peter nichol jst ol town meeting presentation
TRANSCRIPT
Josiah Smith Tavern & Old LibraryFinancial Perspective
• Background
•Values & Costs
•Taxes
•Capital Investment
•Restaurant Model
•Process
BuildingsGross Square Feet
8,0103,8804,130OldLibrary
17,4255,40012,025Tavern &Barn(Addition)
12,3103,4508,860Tavern &Barn
TotalLowerFloor
1st & 2ndFloors
Assessed ValuesFY 2008
$3,697k$2,319k$1,378kTotals
$1,119k$568k$551kOldLibrary
$2,578k$1,751k$827kTavern &Barn
TotalLandBuilding
Replacement Cost(Approximate)
$ 6.0 million$28820,865Totals
$ 3.0 million$3508,560OldLibrary
$ 3.0 million$25012,305Tavern &Barn
Total$ / Sq ftSq Feet
Josiah Smith Tavern & BarnEstimated Real Estate Taxes
$497kForegone Taxes SinceAcquisition – 25 Yrs
$2.4 millionFuture Taxes – Restaurant25 Years
$30k to $40kAnnual Real Estate Taxes
$3.0 to $4.0 millionAssessed Value -Restaurant Tavern
Maintenance Costs
$10k to $15kAnnually
Past MaintenanceExpenditure
$50k to $60kAnnually
Typical Capital ReserveJST & OL
$450k in 2007Tavern & Barn ExteriorRenovation
Restaurant Model
• Competitive RFP Process
• Restaurant Operator Capital Investment -Estimated $600k
• Fixed Base Rent - Increasing each year
Restaurant Model
• Percentage Rent 6% over Gross Salesthreshold of $ 1.0 M
• Net Revenues to Town - Stabilized$100k to $125k
• Operator Maintains interior
Improved Town Control
•RFP Bid and Selection Process
• Town Owns Liquor License
• Shorter Term Lease
• Investment in Building Shell & Core
•Very Little in Special Restaurant Use
Conclusions
• Enliven a dead area of our main street
• Reuse the Building for an Amenity
• Stop the relentless expense of maintainingempty buildings
• Convert tax exempt property to taxable
Conclusions
• Add to the Town coffers in real estatetaxes
• Gain additional rent for maintaining theOld Library
•Move the Town playground to a far saferlocation