Peter Nichol JST OL Town Meeting Presentation

The Josiah Smith Tavern & Old Library Committee

Financial PerspectivePeter Nichols

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

Capital RequiredJosiah Smith Tavern & Old Library

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

RestaurantRevenue Projections

$30 to $40 per personDining Room

$18 to $20 per personTavern

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