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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 .......................................................................................................................................................................... 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