1
HISTORIC BARNS PARK
JOINT RECREATIONAL AUTHORITY
FOUR-YEAR BUSINESS PLAN
2012-2015
Prepared by: NorthSky Nonprofit Network
Debbie McKeon, Jack Goodnow
Final Version: March 28, 2011
2
Overview of Business Plan, Historic Barns Park
Prepared for Joint Recreational Authority
Executive Summary
JOINT RECREATIONAL AUTHORITY
Joint Recreational
Recreational Authority Executive Director
Managing
Agenta
The
Historic
Barns Park (Park) is theFacilities
culmination
an ambitious
and forward-looking RA
movement
to protect
RentalofEnterprise
& Management:
Authority
City/Township
Market
Park
&
Facilities
Cathedral & Historicthe
Barn,
for of Traverse City-as a public park
significant
portion of the Commons acreage-formerly
OldAmphitheater
State Hospital
services provided
Coordinate FRE
community
&
private
events
Capital
improvements
to RA areas
enhanced
and programmed
for public use. The Park is located in the heart of the regionImplement
on a site Communications
that features
Coordinate Energy Farm (w/BGS, LAS, SEEDS)
Legal
protected woodlands, creeks, high vistas
and a sweeping meadow. On the site are historic
structures,
including two
Develop
Master Facility
Host Farmers Market (Pilot w/Little Artshram)
Audit
Calendar
massive barns from the time when the
land
was
intensively
farmed
to
support
the
patients
and
staff
at
the State
Carbon Offset Program (Study w/SEEDS)
Insurance
Book
Facilities
Hospital. The natural features of the property and its former agricultural and floricultural uses provide a window on
Utilities
Develop contracts & user
the past &
and
opportunity
for contemporary uses that demonstrate the benefits of sustainable
land use design for
Facilities
RAan
space
maintenance
agreements
Snowplowing
communities today and generations to follow.
Manage events in facilities
Prepare RA annual operating
budget
The vision for the Park came from the community through a grass-roots civic engagement
process. At their
direction, it will become recognized for its uniqueness as the place for community convening and recreation while
surrounded by demonstrations of sustainable agricultural, floricultural and energy farming; infused with arts and
culture that celebrates the rich creativity interwoven into all aspects of our lives. Specifically, the mission of the Park
is to provide the community with a 56 acre public park that models this vision while promoting recreation, artistic
endeavors and education. The mission of the Joint Recreation District of the City of Traverse City and the Charter
Township
of Garfield
as owner of theLittle
ParkArtshram
is to govern the Park to meet its vision
Botanical
Garden(RA)
Society
SEEDSand mission and to steward
its resources
and
provide
leadership
to
assure
its
sustainability.
Demonstration/Display
Youth CSA Program
Farm Residency Program
Gardens
Permaculture Design Course
Produce agriculture products for on-site
Facilities/Garden
Event Rentalsrole in
Implement
Farmers
Market
events
The Joint
Recreation Authority’s
contributing
to the
sustainability of this
vision and mission for the next three
Educational
Programs
Community
Garden,
Summer
Camps
Carbon
Offset
Program partner
years is the goal of this business plan and is focused on the RA providing facilities and
infrastructure
to support
Speaker
Series
Annual
Harvest
Day
Festival
Wood
Shop
for
products
direct programming of others as opposed to launching direct program activities. It will be value-add
achievedwood
through
Host Visitors Center
Northwoods Family Concerts
Educational Programs-food, farming, land
development
of independent social enterprises
and joint ventures including its management,
nonprofit co-managers
and others,
Annual Garden Run
Solar operated irrigation system
green infrastructure
each modeling
the
principles
of
the
Park
while
also
providing
funding
to
assure
its
sustainability
for
perpetuity.
Annual CCRS Plant Sale
Composting Program
Design/build public restroom facility w/o As
experience
in this
model grows
and
the Park
continues
to mature, it isseptic/sewage
anticipated that new opportunities
LEEDoperating
certified visitor
center
Wind
turbine
for on
site energy
will arise
willvisitor
require
additional business
planning.
Solarthat
panels,
center
Arts & Culture
Programs
Youth Conservation Corp Program
Though this plan is specific to the social enterprise activities of the RA, it is important to provide context with an
overview of the known primary activities of all partners to achieve the vision: RA, Botanical Garden Society, Little
Artshram and SEEDS as the operational model of this business plan leverages the activities and relationships of all
the partners to benefit the Park. As the diagram on page XX demonstrates, the unique missions and capabilities of
each partner
each
partner bring
bring together
together aa rich
rich and
and robust
robust diversity
diversity of
of programs
programs and
and social
social enterprises
enterprises that
that serve
serve the community’s
vision. With its partners providing programming and improvements to their individual areas of responsibility under
the management agreements, the RA focuses on providing the Cathedral Barn and adjacent amphitheater facilities to
its partners and community users through the Facilities Rental Enterprise and leading the development of
infrastructure that meets the Park’s vision of sustainable land use through the Energy Farm.
With the vision and mission of the Park, and the mission of the RA and its nonprofit managers in relation to the Park
as the foundation, five criteria were developed from which to evaluate potential social enterprise activities of the
RA. These criteria are:
Community/regional need - Is there a need in the community that will be addressed?
Compatibility with the Park vision and brand – Is this social enterprise consistent with the Park Vision, Mission
and Brand and will it foster progress towards the vision.
Competition - What will be the level of competition, including possibly with MOU Committee members? Can the
social enterprise be competitive in this environment?
Potential financial performance – The Park must be financially sustainable. Will the social enterprise contribute
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Table of Contents
Page 2: Visual of the Model
Page 4: Executive Summary
Page 6: Corporate Structure: Ownership
Page 6: Management Agreements, Primary Responsibilities
Page 7: Market Studies
Page 8:
Criteria for Selection of Social Enterprises in the Park
Page 8:
Social Enterprises Selected
Profile of Social Enterprise #1: Facilities Rental Enterprise
Profile of Social Enterprise #2: Energy Farm
Profile of Social Enterprise #3: Farmers Market
Page 14: Historic Barns Park: Creating the Brand
Page 15: Marketing Plan Outline
Page 18:
Page 26:
Page 28:
Page 30:
Page 33:
Page 35:
Page 35:
Page 37:
Facilities Rental Enterprise: Operations
Financial Narrative
Pro Forma
Line by Line Pro Forma Explanation
Capital Budget
Furniture Budget
Summary Comments, Pro Forma Financial Statements
Business Plan Implementation Timeline
Page 41: Energy Park Enterprise
Operations
Financial Narrative
Page 42: Farmers Market
Operations
Financial Narrative
Page 43: Financial Pro Forma
Appendices: Market Research
Page 44: Table I List of interviewees and interview questions
Page 46: Table II Competitor Comparisons, Facilities Rental Enterprise
Page 47: Table III User Group Profiles and Competition, Facilities rental Enterprise
Page 50: Table IV Customer Facility Selection Factors
Page 53: Table V Gosling Czubak Farmers Market Study
Page 54: Table VI Energy Park Related Interviews and Meetings
Page 55: Table VII Comparative Population Statistics by Age Group for five county region
Exhibits:
Page 56: Sample Event Planning and User Agreement Package
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Business Plan for the Joint Recreational Authority
Historic Barns Park
The purpose of the business plan for the Joint Recreational
Authority (RA) is to develop social enterprises within the areas
of the Historic Barns Park (Park) under its direct management.
These enterprises must support the vision of the park- preserving all that is good about its past,
promoting public recreation, arts and education in the present and demonstrating environmental
sustainability to assure the future. The RA goal is to develop a plan that eventually will not rely
on public financing to sustain Park annual operations. The RA asked NorthSky Nonprofit
Network to study the situation and develop a business model to help the RA achieve this goal.
Executive Summary
This plan is therefore specific to the social enterprise activities of the RA. At the same time, it is
important to understand and appreciate the activities of all management partners: RA, Botanical
Garden Society, Little Artshram and SEEDS. As the diagram on page 2 illustrates, the unique
missions and capabilities of each partner brings together a rich and robust diversity of programs
and social enterprises that serve the community’s vision. The partners provide programming and
improvements to their individual areas of responsibility. The RA focuses on providing facilities
within its control, infrastructure and Park oversight to support the programming of others.
Over the past five months, NorthSky consultants met and talked with other park management
partners, civic leaders, event planners, potential park users and representatives of similar venues
throughout the area and beyond. They studied materials such as the results of the Brainstorming
the Barns citizen meetings. What they found was an overwhelming interest in the potential of
the Park, especially as a venue for a myriad of public and private celebrations and meetings.
Interviewees indicated a need for a venue with the unique size, environmental principles,
historical significance and ambience of the Cathedral Barn and amphitheater.
The NorthSky consultants considered a number of potential social enterprises and evaluated
them against five criteria. These criteria were:
Community/regional need - Is there a need in the community that will be addressed?
Compatibility with the Park vision, mission and brand – Is this social enterprise consistent
with the Park vision, mission and brand and will it foster progress toward the vision?
Competition - What will be the level of competition, including possibly with MOU Committee
members? Can the social enterprise be competitive in this environment?
Potential financial performance – The Park must be financially sustainable. Will the social
enterprise contribute positively to the bottom line? Because the RA has responsibility, what
impact does the operational model have on the RA?
Contribution to attracting local park attendance as well as tourism – The vision for the Park
is broad yet focused on certain principles. Will this social enterprise draw people to the park and
assist in drawing people to the region as well?
Based upon the research, three social enterprises are included for development at this time: an
Energy Farm, Farmers Market and Facilitates Rental Enterprise.
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The Energy Farm creates a brand to focus the individual/collective energy conservation and
renewable energy generation activities that promote the environmental principles of the Park. Its
activities provide cost savings through energy optimization and funding for energy-related
capital projects therefore are not included in the financial pro formas. Linking independent
activities under one brand produces the critical mass to better market the concept and attracts
additional funding for continued development. Partnerships with educational institutions are also
possible.
The Farmers Market is included because it was identified by citizen groups as an ideal activity.
While research indicates there are operational and competitive obstacles to the Farmer Market’s
ultimate success, it should be initiated as a pilot project with associated shuttle transport costs
subsidized by the RA. In keeping with the RA’s role, it is recommended the RA provide
facilities to support the operations of a Farmers Market by one of its partners, such as LAS.
As the plan shows, over time the revenues generated from the Facilities Rental Enterprise are
projected to cover the operating expenses of maintaining the RA-controlled areas of the Park.
Based upon the model developed there are conservative, optimistic and most likely financial
scenarios. The most likely scenario indicates the social enterprise can produce positive net
income within one year after the completion of both Phase One and Two of the Cathedral Barn
(CB) and Amphitheater (A) renovations. The success of this venture is dependent upon branding,
marketing and operating the enterprise to produce profitable activities while assuring balanced
community access as the operating margin comes from volume. This type of enterprise requires
particular expertise to manage well. The business model scoped calls for development of
standardized operating procedures and policies, independent contractor relationships, focused
marketing, a high-level of accountability and assurance of a high standard of customer service.
The pro formas forecast start-up expenses of approximately $45,000 during the last six months
of 2012. In 2013 the CB is anticipated to be open for 6 ½ months – from mid -March, after the
conclusion of the Phase One construction, until closing on October 1 for the winter months.
During 2013, it is estimated that approximately $120,000 will be collected from rental activity
with corresponding operational expenses estimated at approximately $187,000 producing a net
loss of $67,000. In 2014, it is envisioned that the CB will be open from April 1 to September 30
and experience a moderate increase in rental activity as a result of marketing efforts and positive
customer experiences. Nonetheless the CB will remain without interior access to the restrooms
and without an interior prep kitchen. The increase in activity is expected to increase gross
revenues modestly to approximately $128,000. Total expenses decrease slightly to $170,000
producing a net loss of $51,000. The RA would therefore have to dedicate approximately
$164,000 to support the development of the Facility Rental Enterprise in years 2012-2014.
The Phase Two construction is assumed to be completed by March 1, 2015 at which time the
Cathedral Barn and Amphitheater can open on a fully functional basis and remain open year
round. This availability, coupled with sustained marketing efforts and an increased public
awareness, are expected to raise revenues to approximately $227,000 for 2015. As would be
expected, expenses increase, but at this level of activity, the CB and A is forecasted to be
operating virtually at break-even. From this point forward, it would be anticipated that CB and A
will produce annual operating profits for the Recreational Authority.
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Ownership
The Historic Barns Park at the Commons is a public park
owned and administered by the Joint Recreational Authority
of the City of Traverse City and the Charter Township of Garfield (RA). This 56 acre parcel was
purchased by the Joint Recreational Authority and is under redevelopment by the RA and its
nonprofit tenants for use by the public and by private groups to celebrate agriculture,
horticulture, the arts, and recreation in a way that preserves and enhances the history of the
property and promotes environmental sustainability.
Corporate Structure
Management Agreements
In 2009, the RA entered into an agreement for Management of Historic Barns Park with three
local organizations - The Botanical Garden Society, Little Artshram and SEEDS. The intent of
the agreement was to develop a collaborative, long term relationship “to utilize and improve the
Historic Barns Park consistent with its status as a public park and for public use, including
agriculture, horticulture, art, community events and recreation”. Together the entities worked
out a site plan which gave each of the entities specific areas of the park over which they would
have individual responsibility. The agreement spells out the conditions under which the
management entities might use the areas reserved specifically for the RA–the Cathedral and
Historic Barns, the Amphitheater and the Tent Lawn. The intent of the agreement was that there
would be cooperation not competition among the entities.
The agreement states that each of the management entities is to provide the RA annually with a
list of goals it intends to achieve in the coming year. These goals are to be in accordance with the
principal goals listed in the Master Site Plan. Failure to achieve these goals could be a reason to
terminate the entity’s participation in the Agreement. Without attempting to interpret the
meaning of the agreements in detail, it is evident that the Master Agreement was developed to
ensure that all entities involved in the development and management of the Historic Barns Park
are intent upon continuous improvement of the property for public use and enjoyment.
The chart on page 2 shows the relationship of the entities to each other as well as the primary
activities of each party anticipated at this time that are relevant to coordination of business
planning.
Management Agreement
Primary Responsibilities






Recreational Authority

Develop and manage HBP for public use including
agriculture, arts community events and recreation
Responsible for economic sustainability of the Park
Have ultimate liability for all activities taking place in the Park
Develop policies and procedures for the Park
Plan, finance and maintain capital improvements.
Execute recitals of management agreements
Work in cooperation with the MOU committee as per the management agreements to
develop the Park in accordance with the master site plan
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Botanical Garden Society, Little Artshram and SEEDS
Each of these entities has corporate objectives and specific expertise which can be used to
advance the overall missions of public education and environmental consciousness and respect
that underlie all activities at the Park. The opportunities for success of the Park will be increased
to the extent that the contributions, individually and collectively, from these entities are sought
out and provided to advance the overall objectives of the Park.
All three management partners have the same responsibilities. The primary ones are:
 Each entity will manage the sections of the Park that have been designated to it in the
Management Agreement dated April 7, 2009 and further defined in the Master Plan
 Each entity shall be responsible for maintaining their individual areas in good repair and
will maintain appropriate general liability and property and casualty insurance and will be
responsible for all operating costs for their individual area.
 As public education is a commitment, these entities will provide linkage with educational
programming and will have direct educational components in their work at the Park.
 The entities will work in cooperation utilizing the MOU committee as per the
management agreements, and in conjunction with the RA will work to develop the Park
and manage it to best meet community needs as a public park.
The traditional process of business development is first to identify the
business proposition and then to determine the assets necessary for
successful operation. In this case the location and assets are in place. Thus the purpose of the
market study was to determine how best to deploy the assets to meet all pre-existing criteria
while achieving financial sustainability.
Market Studies
With the unique historic attributes and environmental principles of the Park as a foundation, the
consultants interviewed over 40 individuals representing a broad range of professional activities,
areas of expertise, and geographic diversity including event planners, potential users, suppliers,
and potential competitors to reach the conclusions drawn in this business plan. Based upon
preliminary planning during the process, follow up interviews were held with several
interviewees. The results of the Market Study are included in the appendices, beginning on page
42. They include the following:







Table I: The list of interviewees and interview questions
Table II: Competitor Comparisons for Facilities Rental Enterprise
Table III: User Group Profiles & Competition for Facilities Rental Enterprise
Table IV: Customer Facility Selection Factors
Table V: Gozling Czubak Farmers Market Study, excerpts
Table VI: Energy Park Interviews & Meetings
Table VII: Comparative Population Statistics by age group from NWMCOG
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Criteria for selection of social
enterprises in the Park
Five criteria were utilized to evaluate the merits
of potential social enterprises for the Park.
Community/regional need - Is there a need in the community that will be addressed?
Compatibility with the Park vision and brand – Is this social enterprise consistent with the
Park Vision and Brand and will it foster progress towards the vision?
Competition - What will be the level of competition, including possibly with MOU Committee
members? Can the social enterprise be competitive in this environment?
Potential financial performance – The Park must be sustainable. Will the social enterprise
contribute positively to the bottom line? As the RA has ultimate responsibility, what impact
does the operational model have on the RA?
Contribution to attracting local park attendance as well as tourism – The vision for the Park
is broad yet focused on certain principles. Will this social enterprise draw people to the park and
assist in drawing people to the region as well?
In reviewing and evaluating several options, two
social enterprises were selected for the RA business
plan. They are a – Facilities Rental Enterprise for
public and private use and an Energy Farm. These ranked well against the criteria. This
business plan includes a third social enterprise activity – a year-round Farmers Market, though
it did not measure up as well against the criteria but was presented as a goal of the RA.
Social Enterprises Selected
As the MOU partners were instrumental in this process, brainstorming continued following the
research period that has generated additional ideas for business development. It is recommended
that the MOU partners and RA continue to brainstorm potential revenue generating ideas
periodically to capture the unique perspectives and expertise that each brings to this relationship.
It is in that spirit that SEEDS was in contact recently to suggest that a carbon offset program
could be considered as identified it in Chart #1 as a social enterprise to study. There is an
increasing market for the purchase of carbon offsets. Companies that release carbon into the
atmosphere are seeking to partner with entities that can be carbon consumers. Trees, marshes
and decaying plant life are absorbers of carbon emissions. SEEDS holds the expertise to do
carbon absorption testing and monitor the amount of carbon credits that could be sold. This is not
yet a regulated activity though SEEDS indicates that it is foreseeable that a carbon credit
certification process may develop. Due to the old forest growth at the Park, SEEDS suggests that
the Park is in an excellent position to have carbon credits that would qualify in a certification
program. This could be structured as a joint venture between the RA and SEEDS. There may be
opportunities to have a carbon credit program extend to other public park lands.
Profile of social enterprise
Facilities Rental Enterprise
Overview
The Park was originally the site of the agricultural component for the Old State Hospital of
Traverse City. The Historical Barn and the Cathedral Barn each contain 5700 square feet on both
an upper and lower level. Aptly named for its interior appearance, The Cathedral Barn will be
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the first of the structures to be restored by the RA to serve as a mixed use facility suitable for
accommodating lectures, dances, concerts, plays, weddings, conventions, seminars, and many
other activities which area residents and groups would like to host in an authentic period
structure. When the renovations are complete, the Cathedral barn will be a heated, airconditioned, multi-use facility capable of seating up to 664 persons. The adjacent amphitheater
and adjoining tent lawn will accommodate several thousand people sitting and standing for
concerts, lectures, movies and other cultural events.
These assets – the Cathedral Barn, the amphitheater and the terrace lawn together are termed –
the Venue. The Venue can be used to create revenue by developing a facilities rental social
enterprise marketed to community groups, private individuals, event organizers and professional
entertainers. There is a tiered rental rate structure to assure the Venue is utilized as intended,
including free and educational events. The rent paid becomes revenue to the RA. The RA is not
structured to be either an event planner or an operating manager of an entertainment venue. Thus
they will contract with a Managing Agent who will assume the responsibilities of marketing,
booking and administering the operations of the venue in a cost effective manner. The MA will
not be responsible for developing programming for the venue – but for making the venue
inviting to those who have programs and need a place to carry them out. When the revenues from
the events exceed the costs of maintaining the venue, the resulting net income accrues to the RA
for reinvestment in the Park.
Community/Regional Need:
There are few venues of comparable size in the region which offer the type of contiguous
capability which will be available at the CB and A after the completion of renovations. As the
market research revealed, there is a need for more large venues for year round events – public
and private – in the Traverse City region. The event planners, business owners, civic leaders and
local citizens with whom we have discussed the Barns Park have been unanimous in asking not
“Why?”, but “When?”, “When will the Cathedral Barn be renovated and ready for use?” They
have said that the need for such a facility exists today.
Compatibility with Park vision, mission and brand:
To fit well with the vision, mission and brand of the Park as a community focal point and allow
the public to enjoy its beauty on a daily basis, there will need to be careful balance in the amount
of free, public activities held in the Cathedral Barn and Amphitheater vs. private and/or ticketed
events. The impact of tented events that are either ticketed or private may create some
challenges to the community’s perception of public access. Therefore the policy suggested in the
next section may also help to assure that the image of the Park is of public space. It is the RA’s
role to monitor this balanced programming which should be done through review of the monthly
operational reports submitted by the MA and through its relationship with the MOU members.
Competition, both external and with MOU Partners:
As the market studies support, there is room in the regional market for another rental facility,
especially with the unique brand elements of the Park. What it doesn’t address is how much
room there is in the market for two businesses marketing facilities rentals at the Park, both
leveraging the same brand. At this time BGS indicates that, as part of their social enterprise
activities, they intend to offer a product to their customers that is, to offer tented areas in the
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BGS managed gardens for events of 70 or more persons. BGS would receive income from the
tented area rental. (While it has not been directly mentioned, it is conceivable that SEEDS or
Little Artshram may also have customers who will wish to host larger events on their space,
therefore they may desire to create tented areas as well).
As both RA and BGS have indicated that they wish to collaborate and not compete, we suggest
that each develop a market niche. The market niches should be developed based upon size of the
event and whether the customer desires protection from the elements. Larger events are very
likely candidates for a Cathedral Barns event. It is recommended that the RA develop a policy
that does not permit tents greater than 900 square feet, accommodating more than 70 people,
within the Park property without prior approval of the RA. The RA may grant approval but will
first consider the availability of the Cathedral Barn as an alternative rental facility over the
temporary tenting. If the Cathedral Barn is already booked, then the RA may grant permission.
If the Cathedral Barn is available, the RA could require that the MOU member’s customer rent
the Cathedral Barn if protection from the elements is desired. With this policy, RA and the MOU
members will have clarity and built-in controls to resolve the potential of the Park partners
competing for rental fees. As the RA does not have any smaller facilities or improved gardens, it
will collaborate with the MOU members by renting the BGS conference room in the visitor
center or a garden area when RA clients need more intimate spaces or an outdoor location. It is
also recommended that if a MOU member’s customer rents the Barn under these circumstances,
the RA will share 10% of the base barn rental fee with the referring MOU member.
Potential Financial Performance:
The potential revenues, event specific and general operating expenses which make up the
attached pro forma financial statements are based upon competitive rental rates now being
charged in the area. These rates are for facility rental not for event planning and programming.
These projections show that with sufficient volume the RA can generate net income from its
rental activities. A market analysis shows that the RA can not be financially self sustaining on a
diet comprised solely of community service and educational events. Private events – weddings,
receptions, fund-raisers, and big name events command the highest rental rates. A good mix of
these types of activities is necessary to produce a net profit for the Park.
Contribution to attracting local park attendance and tourism:
The very essence of renting the Cathedral Barn and Amphitheater attracts people to the Park and
to the region. Events staged at the venue bring new people to the Park. Wedding guests often
include friends and family who live out of the region, but will come to the wedding then stay and
avail themselves of all the region has to offer. Likewise, entertainment events and festivals
attract followers of the groups performing at the event. They often travel hundreds of miles to
hear their favorite ensembles perform or to participate in an activity that they enjoy. Once they
“feel” the energy of the Park, and drink in the beauty of the surroundings, they will tell others
about their experiences – encouraging them to visit the park and the area. By renting these
facilities, the RA can attract 40,000 to 50,000 persons to the Park on an annual basis – many of
these people will be visitors to the region.
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Profile of social enterprise
Energy Farm
Overview
As the guiding principles of the master plan for the Park include a focus on environmental
sustainability and energy efficiency, one brand should be created under which to market all of
the activities and investments that will be developed by the RA and MOU members at the Park.
The brand creates a focused approach to achieving these principles. It also serves as a conduit for
attracting additional partners and investors to support principles of the Energy Farm. It creates
the vehicle for distinct projects, yet linked as one initiative. It is also an excellent opportunity to
engage external partners where there is opportunity for recognition and educational activities.
Several aspects of the Cathedral Barn renovation fit as part of the Energy Farm - for example, the
energy efficient low flow water fixtures in the re-designed Cathedral barn as one part of LEED
certification for the whole structure. There are also two RA projects spawned as a result of
development of the Energy Farm social enterprise. 1) NMC has verbally committed to have
students conduct site assessments of the potential for renewable energy projects and 2) the
region’s utility companies are working on a collaboration to fund a major project in 2011/12.
MOU members also have projects that fit the concept: BGS is planning to achieve LEED
certification in its renovation of the Granary; LAS is in the early stages of researching
installation of a wind turbine to supply power to its activities; and SEEDS has indicated plans to
fund and build public restrooms that operate without septic/sewage connections. These projects
further the mission of the Park while potentially producing annual net savings in operations. As
the Energy Farm grows in the number of projects completed, it can be utilized as an educational
center and demonstration facility to showcase various examples for achieving energy efficiencies
and of passive energy generation sources – solar, wind, geo-thermal. The park is ideally suited
for implementation of eco-educational programming similar to the Urban Ecology Center in
Milwaukee, Wisconsin where each year thousands of children learn how to live in better accord
with their environment. There is no similar energy farm in the Michigan, and it is envisioned that
it will add to this region’s growing eco-education and eco-tourism reputation.
Community/regional need and vision, mission and brand compatibility:
This region is demonstrating a growing commitment to energy conservation and passive energy
generation. The master site plan for the Park indicates a similar vision and commitment. The
Energy Farm meets this criterion. It provides an umbrella brand for all existing and future
partners to participate in meeting this need and mission. There is no inherent competition in
this social enterprise. Rather the Energy Farm provides the marketing umbrella from which each
qualifying project or business opportunity can gain benefits. The potential financial payback
lays both in attraction of funding for capital improvements as well as potential reductions in
operating costs through energy efficiencies. There is little research on which to project the
number of people that may visit the Park specifically to learn about Energy Farm activities. At
this time it is not viewed as a primary focus for tourism or attracting visitors though that may
grow as a critical mass of projects is accomplished. Nonetheless it is an excellent companion
activity to promote.
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Profile of social enterprise
Farmers Market
Overview
It is recommended that a mid-week farmers market be developed as a pilot program to be
evaluated after six months of operation. At that time a “Go or No-Go” decisions should be
rendered. As the analysis of the five criteria indicates below, there are significant “red flags”
with the operation of a farmers market at Park. Therefore it is reasonable to launch this social
enterprise as a pilot with a built-in mechanism to evaluate its performance. It is also
recommended that existing farmers market hosts, the DDA and the Village at Grand Traverse
Commons, be made aware that this is a pilot program so that they don’t make changes to their
operations under the assumption that there will be a permanent Farmers Market at the Park. It is
recommended that Little Artshram be offered the opportunity to manage the pilot program as it
fits well with their mission. If LAS declines the offer to manage the pilot farmers market, then it
is recommended that Spireworks be offered the opportunity to manage it. They already operate a
weekly farmers market therefore have an operating model. As a third option, LAS and
Spireworks may choose to partner on managing the farmers market pilot.
According to the Gosling Czubak study (excerpt, page 51), the amount of parking available is
one of the critical factors in predicting the success of a farmers market. According to the study,
there should be 3 parking spaces/vendor participating. As this is not possible at the Park, the
cost of operating a shuttle service needs to be built into the budget for this social enterprise. As
the financial projections indicate, with the addition of the shuttle service costs, the farmers
market is projected to operate at a loss exceeding $5,800 for the six month time pilot period. In
order to assure its continuance, it is therefore proposed that the RA rent the upper floor of the
Cathedral Barn to LAS for $1 for one weekday each week from June 1-November 30, 2012 and
fund the cost of the shuttle service as part of the RA operational budget. The financial forecasts
included with this plan are based upon that assumption. Evaluation of the program should
include customer and vendor surveys and analysis of the impact on the other farmers markets as
well as financial performance.
It is strongly suggested that should the pilot project evaluation merit its continuance, that the
location of the Farmers Market be changed from the Cathedral Barn to an empty building at the
Commons or eventually to the Historic Barn. As interviews revealed, there is significant wear
and tear on the facility from this activity therefore its long-term impact on the facilities rental
activities at the Cathedral Barn should be mitigated.
Community/Regional Need:
The research provides conflicting evidence as to the need for an additional famers market in the
area. The summer downtown market enjoys vigorous sales on Saturdays and has decent sales on
Wednesdays. At the same time, the weekend market in Building 50 is not so strong and is
maintained primarily to help drive potential customers to the shops in the Mercado. A recent poll
of the vendor committee for the downtown market resulted in mixed feelings as to the interest in
a year round market.
Compatibility with Park vision, mission and brand:
A farmers market is in complete alignment with the vision, mission and brand of the Park and
complements the other activities envisioned on the property.
13
Competition, both external and with MOU Partners:
A new farmers market at the Park may offer competition to the existing markets. This
competition may be reduced if it is scheduled on a different day than the other markets. It also
could avoid competition if it was directed to different markets than those existing – one
suggestion was to focus on supplying local chefs and eateries rather than individuals or to offer
different types of products. Without differentiation, given the logistical difficulties of accessing
the site, research indicates that this market would have a difficult time competing with the other
local markets. If the pilot project is managed by LAS, internal competition with MOU members
should be minimized unless vendors include flower and plant purveyors which might impact the
efforts of BGS. Potentially, the BGS annual plant sale could occur during the farmers market.
Potential Financial Performance:
The revenue coming to the manager of the farmers market would be very small. Generally
vendors pay $10 per table per day. As the financial projections indicate, there is very little
opportunity for compensation to the farmers market manager, potentially LAS, therefore the cost
of the shuttle service needs to be absorbed in the RA operational budget in order to be
sustainable. Another on-going cost will be the wear and tear on the building. This cost may be
significant over time as crates of food items are rolled or dragged into the building and piled on
RA owned tables. Beyond the daily clean up which will be the responsibility of the farmers
market manager, potentially LAS, frequent deep building clean-up will be required caused by
pedestrian activity and dragged in dirt.
Contribution to attracting local park attendance and attracting tourism:
In general, a successful market could attract many visitors, primarily local, to the site. However,
given the market study, lack of easy access and close-in parking, attendance at the famers market
is expected to be low.
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What is unique about the
Park? What will attract people
and events to the Park?
First the history: This was a working farm. On these acres, crops were grown, animals were
raised, cows were milked and food was stored for future use by the Old State Hospital of
Traverse City. For many years, these acres were the lifeblood of the activities at the hospital.
This history makes the venue unique. There is nothing like it in the area. This history can be built
upon. Additional facts and pictures of the working farm should be pieced together and used in
the marketing materials for the CB and A. Guests will want to feel the history of what was
happening on this land and in this barn three quarters of a century ago.
Historic Barns Park: Creating the Brand
Then the architecture: A Cathedral Barn. Entering the barn, people cannot help but feel like
they have entered into a cathedral. The all wood interior with the high sloping ceiling is dramatic
and inspires a sense of awe. This is unique to this region. Pictures of the barn’s interior must be
included in the marketing materials and on the web site. When events are scheduled for the
Barn, they should be publicized as taking place in “the Cathedral”. Comments such as: “Where
is the lecture tonight? It’s at the Cathedral. Have you been there? You’ve got to go. It’s
fantastic;” “Have you decided where you are getting married? Oh yes. We’re getting married in
the Cathedral. It’s the perfect place to start our life together;” and “When I went to the Park for
the first time, I knew I had to bring my family back to experience the Park. You can almost feel
the history of the place.”
Then the beauty: When the Botanical Garden Society, Little Artshram and SEEDS complete
their demonstration/display gardens, solar irrigation pond, “Walled Garden,” farm residency
program, “Reflecting Basin” and artistic installations, the beauty of the park will be unparalleled.
Finally “Green Agri-tourism” The most powerful part of the brand will be the living concept
of the Park as a demonstration center of “Green Agri-tourism.” Marketing the Park as a green
tourism destination requires operating with an environmentally sustainable land use design –one
of the primary principles of the Park. Webster.com defines Agri-tourism as “the practice of
touring agricultural areas to see farms and often to participate in farm activities.” Agri-tourism
has been around for many years but it has become very popular in the last five to ten years. Why
is that? According to Jane Eckert, Eckert AgriMarketing, “People want to have their children see
a cow first-hand, rather than in a book,” Eckert said. “They want to see where their food comes
from and who grows it.” The SEEDS Farm Residency program, the Little Artshram youth CSA
enterprise and Permaculture Design Course make the Park an agri-tourism attraction for local
residents and visitors from other areas.
And the Energy Farm: It provides a vehicle to showcase all the individual and collective
energy conservation and renewable energy generation activities in the Park. In time it will attract
visitors to learn and explore all of the solutions utilized at the Park. It is the place to visit to see a
geo-thermal system, solar powered irrigation system, community-based wind turbine, LEED
certified buildings, composting toilets. Together they demonstrate that blending energy farm
initiatives with the history, architecture, beauty, farming, horticulture, arts and recreation
activities of the Park create a unique combination of sustainable land use and design.
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Marketing Plan Outline
FACILITIES RENTAL ENTERPRISE
Marketing Goals
1)
Generate $120,000 in annual revenue from facilities rentals by December 31, 2013.
2)
Establish name recognition and a unique brand position for the Historic Barns Park and
its facilities rental program.
Target Audiences
TARGET AUDIENCE/
MARKET SEGMENT
PRODUCT
VALUE-ADDED BENEFITS/
SELLING POINTS
- Unique location
- Personal- show off the project site
- Large venue
- Convenient location
- Indoor and outdoor space
- Assist and support constituents
- Unique location
- Photo ops
- Large venue
- Convenient location
- Indoor and outdoor space
- One stop shopping for ceremony,
reception and catering
- All of the above plus:
- Establish a mutually beneficial
referral relationship with Park
Internal family: partner
organizations, volunteers
- Refer constituents looking for
venue
Wedding parties- bride, groom,
families
- Site for wedding ceremony
- Site for wedding reception
- Site for rehearsal dinner/
other related wedding parties
Event planners and promoters
- Site for parties
- Site for concerts and
entertainment events
Wedding planners
- Site for wedding ceremony
- Site for wedding reception
- Site for rehearsal dinner/
other related wedding parties
- Site to refer event planners,
wedding parties, wedding
planners and corporate clients
- Site for fundraisers
- Site for educational event
- Site to host performances/
revenue-generating
entertainment
Same as above
- Site for corporate retreats and
meetings
- Site for other revenuegenerating events
- Unique location
- Large venue
- Convenient location
- Indoor and outdoor space
- Employee satisfaction
Caterers
Community based organizations/
Schools (concerts, proms)
Businesses
Same as above
- Unique location
- Photo ops
- Large venue
- Convenient location
-Nonprofit rate pricing
- Indoor and outdoor space
- Attract new audiences/ supporters
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Churches
- Site to refer wedding/
anniversary parties and
planners
- Client relationship building
- Unique location
- Large venue
- Convenient location
- Indoor and outdoor space
Marketing and Sales Strategies
Infrastructure Development Strategies
1)
Identify contracted leadership for ongoing marketing and sales activities.
2)
Secure contact management/ sales software to manage sales contacts, prospects, and
outreach activities. Sales Force is available to nonprofit organizations for free.
3)
Develop a website which promotes services, facilities, pricing and availability including a
photo tour.
4)
Develop marketing and communications policies and procedures including a designated
spokesperson and media release policy.
5)
Purchase email software (Constant Contact, Vertical Access, etc.) to use in email
promotions and media releases.
6)
Work with an advertising agency, branding firm or graphic designer to develop brand
identity including usage/ standards guide.
7)
Systematically capture stories, testimonials, photos, and videos to use in promotions.
8)
Develop support materials for use with clients including brochures with pricing inserts,
photos, and space dimensions, and DVDs that can be mailed to out-of-town “destination
wedding brides and planners.
9)
Develop a contact list for targeted marketing activities including caterers, event planners,
event (concert and entertainment) promoters, and related suppliers.
Promotional/ visibility strategies
10)
Develop a promotional campaign to launch and promote the venture including media
stories, advertising, email blasts and open houses.
11)
List the facility in catering/ rental facilities directories and on websites
(www.Michiganweddingsolutions.com, www.upnorthbride.com,
www.traversecityweddings.net, http://www.brides.com/local-weddingresources/michigan, www.theknot.com, mynorth.com)
Sales Strategies
12) Meet with caters, event planners, event promoters and other vendors via open houses
13) Conduct routine mailings promoting services to target group via email and US mail.
14) Sell ad space on the website to caterers, florists, wedding planners, bridal shops, band/
musicians/ DJs, and other related suppliers.
15) Exhibit at bridal shows throughout the region (Traverse City Opera House, Crystal
Mountain, Grand Traverse Resort, Bay Harbor Bridal Expo, etc.)
ENERGY FARM
Marketing Goals
1) Promote the Energy Farm as a value added component of the Park.
2) Drive investors and demonstration projects to the site.
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3) Create a shared brand for the eco-educational component of the Park, its
partners/investors and its MOU members.
Target Audiences
TARGET AUDIENCE/
MARKET SEGMENT
PRODUCT
VALUE-ADDED BENEFITS/
SELLING POINTS
Investors/ renewable energy
entrepreneurs
Site for showcasing renewable
energy projects to the public,
other investors, and to the
renewable energy industry.
Unique and real-life site for
establishing renewable energy
projects to support investor’s
research, business development
and educational goals.
Academic researchers/ university
project developers
Demonstration/ site for
developing experimental projects
related to energy use; class
projects; research; internships
Unique and real-life site for
testing project ideas
Ability to influence projects and
research
Strategies
Infrastructure development strategies
1)
RA-ED to contract with MA to develop a marketing plan and oversee ongoing marketing
activities in conjunction with FRE marketing activities and MOU partner activities.
2)
Utilize contact management/sales software of FRE to manage marketing activities.
3)
Develop guidelines and criteria for approving investors and demonstration projects.
4)
Develop working agreements/ contract templates to be used in investor activities with RA
and partner-led projects and energy project developers that will be hosted on the site.
5)
Develop a website page, including a virtual tour, on Park site focused on the site as an
investment opportunity and testing ground for innovation including guidelines & criteria.
6)
Develop marketing and communications policies and procedures including a designated
spokesperson and media release policy.
7)
Utilize existing email software (Constant Contact, Vertical Access, etc.) from Facilities
Rental Enterprise to communicate about progress on the Energy Farm.
8)
Work with an advertising agency, branding firm or graphic designer to develop a brand
identity including usage/ standards guide and an investor packet to be used in promoting,
investors and energy project developers.
9)
Develop a contact list of potential venture capitalists, businesses and academic
researchers that may be interested in projects and/ or investment at the site.
Promotional/ visibility strategies
10)
Develop a promotional campaign to introduce Energy Farm concept and the value of
investment, research and development opportunities at the site; unique collaborative
components; public benefit. This includes media articles, open houses/ tours, email
blasts, and presentations describing the achievements of energy farm efforts in meeting
the Park principles of environmental sustainability and public education on related
benefits.
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Sales strategies
11)
Launch targeted campaign to introduce the site to potential investors and project
developers.
SOCIAL ENTERPRISE: #1
Facilities Rental Enterprise
Operations:
A) Renovations to Cathedral Barn: Phase 1 and Phase 2 and impact on business planning
The first step toward financial self-sufficiency is the renovation of the Cathedral Barn into a fully
functional multi-use facility. CWS architects have been charged with designing this project.
They have developed plans based upon public input and they are continuing to meet with
representatives of BGS, LA and SEEDS to take advantage of their expertise in making this
facility an eco-responsible venue. Their input will also be valued in terms of ascertaining that the
renovated CB will be attractive to a wide variety of users.
Pages 31-32 include a listing of the projects included in Phase one and two and the estimated
cost for completion. In summary, Phase One consists primarily of exterior work on the structure
as well as grading and restoration of the amphitheater and some road stabilization and interior
work to finish the upper level of the barn, installation of HVAC, installation of lighting and the
building of an exterior fire escape. On the lower level, the improvements are limited to the
construction of men’s and women’s restroom facilities.
The cost of these improvements in Phase One is to be covered by an initial fund- raising
campaign projected to begin in the spring of 2011. Phase Two is anticipated to be completed
sometime after the completion of Phase One. It will include the construction of a new entrance to
the Cathedral Barn through an elevator lobby built at the intersection of the Cathedral and
Historic Barns. An interior stairway connecting the upper and lower floors is designed in Phase
Two. Also in Phase Two is the construction of a catering kitchen and two multipurpose rooms –
one which would be suitable as a classroom and the second as a “green room” for visiting
performers or as a bride’s dressing room. Note: the plans should include access to the Historic
Barn from the new entry area. This will be essential to provide at least an un-heated storage area
for furniture and equipment used in the Cathedral Barn.
Rental of the Cathedral Barn will be the prime source of revenue for the RA. The ability to rent
the barn will be dependent upon the perception of potential users of the value received for the
rental dollar in comparison with similar venues in the region. To the extent that amenities are not
available at the barn, the barn will be less likely to be rented. Furthermore, the future use of the
barn will be significantly determined by the experience of the initial users of the facility. If the
initial users have a good experience they will be likely to return for future events and tell others
of their experience. On the other hand, if the initial experiences are negative, this will be a
deterrent to future rentals. As the adage goes, if you have a good experience you will tell 2 or 3
people, if you have a bad experience, you will tell 10 or more. Based upon comments we have
heard from event planners as well as other prospective users of the Cathedral Barn, the lack of
interior access to the restrooms and the lack of a catering kitchen, neither of which is included in
Phase One, will be a significant deterrent to booking the facility in the cooler months of the year.
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For this reason, the initial business forecasts do not include any rental revenue for the period
from Mid-October to Mid-March for the Cathedral Barn until Phase Two is completed.
Important amenities for the Cathedral Barn to make it competitive with alternate venues will
include banquet and serving tables, chairs, wireless internet connectivity and basic AV
equipment including a wireless microphone, projector and screen. A sufficient number of chairs
to handle average sized events (200) and an equivalent number of tables should be purchased
prior to opening. (For those gatherings with more than 200 people, the additional chairs and
tables will have to be rented on a daily basis. As the cost of frequent rentals can be significant,
the RA will want to purchase additional chairs on an annual basis until they have sufficient on
hand to accommodate any scheduled event). In addition, portable privacy screens will be
important to “hide” furniture and equipment not needed for a particular event and to allow the
large room to provide a feeling of some intimacy for smaller gatherings. (Cost estimates in a
separate table on page 33).
B) Parking: The Challenges and Two Suggestions for Consideration
By design, vehicular traffic and on-site parking within the Park are to be kept to a minimum.
With the exception of the extension of Franke Road on to Silver Road in the park, the other roads
are designed to be limited access roads. The Master plan has approximately 35 parking places in
the entire park. There are 5 ADA accessible spaces to be built near the west entrance to the
Cathedral Barn but that is the only parking planned close to the CB. (Note: Code would require
more than 5 ADA spaces at a venue which is expected to host large numbers of people, but
because the Park is planned to be a limited vehicular access park, a variance has been granted to
allow the placement of only 5 spaces.)
The limitation on parking in the Park will create a significant potential competitive disadvantage
in attempting to book events at the Cathedral Barn unless it is addressed appropriately. Most of
the venues with which the CB will compete – The City Opera House, The Hagerty Center, Grand
Traverse Resort, downtown hotels – all have parking readily available. The general population is
accustomed to readily accessible parking when attending events such as weddings, concerts,
plays, lectures and business meetings as well as farmers markets. According to materials
provided by the NW Michigan Council of Governments, in 2009, 24.2% of the population of the
five counties surrounding the Park was 60 or older. This is up from 19.7% in 2000. (Page 53)
This group represents a significant percentage of the potential attendees to CB and Amphitheater
events therefore their needs must be considered. Some part of the potential attendees, i.e. the
potential market, will walk or bike to some or all events, but there needs to be a transportation
plan that accommodates the breadth of potential attendees. Event organizers need assurances
there is a viable plan in place.
Maintain current parking plan and engage shuttle services
To diminish focus on this potential challenge to event organizers, it is therefore in the best
interest of the RA to include the cost of shuttle transport from off-site parking lots that are a
minimum of one-quarter mile away for events held in its facilities so event organizers do not
need to focus their energies on this logistical detail.
There are approximately 35 parking places envisioned in the Master Plan for all of Park – the
five ADA spots and 30 others that are near the LAS buildings. The RA should develop a policy
20
that maximizes the availability of these spaces for park visitors and guests. Perhaps each of the
MOU parties could be allotted one of the 30 spaces. All others will be reserved for park guests.
In addition, there are 879 parking spaces nearby – Copper Ridge - 233, the lower lot at West
Junior High - 112, Meijer’s north lot -319, and 215 at the ISD. Most of these spaces are unused
in the evening and agreements should be made with the owners of these lots for permission to
use these spaces for events at Park. Bay Area Transit Authority has plans to begin running a line
which will pass through the Meijer’s lot down Franke road, across Silver Lake road then on the
newly extended Silver Road to the Commons. Once the new roads and turnaround in front of the
CB are completed, they indicated a willingness to discuss the addition of this stop to their route if
ridership can support it. The BATA buses run on a specific schedule however, so this would only
accommodate the number of passengers who were willing to wait for a bus going their way and
pay the BATA fee. Other means of transporting people include: relocating the train now at
Clinch Park to the Park, obtaining a tractor(s) and wagon(s) to move people, using the services of
one of the area shuttle services, developing a new bicycle rickshaw service and developing a
valet parking service. Though the particular solution to this challenge has not been specifically
determined, the financial pro formas include an annual expense for transportation of people
to/from the facilities based upon the number of events budgeted based upon the RA choosing to
maintain the status quo of the parking plan. Transportation expectations may change over time
and the principles of the Park may accelerate it, but until then, accommodating current public
expectations regarding access to parking needs is a service that should be included in the
standard rental agreement.
To be pro-active regarding public support for the parking plan for the Park, all marketing
materials for the park should include information stating that except for limited ADA parking,
there is no parking. Park goers should be prepared to walk, bike or use the shuttle services
available. There should be large signs at all entrances to the park informing visitors of parking
regulations. Fines assessed for illegal parking should be a revenue source.
Parking – Alternative #1 Increase the amount of on-site parking
Throughout this report, there are references to the competitive disadvantages that the lack of onsite parking will present to booking events at the Cathedral Barn. We have been asked to suggest
the number of parking places that would be required to overcome this competitive weakness.
The recommendation based upon discussions with a number of potential planners and users
would be to design parking for an additional 125 cars. These places would be in addition to the
35 currently planned for the Park. Ideally these places would be as close to the main entrance to
the Cathedral Barn as possible without interfering with the aesthetics of the venue. The impact
of increasing the number of spaces would have to be reviewed in relation to any additional ADA
parking accessibility requirements that would apply as it is understood that some parking
variances may have been approved based upon the original plan of only 35 spaces onsite.
Though it is anticipated that there will be events with far greater than 200-350 people in
attendance, those events will be of a scale that can typically accommodate a shuttle
transportation cost within the event budget. Smaller scale events that do not have clearly
defined beginning and ending times will also present increased transportation costs if people
need to park off-site. Wedding receptions, fundraising events, small-scale festivals and a farmers
market are some examples.
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The land closest to the planned new entrance to the Cathedral Barn is the most fertile. It has been
allotted to BGS, SEEDS and LA for their plants, crops and flowers. The land that is scheduled to
remain unimproved is to the west and up the hill. This is also the land that has the greatest
amount of contamination. Thus in some respects this could be the most suited to use as parking.
There are two operational drawbacks to this space. The first is access. The current roadways
would take all vehicles past the CB to get to the parking lot and also past the CB on the way out.
This may lead to congestion as cars stop to drop off and pick up passengers. Some creative
thought would have to be given to laying out the traffic pattern to alleviate this potential concern.
The second drawback is the potential visual contamination of cars parked on the hill above the
amphitheater. This would need to be addressed in landscape planning. In keeping with the
park’s environmental vision, newly created parking places would need to be constructed of
permeable materials. An asphalted, striped lot would not be appropriate. While gravel or wood
chips do not having the permanency of brick pavers, these types of materials could be more
suitable and affordable. Assigning personnel to guide drivers to the appropriate spaces would
eliminate the need for space lining.
There would be a cost to prepare the land to receive cars. That cost is not in the plan. Conversely,
however, there would be a potential savings, which is also not included in the plan. The single
largest expense of hosting events at the CB - Shuttle Service -could be reduced. In 2015 alone,
that expense is estimated to be between $60,000 and $80,000. In addition, with the elimination of
this competitive disadvantage, it is likely that more events may be attracted to the venue thus
boosting revenues.
Parking –Alternative #2 Joint Venture with Independent Shuttle Provider
The RA may wish to consider a Joint Venture between the RA and an independent shuttle
provider (ISP) as an approach to reducing the projected expense shown in the pro formas. Under
this scenario, the RA would be required to make a capital investment in the purchase of a used
21-25 passenger bus with less than 100,000 miles for between $20,000 and $25,000. The bus
would be insured, maintained and operated by the ISP. ISP employees would drive the bus. It is
estimated that the annual cost to the RA for the services provided by the ISP would be
approximately $35,000. The ISP would dedicate the bus to events at the Park as a first priority,
but would have the option to use the bus for private operations when its usage was not required
at Park. One ISP estimated that the expense for purchase of the bus could be capitalized over ten
years as replacement of the bus would be at approximately 300,000 miles.
The cost could be reduced by revenues generated from the sale of advertising space on the
interior and exterior of the bus. In addition, the ISP would reimburse the RA for the use of the
bus during those periods when it was not required for Park events. It is estimated that the net
revenues to the RA from the advertising revenue and private rentals would be approximately
$20,000 per year. Thus the net cost for providing the shuttle service at the Barns would be
approximately $15,000 per year for the number of events anticipated in the 2015 “Most Likely”
scenario vs. $60,000 as shown in the pro formas. All of these numbers are estimates based upon
2011 assumptions and there may be considerations relative to a Joint Venture that would
complicate this type of arrangement. Nonetheless, it is an option the RA may wish to consider as
a cost reduction measure.
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C) Risk Management
With the number of people who will be attending events at the Park, policies and procedures
need to be developed to ascertain the safety and well being of the public as well as to minimize
the liability of the RA.
D) Alcohol usage – The availability of alcoholic beverages at events at the Park will be
necessary in order for the venue to be competitive with other venues. Therefore, it is
recommended that alcoholic beverages be permitted at organized events at the Park so long as
the event complies with policies and procedures established by the RA. These policies and
procedures need to address the following:
The event sponsor must provide a copy of the liquor license provided by the Michigan Liquor
Control Commission. Non Profits must provide a copy of the Special Events liquor license if
there is to be any charge for alcoholic beverages served. No alcohol service is permitted, or
consumption tolerated, for those under the age of 21. Event sponsors must provide satisfactory
provisions to check Identification.
Appropriate supervisory staff must be on hand to monitor the event and respond to any
difficulties, the cost of which is included in the rental fee. The RA may require additional
security for specific events. All additional security personal charges will be borne by the renter.
The RA may consider increasing the amount of the security deposit that will be charged for
events at which alcohol is available.
E) Insurance – The event sponsor must provide a copy of the Event Liability insurance policy in
the amount of $1,000,000 per event. This insurance must include a list of Additional Insureds
which will include among others the RA and its agents or designees.
F) First Aid/Emergency Services – The CB and A should be outfitted with defibrillation
equipment and the Managing Agent and event staff should be trained in the use of this equipment
as well as standard first aid procedures. For larger events, provisions should be made for first aid
and emergency services as well as lost child and lost and found areas. Emergency service rightof-ways should be determined for events that occur away from road access.
G) Public Access- As a public park, community access is a fundamental principle applicable to
all open spaces at all times. However, there should be a policy which restricts public access to
the barn and amphitheater during private and ticketed events. Extending this policy to include
tented events should also be considered. In the vast majority of cases, members of the public
would not intrude on a wedding ceremony or other private event held within a facility or tent at
the Park but this policy would be in place if a member of the public ignored generally accepted
protocol in relation to such situations.
H) Exterior Lighting – Provisions for lighting along the interior streets and pathways are
essential for pedestrian safety and security purposes. Providing safe passages for travelling
within Park is important to the success of all events. Poor lighting can contribute to injury or
crime and impacts risk management for the RA. It should be addressed prior to initiating events
at the Park. This is especially important as the park is promoted as a walkable environment and
23
events will be held after sunset. It needs to be determined whether the cost of the installation,
upkeep and eventual replacement of this lighting is a cost of the Barns Park or whether this is a
cost of the municipalities in which this park is located. Regardless of the funding source, a
lighting plan needs to be developed and implemented. This may add to the initial costs of Phase
One of the capital campaign.
I) Cathedral and Historic Barn access – In the distributed Master Site Plan, the BGS has
responsibility for all of the land adjacent to the south and east sides of the both the Cathedral and
Historic Barns. In discussions with BGS, they indicated that it is their intent to plant gardens in
those areas. As the plans are now drawn, this would mean that there would be no means of
ingress or egress to first floor of the Cathedral Barn other than the Main Entrance. The
architect’s plans detail entrances to several planned rooms on the first floor. With the Historic
Barn, there is no entry to the first floor except through the existing door on the north end of the
building. As lack of access will severely restrict the usage of these buildings, it is recommended
to discuss this with BGS before hard plans for gardens are developed.
J) Management of the Cathedral Barns and Adjacent Areas
The recommended business model is that the RA contract with a Managing Agent (MA) to
implement the events management business activities of the RA. The successful marketing,
booking, scheduling and on-site management of events is a specialized function that can better
be handled by an experienced professional. Selecting a MA who is familiar with the area and
understands the nuances of event planning and staging with all the identified customer markets,
while being very attentive to customer service, will maximize the profitable utilization of the
Cathedral Barn and Amphitheater. The MA will be an independent contractor whose business is
providing venue management services. As an independent contractor, the MA will determine
their working hours and daily duties. While it will be important to have office space available at
the CB for the MA so that they can meet with prospective users on site, the MA should maintain
their principal office off site in order to service other clients. It is recommended that the MA be
selected from those individuals/companies that respond to an RFP developed by the RA.
The financial pro formas are based on a contract with the MA that includes the following terms:
Term of the Agreement: Three- year agreement with a cancellation clause for non-performance
with 30 days notice. In that the MA will be opening the Cathedral Barn and Amphitheater, there
will be a ramp up period before the facilities reach their full potential. Having a three year term
will allow the MA and the RA to evaluate the success of the relationship.
Management Fee: It is anticipated that the contract will include both an annual fixed retainer as
well as a commission paid based upon the success of the facilities rental business. Based upon
the comparisons with other facilities management businesses, a fixed fee of $35-$40,000/year
when the facilities are fully operational would be competitive. The performance-based
commission would be calculated as a percentage of the net income (Annual Gross revenues
minus total expenses, excluding the RA management fee and the RA consulting fee as indicated
in the Financial Pro Formas on page 26). The percentage may be between 20% and 30% of the
net income. Though it may be possible to eventually move to an agreement where the fee is
solely based on a percent of net revenues, this is not a realistic scenario during the period of this
business plan as the social enterprise is projected to show a net operating loss. In the future, the
24
merits of a contract based solely on financial performance will need to be weighed. It could have
a negative impact on the mission of the social enterprise as it creates a disincentive to the MA to
book certain community and educational events that may not provide significant earned income.
Responsibilities of the MA
Preparation of the annual budget and event calendar plan. The MA will be asked to prepare
an annual budget and events calendar for the facilities rental business. The events calendar
should include the minimum number of performances, events, meetings anticipated for the
coming year. Rental dates should be included where known. The plan should also include the
rental rates and other fees expected to be charged for the various events to be held at the Barns.
The budget and events calendar should be submitted to the RA for approval at least twelve weeks
prior to the beginning of each calendar year, beginning with 2013. As business increases,
advance bookings will also increase therefore the MA agreement should be modified to have the
annual events calendar for two years provided to the RA.
Facility management – The MA will be responsible for managing the facility in accordance
with the approved events calendar and budget. The MA will have delegated authority from the
RA for operations of the facilities to include booking, coordination, scheduling, renting, event
supervision and customer service. However, there should be a policy that events for which
attendance is expected to exceed 3,000, the approval of the RA is required prior to confirmation
of the booking.
Facility Upkeep and Repair -The MA will have responsibility for assuring the facilities are
maintained in good repair as this is a fundamental requirement for facilities rentals. Day to day
repairs shall be expenses of the operation, for which a line item is included in the financial pro
formas. Except in emergencies, any repairs that are anticipated to cost more than $500 will
require the prior approval of the RA prior to initiation of work. An annual maintenance fund is
included in the operational budgets. Capital repairs and improvements will need to be funded
through the millage fund.
Marketing – The MA will have responsibility for marketing the facilities under the control of
the RA, at this time, the Cathedral Barn and Amphitheater. This will include developing an
annual marketing plan that will be submitted to the RA at the same time as the annual
operational budget. During business start up, this will include coordinating the development of
marketing materials, website and other branded materials necessary for a facilities rental
business (user agreements, etc.) Marketing materials will initially be approved by the RA to
ascertain that they are consistent with the brand and mission of the Park.
Contracting-The MA will have responsibility to develop standardized contracts, user
agreements and other necessary documents and processes to successfully operate the RA
facilities rental business. These agreements must be approved by the RA prior to their initial use.
Standardized agreements may not be changed by the MA or client without prior approval of the
RA. The MA will have the authority to sign contracts relevant to the facilities rental business on
behalf of the RA if the documents do not negate any aspects of the RA approved contracts,
policies or guidelines. Copies of all fully executed contracts must be filed with the RA on a
monthly basis. The MA will provide the RA with a copy of the updated scheduled events
25
calendar plan on a monthly basis according to user categories (Page 45); i.e. public service,
private wedding; private party; MOU event etc., to assist the RA in assuring use of the venues is
balanced between all intended user groups.
Handling of Funds- The MA will instruct all renters to make payment via check, money order
or bank transfer to an account under the name of the RA. The MA will have deposit privileges.
Checks written from this account must carry two signatures for amounts over $250. The MA
will have one-signature check signing authority up to $250 and can be one of the signers on
checks above this amount. This activity will be monitored by the RA through on line access to
all depository accounts. The MA will be responsible for reconciling the bank statements on a
monthly basis.
Financial Reporting – The MA will be required to maintain the facilities rental business books
in an online, web-based system registered to the RA such as QuickBooks to which the RA will
have full access. The MA will prepare and present monthly financial reports to the RA within 15
days of the end of each month. These reports should include an income statement, a balance
sheet and a cash flow statement and projection each with a variance commentary and each
prepared in accordance with Generally Accepted Accounting Principles (GAAP). The
reconciliation of individual events will be made available by the MA to the RA upon request.
Independent Contractors/ Indemnification – The management contract should spell out that
the MA is an independent contractor and not an employee. Within the contract, each party
should indemnify the other against actions taken independently in fulfilling their responsibilities
under the contract.
Personnel – The MA will have the responsibility to contract, on behalf of the RA, the necessary
personnel to provide the services promised as a facilities rental business. As these needs will be
episodic, based upon the events calendar, they will be independent contractor agreements.
Opportunities to contract with MOU members to provide services when appropriate should be
encouraged by the RA.
Insurance – The contract should contain language identifying the obligations of the parties to
provide insurance. In most general terms, insurance on the premises, (Property and Casualty)
will be provided by the RA and liability insurance (event related) will be secured by both the RA
and the MA. The costs of all insurance covering the RA will be included as expenses of the
facilities rental business operations. The cost of insurance coverage for the MA will be the
responsibility of the MA as it should extend to the other clients of the MA.
Annual review/ Contract Renewal – Even though the contract is for a period of three years,
there should be an annual review of the MA by the RA. This review should include an evaluation
of the MA’s performance in relation to the event calendar and budget. Failing to meet
expectations may be a cause for early termination of the contract. Barring a pre-mature contract
termination for cause, not less than one year prior to the end of the contract, each party should
notify the other of their interest in extending the contract. This notification period will provide
the RA with the opportunity to prepare a new RFP if so desired.
Annual Calendar of MA Primary Activities-
26
1. Beginning in 2013, by November 15 of each year, develops an annual budget for the
upcoming calendar year for the facilities and presents this budget to the RA for
approval.
2. Between October 1 and October 15 of each year, coordinates use of RA facilities with
Botanical Garden Society, Little Artshram and SEEDS for next calendar year.
Because these groups have agreed to jointly program at the Cathedral Barns and
Amphitheater, they may each reserve the CB and A for up to five dates/year for each
of the next two years during the calendar development period. Their selections may
include 2 date reservations in the “prime months” (Memorial Day to Labor Day).
Within two months of a given date, an MOU member may book a date at the CB or
A.
3. By November 1 of each year, MA presents a proposed Master Events Calendar for
the facilities for the following calendar year to the RA for review. The Master Events
Calendar for the succeeding year will also be provided for RA input as eventually the
facilities will have significant bookings 2 years in advance.
It is understood that there will be events that are booked more than twelve months in
advance. MA has full authority to schedule facilities for the coming year to achieve a
mix of profit making and community service events and has authority to negotiate
facility rental agreements with promoters and groups wishing to use facility so long
as such scheduling and contracts are in accordance with guidelines set by RA.
4.
By December 1, the RA completes review of the materials provided by the MA and
provides direction to MA regarding any modifications desired. It is understood that
the MA will not be instructed to break a contract under deposit unless there is a
serious breach of RA policy.
Technology-The use of web-based applications, QuickBooks online financial
management software, shared document tools, online multi-year master events calendars,
project management software and signature authentication software to allow contracts to
be signed electronically would facilitate the business processes and exchange of
information to “real time” between the RA and MA. This would assure that the RA
could monitor business activities as closely as desired and could perform random checks.
It would also assure that all of the property of the RA resides with the RA through online
document storage and that changes in an MA would only require that log-in information
be changed. It would also be in keeping with the principles of environmental
conservation.
SOCIAL ENTERPRISE: #1
Facilities Rental Enterprise
Financial Narrative
Three potential scenarios have been developed - Conservative, Optimistic and Most
Likely for a four-year period, 2012-2015. The scenarios are the same in that:
27






No rental operations take place therefore no rental income is received in 2012.
The first year has expenses associated with preparing the CB and A for rental
activities. The MA is contracted, policies and procedures are developed,
marketing materials are developed and marketing begins.
There is only seasonal usage of the Cathedral Barn in 2013 and 2014. The rental
year begins in March 2013 with an RA hosted “Opening of the Cathedral Barn”
Gala. After the opening the CB and A are available for a full array of events from
April through September. No events are scheduled in the last quarter of 2013 as
there will be no indoor access from main floor to lower level restrooms and there
will be no catering kitchen or green room.
The assumptions assume that a successful Phase Two fund drive allows the
completion of the CB with construction occurring between October, 2014 and
February, 2015. Beginning in March, 2015 bookings increase substantially due to
a fully functional venue.
The opening Gala is anticipated to celebrate the completion of Phase One and the
opening of the Cathedral Barn. It is also intended to be the Kick-off of fund
raising for Phase Two. The Gala is expected to break-even. 400 guests will pay
$40 each for “heavy appetizers” and refreshments/ wine. Shuttle service will be
available as will a deluxe 6 stall portable restroom outside of the West entrance to
the barn.
There is no depreciation expense included in the operational budget as the RA
maintains a separate account funded by millage revenues that is utilized for
capital improvements and replacements
Not included as a source of revenue are any “overrides” from vendors renting
space at major events. As a part of most festivals, space is “sold” to vendors from
which they sell food, beverages or souvenirs/ CDs/T-shirts, et al. In the research
for this project, we have uncovered a difference of opinion whether these “vendor
dollars” are revenue for the event promoter or whether they are divided with the
Rental Management entity, in this case the RA. For the purposes of providing a
conservative financial forecast, we have not included any “vendor dollars” as
revenue, but we provide this information as topic to be explored/ negotiated with
event promoters.
Differences among the scenarios
Because there are no events anticipated for 2012, only the “Most likely” pro forma has been
produced. For 2013 through 2015 the Conservative forecast suggests that bookings will take
more time to develop while the Optimistic forecast depicts rapid public interest in scheduling
events at the CB and A. While the revenues and events specific expenses change in these
forecasts as they are directly related to the number and size of events, the General and
Administrative expenses are constant in all scenarios.
28
Facilities Rental Enterprise Pro Formas
2012-2015, Conservative, Most
Likely, Optimistic Scenarios
29
1
2
2012
All Scenarios
Avg Event
Revenue
3
4
5
6
7
8
9
10
Revenue
Activity Rental
Community Service Functions
Weddings
Conferences
Concerts
Private Events -Sweet 16 parties, reunions, corporate meetings, private
11 parties et al
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
Non Profit Fundraisers
User Group events - Plant sales. Etc.
Amphitheater concerts
Festivals
Educational Workshops forums
Film Events
School events
Proms
Senior Lock-ins
Active Events (Snow Show Events)
Farm Market Building Rental
Total Activity Rental
$
$
$
$
Total Expenses
Net Income
MA Profitability Bonus 25% NI
Net Income after MA Perf Bonus
Cumulative Net Income
# of Events
0
0
0
0
0
0
0
0
$
700
0
$
$
$
$
$
$
2,000
400
2,000
10,000
400
400
$
$
$
$
600
600
1,000
1
0
0
0
0
0
0
0
0
0
0
0
0
Management Agent Fees
Annual retainer
Marketing and event co-ord Asst
Events CO-ordination and oversight
Marketing Materials
Communications
Total Management Agent
Event Specific Expenses
Shuttle, valet expenses General
Shuttle Farmers Market
Catering Expenses
Set- up and Clean up
Security Personnel
Other
Total Event Specific
# of Events Revenue
200
2,800
375
750
Expenses
General Administration
Management services City
Misc Consulting
Legal
Audit
Utilities
Maintenance
Snowplowing
Travel
Office Supplies
Insurance and Bonds
Total General Admin Expenses
2013
Most Likely
Conservative
Revenue
4
18
3
2
$
$
$
$
16,800
50,400
1,125
1,500
0
3 $
2,100
0
0
0
0
0
0
0
0
0
0
2
0
0
2
6
2
0
1
1
0
$
$
$
$
$
$
$
$
$
$
4,000
20,000
2,400
800
600
600
-
44 $ 100,325
Optimstic
# of Events Revenue
# of Events Revenue
7
24
3
3
12
29
3
4
$
$
$
$
17,200
67,200
1,125
2,250
4 $
2,800
2
0
0
2
6
3
0
1
1
0
$
$
$
$
$
$
$
$
$
$
4,000
20,000
2,400
1,200
600
600
-
56 $
$
$
$
$
18,400
81,200
1,125
3,000
6 $
4,200
3
0
0
2
12
4
0
2
2
0
$
$
$
$
$
$
$
$
$
$
6,000
20,000
4,800
1,600
1,200
1,200
-
119,375
79 $
142,725
$
$
$
$
$
$
$
$
$
$
$
17,500
5,000
3,000
1,700
400
1,200
1,500
30,300
$
$
$
$
$
$
$
$
$
$
$
35,000
10,000
3,000
3,000
7,100
3,000
1,650
2,000
2,500
3,000
70,250
$
$
$
$
$
$
$
$
$
$
$
35,000
10,000
3,000
3,000
7,100
3,000
1,650
2,000
2,500
3,000
70,250
$
$
$
$
$
$
$
$
$
$
$
35,000
10,000
3,000
3,000
7,100
3,000
1,650
2,000
2,500
3,000
70,250
$
4,375
$
$
$
10,000
300
14,675
$
$
$
$
$
$
27,712
6,000
5,000
20,900
5,000
64,612
$
$
$
$
$
$
27,712
6,000
7,000
20,900
5,000
66,612
$
$
$
$
$
$
27,712
6,000
8,000
20,900
5,000
67,612
$
$
$
$
$
16,000
11,250
12,000
4,400
1,200
20000
11,250
12000
5600
1200
$
$
$
$
$
28,000
11,250
12,000
7,900
1,200
$
44,850
$
$
60,350
$
$
$
$
$
179,712
(79,387)
(79,387)
(124,362)
$
$
$
$
$
$
$
$
$
$
198,212
(55,487)
(55,487)
(100,462)
0
0
0
0
0
0
600 Per Fest
$
$
44,975
(44,975)
$
$
(44,975)
(44,975)
$
50,050 $
186,912
(67,537)
(67,537)
(112,512)
-
30
1
2
3
4
5
6
7
8
9
10
Revenue
Activity Rental
Community Service Functions
Weddings
Conferences
Concerts
Private Events -Sweet 16 parties, reunions, corporate meetings, private
11 parties et al
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
2014
Most Likely
Conservative
Avg Event
Revenue
Non Profit Fundraisers
User Group events - Plant sales. Etc.
Amphitheater concerts
Festivals
Educational Workshops forums
Film Events
School events
Proms
Senior Lock-ins
Active Events (Snow Show Events)
Farm Market Building Rental
Total Activity Rental
$
$
$
$
# of Events
200
2,800
375
750
$
700
$
$
$
$
$
$
2,000
400
2,000
10,000
400
400
$
$
$
$
600
600
1,000
1
Revenue
10
20
4
4
$
$
$
$
2,000
56,000
1,500
3,000
4 $
2,800
Revenue
15
25
5
5
$
$
$
$
3,000
70,000
1,875
3,750
5 $
3,500
Revenue
20
30
6
5
$
$
$
$
4,000
84,000
2,250
3,750
7 $
4,900
Optimstic
# of Events Revenue
# of Events Revenue
# of Events Revenue
30
34
7
7
50
45
11
10
60
50
18
10
$
$
$
$
22,000
95,200
2,625
5,250
5 $
3,500
$
$
$
$
$
$
$
$
$
$
6,000
2,400
6,000
20,000
3,600
1,600
1,200
600
-
7 $
$
$
$
$
$
$
$
$
$
$
4,900
8,000
2,400
10,000
30,000
3,600
2,000
1,800
1,200
-
22 $
15,400
6
9
5
4
15
6
0
5
3
1
12,000
3,600
10,000
40,000
6,000
2,400
3,000
1,800
1,000
$
$
$
$
$
$
$
3 $
3 $
$
$
102 $
6,000
2,000
6,000
20,000
4,000
2,000
1,800
1,800
142,500
Expenses
General Administration
Management services City
Misc Consulting
Legal
Audit
Utilities
Maintenance
Snowplowing
Travel
Office Supplies
Insurance and Bonds
Total General Admin Expenses
$
$
$
$
$
$
$
$
$
$
$
35,000
10,000
3,000
3,000
7,100
3,000
1,650
2,000
2,500
3,000
70,250
$
$
$
$
$
$
$
$
$
$
$
35,000
10,000
3,000
3,000
7,100
3,000
1,650
2,000
2,500
3,000
70,250
$
$
$
$
$
$
$
$
$
$
$
35,000
10,000
3,000
3,000
7,100
3,000
1,650
2,000
2,500
3,000
70,250
$
$
$
$
$
$
$
$
$
$
$
20,000
4,000
3,000
3,000
9,000
3,000
2,000
2,000
2,500
3,000
51,500
$
$
$
$
$
$
$
$
$
$
$
20,000
4,000
3,000
3,000
10,000
3,000
2,000
2,000
2,500
3,000
52,500
$
$
$
$
$
$
$
$
$
$
$
20,000
4,000
3,000
3,000
11,000
3,000
2,000
2,000
2,500
3,000
53,500
Management Agent Fees
Annual retainer
Marketing and event co-ord Asst
Events CO-ordination and oversight
Marketing Materials
Communications
Total Management Agent
$
$
$
$
$
$
27,712
6,000
6,000
14,900
5,000
59,612
$
$
$
$
$
$
27,712
6,000
8,000
14,900
5,000
61,612
$
$
$
$
$
$
27,712
6,000
9,000
14,900
5,000
62,612
$
$
$
$
$
$
35,000
10,000
12,000
13,900
5,000
75,900
$
$
$
$
$
$
35,000
10,000
15,500
13,900
5,000
79,400
$
$
$
$
$
$
35,000
10,000
18,000
13,900
5,000
81,900
$
$
$
$
$
22,000
6,200
600
$
$
$
$
$
29,000
8,100
1,200
$
$
$
$
$
38,000
10,200
1,800
$
40,000
$
60,000
$
80,000
$
$
$
12,000
11,333
1,200
$
$
$
12,000
16,000
1,800
$
$
$
12,000
21,400
2,400
$
28,800
$
38,300
$
50,000
$
64,533
$
89,800
$ 115,800
$
$
158,662
(70,362)
$
$
170,162
(51,037)
$
$
182,862
(40,362)
$
$
(70,362)
(194,724)
$
$
(51,037)
(163,549)
$
$
(40,362)
(140,823)
$
$
$
$
$
191,933
(21,958)
511
(22,469)
(217,192)
$ 221,700
$
5,825
$
7,456
$ (1,631)
$ (165,180)
$ 251,200
$ 26,250
$ 12,563
$ 13,688
$ (127,136)
113 $ 169,975
4
6
5
3
9
5
0
3
2
0
$ 28,000
$ 140,000
$
6,750
$
7,500
4,000
1,200
4,000
20,000
3,200
1,600
1,800
1,200
119,125
Line by line Assumptions –
3
6
3
2
9
4
0
2
1
0
$ 26,000
$ 126,000
$
4,125
$
7,500
$
$
$
$
$
$
$
3 $
2 $
$
$
81 $
Total Expenses
Net Income
MA Profitability Bonus 25% NI
Net Income after MA Perf Bonus
Cumulative Net Income
3
5
3
2
10
5
2015
Most Likely
4,000
800
2,000
10,000
3,200
1,200
1,200
600
88,300
600 Per Fest
2
3
2
2
8
4
# of Events
Conservative
$
$
$
$
$
$
$
2 $
1 $
$
$
62 $
Event Specific Expenses
Shuttle, valet expenses General
Shuttle Farmers Market
Catering Expenses
Set- up and Clean up
Security Personnel
Other
Total Event Specific
2
2
1
1
8
3
# of Events
Optimstic
160 $ 227,525
$
$
$
$
$
$
$
$
$
$
214 $ 277,450
31
Line
#
7
8
Heading
Revenues
Community Service Functions
Weddings
Explanation
This includes provision for an Opening Night Gala in both 2013
and 2015
Projected to be the biggest source of rental income; Avg. price
will be $3000 for Saturday Weddings, $2,200 for Fridays.
These prices are comparable, if not a little under, similar
venues.
Rental price is comparable to similar venues; CB will not be
competitive until restroom access is addressed.
9
Conferences
10
Concerts
11
Private Events
12
Non Profit fundraisers
This could be a Big Brothers/ Big Sisters event etc. Pricing is
comparable and usage is expected to rise as groups realize the
convenience and flexibility of the CB
13
User group events
14
Amphitheater Concerts
BGS, SEEDS and LAS have all indicated they would envision
hosting events in the CB. These groups would program or host
the event. Price listed reflects discount to MOU member
groups.
These are anticipated to be "Big Name" events. Pricing is based
upon the greater of $2 per person or $2,000 flat rate rental
15
Festivals
16
Educational Workshops and
Forums
17
Film Events
Similar to Open Space movies during the film festival, the
amphitheater will be a good venue to watch movies under the
stars. Revenue may be greater of flat rate or $1.00 per ticket
18
School events
No revenue is forecasted. RA may wish to allow TBAISD to
utilize facility for special events for no charge in "repayment"
for use of their parking lot.
19
High School Proms
With over 30 high schools in the 5 contiguous counties, the CB
could become the venue of choice for Proms. Pricing is
comparable to or below other venues.
20
Senior Lock-ins
Same as above
Concerts in 2013 and 2014 are contemplated to be fewer and
smaller than in 2015. May be folk related to tie into nature of
Park. Revenues estimated to be greater of $1 per person or $750
flat facility rental.
This is a broad category. Rental price is comparable to similar
venues. Price is higher than meetings as these generally require
longer usage of facility for set up and clean-up
These may be one , two or three day events using the CB and A.
An example might be an antique car show coordinated by Mini
Minervini. Pricing reflects facility rental fee could be greater of
flat fee or $2 per ticket. These events may draw 5000+
attendees.
Consistent with mission of Park, a number of these types of
activities are envisioned centering on the environment, energy
and food production and use. Rental rates are comparable.
32
21
Active Events
Snow Shoe events, tobogganing on the hills above the CB, yoga
retreats, along with food and drink in the barn.
22
Farmers Market - Pilot Program
Token rental fee to validate contract with LAS for managing
Pilot market
23
Total Activity Rental
The sum of all rental revenues
2730
Expenses
General Administration
These estimates were provided by the RA Executive Director as
costs to be paid to the city for overseeing the Park. Estimates
drop in 2015 when the major work of fundraising, policy and
procedure development, and construction has been
accomplished and the demands for oversight by the City should
diminish.
Estimates have been provided by the City for use in a normal
year. 2013 and 2014 costs are lower reflecting only partial year
usage. 2015 expenses increase as activity in the CB increases.
31
Utilities
32
Maintenance
As the CB will in essence be a "new" facility in 2012, projected
maintenance costs are low.
33
Snowplowing
3436
Travel, office supplies and
Insurance and Bonds
Costs reflect minimal plowing being done during 2013 and
2014 when the CB is only in operation from March to October.
In 2015 the CB opens in March and remains open for the
remainder of the year thus costs are anticipated to increase.
These costs could rise depending upon how many roads in the
park are plowed.
These estimates were provided by the RA Executive Director
40
Annual Retainer - Managing
Agent
41
Marketing/ Event Co-ord. Asst
42
Event Coordination and
Oversight
43
Marketing Materials
This is an estimate of the base contract for a managing agent.
The initial services contract beginning Oct 1, 2012.is limited
The scope of services increases on March 1, 2015 in
anticipation of fully equipped venues.
Due to the significant hands-on work that is required in hosting
weddings and other events, it is anticipated that the MA will
contract with an event specialist. Contract estimated at $1,000
per month. This person will work with the customers in advance
of the event.
It is anticipated that there will have to be a staff person
available at all times that events are in progress at the CB and
A. This assumes paying approximately $10/hr for hours
worked. Amounts increase as the number of events increase.
Amounts planned in 2012 include the development of a web
site. It is anticipated that the majority of print marketing pieces
will be produced in 2013 thus this line item drops in 2014.
Contact management software (Sales Force or other)-$300
annually for one user; Email marketing (i.e. Constant Contact,
Vertical Response)-$700 annually; Website development and
maintenance; Directory listings-$1500 annually; Exhibits:
33
Booth rental annually (8-10 shows $2000 annually; Display
booth $1200- one time; Direct mail pieces $500-$1000
annually; Energy Farm Marketing packet-$700; Energy Farm
brochure $500 to $1000 annually
Cost of telephone, fax, internet and related charges.
44
Communications
48
Shuttle
49
50
Shuttle -Farmers Market Pilot
Catering Expenses
51
Set-up and clean up
Amounts paid to persons hired to move chairs, tables and other
equipment before during and after events in the CB and in the
amphitheater.
52
Security Personnel
Persons hired to patrol large events at which alcohol is being
served to large numbers of people.
57
Net Income
58
MA Profitability %
Amount available to RA after payment of all expenses. This is
also the amount from which any bonus is paid to the Managing
Agent.
The amount earned by the MA (25% of the FRE net income
after deducting the City Management and misc consulting from
total expenses)
59
Net income after MA %
Net income to the RA after payment of a 25% profitability
bonus to the MA.
60
Cumulative Net Income
Total of annual profits 2012-2015 under each scenario
In order to be competitive with comparable venues, there must
be provision to move patrons to and from the remote parking
lots to the CB and A. These are the estimates of the cost to have
shuttle service available at all events except for the Farmers
market pilot.
This cost is only included for 2013.
The expense for catering at the Opening Gala in 2013 and 2015.
Estimated at $30/plate.
Capital Project Budget: Phase 1 and 2
34
Project
Cost
Phase 1
Sitework
Existing building Connector Demolition
Connect sewer and water
Fire Suppression line
Drainage structures for road and amphitheather
Amphitheater Grading
Gravel road stailization and improvement
Pervious ADA compliant parking for 5 vehicles
Restoration and Irrigation
Total
$
$
$
$
$
$
$
$
$
4,500
10,000
15,500
8,500
12,000
10,500
20,000
16,500
97,500
Phase 1 Upper level Muiltipurpose room & Mechanicals at lower level
5328 SF upper at $75 sf
1033 sf lower level at $35 sf
Floors - Reinstall salvaged wood
Walls - upgrade doors, new windows, insulate and apply lime plaster finish
Ceilings Existing wood ceiling
Mechanical: Air Handler and radiant heat
Electrical Multifunction lighting incl pendants, indirect and direct
Plumbing: Service sinks
Fire Supression Barn 204 and 206
Exterior Stair
Total
$
$
$
$
$
$
$
$
$
53,280
118,475
97,500
75,000
10,500
66,000
15,000
435,755
Phase A1 Lower level Bathroom Facilities
1096 sf at $125 SF
Floors: Polished concrete with in floor radiant heat
Walls - Insulate exterior walls and apply wood
Interior walls: Burnished colored concrete masonry
Ceilings: Existing wood ceiling/inlay ceiling
Mechanical: Air handler and radiant heat
Electrical: Multi-function lighting including pendants, direct and indirect
Plumbing: High efficiency toilets, urinals and sinks
Total
$
$
$
$
$
$
$
$
17,500
25,000
25,000
15,000
15,000
39,500
137,000
Fees Contingency, permits and Bonds (13.5%)
$
90,500
Total Phase One
$
760,755
35
Phase 2 Stair and Elevator Towers
931 SF upper level: 910 lower level at $200 sf
Floors: Polished colored concrete
Walls, Doors, Windows, Burnished colored masonry interior w/ metal, brick
or terra cotta exterior
Ceilings: Wood Ceiling and structure
Mechanical: Air handler and radiant heat
Electrical: Multi-function lighting including pendants, direct and indirect
Fire Supression
Elevator
Stair Enclosure
Total
$
27,000
$
$
$
$
$
$
$
$
120,000
35,000
35,000
27,000
7,200
75,000
42,000
368,200
2A Support Facilities
1938 SF lower level at $130SF
Floors: Polished concrete with in floor radiant heat
Ceilings; Existing wood ceiling or acoustical lay-in
Mechanical: Air handler and radiant heat
Electrical: Multi-function lighting including pendants, direct and indirect
Plumbing: High Efficiency toilet , shower and sinks
Basic Kitchen equipment - catering Kitchen
Total
$
$
$
$
$
$
$
38,000
15,000
15,700
19,000
25,000
30,500
143,200
Fees Contingency, permits and Bonds (15%)
$
75,000
Total Phase 2
$
586,400
Total Phase 1 and 2
$
1,347,155
Furniture & Equipment Budget: Proposed additions, capital
budget
36
Item
Folding Chairs with cushioned Seats
Chair Dolly
Round Banquet Tables 72"
Rec Table Dolly
Rectangular Serving tables 30x60
Round Table Dolly
12 foot folding privacy screens
Lap top computer for MA
Desk for MA
Desk Chair
File Cabinet
Office Phone w Answering Machine
Printer/Fax/ Copier
Projector for building
Projection screen for building
Audio system w/ Wireless Mike
WiFI access for building
Total Furniture and Fixtures
Quantity
200
8
15
1
8
2
4
1
1
1
1
1
1
1
1
1
Potential
Cost
30
$
184
$
146
$
130
$
60
$
165
$
850
$
400
$
400
$
300
$
200
$
150
$
250
$
$ 1,000
350
$
$ 1,000
Total
$6,000
$1,472
$2,190
$130
$480
$330
$3,400
$400
$400
$300
$200
$150
$250
$1,000
$350
$1,000
?
First Year
# of
Daily
Rental Events Rental Cost
56 $ 10,640
$ 0.95
$
9.50
56 $
7,980
$
7.50
56 $
3,360
$18,052
Prices Sources: Biz Chair
Rental Info: GJ's Rentals
Summary Comments on the Pro Forma Financial Statements
As with most start up ventures, there is a ramp up period in which expenses exceed revenues.
This is the case with the Facilities Rental Enterprise. The losses in the first two years are
exacerbated by the assumption that the CB will not have any revenues in 2013, will not be totally
functional in 2014 and will not be open year round until 2015. In addition there are significant
start-up expenses – development of policies, procedures and user agreements; design and
printing of marketing materials; website development; et al which are common to most start-ups.
Also, the revenues will be slow in coming until the venue begins to gain traction in the eyes of
potential renters. In the beginning, this is an unknown venue. Thus revenues can be expected to
be reduced. Finally, the extra weight this venue must bare is the cost of transportation services to
overcome the unavailability of parking at the Park. The shuttle expenses in the pro formas are
estimates. In the pro formas presented, transportation service accounts for over 25% of the total
expenses of the enterprise in the 2015 “Most Likely” scenario.
$21,980
37
If the enterprise achieves the “Most likely” scenario in 2015, it will operate above break even.
Until that point, the RA will have to rely upon millage receipts to fund the operations at the Park.
Under the “Most likely” scenario that will amount to almost $164,000 between 2012 and the end
of 2014. After that time, the enterprise should operate in the black and the net profit will be
available for re-investing in the Park.
Potential Additional Purchases
In addition to the items included in the Phases One and Two facility build-out, there are several
additional items that may need to be acquired or constructed either for safety and security
purposes or to complete the venue’s amenity package. These purchases/ additions have not been
included in the projected budget. They are:
Roadways – The Master Plan for the Park shows completed roadways leading to the Cathedral
Barn and a large traffic circle in front of the Barn which will serve as the drop-off location for
people attending Barn events. We are unaware of any specific plans for the funding or schedule
for the completion of these improvements. It would be most advantageous to coordinate the
completion of these improvements to coincide with the completion of the Phase Two
construction. At that time, the new entrance to the Barn will be at the junction of the Cathedral
and Historic Barns and this is the time when year round full utilization of the CB will begin.
Enabling users to approach the barn on a finished roadway will tie the project together.
People Shelters – Once the turnaround is completed and event traffic at the Barns increases,
visitors awaiting bus/ shuttle rides or private pick-up will want to wait outside the CB close to
the curb. To accommodate these people -particularly in inclement conditions- the RA may wish
to consider constructing shelters in this area. These shelters should be creatively designed to be
in keeping with the natural beauty and historic nature of the park.
Roadway and Pathway lighting – provides safety and security for pedestrian traffic between
out-lying parking lots and the Cathedral Barn and Amphitheater.
Bicycle Racks – Park visitors are going to be encouraged to use non- motorized modes of
transportation when accessing the Park. The provision of bicycle racks for those riding to the
park will foster this mode of transportation by providing some security and organization.
Signage - As a part of the eco- educational mission of the park, tasteful signage for energy
exhibits may be very desirable, i.e.
“Walking this trail will burn # number of calories”.
“The compostable products used in this event will decompose completely in 6 months vs.
1000 years for “eco-friendly” products”;
“This solar panel produces x number of kilowatts per year. It would take X tons of coal or
X barrels of oil to produce the same amount of energy.”
To reflect the public nature of this park, which also hosts private events –
“Wedding, Meeting in progress. We appreciate your respect for the participants.”
38
Business Plan Implementation Timeline
Month
Activity
Responsible
Party
January-11
Review Plans for CB renewal
RA
March-11
Review first draft of Business Plan
RA
April-11
Accept final plan of Business draft
RA
Begin formal fund raising program Continues through June 2012
November-11
July-12
August-12
September-12
October-12
November-12
Specifics
Solicit input from SEEDS, LA and
BGS
RA and BGS
Review and adopt new policies
pertaining to use of the Cathedral Barn
and Historic Barns Park
RA
Develop RFP for Managing Agent
RA
Distribute RFP for Managing Agent
RA
Finalize plans for Phase One Construction
RA
Put Plans out for Bid
Interview Management Agent
candidates, make selection and negotiate
contract
Review Construction Bids and Award
Contracts
RA
RA
Construction begins
RA
Construction Continues
Purchase furniture and fixtures for MA
office; install phone, internet
RA
MA Contract begins
MA
Marketing materials developed
MA
Web Site developed
Initial calendar scoped
MA
MA
Draft initial budget
Develop event planning and user
agreement package to include policies
and procedures for events
Make initial contacts with promoters,
vendors and caterers for CB events
Submit proposed 2013 calendar, goals
and objectives, policies and procedures,
event planning and user package and
budget to RA for approval
MA
MA
Construction Continues
RA
Contract runs - 50% retainer
October 1 to Feb 28: 100%
retainer March 1 to October 30:
RA
RA
MA
MA
Solicits 2013 date requests from
RA, SEEDS, Little Artshram, BGS for
use of CB and Amphitheater
39
Consider proposed 2013 calendar, goals
and objectives, policies and procedures,
event planning and user package and
approve same
December-12
Purchase tables and chairs for CB
Construction Continues
contact purveyors of porta-potties and
transportation/shuttle services for
potential use at CB events
Begin booking events for CB and
Amphitheater
Plan and organize opening Gala for CB March 2013
January-13
Continue planning opening Gala
RA
MA
RA
RA funds purchases
MA
MA
MA
seek input from & involvement w/
RA, SEEDS, Little Artshram, BGS
MA
Construction Completed
Feb-13
Mar-13
Continue booking events
MA
Participate in Bridal Showcase
MA
Finalize plans for Gala
MA
Send invitations to guests for Gala
MA
Plans finalized for Phase Two;
RA
Continue advertising and booking
Hire and train required staff for CB
events
MA
MA
MA contract converts to 100%
MA
Hold Gala Opening event
MA/ RA
Apr-13
CB begins hosting community events
MA
May-13
CB hosts first wedding/ reception
MA
CB hosts community events
CB barn now open daily through Labor
day for public viewing
MA
CB hosts 1st High School Prom
MA
Pilot Farmers Market opens
LAS
30-May-13
Jun-13
Jul-13
Staffed w/ independent
contractors-not RA employees
Kick off for fund-raising for Phase
II - RA only; Fund-raising continues
through September 2014
MA
CB hosts weddings
MA
Hosts weekly Farmer's markets
LAS
Hosts 1st outdoor concert
Hosts variety of community activities
including: food related events, dances,
Shakespeare in the Barn; lectures,
musical performances et al
Mid year evaluation of MA
MA
MA
Mid year evaluation of MOU members
performance against annual goals
RA
CB hosts weddings
MA
Hosts weekly Farmer's markets
LAS
RA
Review performance vs. plan,
budget vs. actual, plans for 2nd six
months
40
Aug-13
Sep-13
Oct-13
Hosts 1st festival - Antique Auto Show?
Hosts variety of community activities
including: food related events, dances,
Shakespeare in the Barn; lectures,
musical performances et al
MA
MA
CB hosts weddings
MA
Hosts weekly Farmer's markets
LAS
Hosts 2nd outdoor concert
Hosts variety of community activities
including: food related events, dances,
Shakespeare in the Barn; lectures,
musical performances et al
MA
MA
CB hosts weddings
MA
Hosts weekly Farmer's markets
LAS
Hosts 3rd outdoor concert?
Hosts variety of community activities
including: food related events, dances,
Shakespeare in the Barn; lectures,
musical performances et al
CB closed until April 2014 except for LAS
hosted Farmers market.
MA
MA
MA Contract reverts to winter hours
2014 Events Calendar scoped
MA
RA
MA
RA
Year end review of MOU members goals
vs. actual
Nov-13
Year end review of MA
2014 Calendar and budget submitted
and considered by RA
RA
MA/RA
Review of Farmers Market Pilot
RA/LAS
Jan-14
Bookings solicited for 2014 and 2015
MA
Feb-14
Bookings solicited for 2014 and 2015
MA
MA
Preparations made for April 1 Re-opening
Apr-14
April to September
Aug-14
Sep-14
Oct-14
CB Re-opens
Programming continues in full operation
Phase Two Construction Contracts out
for Bid
Bids reviewed, Contracts awarded;
Construction begins
CB closed for winter months and
construction
MA Contract reverts to winter hours
2015 Events Calendar scoped
Solicits 2014 date requests from
RA, SEEDS, Little Artshram, BGS for
use of CB and Amphitheater
Review of performance vs. plan,
budget vs. actual; RA determines
to renew contract for 2014 or not
RA/MA
MA
RA
RA
RA
MA
MA
Solicits 2015 date requests from
RA, SEEDS, Little Artshram, BGS for
use of CB and Amphitheater
41
RA
Year end review of MOU members goals
vs. actual
Nov-14
January-15
Year end review of MA
2015 Calendar and budget submitted
and considered by RA
Begin booking events for CB and
Amphitheater
Plan and organize opening Gala for CB March 2015
Continue planning opening Gala
RA
MA/RA
MA
MA
MA
Construction Completed
Feb-15
Mar-15
Continue booking events
MA
Participate in Bridal Showcase
MA
Finalize plans for Gala
MA
Send invitations to guests for Gala
MA
Plans finalized for Phase Two;
RA
Continue advertising and booking
MA
MA contract converts to 100%
MA
Hold Gala Opening event
CB opens for year round community
usage
Review of performance vs. plan,
budget vs. actual; RA determines
to renew contract for 2015 or not
MA/ RA
MA/ RA
seek input from & involvement w/
RA, SEEDS, Little Artshram, BGS
42
Social Enterprise #2
Energy Farm
Operations
The Energy Farm is an excellent fit with the mission and vision of the Park. It does not require a
traditional business infrastructure to manage. The Energy Park provides the focus and the
vehicle to encourage projects that achieve energy conservation and the development of
renewable energy sources within the Park. By linking all of the independent activities in the
Park together, it creates a brand that can contribute to the marketing of the Park as a developing
model for environmental sustainability. It also gives greater strength to individual fund raising
efforts for Energy Park as it frames a project as part of a large-scale effort, leverages the
partnerships of the RA and MOU members. It is non-competitive and allows all partners to
contribute to this part of the Park’s programs. It also focuses the spotlight on the values of
energy conservation and development of sustainable energy solutions that are fundamental for
the Park.
The RA is the manager of the Energy Farm providing the following roles:
1. Performs due diligence on projects proposed for inclusion in the Energy Farm to
determine whether to give approval to move forward
2. Promotes the Energy Farm through informal channels as well as giving direction to the
MA to promote it in conjunction with the Facilities Rental enterprise
3. Utilizes its position as a unit of government and board of community leaders to advocate
for large-scale Energy Farm projects at the Park
4. Through the affiliation of all energy conservation and renewable energy projects that
develop at the Park, the RA will promote all projects under the Energy Park umbrella
5. Provide leadership in developing energy conservation and renewable energy activities in
the Park
6. Partner with NMC for Energy Park educational activities that NMC would implement,
possibly in conjunction with MOU members if desired
7. Assure the Energy Park brand is expressed appropriately and leveraged
As the above activities are not generally day-to-day activities, it is recommended that the
Executive Director of the RA be responsible for these responsibilities.
Social Enterprise #2
Energy Park
Financial Narrative Only
Every Energy Park project is conceived and scoped individually and led by the organization
bringing the concept forward. For RA projects, the Executive Director will draw upon the
expertise of City/Township staff/consultants to scope and assist with implementation as
appropriate. Each project will have a project budget as well as pro forma of the anticipated
energy conservation and related savings resulting from implementation. Educational activities
related to the Energy Park will be provided through a partnership with NMC and/or the MOU
members, who will bear the responsibility for implementation of the activities. There is no
annual operating budget for the Energy Farm as revenue and expense will typically be part of a
capital budget. Net savings will occur in annual operating budgets, estimates of which will be
obtained as the project is developed.
43
Social Enterprise #3
Farmers Market
Operations
RA would charge LAS $25.00 ($1.00 per week) to lease the CB for the period of the pilot
project. Operational details include:
 The market would run from 8 am to 2 pm
 Farmers would begin sett up at 7 am and would have to vacate the barn by 3 pm.
 LAS would be permitted to use the RA chairs and tables for the event. They
would be responsible for set up and take down of any tables and chairs and would
be responsible for clean-up of the building at the end of the day.
 The building would be cleaned and vacated not later than 4 pm.
 LAS may choose to have an agreement with one of the vendors who would act as
coordinator in exchange for a “free” table. The coordinator would be responsible
for assigning tables to the vendors, overseeing unloading and re-loading
operations, and resolving differences among the vendors.
 Vendors may drive to the west end of the CB to unload their vehicle, but upon
unloading must move their vehicle to a designated parking area outside the Park.
 Each vendor must provide a waiver of liability to Park and the RA before they
will be allowed to participate in the Farmers Market.
 While vendors may permit customers to sample their products, no food
preparation or food service will be permitted in the Barn during the market.
Social Enterprise #3
Farmers Market
Financial Narrative
As the recommendation is for the RA to seek a partner to produce the Farmers Market, the
impact on the RA budget is the difference between the rental fee of $1/farmers market date and
the actual expenses that the RA assumes, the shuttle service and maintenance costs. These are
presented in the Facilities Rentals budget as the Farmers Market is a customer of this enterprise.
44
Farmers Market Pilot Program Financial Pro Forma
May
June
July
August
September
October
Revenues
# of Vendors
Table rental fee
Number of weeks
Total Revenue
20
25
30
30
$
10 $
10 $
10 $
10 $
5
4
5
4
$ 1,000 $ 1,000 $ 1,500 $ 1,200 $
30
30
10 $
10
4
5
1,200 $ 1,500 $
Expenses
Building Rental Fee
Fee to Vendor Coordinator
Clean up expenses
Shuttle Expense
Total Expenses
$
5 $
4 $
5 $
4 $
$
50 $
40 $
50 $
40 $
$
150 $
120 $
150 $
120 $
$ 1,600 $ 1,800 $ 2,100 $ 2,050 $
$ 1,805 $ 1,964 $ 2,305 $ 2,214 $
4
40
120
1,900
2,064
Net Income
$
(805) $
(964) $
(805) $ (1,014) $
$
5 $
$
50 $
$
150 $
$ 1,800 $
$ 2,005 $
(864) $
(505) $
Total
27
7,400
27
270
810
11,250
12,357
(4,957)
45
APPENDICES
Market Study Table I
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Contact
Andy MacFarlane
Mini Minervini
Sam Porter
Allison Beers
Diane Baribeau,
Nate Glidden,
Jen Stoltz
Ann Coulter
John O'Brien
Andy Gale,
Ray Kendra
Sarna Saltzman
Penny Krebiel
Karen Schmidt
Kurt Braun
Kelly Martin
Linda
Otis
Rob Bacigalupi
Rachel Grackau
Margaret Morris
Amanda Atwood
Kevin Colcott
Bob Gluszewski
Jim Cooper
List of interviewees and interview questions
Company
Leelanau Communications
Spireworks
Porter Productions
Events North
Wharton Center
Hagerty Center
Grandview Catering
Wedding Planner
Celtic Tours
Bay Area Recycling for Charities
CWS Architects
SEEDS
Little Artshram
Botanical Garden Society
BATA
Cobblestone Farms, Ann Arbor
Meijer Gardens
Frog Pond
Ciccone Farms
Fields of Flowers
The Homestead Resort
G J Rentals Inc
Houdek Pumping
Downtown Development Authority
Northwest Michigan Council of
Governments
Antrim County Clerk
Benzie County Clerk
Leelanau County Clerk
Grand Traverse County Clerk
Kalkaska County Clerk
Grand Traverse Resort
Park Place Hotel
Timberlee Hills
By the Bay Shuttle
Consumer's Energy
Traverse City Light and Power
Topic
Event Planning
Event Planning
Event Planning
Event Planning
Event Planning -Competitive Venue
Event Planning -Competitive Venue
Catering considerations
Event Planning
Shuttle Service
No waste events
Renovation plans
MOU associate
MOU associate
MOU associate
Shuttle Service
Comparative Venue
Comparative Venue
Comparative Venue
Comparative Venue
Comparative Venue
Comparative Venue
equipment rentals - rates
Portable restroom rentals
Farmers Market information
Populations statistics
Marriage license statistics
Marriage license statistics
Marriage license statistics
Marriage license statistics
Marriage license statistics
Comparative Venue
Comparative Venue
Comparative Venue
Shuttle Service
Energy Farm Concept
Energy Farm Concept
46
37
38
39
40
41
42
Tony Anderson
Kevin
Ed Bailey
Tim Hinckley
Tim Lodge
Cherryland Electric Cooperative
Cherryland Electric Cooperative
Northwestern Michigan College
Traverse City Cherry Festival
Traverse City-City Engineer
NWM State Fair Grounds
Energy Farm Concept
Energy Farm Concept
Energy Farm Concept
Comparative Venue
Energy Farm Concept
Comparative Venue
List of Primary Questions Asked in Event Planners Interviews
1. What types of events would be especially suited to these facilities?
2. What would make the Barns a desired site for these events?
3. What amenities would be necessary to make the Barns a desired venue? External and
Internal?
4. What would be the impediments to hosting events at the Barns? Functional,
Geographical, Other?
5. What kind of facility oversight would be necessary to manage events at the Barns?
6. What is the regional market for the types of events that might be staged at the Barns? Is
there excess or limited capacity in the region now for these types of events?
7. What local facilities would be the major competitors for the Barns? Why would users
choose the Barns over other facilities?
8. What would you anticipate would be the daily lease rate for events at the Barns?
9. Talk about the seasonality of hosting events in a location like the Barns. Is there enough
activity to warrant keeping the Barns open for events year round? What types of events
would be seasonal?
10. There are not anticipated to be any kitchen facilities at the Barns. How could this be
overcome for events like wedding receptions, corporate outings et al?
11. There might be an initial interest for first time users of the Barns. What would be
necessary to bring people back?
12. Are there types of occasions that are not being held in this area because the “right”
facilities don’t exist? If so, is there uniqueness to the Barns that might allow them to
serve this need?
13. It is anticipated that there will be approximately 30 parking spaces within one block of
the Barns. Additional parking for would be approximately 2/10s of a mile away. How
would this impact your potential use of the Barns?
14. What is the profile of your potential audience members/users that would come to the
Barns?
15. The Historic Barns Park brand is developing as an eco-friendly park. The use of materials
that can be recycled or better yet, are compostable and the separation of trash from
organic waste, etc. are important to the use of the site. How would this impact your use
of the Barns? Or of other uses?
16. For the wedding market-do you think the Barns should have an affiliation with a wedding
planner/or wedding planners to provide this service to customers that contact them
directly?
47
Market Study Table II
Wedding/
Reception Rental
Cost (Minimum)
Number of Guests
Time Period
Cobblestone
Farms, Ann
Ciccone Barn
Arbor
$
1,200
$4,700
130
130-150
175
40
220
24 hours
5 1/2 hours
2 hours
8 hours
hi s tori ca l
Ba rn
Restrooms
Close-in parking
$3,000
6 hours
ye a r round
kitchen
Meijer
City Opera
Gardens,
House
Grand Rapids
$3,900 +
Ba rn $4,000-$6,000
$3.00 pp
We ddi ng
$2,200;
Frog Pond (No
Barn)
220
Seasonal
Availablity
Amenities
tables and chairs
Facilities Rental Enterprise
10 hours
extra time
Ambiance
Field of
Flowers
Table II: Competitor Comparisons
$150 pe r
hour
hi s tori ca l
Ba rn, gra s s
a nd fl owe r
fi e l ds , vi e w
of the Ba y
hi s tori ca l
Ba rn, gra s s
a nd fl owe r
fi e l ds
$250 pe r
$200
50
hour
Woode d
Qua i nt,
Orna te
a re a wi th s ma l l , l e a ky
i nte ri or,
ponds ,
ba rn.
s ta ge , re d
rooms ca n
ve l ve t cha i rs
be ope ne d
out to
na ture
Ye a r Round
Summe r Ye a r Round
$1,775 6,400*
?
$800-$1750
50-180
?
300
Grand
Traverse
Resort
Indoor or
outdoor
s e tti ngs ,
La ke vi e ws ,
we l l
a ppoi nte d
rooms
Ye a r Round
Ope n Ai r or
Ere cte d
Te nts ,
l oca te d
a mi ds t
be a uti ful
ga rde ns .
Summe r
Vi e w of GT
Ba y
Countrys i de
a nd gol f
cours e
vi e ws , we l l
a ppoi nte d
rooms
Ye a r Round
Ye a r Round
Park Place
Hotel
Timberlee
Hils
Cathedral
Barn
1500 pl us
Mi n $25
Di nne r
cha rge
225 i ns i de
$3,000
310 Se a te d
8 hours
8 hours
rus ti c
Uni que
s e tti ng wi th
ca the dra l
countrys i de a tmos phe re ;
vi e ws
l oca te d
a mi ds t
be a uti ful
ga rde ns
Ye a r Round
Summe r
Onl y
Summe r
Ye s
Mus t be
re nte d
ca n be
re nte d,
ta bl e s $7.50;
cha i rs $1.25,
cockta i l
ta bl e s $4.50
wa rmi ng
no
room
90 pl a ce s
s ome
Ye s
Ye s
Ye s
Ye s
Ye s
Re nta l s
Ye s
Ye s
Ye s
Ye s
ye s
ye s
ye s Pi cni c ta bl e s
ye s
ye s
?
ye s
ye s
Ye s
Ye s
wa rmi ng
room
Stre e t a nd
pa rki ng
s tructure s
ye s
wa rmi ng
room
ye s
no
ye s
ye s
No
No
no
Ye s
ye s
Ye s
ye s
no
ye s
ye s
Stre e t a nd
pa rki ng
s tructure s
Ye s
l i mi e d to 30
pe opl e
ye s ; ca te re d
by Ste l l a s
Ye s
ye s
Ye s
Ye s
Ye s
ye s
Ye s
Ye s
Ye s
Ye s
Ye s
Ye s
wa rmi ng
room
no
wa rmi ng
room
ye s
ye s
no
no
ye s
Dance floor
ye s
ye s
Ye s
Bar
ba r a re a
ba r a re a
move ba ck
ta bl e s
ba r a re a
Fire Pits
ye s -fre e
?
no
Table linens
no
no
no
Bride's changing
room
Candle sticks and
candles
Caterers
no
no
Other Amenities
Hagerty
Center
Summe r
HVAC
Elevator
Botanical
Garden
Society
Homestead
no - Tra m
a va i l a bl e
Ba rte nde r
s uppl i e d by
ca te re r
$35.00 hr +
$50.00 pi t
fe e
ye s
no
ye s
ye s
no
no
no
Ye s
no
ye s
No
e xtra cha rge
ye s
ye s
ye s
Ye s
No
ti ny
ye s
ye s
ye s
Ye s
Ye s
Pha s e 2
No outs i de
ca te re r
pe rmi tte d
Us e HC food;
ma y bri ng
own
we ddi ng
ca ke
Ye s
No outs i de
ca te re r
pe rmi tte d
No outs i de
ca te re r
pe rmi tte d
No outs i de
ca te re r
pe rmi tte d
your opti on
Ye s
Ye s
No
Pha s e 2
us e of
grounds
us e of
grounds
us e of
grounds
us e of
grounds
us e of
grounds
Hous e
Se rvi ce
Hous e
Se rvi ce
Hous e
Se rvi ce
Hous e
Se rvi ce
No
re s tri cti ons
no
no
no
ye s
your opti on
your opti on
your opti on
Outs i de
Ca te re r $300
no
ha ndi ca ppe
d onl y
us e of Buhr
Pa rk
no
no
no
no
ye s
us e of
grounds
us e of
grounds
us e of
grounds
us e of
grounds
ca n re nt
da nce fl oor
us e of
grounds
Wi ne onl y mus t be
Ci ccone
wi ne
e ve nt mus t
s top a t 10
pm
be e r, wi ne ,
cha mpa nge
No
re s tri cti ons
ye s : ca te re d
by Ste l l a
Hous e
Se rvi ce
e ve nt mus t
s top a t 12
mi dni ght
onl y 2 ope n
Sa turda ys
re ma i n i n
2011
3 di ffe re nt
ve nue s :
pri ce s pl us
30 - 60
ni ghts of
a ccommoda t
i ons
your opti on;
COH ge ts %
us e of
grounds
Restrictions
Alcoholic beverages
be e r, wi ne ,
cha mpa nge
Misc.
Comparison to
Catheral Barn
Infe ri or Compa ra bl e
Infe ri or
Infe ri or
Infe ri or
Infe ri or
Infe ri or
Infe ri or
Infe ri or
Infe ri or
Infe ri or Compa ra bl e
Compa ra bl e
Ambiance
Compa ra bl e
Compa ra bl e
Compa ra bl e
Restrooms
Compa ra bl e
Infe ri or
Infe ri or
HVAC
Compa ra bl e
Infe ri or
Supe ri or
Supe ri or
N/A
Infe ri or
Cost
Size of Facility
Parking
Location
Accessibility
Annual Marketing
Budget for Events
Preferred
marketing venues
Supe ri or
Supe ri or Compa ra bl e
Di s s i mi l a r
?
Supe ri or
? Compa ra bl e
Di s s i mi l a r Compa ra bl e
Supe ri or
Compa ra bl e
Infe ri or
Di s s i mi l a r
Di s s i mi l a r
Di s s i mi l a r
Infe ri or
Compa ra bl e
Supe ri or
Supe ri or
Supe ri or
Supe ri or
Infe ri or Compa ra bl e
Compa ra bl e
Compa ra bl e
Infe ri or Compa ra bl e
Compa ra bl e
Compa ra bl e
Compa ra bl e
Infe ri or Compa ra bl e
Compa ra bl e
Compa ra bl e
Infe ri or
Supe ri or
Supe ri or
Supe ri or Compa ra bl e
Supe ri or
Supe ri or
Supe ri or
Supe ri or
N/A Compa ra bl e
Infe ri or Compa ra bl e
Compa ra bl e
Infe ri or Compa ra bl e
Infe ri or
Supe ri or
Supe ri or
Infe ri or Compa ra bl e
48
Market Study III
Table III: User Group Profiles and
Competition, Facilities Rental Enterprise
There are several types of user groups that would be ideally suited to utilize the Cathedral Barn
and Amphitheater. The following is a primary listing:
1. Weddings/ Receptions/ Rehearsal Dinners
Potential Usage –On average there are 642 marriage licenses issued in Grand Traverse County
each year. Most of these wedding are held in GT County. In addition, this region hosted more
than 760 destination weddings in 2009. Many of these weddings are held in churches however
more and more are being staged in other venues such as gardens and barns. There will be brides
who want to be married in “the Cathedral”. Weddings and receptions potentially represents the
single most consistent revenue producer for Cathedral Barn. Rental income derives from leasing
the barn plus commissions earned from caterers.
Alternative Venues – City Opera House (fully booked for Saturdays in 2011) Frog Pond
Village, Hagerty Center, Grand Traverse Resort, “out of town locations – Timberlee Hills, The
Homestead, Field of Flowers, Ciccone Vineyards and many others. There is a potential new
competitor in the PARK – the Botanical Garden Society
Competitive Advantages of CB – In- town location, Uniqueness of facility; adjacent to colorful
gardens for photo ops; can accommodate large groups; HVAC, “Green” Facility
Competitive Disadvantages – Lack of close-in parking; lack of interior access to restrooms
until Phase 2 is completed.
Marketing to Whom and How –Event planners assist in planning and coordinating between 5
and 10% of the weddings that are held each year in this region. By far the greatest percentage are
planned and organized by the brides and their families directly. The majority of future brides are
engaged over the holidays and one of their first priorities is to book a site for their wedding and
reception. Venues are already being booked for 2012 weddings. Thus marketing must be directed
primarily at future brides. They rely on the internet, on wedding shows and to a large extent on
referrals from friends and family. They want to see the site and picture themselves in the desired
location. It will be essential that marketing materials are developed to describe the size, the
flexibility and the ambiance of the “Cathedral.” Attendance at Bridal shows especially in the first
two years will be critical. Marketing the CB as a “one-stop” venue for wedding, pictures and
reception will prove an advantage.
2. Concerts - Rock/Classical/Pops/Vocal/ Operettas
Alternative venues – City Opera House (fully booked for Saturdays in 2011), Open Space
Potential Usage – National touring groups, local musicians, high school performers; could be
added venue for National Cherry Festival events
49
Competitive Advantages – Natural Amphitheater, Uniqueness of facility; adjacent to colorful
gardens for photo ops; can accommodate large groups; “Green” environment
Competitive Disadvantages - Lack of close-in parking;
Other Considerations – Need to have provisions for added security at some events and require
“Zero Waste” standards
Marketing to Whom and How-The events are generally booked by event promoters – Sam
Porter, The Wharton Center, The National Cherry Festival. Because this is a new venue, it will
be initially unknown to promoters in other parts of the country. Marketing materials need to
describe the advantages of the CB and A and will need to be distributed to promoters after a
personal contact.
3. Dances -Square dances/Folk/Contra/Ballet/Proms
Alternative Venues –Local hotels, schools,
Potential Usage – Local High School proms, weekly contra dance events, line dancing societies,
ballet performances, folk dance recitals
Competitive Advantages –Uniqueness of facility; can accommodate large groups; Superior
Interior acoustics; HVAC, “Green” Facility
Competitive Disadvantages - Lack of close-in parking; will have virtually no non summer
usage until Phase Two build out is completed to provide inside access to restrooms and catering
facilities
Other Considerations – Need to have provisions for added security at some events and require
“Zero Waste” standards
Marketing to Whom and How-These events are generally coordinated by local educators, club
members and advisors. Personnel in the MOU affiliates may prove helpful in getting the word
out and making referrals. Personal contact and referrals are keys to attracting these groups.
Another potential is to include these planners and organizers in the Opening Gala so that they
can experience the CB firsthand. Marketing materials will help as will the internet in allowing
people to see what the CB is “all about”, but these people will want to tour the barns to see if it
fits their need.
4. Reunions -Family/ School
Alternative Venues –local hotels, schools,
Competitive Advantages Uniqueness of facility; can accommodate large groups; HVAC,
“Green” Facility
Competitive Disadvantages - Lack of close-in parking; will have virtually no non summer
usage until Phase Two build out is completed to provide inside access to restrooms and catering
facilities
50
Other Considerations – Require “Zero Waste” standards
Marketing to Whom and How:
The marketing for these groups is very similar to the dances and proms as many of the groups
will be local. But reunions are often held at destination locations. Families and groups are
seeking to combine a vacation in a great location along with a reunion. Attracting out of area
people will require a well developed informative and compelling web-site. Linking the CB as a
reunion destination to the Convention and Visitors Bureau site is a must.
5. Corporate outings -Meetings/ Lunches/ Dinners/Parties
Alternative Venues –local hotels, Hagerty Center
Potential Usage – Any large gatherings of groups seeking unique location
Competitive Advantages –Uniqueness of facility; can accommodate large groups; great grounds
suitable for out-door break-out sessions; walking trails for breaks; HVAC, “Green” facility.
Competitive Disadvantages - Lack of close- in parking; Venue has only one main room until
Phase Two is completed; will have virtually no non summer usage until Phase Two build out is
completed to provide inside access to restrooms and catering facilities
Other Considerations – Need to have provisions for “Zero Waste” standards; good customer
service is the key to re-booking
Marketing to Whom and How:
Here again the target market is local. The larger gatherings may be planned by event planners but
they plan only a fraction of all these events. Direct mail as well as the web will be keys to
reaching these groups. The physical presence of the MA at local gatherings will be essential.
51
Market Study IV
Customer Facility Selection Factors
There are five major factors that will be determinates of where
individuals and groups decide to schedule their events – Location, Uniqueness, Amenities,
Cost, Service
How the Cathedral Barn compares to other venues on the basis of each of these factors will be
key determinates in the economic viability of this social enterprise.
Location –
The Barns has a definite location advantage over alternative sites for many types of events. It is
in-town and easily accessible. Just a few blocks from the lakefront, close to downtown
restaurants and hotels, just off main thoroughfares, it is on the campus of the Grand Traverse
Commons a noted destination site. The barns are clearly visible from Silver Lake Road and US
31/37 and with the new connector road linking Franke Road to Silver Road; patrons can access
this venue from virtually any direction. This in-town location gives this venue a competitive
advantage over other potential event sites that are located “out-of-town”. One advantage
mentioned by event planners is that the in town location is especially important at events where
alcohol is going to be available. The concern of event goers having to drive or be transported
over country roads is eliminated.
Uniqueness –
The architecture of the Cathedral Barn is unparalleled in the region. Residents and visitors alike
are bemused by the barns seemingly located in the midst of the city.” What are they?” “Why are
they there?”, “What’s around them?”, “How do I get closer?” are questions regularly asked.
When one enters the Cathedral Barn, he understands why it was so named – it feels like an
ancient European, perhaps Scandinavian cathedral with its massive wood ceiling. When the
Botanical Garden Society begins building its gardens throughout the park, the entire setting will
draw people in and the parks reputation will grow. Score a 10 for the park on uniqueness.
Amenities –
Location and Uniqueness will attract people, but there must be the amenities to hook them. A
heated, air-conditioned, non-leaking barn will be an advantage over the other barns in the region
for hosting weddings. The indoor flush toilets will be an additional plus. (See concerns re:
completion of Phase Two). Conversely, the lack of close-in parking will be a detriment for
events to be scheduled in the eight non summer months in this region. It will also be a detriment
in booking those events to which persons will be carrying equipment and packages. Careful
thought will be required to surmount this potential obstacle – Consideration may be given to
valet parking, motorized mass transports, such as wagons pulled by tractors, miniature trains,
bicycle rickshaws, golf carts and the like as the means to overcome the lack of close-in parking.
However, there will be cost for transporting people which will add to the price of would be
patrons. In time, event goers may begin to walk or bike to the site in all kinds of weather. To
accommodate those, attention will need to be given to making certain roadways allow for safe
pedestrian traffic. Provisions for lighting along roads and paths for safety and security will have
to be explored.
52
In considering the types of activities that may be held in the barn and in the amphitheater,
provision will have to be made for functional, flexible lighting and sound systems. Some events
will require more lighting than would be prudent to purchase in the original outfitting of the
barns, so adequate outlets to allow for easy connections for specialized lighting and sounds
systems provided by performers need to be installed. Internet access – wireless preferred – will
be essential.
Plans are included in Phase Two for a prep kitchen for catered events. As it is now designed the
kitchen may be too small to accommodate the numbers that can be accommodated on the main
floor. This should be investigated. In any case, until that kitchen is available, it will be very
difficult to accommodate food related events in the barn except in the summer months when
outdoor preparation is available. Competitive venues own tables and chairs which are either
leased to event users or are included in the rental cost. Consideration should be given to
including these items in the build out of the facility. If they are to be purchased, provisions must
be made for on-site storage of these items. Most likely they would be stored on the lower level of
the Cathedral Barn following Phase One though movement to and from the storage room will be
difficult until the elevator is installed in Phase Two. An ideal location for storage after Phase
Two is completed would be on the upper level of the Historic Barn. With access off the upper
level of the newly constructed entrance silo, items could be rolled from one building to the other
without using stairs or elevators.
In the final analysis, amenities are a work-in- process. Thoughtful decisions need to be made to
insure that the amenities are included in a cost effective way which will serve to make the CB
and A competitive with other venues.
Cost –
The chart on page 43 provides the costs to rent various facilities in the Grand Traverse Region.
Wedding venues command the highest rental rates with bookings for meetings with other events
being more modestly priced. When estimating rental rates for potential bookings at the Barns, we
have used average rental rates charged in the area. Because the Cathedral Barn would be one of
the largest facilities in the area, rental rates slightly higher than projected might be acceptable.
On the other hand, it may be prudent to discount rates in the first year of operation to encourage
first time bookings.
Service –
A critical factor in attracting new business and retaining customers is the quality of service. For
this reason, contracting with an experienced, reputable, client centered, patient, detail- minded
Managing Agent is essential to the success of the facilities rental social enterprise as customer
satisfaction should be measured and drive the performance of the business activities. The
Managing Agent needs to be equally qualified and enthusiastic about working with the wide
variety of customers that will rent from the RA, from the mother-of-the-bride to a corporate
client to a school to a community group to a rock band. Customer referrals are an important
component in growing this business.
Potential customers will be judging their experience based upon several factors:
Was it easy to find good information about the site – its amenities, its rates and policies?
53
Were the policies and procedures reasonable?
Were they able to contact a knowledgeable representative at the barns who could answer all their
questions the first time?
If they had special requests, were they appropriately cared for?
Was booking the facility easy or was there an inordinate amount of “red tape” to be negotiated
especially when responding to special requests.
Was there a representative on sight during the event that could respond to last minute requests or
handle unforeseen circumstances?
A professional Managing Agent will be able to assure that these questions receive positive
answers. A component of the Managing Agent’s performance appraisal should be review of the
customer satisfaction surveys on a regular basis.
54
Market Study V
Gozling Czubak Farmers Market Study, Excerpt
In 2000, the Downtown Development Association commissioned a study of the Traverse City
Farmers Market by Gosling Czubak. The report was published in 2002. The authors of the report
surveyed vendors and customers of the market asking their opinions on the strengths and
weaknesses of the current market. They also asked for suggestions for changes to all aspects of
the market including potentially changing its location.
In the Gosling Czubak report, vendors who were selling at the lakefront farmers market were
asked about their satisfaction with the current location. The overwhelming response was that it
was an ideal setting for the market. One of the reasons for their positive response was the
availability of nearby parking for vendors and patrons alike. The study showed that there were
421 parking spaces available, 7.6 per vendor, within a 3.5 minute walk of the Farmers Market.
The report cited that for Farmers Markets, the typical accepted parking ratio is 3 parking spaces
per vendor but that an active market could go to 4 -5 spaces per vendor.
The report cited the characteristics of a successful market. It was said that “the site must attract
customers and vendors.” Key considerations of a successful market included “ownership,
visibility, access and parking, size and context.” The site “needs to be highly visible to motorists
and pedestrians.” And “markets must be accessible by foot and by vehicle for customers and by
vehicle for vendors who will need to unload their goods from larger vehicles”. “Market
customers will invariably expect convenience and the need to provide free parking proximate to
the market cannot be understated.” Finally, “for open air markets it is almost a given that the site
must be paved.” (Report. p. 7).
In the report, Kent Schuette a public market advocate and professor at Purdue University,
outlined criteria needed for a successful public market: “Design -Chances of success are greater
if the market can be accessed from many directions. There should be three parking places for
each vendor. The market should be centrally located within a community. The market should be
surrounded by two-way streets to encourage easy access.” (Report P.8)
55
Market Study VI
Energy Park-Related Interviews & Meetings
Responses from MOU Members to the proposal of an Energy Farm at PARK
Debbie McKeon first revealed the concept of an Energy Farm at the Park in meetings held with
representatives of the MOU members in early December 2010 – Karen Schmidt of the Botanical
Garden Society on December 6 and Sarna Salzman of SEEDS and Penny Krebiehl and three
board members of Little Artshram in separate meetings on December 8.
Karen Schmidt BGS
Karen asked a number of questions about what might be included in an Energy Farm. She felt
that the concept of utilizing renewable energy sources available in the Park was in keeping with
the park’s overall mission. In fact, she said the BGS is exploring the installation of solar panels
on the roof of the Granary when it is renovated. She was concerned, however, about the
permanent installation of any equipment that would detract from the natural beauty of the area.
Specifically she said that BGS and some of their working partners would be concerned if, for
example, wind turbines might be installed that could harm birds or bats.
Sarna Salzman SEEDS
Sarna responded positively to Debbie’s description of an Energy Farm concept at the Park. Sarna
felt this was not only acceptable but totally in keeping with the mission of the Park and the
mission of SEEDS as well. She felt that having an Energy Farm at the Park would help to attract
visitors and make groups want to hold their events in the Cathedral Barn. Specifically she felt the
presence of an Energy Farm would be a great fit for the Bioneers annual conference to be held at
the Park. Sarna then offered a number of ideas for revenue generation that could fit under the
umbrella of an Energy Farm. Her overall response was enthusiastic.
Penny Krebiehl – Little Artshram
Initially, Penny had a guarded response to the concept of an Energy Farm at the Park. She asked
how this idea was formed as LAS intends to be actively engaged in renewable energy generation
and energy conservation. During the remaining portion of the interview, Penny indicated that
LAS is already exploring the use of passive solar applications and wind turbine energy
generation on their site. She said that they are researching the potential for using solar energy to
operate an irrigation system for their CSA garden plots. As many of their programs are
educationally based, Penny said that she could envision how an Energy Farm would be an asset
to the types of programs that LAS is running and those that they plan to add in the future.
Meetings with regional utility companies, NMC Aeropark Laboratories, City Engineer,
Cathedral Barns architect and RA Executive Director
The consultants convened two meetings to discuss the concept of an Energy Farm at the Park.
Minutes of both meetings are on file with the RA. There is one project under development, with
the potential for a second. NMC Aeropark Laboratories indicates that it would like to partner on
activities to benefit the Energy Farm and suggested their students can do site assessments for
Energy Farm projects.
56
Market Study VII
Age Group
0-14
15-19
20-29
30-39
40-59
60+
Total
2000
4629
1497
2056
2960
6509
5459
23110
Antrim
2009 Change
3962 -667
1542 45
2248 192
2209 -751
7021 512
6852 1393
23834 724
2000
3108
950
1452
2281
4478
3729
15998
Benzie
2009 Change
2936 -172
1083 133
1599 147
1811 -470
5046 568
4752 1023
17227 1229
Comparative Populations Statistics by age group from
Michigan Council of Governments for Five County Region
Grand Traverse
Kalkaska
Leelanau
Total
% of Total % of Total
2000 2009 Change 2000 2009 Change 2000 2009 Change 2000 2009 Change % Change 2000 2009
16155 15172 -983 3509 3097 -412 4209 3326 -883 31610 28493 -3117 -9.9% 20.5% 17.1%
5566 5400 -166 1155 1063 -92 1414 1457 43 10582 10545 -37 -0.3% 6.9% 6.3%
8678 11124 2446 1786 1847 61 1595 2010 415 15567 18828 3261 20.9% 10.1% 11.3%
11402 10218 -1184 2396 1924 -472 2458 4522 2064 21497 20684 -813 -3.8% 13.9% 12.4%
22628 26130 3502 4598 5094 496 6616 4076 -2540 44829 47367 2538 5.7% 29.0% 28.5%
13225 18289 5064 3127 3866 739 4827 6508 1681 30367 40267 9900 32.6% 19.7% 24.2%
77654 86333 8679 16571 16891 320 21119 21899 780 154452 166184 11732 7.6%
Note: Population numbers are from NW Michigan Council of Governments. 2000 population numbers are from 2000 census. 2009 numbers are estimates by NWM COGs. NWM COG
57
Exhibits
Sample Event Planning and User Agreement Package
FACILITY RENTAL AGREEMENT
Event Name:
Presenter:
Location/Theatre:
Performance Date(s
Performance Time(s):
Doors Open:
Additional Reservation Date(s):
Charges will be assessed for services according to rates set by the Venue. These charges include,
but are not limited to, venue rental, equipment rental, box office charges, stage hand labor, usher
and security charges. Basic charges are detailed in Schedule A and event specific estimates can
be completed upon request.
Rate Category (to be completed by venue):
__ Priority User
_X Non-Profit Organizations
List Non-profit number #
_______________________
__ For-Profit
Organization
This Agreement must be signed by an authorized User Representative in order to validate
reservations. BY COMPLETING AND SIGNING THIS AGREEMENT, THE USER
ACKNOWLEDGES RECEIPT OF A COPY OF THE POLICIES AND PROCEDURES
CONCERNING USE OF FACILITIES AND AGREES TO BE BOUND BY AND ADHERE
TO THESE POLICIES AND PROCEDURES.
THIS CONTRACT MUST BE RETURNED SIX (6) WEEKS PRIOR TO THE DATE OF THE
EVENT. NO PUBLICITY OR TICKETS CAN BE DISTRIBUTED PRIOR TO THIS SIGNED
CONTRACT BEING RETURNED TO CITY OPERA HOUSE AND ACCEPTED BY COH
MANAGEMENT.
BILLING INFORMATION:
Name: ____________________________________ Date:_____________
Authorized Signature: ______________________________
Billing Address:
________________________________________________________________________
58
E-mail: _______________________ Mobile: _______________________ Fax:
_____________________
Primary Event Coordinator: ________________________________________________
E-mail: _______________________ Mobile: _______________________ Fax:
______________________
RENTAL/SPECIAL SERVICES: Kristi Dockter operationsmarketing@cityoperahouse.org
231-941-8082 X 202
• Please provide an outline of the event with this contract or at the rental meeting.
To ensure the success of your event, please complete this form to the fullest extent
possible. If additions, deletions, or changes become necessary, please immediately
contact the person listed above their specific area to convey your adjustments.
Has your organization done an event here before? NO YES If yes, when: __________________
Please provide a brief description of your event including the type of event that you are hosting
(i.e. performing arts, concert, lecture, talent
show).__________________________________________________________
______________________________________________________________________________
________
______________________________________________________________________________
________
Approximate length of event __________ Intermission: NO YES If yes, length: ____________
BOX OFFICE: Jenny Noteware boxoffice@cityoperahouse.org 231-941-8082 X 206
Use of the box office ticketing is all-inclusive. There will be no selling of tickets at the event by a
user or stamping of hands in lieu of actual tickets. Consignment tickets can be distributed but are
subject to normal rates.
Will event be ticketed? NO YES RESERVED SEATING GENERAL SEATING TABLES
If more than one price tier for reserved seating, include price for each tier accordingly.
Tier one $________ Tier two$________ Tier Three$_________ Seating Chart:_____________
PreSale Date:____________ # of tickets:_____________ On Sale Date:________________
Ticket Prices:
PUBLIC $_____ STUDENT $______ CHILD $______ SENIORS (62+)$_____ FREE
DOOR PRICE$_____________
Fees assessed are: 7% commission on all ticket sales, 4% fee on credit cards transactions. All tickets are assessed a
$1.50 facility fee. Online and Phone fees may apply to buyers. Please take this into consideration when setting your
ticket prices.
Does STUDENT price apply to all students 18 and under? ____ Age______
College Students?______Age________ Senior 62 and over?_____Age______
Please indicate any additional discounts that will be offered.
__________________________________________
Would you like City Opera House Children’s Policy enforced for your event? NO YES
Do
Our Children’s Policy states that children under 5 years of age are not encouraged, except for advertised
children’s shows. Everyone attending must have a ticket Users are free to establish their own policy.
you wish to take any tickets out on consignment? NO YES If yes, how many: ______________
59
Tickets can be taken out on consignment to be sold by your group members. Your org. must keep the
income from the sale of these tickets. You will be charged ticket printing prices and restoration fees on any
tickets you sell. Any unsold tickets must be returned to the City Opera House Box Office 24 hours prior to
your event, or by noon on the last business day M-F prior to event. Failure to return tickets will result in
added fees.
you need any complimentary/PR tickets? NO YES If yes, how many: _______________
Will
City Opera House will staff the box office on the night of your event and will remain open 30
minutes past the advertised start time.
Do you wish the box office to remain open later at a charge of $50/hour? NO YES
Tickets are printed with the venue location, date and time included in the format of the ticket.
You may select three lines of ticket text with 27 characters per line including spaces.
Ticket Text: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
___________________________
___________________________
Would you like your event to be listed on cityoperahouse.org? NO YES
If yes, please e-mail Box Office Manager, images (jpeg file) and a brief description of your event. COH requires two
image sizes: 550 pixels wide x 190 pixels tall and 220 pixels wide x 300 pixels tall
Would you like to receive sales reports for your event? NO YES
Frequency(Weekly/daily/none): _________ Email address: _____________________________
Would you like a complete manifest of patrons after the event, including names, address, phone
number and if provided e-mails addresses? NO YES
Ticket Settlement: Night of NO YES (Artist/Promoter settlement show only)
Within 14 days post-event NO YES
HOUSE MANAGEMENT: Kristi Dockter, operationsmarketing@cityoperahouse.org 231-9418082 x 202
A City Opera House manager will be onsite during your event. User may choose to provide some
volunteer ushers in place of additional City Opera House staff. Volunteer ushers will be expected
to work entire event. Actual numbers of staff necessary and arrival times will be determined at
the rental meeting.
Do you wish to provide volunteer ushers? NO YES
To be completed by venue: # of supervisors:___ # of City Opera House ushers_________
# of volunteers ___ Arrive at: ________ Report to: _________
Please supply a list of volunteer names and phone numbers 48 hours before your event. If the
City Opera House has not received a list 48 hours in advance, the City Opera House will supply
volunteers for a fee of $20.
Does the artist have specific security requirements? NO YES
If yes, please provide security rider. To be completed by venue: # Private security: ____
Late Seating Instructions:
________________________________________________________________
Will you have any special seating requirements (i.e. VIP, performers)? NO YES # of seats
________
Will you be providing a program? NO YES (Programs must be provided by user on event day
only)
Will merchandise be sold at your event? NO YES Tables requested: ___________________
60
If an artist sells any merchandise in the lobby areas, City Opera House will
collect commission. Standard CD commission is 20%, increased to 30% if City
Opera House provides the seller. Standard Soft goods commission is 30%,
increased to 40% if City Opera House provides the seller. Requests for staff to
sell merchandise must be made in advance of the show. The artist must claim 6%
sales tax. City Opera House is not responsible for submitting Presenter’s sales tax.
Other requests (i.e. Information tables, backstage access, videotaping from house, simulcast,
webcast, etc.):
City Opera House should receive credit for any reproduction of video/audio/simulcast/webcasts
and arrangements must be cleared with City Opera House technical director. (Refer to tech
section)
SPECIAL ACTIVITIES: If you plan any special activities before or after the performance
please list them here.
All activities must be discussed with Event Manager in advance of scheduled event.
Activity:
_____________________________________________________________________________
Location:________________________________ Time:
_____________________________________
Activity:
_____________________________________________________________________________
Location:________________________________ Time:
_____________________________________
RECEPTIONS: Kristi Dockter operationsmarketing@cityoperahouse.org 231-941-8082 X 202
Will the event be: Public Private Guest Count: ____________
Breakfast Lunch Dinner Reception Bar or Beverage Service
Location: __________________ Date:___________ Time:_________
Any special requests or details:
_________________________________________________________
Tables requested: 5’ Rounds_________ 6’ Banguet_________ 8’ Banquet_________
Cocktail:_________
Would you like the City Opera House to handle linen service? NO YES Number of
Linens:_________
Rental fees will apply. $10 per linen.
Caterer: (Please check or circle) Catering Service Provided: (check one)
N/A Red Ginger Sit Down Dinner/Buffet/Cooking Stations
Catering By Kelly Trattoria Stella Lunch/Breakfast/Brunch
Grand Traverse Pie Co. Other:___________ Hors d’oeuvres
Grandview Catering Dessert Stations/Table Service
Graystone Farms Coffee Service
Will you be hosting an onsite reception in connection with your event? NO YES
Separate room rental rates apply
Green Room: Does your performer require any catering in the venue? NO YES
61
If yes, please provide the artist’s catering rider. All arrangements must be made through COH Operations
Manager.
Bar Service: N/A Cash Bar Private/Open Bar Beer Wine Liquor Full Bar
Bar Open: Pre Show Intermission After Show Full Show Green Room
A Presenter requesting bar service at the City Opera House will be required to commit to bar
sales of a minimum of $250. If bar sales do not reach the minimum level, the Presenter will be
liable for the difference. All alcoholic beverages must be purchased and poured by Trattoria
Stella, including the Green Room. Alcohol is not allowed to be brought into the facility.
Concessions:
MARKETING AND PUBLIC RELATIONS:
Event Marketing Coordinator (if different than above):
__________________________________________________
E-mail: ______________________ Mobile: __________________ Fax:
_________________________
Promotion of any event is the sole responsibility of the Presenter. Please refer to Page 6 of the Policies and
Procedures regarding promotional material and event advertising.
Please attach a news release, or forward release to the City Opera House prior to the on-sale date. Heralds or fliers
for your event may be brought to the City Opera House Box Office for lobby display.
Rental Available:
Main Lobby Flat Screen (DVD) $75/ event
Front Street Media Board $150/event for 4-6 weeks
PRODUCTION SERVICES: Joe Bearss tech@cityoperahouse.org 231-941-8082 x 205
If your artist has a technical rider it MUST be presented as soon as possible.
All labor costs will be billed to the user. In an effort to keep these labor costs at a minimum it is
necessary to work with our facility stage manager to establish an event day schedule (set-up,
rehearsals, etc.) that will allow the necessary meal breaks and avoid penalty and overtime
charges where possible.
DATE TIME
Additional Rehearsal ____________________ FROM_______ TO________
Rehearsal ____________________ FROM_______ TO________
Set-Up ____________________ FROM_______ TO________
Performance ____________________ FROM_______ TO________
Strike/Tear Down ____________________ FROM_______ TO________
Equipment, staging, costume drop off, if
any:________________________________________________
(All items must be removed at completion of event)
Event Stage/Tour Manager:__________________________________ (1 person should be responsible
for making on-stage
Decisions during your event)
E-mail __________________________________ Mobile:_____________________
Total number of people in production: _____________
62
List of performers, organizers, assistants who will need access backstage on the day of
the event should be forwarded prior to the event) Venue reserves the right to reduce
requested numbers.
Specific dressing room needs:
____________________________________________________________
______________________________________________________________________________
______
______________________________________________________________________________
______
EQUIPMENT NEEDS
- No additional rental charge. Additional labor charges may apply.
General House Sound
General House Sound and Lighting is included in the rental fee. Please attach a detailed
description of requested sound or lighting needs
ITEM YES NO QUANTITY
Quick Mic System: ____ ____ _________
(up to 5 inputs available)
Wired Microphones ____ ____ _________
CD Player ____ ____ _________ 1 available
(CD must be provided by user)
Cassette Player ____ ____ _________ 1 available
DVD/VHS Player ____ ____ _________ 1 available
Archival Audio Recording ____ ____ CD must be provided by user.
Circle what format your audio playback will be supplied as:
Music type: Professional Homemade IPod Cassette Other: Describe________________
COH does NOT have an available computer or IPOD for tenants use. Renter must supply
if needed along with power cords necessary.
Video Recording: Live TC Feed Taping
Additional sound
information:________________________________________________________
__________________________________________________________________
________________________________________________________________________
_________
General Lighting (House Plot)
General Wash: Red Blue No Color Warm No Color Cool
Special lighting
requests:__________________________________________________________
__________________________________________________________________
________________________________________________________________________
______
Video Recording ____ ____ VHS tape must be provided by user.
Lectern ____ ____ 1 available
Conductor’s Podium ____ ____ 1 available
4’ Table on stage ____ ____ 1 available
6’ Table on stage ____ ____ 6 available
63
8’ Table on stage ____ ____ 8 available
5’ Round Table ____ ____ 24 available
Music Stands ____ ____ __________
Moveable Stairs
from stage to seating ____ ____ __________
Wooden Easels ____ ____ 3 available
Historic Barns Park, Rec Authority
Draft Business Plan, Page 64 of 81; 3/10/2016
EQUIPMENT NEEDS
– Additional rental charges apply. Additional labor charges may also apply.
ITEM CHARGE (per item per day) YES NO QUANTITY
Wireless Lapel Microphones $40 ____ ____ ______ 2 available
Wireless Handheld Microphones $40 ____ ____ ______ 2 available
Hanging Microphones: $25 ____ ____ ______
Overhead Projector $30 ______
Video Projector & Screen $150 ____ ____ ______ 1 available
Projector use: DVD Computer input Audio ____ ____
On stage Audio Monitors (per) $25 ____ ____ ______ 3 available
6’ Grand Piano $150 ____ ____ ______ 1 available
Upright Piano $85 ____ ____ ______ 1 available
Piano Tuning(s) $150 ____ ____ ______
(A-442 Tuning available upon request)
Dance Floor (installation included) $150 ____ ____ ______ 1 available
Follow Spot (performance day) $150 ____ ____ ______
(Policy requires running of 2 per performance & does inc. venue operator)
Historic Painted Curtain $150 ____ ____ COH Operator Required
Use of 5 Gallon Water Cooler $5 ____ ____ ______
Bottled Water – 5 Gallon $6 ____ ____ ______
Bottle Water – individual $2 ____ ____ ______
Pipe & Drape(6- 20 ft) $50 ____ ____ ______
RENTAL RATES AND FEES
Basic Rental Fee: $800
Additional Fees:
Additional Tech Fees:
Additional Fees:
Deposit:
Due Date:
Authorized
Signature:____________________________________Date:______________________
Historic Barns Park, Rec Authority
Draft Business Plan, Page 65 of 81; 3/10/2016
Historic Barns Park, Rec Authority
Draft Business Plan, Page 66 of 81; 3/10/2016
EVENT PLANNING
AND
USERS AGREEMENT
PACKAGE
Historic Barns Park, Rec Authority
Draft Business Plan, Page 67 of 81; 3/10/2016
The Village at Grand Traverse Commons is private property, and reasonable use of this
extraordinary historic venue for non-profit, public, and private events is welcomed and encouraged. The Village is
highly sought-after destination and event location site, and every consideration will be given to scheduling and
accommodating proposed events.
Groups, organizations, businesses, or individuals requesting use of the Historic Front Lawn, or any other location
and/or facility on The Village campus, are required to sign and submit the User Agreement and the Reservation
Request Form, identified as Exhibit A, included in this packet. The completed and signed form must be submitted to
The Minervini Group, LLC and its authorized rep-resentative, Spireworks, LLC, at least one month in advance of
the requested event date.
Based on the information provided in the Reservation Request Form, the preliminary review
process addresses the following general questions:
How will the event impact Village residents, businesses, merchants, and their guests, clients, and
customers?
How will the event impact the community?
Does the event positively impact, enhance/promote The Village?
How will the event affect daily Village vehicular traffic and parking?
What is the potential environmental impact of the event in relation to the number of partici-pants, and
subsequent debris, refuse and waste removal?
Does the requested event date conflict with any other scheduled event on The Village property?
Does the event comply with Village guidelines and applicable city or local codes and ordinances?
What are the potential difficulties in meeting power, water, and/or electrical requirements?
Approval Requirements:
If event criteria are met, organizers will receive a copy of the approved and signed Reservation
Historic Barns Park, Rec Authority
Draft Business Plan, Page 68 of 81; 3/10/2016
Request Form to proceed with event planning. One or more meetings will be scheduled with event organizers and a
representative of Spireworks to ensure event requirements are fulfilled.
Contact Information: For additional information or for any questions regarding the Users
Agreement and attachments, please contact:
Mini Minervini Susan Thom
Kristen Messner
Cell: 231-218-5533 Cell: 231-375-8495
Cell: 231-645-0619
mini@spireworkstc.com susan@spireworkstc.com kristen@spireworkstc.com
The Village at Grand Traverse Commons
Historic Barns Park, Rec Authority
Draft Business Plan, Page 69 of 81; 3/10/2016
USER AGREEMENT
This is an agreement by and between (“User”):
Name:______________________________________________________________________
Representing: _________________________________________________________________
and The Minervini Group, LLC (hereafter referred to as “TMG”), and its authorized assignee, Spire-works, located
at 830 Cottagview Drive, Suite 101, Traverse City, Michigan 49684, for use of the historic front lawn or other site
locations in The Village at Grand Traverse Commons, (hereafter referred to as “The Village”).
This User Agreement serves as a written description of the proposed event and the agreement between User and
TMG/Spireworks with regards to the specified use, requirements, event guidelines, rules and regulations, and terms
of this agreement.
User must complete the Reservation Request Form, identified as Exhibit A, which is a component of this
agreement. It is agreed and understood that the event and requested date of the event shall not be approved unless
Exhibit A is signed by an authorized representative of TMG or Spire-works.
Indemnity and Liability Insurance: User is required to obtain one-day Event Liability Insurance. Proof of
insurance must be submitted to TMG at least two weeks in advance of the event. The liabil-ity insurance MUST
include the complete list of “Additional Insured” as defined in Exhibit B of this Agreement. Absent proof of
insurance, TMG reserves the right to cancel the event, and shall be held harmless for costs and/or losses incurred by
the User as a result of non-compliance. Additional coverage is required for consumption of alcoholic beverages, and
for events lasting two days or more.
a. User may obtain information regarding the required Certificate of Insurance on-line (event liability insurance) or
from User’s insurance provider.
Description of Fees:
1. User Fee: The site rental fee and all other fees as described below are identified on Exhibit C of this agreement.
Fees shall be determined by the time of year (peak seasons), estimated number of event participants, duration of the
event, number of hours or days in which the site will be utilized, time allotted for tent set-up and removal, and/or
any other necessary pre- and post-event provisions that may extend the duration of the event.
2. User Deposit: A non-refundable rental deposit, equal to one-half of the Rental Fee, is required immediately upon
approval of the event date, and upon receipt of the signed User Agreement. Fail-ure to submit a signed Agreement
and Rental Deposit shall result in a loss of reservation.
3. Balance Due: The balance of the Rental Fee must be received no later than one (1) week prior to the event date.
TMG reserves the right to cancel the event, and shall be held harmless for any costs and/or losses incurred by the
cancellation for non-payment of balance due.
4. Security Deposit: A refundable security deposit shall be held in reserve to cover any and all costs arising from
damages to The Village property and/or grounds as a result of the event. The deposit shall also apply to damages
arising from User’s suppliers, volunteers, employees, subcon-tractors, service providers, event participants and
guests. User shall incur all costs for maintenance or repairs that exceed the amount of the security deposit. Payment
is required immediately upon receipt of invoice. The Security Deposit shall be refunded to the User if no damages
have occurred, or if the event is cancelled.
5. Facility Management Fee: User shall incur a fee of $50 per hour per person for on-site facili-ties staff if
requested by the User in advance of, or during the event.
6. Cancellations: User must inform TMG/Spireworks of a cancellation, in writing, at least four (4) weeks in
advance of the reserved event date. User may elect to reschedule the event if the alter-nate date does not conflict
with a previously scheduled event. It is understood and agreed that TMG and/or Sprireworks shall be held harmless
for any event costs and/or losses incurred by the User as a result of the cancellation.
The Village at Grand Traverse Commons
Historic Barns Park, Rec Authority
Draft Business Plan, Page 70 of 81; 3/10/2016
USER AGREEMENT
User Agreement Terms:
USER UNDERSTANDS AND AGREES TO THE FOLLOWING:
1. To reserve a specific date, User is required to pay a non-refundable Rental Deposit of one-half the Rental Fee.
2. User may request a date change up to four (4) weeks in advance of the previously reserved date. User agrees and
understands, however, that if the alternate date is unacceptable, the absence of a reservation will be construed as a
cancellation and the deposit shall be forfeited.
3. The site must be cleaned of debris and returned to its original condition no more than twelve (12) hours after the
event, unless a requested extension is approved by TMG or Spireworks.
4. Nothing is to be attached to the buildings or trees on The Village grounds or building interiors, including lights,
banners, suspended canopies, or signs. Spray paint is strictly prohibited.
5. Parking: Event parking is confined to designated event parking areas only. User is required to provide ample
signage and staff to direct traffic to the designated lots. Event parking is prohibited in lots used by Village
businesses, retailers, residents, clients, customers, and guests. Parking is permitted on the front lawn, for a limited
time, for unloading and loading purposes only. Parking, unloading and loading is prohibited in designated fire lanes,
including the circle drive off Eleventh Street. User is responsible for keeping these areas free of event vehicles at all
times.
6. User shall be responsible for ADA compliant restroom facilities (i.e.: port-a-jons). Water hook-up is available in
specific locations only. User shall be responsible for water if access is unavailable at other event locations on The
Village campus. Public restrooms may be used for indoor events, how-ever, User will be charged for post-event
cleaning.
7. Smoking is permitted on the grounds in designated smoking areas only. User is fully responsible for designated
smoking signs, and for providing a safe depository for extinguishing cigarettes and matches. Smoking is prohibited
in posted non-smoking areas, tents or other enclosed areas, porches, and shelters.
8. User shall be responsible for complying with all laws and ordinances of the City of Traverse City, Garfield
Township, and the State of Michigan.
9. Alcoholic Beverage Service is permitted with proof of liability insurance. User must comply with a code of
responsible practice, as defined in Exhibit D on page 8 of this Agreement.
10. Open flames are prohibited. Lawns and trees must be protected from excessive heat, cooking oils, and spills
associated with grills or heating elements.
11. At all times, Users must ensure the safety of attendees and event participants. Users are re-quired to provide an
accessible first-aid kit, and must assign a qualified staff member or volunteer to immediately respond to minor
injuries or medical emergencies.
12. Events must be conducted and managed in a manner that is attentive to and respectful of resi-dents and
businesses in The Village. Users will be held responsible for any malicious acts to private property, excessive noise,
or any other disturbances that may affect the quiet enjoyment of Village property owners, tenants, customers, clients
and guests.
13. Attendees and participants must begin to vacate the premises promptly at 10:30 pm, and all sound equipment
must be unplugged and noise terminated. Curfew is set promptly at 11:00. Non-compliance with the curfew or other
infraction may result in additional fees imposed upon the User.
14. If a group or organization has non-profit status such as a 501c3, an in-kind donation may be negotiated.
Verification of the value of the donation must be submitted to TMG or Spireworks for tax purposes.
Historic Barns Park, Rec Authority
Draft Business Plan, Page 71 of 81; 3/10/2016
15. Ala Carte items: User shall incur all costs associated with materials, products and services that are deemed
additions to this User Agreement. A general list of ala carte items appears at the end of this agreement. User may
enlist Spireworks to arrange for ala carte services, or may procure these items independently.
AUTHORIZED APPROVAL:
SIGNATURE
DATE
The Village at Grand Traverse Commons
Historic Barns Park, Rec Authority
Draft Business Plan, Page 72 of 81; 3/10/2016
USER AGREEMENT. EXHIBIT A
APPLICATION FORM
NAME OF BUSINESS/ORGANIZATION/GROUP/INDIVIDUAL
ADDRESS
CITY
STATE
ZIP CODE
NAME OF EVENT REPRESENTATIVE/ORGANIZER
PRIMARY TELEPHONE NUMBER
E-MAIL ADDRESS
CELL PHONE NUMBER/PRIMARY CONTACT
WEB SITE
NAME OF EVENT/EVENT DESCRIPTION/PURPOSE OF THE EVENT (Please be specific):
DATE(S) REQUESTED: FROM ______________________TO ____________________, 200 ______
ALTERNATE (INCLEMENT WEATHER) DATE(S): FROM _____________ TO ______________200 ___
START TIME AND END TIME OF EVENT: (Not to exceed 11:00pm): ___________ TO _____________
SET-UP DATE AND TIME (If different from event date): ________________TO _________________
TENT SIZE: ________ X _________ WILL ALCOHOLIC BEVERAGES BE SERVED:
YES
NO
WILL THE EVENT BE CATERED?
YES
NO
ANTICIPATED NUMBER OF VENDORS: _______
ESTIMATED NUMBER OF ATTENDEES: ________NUMBER OF PARKING SPACES REQUIRED:
NUMBER OF STAFF/VOLUNTEERS: _________ DO YOU HAVE EVENT SPONSORS?
HAVE YOU CONDUCTED EVENTS IN THE PAST?
YES
YES
NO
NO
IF SO, IN WHAT FACILITY/LOCATION DID YOUR MOST RECENT EVENT TAKE PLACE?
NON-PROFITS: PLEASE ENTER YOUR TAX EXEMPT 501C3 NUMBER __________________________
WOULD YOU LIKE A LINK TO YOUR EVENT ON THE VILLAGE WEB SITE?
YES
NO
IF YES, PLEASE MAKE CERTAIN EVENT INFORMATION, INCLUDING E-MAIL ADDRESS AND PHONE NUMBERS,
ARE PROMINANTLY DISPLAYED ON YOUR WEB SITE. TMG/SPIREWORKS CANNOT RE-SPOND TO EVENT
INQUIRIES.
It is understood and agreed that this is an Application
ONLY and does NOT constitute a site reservation unless
signed by a representative of TMG or Spireworks.
SIGNATURE
DATE
The Village at Grand Traverse Commons
Historic Barns Park, Rec Authority
Draft Business Plan, Page 73 of 81; 3/10/2016
USER AGREEMENT
EXHIBIT B
EVENT INDEMNITY AND LIABILITY INSURANCE
1. Indemnity: User hereby agrees to indemnify and hold harmless the following “additional insured” from and
against any and all claims, actions, damages, liabilities and expenses, including but not lim-ited to attorneys’ fees,
resulting from or connected with any loss, cost or expense, including, but not limited to, any loss of life, personal
injury and/or damage to personal property arising from or out of any breach of this Agreement by User or from any
act or omission or negligence by User’s agents, servants, service providers, volunteers, employees, participants, and
guests arising out of or in connection with this event. User agrees that this is User’s event and therefore all
liabilities in
connection with this event are the sole responsibility of User.
2. Upon receipt of event approval, User agrees to submit proof of Event Liability Insurance to The Minervini Group
or Spireworks office at least two (2) weeks in advance of the scheduled event. Failure to submit proof of insurance
shall result in cancellation. User agrees that The Minervini Group, Spireworks and all additional insured listed
below, shall not be held responsible for costs or losses incurred by the business, organization, group or individual as
result of the cancellation for non-compliance.
EVENT LIBILITY INSURANCE
The following Additional Insured must be included on the Certificate of
Liability Insurance:
The Village at Grand Traverse Commons Condominium Association,
830 Cottageview Dr., Ste. 1011, Traverse City, MI 49684
The Village at Grand Traverse Commons Development, LLC,
830 Cottageview Dr., Ste. 1011, Traverse City, MI 49684
Southview Condominium Association, LLC, 521 S. Union Street, Traverse City, MI 49684
Hall 20, LLC, 830 Cottageview Dr., Ste. 1011, Traverse City, MI49684
Hall 20 Condominium Association. 810 Cottageview Dr., Traverse City, MI 49684
Sub Area 3, LLC, 830 Cottageview Dr., Ste. 1011, Traverse City, MI 49684
Mercato Condominium Association, 830 Cottageview Dr., Ste. 1011,
Traverse City, MI 49684
The Minervini Group, LLC, 830 Cottageview Dr., Ste. 1011, Traverse City, MI 49684
Redevelopers of The Village at Grand Traverse Commons
MAM Contracting, LLC, 830 Cottageview Dr.,. Ste. 1012, Traverse City, MI 49684
General Contractor for The Village At Grand Traverse Commons
Spireworks, LLC, 830 Cottageview Drive, Suite 1018, Traverse City, MI 49684
I/We have read, understand and agree to the terms of Event Liability Insurance requirements:
NAME OF BUSINESS/GROUP/INDIVIDUAL/ORGANIZATION
AUTHORIZED REPRESENTATIVE: (NAME – PLEASE PRINT)
AUTHORIZED REPRESENTATIVE (SIGNATURE):
DATE:
Historic Barns Park, Rec Authority
Draft Business Plan, Page 74 of 81; 3/10/2016
The Village at Grand Traverse Commons
EXHIBIT C, USER FEES
The following fees have been implemented for 2008 and 2009. Fees established in this Agreement shall not be
modified after the Agreement is signed by User and The Minervini Group, and/or Spire-works. Costs for ala carte
items shall be deemed additions to the site fee.
NOTE: Non-profit entities may qualify for a fee based on an in-kind donation and
negotiable ala carte costs.
Organizers are encouraged to use the services of Village businesses and in doing so shall receive a User Fee
discount of 15%. These services include: Florist & Floral Design; Catering (Food; Wine; Beverages; Confections).
The discount shall be applied to final payment, upon receipt of a copy of service charges billed to the User from
these businesses.
By season: January-April; May-September; October-December
January.February.March.April
NUMBER OF PARTICIPANTS
50 OR LESS
OVER 50 TO 100
OVER 100 TO 200
OVER 200 TO 400
OVER 400 TO 600
600 OR MORE
FEE
550.00$
900.00$
1,000.00$
2,000.00$
2,500.00$
3,000.00$
15% DISCOUNT
82.50$
135.00$
150.00$
300.00$
375.00$
450.00$
DEPOSIT FEE
275.00$
450.00$
500.00$
1,000.00$
1,250.00$
1,500.00$
AY . JUNE . JULY . AUGUST . SEPTEMBER
NUMBER OF PARTICIPANTS
50 OR LESS
OVER 50 TO 100
OVER 100 TO 200
OVER 200 TO 400
OVER 400 TO 600
600 OR MORE
FEE
900.00$
1,500.00$
2,000.00$
3,000.00$
4,000.00$
5,000.00$
15% DISCOUNT
135.00$
225.00$
300.00$
450.00$
600.00$
750.00$
DEPOSIT FEE
450.00$
750.00$
1,000.00$
1,500.00$
2,000.00$
2,500.00$
15% DISCOUNT
97.50$
150.00$
225.00$
375.00$
525.00$
600.00$
DEPOSIT FEE
325.00$
500.00$
750.00$
1,250.00$
1,750.00$
2,000.00$
OCTOBER . NOVEMBER . DECEMBER
NUMBER OF PARTICIPANTS
50 OR LESS
OVER 50 TO 100
OVER 100 TO 200
OVER 200 TO 400
OVER 400 TO 600
600 OR MORE
FEE
650.00$
1,000.00$
1,500.00$
2,500.00$
3,500.00$
4,000.00$
User fees are based on events held on the historic front lawn or other designated “open spaces” or interior spaces in
The Village. Events in excess of 500 participants are required to use Open Spaces only.
There are a number of factors that determine maximum capacity for any event. Careful consideration is given to
events held in interior common areas, such as the Mercato Marketplace, which has limited capacity, serves as a
public thoroughfare, and is comprised of a number of retail businesses that may be adversely affected by the event.
Open and interior spaces are also subject to a myriad of restrictions that limit the number of participants in relation
to code compliant regulations for public safety and assembly.
The Village at Grand Traverse Commons
Historic Barns Park, Rec Authority
Draft Business Plan, Page 75 of 81; 3/10/2016
USER AGREEMENT
EXHIBIT D
Alcoholic Beverage Service. Code of Responsible Practice
Celebrations, special events, festivals and tastings are a well-accepted part of American life and welcomed here at
the Village. Planners and hosts know that a successful event means ensuring a safe one, and that the other tenants of
the Village are not unduly inconvenienced. The purpose of this guide is to establish a mutually agreeable code of
responsible practice for the service of alcohol at the Village. The following guidelines contain a basic list of “how
to’s” that may or may not apply to the specific event but are straightforward and easy to understand in order to make
your event safe and fun for all.
Plan Ahead
Event organizers need to ensure that sponsors, Village management, event staff and volunteers have all reviewed
this guide and have time to plan for compliance with guidelines established. Use this guide as a checklist.
Obtain License
Ensure that the Michigan Liquor Control Commission (MLCC) has appropriately licensed the event and facility
where alcohol is to be served for on-premise consumption. Non-Profit groups need to obtain a Special Events
License from the MLCC if there is any charge for the event or beverages served. It will take up to a month to obtain
a Special Events Li-cense. Alcohol beverages cannot be donated by producers or distributors. Individuals, how-ever,
may donate wine to a non-profit charitable organization that has obtained a special permit from the MLCC for the
auction of donated product. You will need to obtain liquor liability insurance for the event. Remember: Your
organization will be responsible under the law for the responsible service to all attendees and for payment of
Michigan sales taxes.
How to Request Supplier Support
Both law and capability limit alcohol suppliers as to how they can support events. Product cannot be given away
free and producer or distributor personnel are not allowed to pour products. Producers and distributors can provide
donations and support under special conditions. Contact the producer or distributor to see how they might help.
Train All Involved
Train all volunteers, concession vendors, security staff to understand the operating details of the event, to recognize
potential problems and to take appropriate action. Appoint an event manager to oversee alcohol service.
Check ID
No alcohol service is allowed under the age of 21. The event organizer should operate an entrance station to verify
age of event guests. Any guest consuming alcohol should be screened, hand-stamped or wrist-banded to ensure
pourers do not serve minors. Post signs stating that not underage persons will be served.
Provide Non-Alcohol Beverages
Coffee, tea, soft drinks, water and/or juices should be offered as an alternative during the event either for sale, or
preferably free, particularly as the event ends.
Provide Food
Food should be offered free or for sale.
Make Arrangements for Alternative Transportation
Offer free or discounted designated driver admissions and safe-ride services.
Provide Trained Servers
Ensure a minimum number of alcohol-intervention-trained servers are provided to super-vise the event and
volunteers pouring alcohol beverages.
The Village at Grand Traverse Commons
Historic Barns Park, Rec Authority
Draft Business Plan, Page 76 of 81; 3/10/2016
USER AGREEMENT
EXHIBIT D Continued
Limit Alcohol Consumption
Impose a pre-determined limit on the size of beverages poured and the number of tickets sold per person or the
number of hours the event is held. Service must be refused to any-one who appears to be intoxicated. Cut off alcohol
beverage service at least thirty (30) minutes before the event concludes.
Control Service
Servers should be at least 21 years old. Provide dump buckets at wine tastings to dispose of excess wine and rinse
water. Calculate sample size and fill level of serving glasses and check to see that pourers comply.
Control Sale
It is illegal to allow guests to bring their own alcohol beverages. It is also illegal to remove open alcohol beverages
from the event.
Professional Wine Service
White wine should be served chilled.
Only open bottles as required.
Replace cork in opened bottle of still wine – never in sparkling wines.
Point sparkling wines away from self and others when opening.
If wine has an “off taste” or smell do not serve. Place under table for disposal.
When serving, talk about the wine and encourage guest to dump if they wish.
Make every effort to keep serving areas clean and organized.
Special Event Requirements
Larger events require a plan for the following:
Provide sufficient parking, entrances and exits, traffic-flow space and restrooms.
Provide uniformed, trained staff with clear responsibilities and chain of command.
Provide entrance control, perimeter fencing, crowd and traffic control on and off site.
Provide first aid and emergency services, lost child and lost and found areas.
Maintain a clean event site with frequent trash removal, recycling of containers, rest-room supply check,
Maintain a safe event site: determine location of buried or suspended electric lines, place warnings on
tent poles and spikes, etc.
I/We have read, understand and agree to the Policies and Code of Responsible Practice re-garding the service of
alcoholic beverages.
NAME OF BUSINESS/GROUP/INDIVIDUAL/ORGANIZATION
AUTHORIZED REPRESENTATIVE: (NAME – PLEASE PRINT)
AUTHORIZED REPRESENTATIVE (SIGNATURE):
The Village at Grand Traverse Commons
DATE:
Historic Barns Park, Rec Authority
Draft Business Plan, Page 77 of 81; 3/10/2016
USER AGREEMENT
Ala Carte Items:
Following is a checklist that includes, but is not limited to, the variety of items that shall be considered additions to
the User Fee. An estimate for checked items will be submitted to the User in advance of the event. One-half of the
total estimate for checked items must be paid by the User upon approval of costs. The remaining balance is due upon
full payment of the User Fee, as described on page 3 of this Agreement.
 Event coordinator or Event Planner
 Canopy or Pop-Up Tent
 Tent
 Tent with Dance Floor
 Tent with Carpet
 Tent with Sides
 Arbors
 Chairs
 Chair Covers
 Tables
 Linens
 Potted Plants or Trees
 Floral Arrangements
 Runners
 Lighting
 Podium
 Electrical Hook-up
 Water Hook-up
 Generator
 Perimeter Fencing
 Man-Lift Equipment
 Other
 Stage
 Speaker System
 Music/Entertainment
 Photographer
 Catering
 Beverages
 Beverage Service
 Wait Staff Service
 Food Servers
 Signage
 Security
 Valet Service
 Limousine Service
 Shuttle Service
 Port-A-Jons
 Restroom Trailers
 Carriage
 Golf Carts
 Recycling Service
 Cleaning, and Debris Removal
 Set-Up and Take-Down Crew
Historic Barns Park, Rec Authority
Draft Business Plan, Page 78 of 81; 3/10/2016
Historic Barns Park, Rec Authority
Draft Business Plan, Page 79 of 81; 3/10/2016
The Village at Grand Traverse Commons
USER AGREEMENT. EVENT CHECKLIST
The following items, which are required components of this User Agreement, have been submitted
to and approved by an authorized representative of The Minervini Group and/or Spireworks, LLC.
 Receipt and signed approval of User Reservation Request Form.
Approved By: ____________________________________
Date of Approval: _________________________________
Date(s) of Event: _________________________________
 Receipt of One Day Event Liability Insurance
Date Received: ___________________________________
 Receipt of Two-Day Event Liability Insurance
Date Received: ___________________________________
 Receipt of Liquor/Alcoholic Beverage Liability Insurance
Date Received: ___________________________________
 Policy(s) include complete list of “Additional Insured.”
 Receipt of Non-Profit 501c3 Number and Non-Profit verification.
 Receipt of User Fee Deposit:
Date Received: ____________ Amount: _____________ Check Number: _____________
 Receipt of Security Deposit:
Date Received: ____________ Amount: _____________ Check Number: _____________
 Submittal of total costs for ala carte items.
Date Submitted: ____________________
Date Approved by User: ______________
 Receipt of Deposit for Ala Carte Costs:
Date Received: ____________ Amount: _____________ Check Number: _____________
 Receipt of Balance Due:
Date Received: ____________ Amount: _____________ Check Number: _____________ 
 Receipt of Balance Due for Ala Carte Costs:
Date Received: ____________ Amount: _____________ Check Number: _____________
 Security Deposit:
Date Refunded: __________ Amount: _________ Check Number: _______
Historic Barns Park, Rec Authority
Draft Business Plan, Page 80 of 81; 3/10/2016
 Cost for Damages:
Date Submitted: __________ Amount: _________
Date Paid by User: _________ Amount: _________ Check Number: _______
The Village at Grand Traverse Commons
USER AGREEMENT
I/we have read, fully understand and agree to the terms and conditions of this User Agreement as described herein.
It is also understood and agreed that signing this Agreement does not constitute event approval unless Exhibit A of
this Agreement is approved and signed by an authorized representative of The Minervini Group, LLC or
Spireworks, LLC.
USER:
_______________________________________________________________________________
Business/Group/Organization/Individual Name
Signature: ________________________________________________ Date_________________
User Name/Representative
Its: ______________________________________________________
Mini Minervini
Susan Thom
Kristen Messner
Cell: 231-218-5533 Cell: 231-375-8495
Cell: 231-645-0619
mini@spireworkstc.com susan@spireworkstc.com kristen@spireworkstc.com
Spireworks is the authorized
event, production and promotions management company
for The Minervini Group,
Redevelopers of The Village at Grand Traverse Commons.
For information relating to event schedules,
event planning, and The Village Events Calendar,
or to schedule a meeting to explore your event ideas
or requests, please contact:
Redevelopers of The Village at Grand Traverse Commons
830 Cottageview Drive, Suite 101 . Traverse City, MI 49684
231-941-1900
www.thevillagetc.com
Historic Barns Park, Rec Authority
Draft Business Plan, Page 81 of 81; 3/10/2016