Waterleaf Space Optimization Costs
Board of Trustees Meeting
July 16, 2015
Waterleaf Space Use Options
Option 1: Convert to Classrooms
Option 2: a) Lease Space
b) Rent for Events
Option 3: Convert to Academic Lab
Board of Trustees Meeting
July 16, 2015
Lease Space
Board of Trustees MeetingJuly 16, 2015
Leasing Assumptions
•  Rental of space for restaurant operation; does not include removable equipment,
smallwares, furniture, etc.
•  Best efforts to estimate income and expenses; however, it is likely there could be
significant material change once a broker evaluates the property
•  Estimated rental rate ($20/sq. ft) mid-range of current restaurant space for lease
in Glen Ellyn
•  Tenant will directly provide and pay for 100% of the following: cleaning service,
insurance, licenses and fees, painting and decorating, real estate taxes,
telephone/data, and trash removal
Board of Trustees Meeting
July 16, 2015
Waterleaf Space
Pro Forma – Lease Option
INCOME:
Gross Scheduled Income
Tenant's Expense Contributions
Other Income
Total Income
Less Vacancy Allowance (5%)
$
120,000
76,000
196,000
9,800
Effective Gross Income:
$
186,200
Total Expenses
$
102,310
Annual Net Income
$
83,890
EXPENSES:
Electricity
Gas
Landscaping/Snow Removal
Legal & Accounting
Management (On-site)
Real Estate Broker (5%)
Repairs & Maintenance
Security
Water
Board of Trustees Meeting
$
24,000
12,000
20,000
7,000
5,000
9,310
10,000
5,000
10,000
July 16, 2015
Leasing Considerations
•  Risk of inability to lease based on challenges with location, venue type, anticipated
investment, recent publicity, etc.
•  Recent studies indicate approximately 60% of new restaurants fail within the first
three years, with the first year having the highest failure rate at approximately
35-40%
•  Current Sodexo contract indicates exclusivity except for College operations in CHC.
Lease will require revision to Sodexo contract and negotiation of terms.
•  Current use of kitchen space by Culinary students will need to be accommodated in
an alternate space
Board of Trustees Meeting
July 16, 2015
Rental Space for Events
Board of Trustees MeetingJuly 16, 2015
Event Rental Assumptions
•  Space would be used for event rentals only when not scheduled for
use by academic programs
•  Catering for rental events provided by Sodexo per contract (feasible
with or without use of Waterleaf kitchen space)
•  No use of kitchen by renting entity
•  Requires collaboration between Conference & Events Services and
Culinary program to determine space use protocol
Board of Trustees Meeting
July 16, 2015
Event Rental Fees
Client Type
Fees
(4 Hour Session)
Fees Per Day
(5-8 Hours)
Profit
$375
$600
Not for Profit
$281
$450
Estimate 5 events per month:
3 x Profit Rate:
2 x Not for Profit Rate:
$1800
$ 900
Estimated Total Monthly Revenue:
$2,700
Estimated Total Annual Revenue:
$32,400
Board of Trustees Meeting
July 16, 2015
Event Rental Considerations
•  Balancing of academic needs with rental opportunities a priority
•  All events will require a College Event Supervisor
•  Assessment of kitchen use by Sodexo
•  Evaluation of patio use
Board of Trustees Meeting
July 16, 2015
Conversion to Academic Lab
Wheat & Waterleaf Revenue
Projections
Board of Trustees Meeting
July 16, 2015
Immediate Student Benefits
–  Expanded academic offerings resulting increased breadth
of student preparation in additional facets of the
hospitality industry
–  Increased depth of academic preparation as a result of
increased challenge related to students serving larger
numbers of guests for all class related events
–  Increased opportunity to experience courses in
environments comparable to those in their future
workplaces
Board of Trustees MeetingJuly 16, 2015
Immediate Program Benefits
- Provide comprehensive curriculum addressing
additional facets of the hospitality industry
- Raise the profile of the programs and students with
increased course related culinary events
- Increased opportunity to further develop program
awareness and support throughout the district
Board of Trustees MeetingJuly 16, 2015
Review: 2014 & 2015 Revenue Comparison
Wheat Lunch
Wheat Dinner
International
Classical
Guests
2,232
1,120
425
566
2014Revenue
Revenue
Estimated Costs
26,035.00
15,624.00
22,198.00
9,180.00
14,860.00
5,897.80
36,065.00
12,535.00
99,158.00
Total Deposit
38,994.21
Market
Total Revenue
138,152.21
Net
10,411.00
13,018.00
8,962.20
23,530.00
55,901.20
Wheat Lunch
Wheat Dinner
International
Classical
Guests
2,297
726
505
420
2015Revenue
Revenue
Estimated Costs
26,895.00
16,079.00
15,972.00
6,534.00
15,750.00
6,565.00
23,445.00
8,400.00
82,062.00
Net
10,816.00
9,438.00
9,185.00
15,045.00
44,484.00
Total Deposit
52,100.67
Market
Total Revenue
134,162.67
Board of Trustees MeetingJuly
July16,
16,2015
2015
Fiscal Year 2016 Projections
Wheat Lunch
Wheat Dinner
International
Classical
Fall 2015Revenue Projection
Guests
Revenue
Estimated Costs
1,116
13,017.50
7,812.00
560
11,099.00
4,590.00
213
7,430.00
2,948.90
283
18,032.50
6,267.50
49,579.00
Net
5,205.50
6,509.00
4,481.10
11,765.00
27,960.60
Total Deposit
19,497.11
Market
Total Revenue
Wheat Lunch
Wheat Dinner
International
Classical
Spring2016Revenue Projection
Guests
Revenue
Estimated Costs
1,228
14,319.25
8,593.20
616
12,208.90
5,049.00
234
8,173.00
3,243.79
311
19,835.75
6,894.25
54,536.90
Total Deposit
21,446.82
Market
69,076.11
Total Revenue
Total Projected Revenue
Net
5,726.05
7,159.90
4,929.21
12,941.50
30,756.66
75,983.72
145,059.83
Board of Trustees MeetingJuly
July16,
16,2015
2015
Fiscal Year 2017 Projections
Fall 2016Revenue Projection
Guests
Revenue
Estimated Costs
1,228
14,319.25
8,593.20
616
12,208.90
5,049.00
234
8,173.00
3,243.79
311
19,835.75
6,894.25
54,536.90
Wheat Lunch
Wheat Dinner
International
Classical
Net
5,726.05
7,159.90
4,929.21
12,941.50
30,756.66
Total Deposit
21,446.82
Market
Total Revenue
75,983.72
Net
5,726.05
7,159.90
4,929.21
12,941.50
30,756.66
Total Deposit
21,446.82
Market
Total Revenue
Total Projected Revenue
Board of Trustees Meeting
Wheat Lunch
Wheat Dinner
International
Classical
Spring2017Revenue Projection
Guests
Revenue
Estimated Costs
1,228
14,319.25
8,593.20
616
12,208.90
5,049.00
234
8,173.00
3,243.79
311
19,835.75
6,894.25
54,536.90
75,983.72
151,967.44
Board of Trustees MeetingJuly
July16,
16,2015
2015
Future: Space Utilization
• Student Special Topics
• Campus Special Events
• Event Management Class Projects
• Student Focused Restaurant Service
Board of Trustees MeetingJuly
July16,
16,2015
2015
QUESTIONS?
Board of Trustees Meeting
July 16, 2015