing the
Carriage House into,for instance, a tea shop, extra bedrooms, or a museum could provide a nice
destination for people walking the grounds. Ms.Stagno said that she would love to see cross country
skiing, snow shoeing and the like be available on the grounds, but she acknowledged that providing such
activities would come down to funding. Ms. Burns-Luz also expressed her support for more engagement
and activities that could be provided on the Estate's grounds, but also noted the challenge in being able
to provide the necessary capital upgrades that the whole property needs.
Mr. Pelich asked Ms. Oullette asked what could or should happen to the Estate given the level of
investment required to make necessary improvements—her vision. Ms. Oullette acknowledged that an
outside entity, such as the Trustees of the Reservation,would most likely be able to make financial
investments necessary to improve the property,while also running it effectively.
Chair Lafond then asked if any present members of the public wanted to comment. Ellen Mosier, 137
Kara Drive, Chair of the Trustees of Osgood Hill, commented that the Carriage House once hosted a
great deal of activity, including Girl Scout functions, classes and conferences. The cell tower could be a
potential source of revenue. There are minutes and correspondence about capital improvements that
are available. The current model does work if there is staff. She explained that she often volunteers,
approximately 20 hours per week. She ended up working the New Year's event. The facility does not
have a dedicated custodian. There are challenges with respect to DPW services not shoveling all areas
of the property. Over the past five years,we have been profitable. If investments are not made,
success will not occur. There is no water line to the Carriage House—this is an issue that needs to be
addressed. She welcomed the Committee to attend Board of Trustees meetings. Mr. Pelich pointed out
that Ms. Mosier seemed to be making a good case for outside management of the Estate,given the
challenges of running it via the municipality.
Ms.Stagno asked for clarity on whether the Estate was turning a profit—there seemed to be conflicting
information. Mr. Shapiro explained that in Fiscal Year 2019,the Estate had approximately$391,234 in
revenues,versus approximately$527,576 in expenses,which included a charge of$120,000 for capital
expenses. That represents a net operating loss of$136,341. Without the capital charge,the loss would
have been approximately$16,000. Ms. Oullette said that a challenge is created when capital expenses
are drawn from the Enterprise Fund's retained earnings as an expense. Mr. Shapiro explained that an
Enterprise Fund must be sustainable and therefore, it must pay for its capital expenses as well as
operating expenses. Chair Lafond noted that the Committee would need to identify revenue sources
that could be tapped that would enable the Enterprise Fund to remain sustainable, if the Estate were to
continue under Town control; he then thanked Ms. Oullette for her participation in the meeting.
Continued Discussion Regarding Community Outreach Process:
Documents provided/reviewed:
1. ...r.....fit ..ur....
Andrew Shapiro explained that he made suggested edits to the survey that Ms. Stagno had drafted. He
said that once the Committee decides on a final set of questions and/or approach to community
outreach, he would want to ensure that the Town Manager agrees with the process and content, given
that the Town would be managing the outreach process via its website and social media accounts.
Ms. Burns-Luz asked for additional clarification about how the Committee was seeking to undertake a
public input process. Mr. Lafond explained that the idea of a survey disseminated in several forms—
electronically, hard copy, etc.—was discussed. The idea of visioning sessions was also discussed,as well
as one-on-one feedback collection via individual Committee Members reaching out to their respective
networks. Ms. Burns-Luz explained that she had been on the Planning Board during the process to
develop the Town's Master Plan, and that an extensive public feedback process was undertaken by a
consultant for that. What she had found helpful was having a meeting where the public could come and
ask questions and provide comments/feedback to the Board; she thought a similar process could be
helpful here. Also, she felt strongly that if the Committee were to not have a robust public feedback
process,that their final product back to the Board of Selectmen would not be well received. Ms. Burns-
Luz also thought that an anonymous email account could be set up to receive feedback from residents,
in an open-ended fashion,to learn more about what people want to see from the Estate going forward,
and it might be more appealing to many who do not want to sit through long meetings,visioning
sessions,or fill out multi-question surveys.
Chair Lafond supported the idea of having a channel for open-ended feedback. Mr. Mabon said that
perhaps the Committee should better understand what it was looking to have answered with the survey
before finalizing its questions, and that it would be challenging to categorize the data received from any
open-ended questions or feedback channel. Ms. Burns-Luz said that she doesn't think it's as important
to categorize or score data as it is to simply provide the opportunity for the public to provide feedback.
Chair Lafond said that the Committee should finalize public outreach methods, perhaps at its next
meeting,to include a survey, an open-ended feedback opportunity, and perhaps a leaflet or other
material that could be included with residents'water bills—something that would reach folks not using
social media or the internet. Mr. Mabon raised the idea of using a QR code. Mr. Shapiro said that he
could draft a landing page for public feedback and encouraged the Committee to send him feedback on
the survey questions.
Discussion Regarding Review of Comparable Facilities:
Documents provided/reviewed:
1. , ,fir she t f c m------------ r hle f ci�Iities
Chair Lafond explained that the document that was provided to the Committee was originally generated
by Laurie Burzlaff. It lists 10 facilities, also owned by public entities. If the Committee wants to seriously
consider continued public ownership and operation of the property,then it should conduct research
about how other facilities such as these are managed. He also added that it could also be helpful to look
at Stonehurst,the Robert Treat Paine Estate. Ms. Burns-Luz said it would be helpful to know if these
venues are profitable and how they are being run, and what their budgets are. Mr. Shapiro said that
doing some qualitative analysis of these venues could also be appropriate to provide more context and
understanding for how they are able to operate.
New/Old Business
Old:Tour of the Stevens Estate:
The Committee discussed respective availabilities for a tour of the Stevens Estate. They agreed that
viewing the Estate during the day would be ideal, and that they would want to have Facilities Director
Stephen Foster lead the tour. Andrew Shapiro would coordinate with Committee, Chair Lafond and Mr.
Foster on an agreeable date for a tour.
Discussion and vote on future meeting date(s):
The Committee discussed potential future meeting dates. Mr. Pelich inquired as to how it might work if
the Committee were to invite a representative of the Trustees of the Reservation—would they need to
go into executive session to discuss sensitive issues. Mr. Shapiro explained that he would need to look
into whether this Committee would have the ability to go into Executive Session. He also noted that at
least some of any conversation with a representative of the Trustees would need to occur in a public
forum. Mr. Pelich said that he would look into availability a representative of the Trustees might have to
come in and have a discussion with the Committee.
MOTION: Jennifer Burns-Luz made a motion to hold the next meeting on Monday,January 27, 2020 at
7pm,Joseph Pelich seconded the motion. Vote: 7-0.
Chair Lafond asked if any Committee members had any other business they wanted to raise. Mr. Pelich
said that it would be good to have someone research Historic New England, as an alternative non-profit
operator to the Trustees of the Reservation.
Adjournment:
MOTION: Kevin Driscoll made a motion to adjourn, Kathleen Stagno seconded the motion. Vote: 7-0.
The meeting adjourned at 9:07PM