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HomeMy WebLinkAbout2020-03-09 Stevens Estate Long Term Advisory Committee Minutes MINUTES: STEVENS ESTATE LONG TERM ADVISORY COMMITTEE: MARCH 9, 2020 In Attendance(via Google Meet and telephone): Chair James Lafond; Members Kevin Driscoll, Kathleen Stagno, CJ Gangi,John Mabon, and Jennifer Burns-Luz; Staff: Andrew Shapiro (Director of Community and Economic Development) and Joanna Collantine (Director of the Stevens Estate) Absent: Members Joseph Pelich Call to Order Chair James Lafond called the meeting to order at 7:01pm and acknowledged all Members present at the meeting Selection of Volunteer Recording Secretary: CJ Gangi volunteered. Acceptance of Minutes from 2/27/20 meetinp. MOTION: Kathleen Stagno made a motion to approve the minutes from 2/27/20, Kevin Driscoll seconded the motion. Vote: 5-0. Continued discussion with Estate Director Joanna Collantine regarding the current operating model of the Stevens Estate 1. Pricing Srae —developed by the Estate Director 2. Strategic Plan—developed by the Estate Director 3. Case Study—developed by the Estate Director *Ms. Burns-Luz arrived to the meeting. Ms. Collantine, who noted that she has a background in marketing and sales, began to cover the "Pricing Strategy" document, which she says she began to initiate in 2015. She noted that the Estate has a liquor license and sells alcohol, which is unique for a municipal venue and does much to enable the Estate to generate income in unique ways. Weddings used to average between $9,000 and $10,000, now income generated can is more like$13,000 to $14,000, as high as$21,000. There are certain events happening on an annual basis, but the Estate (namely the Director) needs to pursue new weddings to be booked throughout the year, every year. As the Estate continues to invest in upgrades (bathrooms for instance), it can justify price increases to its rates in order to generate more revenue. The social event market (birthday parties, reunions, etc.) is growing. Those bring in $750-$1,000 per event in the off-peak season. The Estate also seeks out corporate events—parties, meetings, etc. She explained that she developed a "90 day reduced rate"for North Andover residents, which would enable them to book the Estate for a reduced rate if they did so within 90 days of the event they intended to hold. Kevin Driscoll asked the ratings of the Estate as seen online. Ms. Collantine responded by noting that there are three primary websites dedicated to weddings and events on which the Estate can be found. The Estate tends to get a rating of 4.5 stars or higher out of 5 stars. Mr. Driscoll then asked about whether any of the corporate business repeats on a yearly basis. Ms. Collantine said that she does see return corporate clients, Schneider Electric being one of them,which has held an event at the Estate for three years running. Mr. Driscoll asked how Ms. Collantine's recent request of the CPC to restore a piece of artwork at the Estate figures into the long-term strategy. Ms. Collantine noted that the piece, which is on the staircase is very noticeable when one walks into the Estate and felt that restoring it would add value to the property and the timing is right to perform the work. Driscoll asked if there was a "sweet spot"for what Ms. Collantine would want to get to by say, 2025. Ms. Collantine said that she would like to be able to generate$20,000 -$23,000 per wedding in revenue within five years. Ms. Burns-Luz asked about current bookings. Ms. Collantine said that there is a lot of interest for 2021— three weddings have already been booked. Mr. Shapiro referred to the Bookings Report that is used by the Town and the Estate Director to track booked events at the Estate, and noted that seven events are currently booked for Fiscal Year 2021 with an estimated revenue total of$76,107. Mr. Shapiro also pointed out that the materials provided to the Committee by Ms. Collantine reference annual revenue ranging from $400,000 to $420,000 per year,whereas the FY2020 actual revenue is closer to$230,000. Mr. Shapiro and Ms. Collantine also covered revenue from past fiscal years,which did routinely reach above $400,000; Ms. Collantine referenced the recent decision by the Town to institute a moratorium on events as a contributing factor as to why revenue had dissipated more recently. Mr. Lafond asked whether Ms. Collantine had a revenue projection for Fiscal Year 2021. Ms. Collantine replied noting that it was about$480,000. Mr. Driscoll asked Ms. Collantine to describe what occurred with the moratorium. Ms. Collantine explained that the Town,when it issued an RFP for lease of the Estate by a third party and was receiving interest, decided to place a moratorium on new event bookings (anything past January 1, 2020) ahead of Town Meeting, where a vote would be required to approve a lease. This occurred in spring of 2019. Ms. Collantine noted that the negative publicity also affected her ability to "convert"tours of the property into actual sales of event bookings. Driscoll asked Ms. Collantine to quantify the financial losses as a result of the moratorium. Ms. Collantine emphasized that no new events were booked and holiday parties that had previously booked events on an annual basis did not book. Ms. Stagno asked what the costs or benefits would be of acquiring a preferred caterer. Ms. Collantine explained that it would be beneficial for the Estate, especially in terms of having the caterer be responsible for the kitchen area—making improvements to it and keeping it up to code. Ms. Stagno asked what Ms. Collantine felt the biggest restorative measure that needed to be taken would be. Ms. Collantine said that the Garden Room at the rear of the Main House needs to be restored and improved. New windows and sliding doors would make for a welcome improvement. Ms. Collantine also made reference to a potential $100,000 grant or donation that had been discussed by the Town Manager, which might be able to go toward an improvement at the Estate. Mr. Shapiro noted that the Facilities Director was working on a plan to replace the Garden Room's rubber roof in the upcoming fiscal year. Mr. Mabon asked whether the Garden Room improvements could be funded by Community Preservation Act Funding. Mr. Shapiro explained that it could not because that addition to the building did not meet the definition of historic. Ms. Burns-Luz asked about marketing efforts. Ms. Collantine said that she utilizes both The Knot and Wedding Wire websites to advertise the Estate online. Ms. Collantine explained that other comparable venues don't make the revenue that the Stevens Estate does,that a previous bar and event manager that she had on staff and had trained was let go by the Town, and that other organizations, such as the Trustees of Reservations focus more on programming and less on hospitability. Ms. Burns-Luz asked whether Ms. Collantine felt that the Trustees would be an appropriate entity to assume management of the Estate. Ms. Collantine said that she feels that the Trustees would bring significant resources, but that she doesn't see why more resources can't be directed to the Estate as it is currently managed so that resources stay with the Town. Ms. Burns-Luz asked whether Ms. Collantine felt, in the best case scenario where more significant resources were allocated to the Estate,that the Estate could generate more revenue to sustain itself and make improvements to the property. Ms. Collantine pointed to the Case Study that she provided to the Committee and her past accomplishments to note that she does feel that more resources could enable her to generate over$1 million per year in revenue. It would take time though. Ms. Collantine added that perhaps separating the Estate from the Town in some form or fashion could be favorable, in terms of cutting down on overhead costs such as HR and other requirements that the Town currently has in place. Mr. Driscoll asked for clarification—"So the Town would lease the Estate to the Trustees of Osgood Hill?" Ms. Collantine: "Yes." Mr. Lafond asked how many events have happened at the Stevens Estate over the past four or five years. Ms. Collantine replied, about 120 to 150 per year on average. Mr. Lafond noted that he'd like to see the Estate more well utilized on days when it is not being used for booked private events. Ms. Collantine said that she tries to have 20 or more public events per year and works closely with the Youth and Recreation Services Department. Holly Days has grown over the years. Mr. Driscoll asked Ms. Collantine to clarify her position on whether the Town should be running the Estate. Ms. Collantine said the nature of a Town-owned and operated facility is costly and creates issues in terms of competing with other venues,which is why she thinks leasing the Estate to the Trustees of Osgood Hill could be a creative solution. Mr. Lafond opened public comment. Diane Huster, 279 Leonard Street: The Town needs to be more responsive in getting requested resources, such as new staff,to the Estate. The Trustees of Reservations requires fees to enter the property. Perhaps it's worth exploring a hybrid model,whereby the Trustees of Osgood Hill are able to rent and operate the Estate. Prevailing wage is an issue. Mr. Shapiro noted that retained earnings for the Stevens Estate at the end of Fiscal Year 2019 stood at $276,000;the year prior$412,000; prior to that$433,000. Mr. Lafond commented that it seems to him that without the transfer to capital,the Estate seems to stand reasonably well on its own. Ms. Stagno observed that it seems like the Estate can generate revenue, but significant resources need to be put into it. Continued Discussion Regarding Community Outreach Process and results from the Public Input For • Update on FlashVote/Survey The present Members of the Committee reviewed the draft survey questions and agreed that questions 3 and 4 were appropriate for dissemination but that questions 1 and 2,the alternatives provided seemed better. Mr. Shapiro explained that Ms. Stagno, he,the Town Manager, and the IT department spoke to a representative of FlashVote. FlashVote was given an overview of what the Long Term Advisory Committee was trying to accomplish in terms of community outreach, and was also give the original draft questions developed by the Committee. Based on this information, FlashVote crafted the questions to elicit a helpful response from the public. Respondents will have 48 hours to fill out the survey.That and the fact that the survey is very short will hopefully ensure a robust response. Many municipalities have contracted with FlashVote. Mr. Lafond asked how many people would receive the survey. Mr. Shapiro did not cite a number of people but noted that the survey would be blasted out via Town News email and through social media channels. Committee Members should also do their best to publicize the survey. Mr. Shapiro also noted that a link to FlashVote was provided in the latest newsletter that goes out to tax payers. Mr. Lafond brought up the idea of having a presence at the Town election to solicit more signups for FlashVote, and whether the idea of a poll, rather than a survey, would be appropriate. Returning to the topic of the questions, Mr. Mabon asked whether it was necessary to ask if respondents are aware of the Stevens Estate. Mr. Shapiro noted that people who are being asked to sign up for FlashVote are not being told that the Stevens Estate is a topic that they will be surveyed on, so it's not a given that all respondents will be familiar with the Stevens Estate. Mabon said that the alternative wording for question number 1 would probably suffice. Members agreed that the alternative question for number 2 would work, and that questions 3 and 4 were worded well. Mr. Mabon asked that the response options for number 3 be regrouped/reorganized. Other members agreed. Language edits were made to the opening paragraph of the survey,jointly by Ms. Stagno, Mr. Driscoll, Ms. Burns-Luz, and Mr. Lafond. MOTION: Jennifer Burns-Luz made a motion to approve the FlashVote survey as amended, Kevin Driscoll seconded the motion. Vote: 6-0. Discussion and vote on future meeting date(s): MOTION: CJ Gangi made a motion to hold the Committee's next meeting on Monday, March 30, 2020 at 7pm,John Mabon seconded the motion. Vote: 6-0. Adjournment: MOTION: Jennifer Burns-Luz made a motion to adjourn, Kevin Driscoll seconded the motion. Vote: 6-0. The meeting adjourned at 8:32PM