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#5 Review and accept Tallman House report and Business Plan Community Development Department Memorandum Date: April 19, 2010 TO: Janesville City Council FROM: Bradley A. Cantrell, Community Development Director SUBJECT: Review and Accept Lincoln-Tallman House Exterior Conditions Report and Business Plan for 2010 to 2014. _____________________________________________________________________ In October, 2009, the City Manager appointed an Ad Hoc Committee to review the Lincoln Tallman House Conditions Report which was prepared by Engberg Anderson. This report was a detailed analysis of the exterior envelop of the Tallman House which prioritized improvements and provided estimated costs. The Committee evaluated the recommended improvements and in some cases recommended alternative improvement options, reprioritized improvements and provided recommendations for funding alternatives. The Committee was also charged with preparing a business plan for the Lincoln Tallman House and grounds. The Committee divided their responsibilities into two groups; one group was charged with preparing a report which addressed the structural improvements and facilities plan and the other group was charged with preparing a programming and business plan. The Ad Hoc Committee consisted of City Council members George Brunner and Russ Steeber, City Manager Eric Levitt, Rock County Historical Society Board members Duke Ellingson and Chuck Rydberg, the Rock County Historical Society Executive Director Joel Van Haaften and other community members including Meredith Helgerson, Rich Gruber, David Cullen, Lois Smith, Larry Barton, Jackie Wood, and Christine Rebout. In addition, several city staff members assisted the committee including Al Hulick, Larry Buetzer and myself. Since October, they have been meeting regularly on this effort and have prepared the attached reports for City Council consideration. For the April 26 City Council Meeting, Meredith Helgerson, Chairman of the Ad Hoc Committee, will be presenting the conditions report and Rich Gruber, Vice Chairman of the Ad Hoc Committee, will be presenting the programming and business plan. Following the presentation, the Committee is requesting that the City Council accept the Committee’s findings. Suggested Motion Following review and discussion of this item, the Ad Hoc Committee requests that the City Council consider a motion to accept the Lincoln-Tallman House Exterior Conditions report and Business Plan for 2010 to 2014. cc: Eric Levitt Jay Winzenz Business Plan for 2010 to 2014 April 21, 2010 I. Executive Summary The Lincoln-Tallman House has been referred to by many as Janesville’s jewel. The number, type and quality of family artifacts and the beauty of the House can rarely be equaled by others from this period. In 2009, the firm Engberg Anderson provided the City of Janesville with an evaluation and assessment of the exterior condition of the Lincoln-Tallman House. This report recommended not only a complete exterior restoration of the structure, but suggested that programming for the facility be revisited. Maintaining the status quo in relation to funding and use cannot sustain the Lincoln-Tallman House. Revenue generated from visitors and funding provided by the City will not support continued operation of the House and preventive maintenance repairs, much less the more extensive structural improvements. The Ad Hoc Committee assigned to this project was given the task of preparing a Business Plan. As part of that effort, recommendations on reprogramming use of the House and Grounds were made in order to increase annual revenue and attendance. The Committee balanced the need to preserve the artifacts and building fabric with the need to allow greater public access and increase revenue. To simply restore the building without regard to its continued economic use would likely result in a repeat cycle of major repairs in the future. The primary goals of the Business Plan were to increase attendance to the Lincoln-Tallman House and Grounds and to expand opportunities for public and private use of the House and Grounds. The Plan proposes that the admissions can be increased by almost 40% over the 5 year plan period. This can be accomplished by partnering with other attractions in the Janesville area and with a more aggressive advertising, marketing and promotional package for the House. The Committee recommends that a portion of the House be available to rent for small business meetings, weddings, and other receptions to increase revenue, broaden the potential donor list and generate community interest. In addition, it is recommended that the Carriage Barn be renovated and that a prep kitchen be incorporated into the plan in order to facilitate catered rentals in the House and on the Grounds. Revenue generated from rental activities is projected to net $14,000 annually. The Committee also recommends that a greater number of events be conducted in the House and hosted on the Grounds which could conservatively generate $65,000 annually. In order to accomplish these efforts, it is recommended that an individual be hired on a part-time basis to coordinate events, program use of the House and pursue philanthropic grant opportunities. The Committee believes that while City operating support provided to the Rock County Historical Society can be reduced over the 5 year business plan period, it cannot be entirely eliminated. Furthermore, the success of the Business Plan will only be realized through an aggressive approach of recasting the House for greater use and marketing it’s unique assets to encourage repeat visits. II. Background The City of Janesville contracts with the Rock County Historical Society who provides custodial, programming and administrative support to the operations of the Lincoln-Tallman House and Grounds. The Rock County Historical Society (RCHS) began operation in 1949 and assumed the administration of the Lincoln-Tallman House in 1951, when the City of Janesville received the property. The RCHS was then charged with the responsibility of operating the house as a public museum on behalf of the City of Janesville who holds title in trust to the facilities and grounds commonly referred to as the Lincoln- Tallman House. These facilities include the Lincoln-Tallman House, the Carriage Barn, the Wilson-King Stone House as well as the adjacent grounds. Separately, the RCHS owns and operates the Helen Jeffris Wood Museum Center, the Charles Tallman residential property recently acquired that is physically between the Tallman House grounds and the Museum Center, as well as the Frances Willard School House located at the Rock County Fairgrounds. 1 The focus of this report is on the activities of the RCHS in their role as custodian for city owned properties that the Society operates on behalf of the City of Janesville. As such, this report is not to be construed as an evaluation of the Society or its activities that are not directly tied to their contractual relationship with the City. While many of the Society’s non-contract related activities complement the City contract, how those activities are maintained are the responsibility of the RCHS Board of Directors and not the topic of this report. III. Existing Operations and Facilities Overview Operations: Attachment A is an eleven year analysis of operating support and expenditures for the Lincoln-Tallman facilities as well as a summary of City of Janesville support for operations to manage the museum. During this period City of Janesville operations support peaked in 2003 at $73,979 ($70,404 direct support and $3,575 grounds maintenance). In 2009, the City provided $50,000 in direct revenue support and $2,545 in maintenance support. The City of Janesville Capital support for these City owned facilities has varied on an annual basis from a low of $485 in 2000 to a high of $19,334 in 2002. The Capital expenditure support for the facilities in 2009 totaled $16,435. Included in the Lincoln-Tallman revenue is admissions through the House. Over the last eleven years admission revenue has steadily declined from a peak in 2001 of $30,028 to low of $10,031 in 2009. Attachment B is a chart depicting the 1999 through 2009 history of revenues and expenditures as well as City Capital Expenditures for the Lincoln-Tallman House and Grounds. Facilities: In February 2009 the firm of Engberg Anderson provided the City of Janesville with its final report on its evaluation and assessment of the exterior condition of the Lincoln-Tallman House. The evaluation and assessment was conducted in preparation for future coordinated exterior restoration efforts. Engberg Anderson also recommended that in addition to the need for a complete exterior restoration, programming for the facility should also be revisited. According to the firm, revised programming may permit additional uses and an increased awareness of the property as a community asset. They further concluded that continued relevance in the public eye can only help with future funding. In order to ensure the long term financial stability of the property, measures, programs, and opportunities must be developed to maintain funding. As well, they concluded that a cyclical maintenance program should be developed and fully funded to ensure the House is adequately and proactively cared for in the future. To that end, the City Manager convened an Ad Hoc Committee of community members to review the Engberg Anderson report as well as current programming provided by RCHS on behalf of the City of Janesville. This Ad Hoc Committee has met over the course of the past few months and is presenting their recommendations related to both the facilities and supporting programming. The copies of the minutes of the Ad Hoc Committee including both sub-committees can be provide upon request. IV. Goals and Objectives The subcommittee created some general goals and objectives for the operation of the Lincoln-Tallman House and Grounds in order to realize the fiscal projections provided in the business plan. They are as follows: Goal 1. Increase the annual attendance for the RCHS, the Lincoln-Tallman House, and the Wilson-King House through new activities, events and programs by 10% each year. 2 Goal 2. Create new opportunities for public and private use for the Lincoln-Tallman House and historic campus. Objective 1. Provide exciting educational exhibitions, programs and special events. 1. Provide four (4) quality fund raising activities on the grounds or in the Lincoln-Tallman House each year. The goal of each event is to increase revenue, increase attendance through the House, encourage repeat visitation from local citizens and provide a potential donor/friends list for future fundraising efforts. Events could include the Tallman Art Festival, the Holiday tours, Mother’s Day tours and lecture, and Father’s Day activities. The goal would be to obtain sponsors to cover the initial cost of marketing and conducting the event. Utilize the $20,000 Existing Event category of the Joint Effort Marketing Grant program from the Wisconsin Department of Tourism to reach new target markets for the Tallman Arts Festival. 2. Provide an opportunity to rent the House and/or grounds for corporate receptions, small weddings, anniversaries, and other group gatherings. The goal is to allow for the limited use of the House and grounds for these activities so that the collections are protected but the House and grounds are used on a more frequent basis. The renovated Carriage Barn will be a key component in providing expanded rental opportunities in the House and on the grounds. The intended outcome would be to increase revenue, expose more people to the facility, and provide a potential donor/friends list for future fundraising efforts. 3. Partner with other community organizations such as Rotary Botanical Gardens, the Janesville Concert Association, the Beloit-Janesville Symphony, the Hedberg Public Library to provide new events, such as heirloom gardening programs, summer lawn concerts and exhibits inspired from popular books. 4. Market to group tours more aggressively through increased partnership with other Janesville attractions and increase services offered to our groups. Objective 2. Create a comprehensive advertising, marketing and promotional package for the Lincoln- Tallman House. 1. Create separate self mailing brochures for each intended use of the facility. a. A brochure outlining individual tours of the House to be used for direct mail campaigns to travelers and distribution throughout Southern Wisconsin. b. A brochure targeted to group tour planners outlining various pricing and options for groups such as packages that include a visit to the Helen Jeffris Wood Museum Center, an educational talk, and/or a box lunch on the grounds. This variety of experiences would allow groups to return more frequently as each visit offers something new. c. A brochure targeted to event planners outlining various rental options available in the House or on the grounds. d. An annual events calendar containing information on the events hosted each year including, but not limited to the Tallman Arts Festival, Fathers Day and Mothers Day Tours, and Holiday Tours. 2. Update the website for the RCHS to include information on tours, special events, group tours and rental. Incorporate downloadable resources such as the group tour brochure, calendar of events and contracts for facility rental. Keep the website updated with photos of the Lincoln-Tallman House used for a variety of events and activities. Incorporate photos of families, meetings and groups allowing people to see the facility in a variety of 3 ways. Maintain a schedule of regular updates to allow the website to be a fresh experience each time a user visits the site. 3. Utilize free social media outlets to develop a base of supporters for the Lincoln-Tallman House. Create and maintain a Facebook page, Twitter account and Directors Blog to allow people to become actively engaged in the day-to-day operations of the Lincoln- Tallman House. Use these resources to engage existing supporters and volunteers and to reach new supporters. 4. Establish a quarterly e-newsletter through the JACVB’s Constant Contact subscription to actively engage donors and supporters in the activities of the Lincoln-Tallman House. Record up 4 pod casts each year for distribution on the RCHS website and You-Tube allowing viewers to understand the experience of a tour. 5. Promote the programming developed by the RCHS in various media formats such as newspapers, television and radio through ads sponsored by local businesses. Include rental of advertising space on and inside the City Buses, radio spots for the special events and cross promotions between other planned community events. 6. Solicit additional free public relations opportunities by reaching out to travel writers and establishing a regular schedule of press releases. Generate press releases/news articles on a monthly basis for distribution to news outlets. Stories may encompass events or features of the Lincoln-Tallman House and Grounds. 7. Partner with the JACVB for advertising and promotional opportunities. Work with JACVB to host familiarization (FAM) tours for tour operators, visits from travel writers, and site visits with meeting planners. Partner with Forward Janesville to host a Business After Five. Continue to work with the Janesville Gazette, and the Jotter to develop a subsidized or free listing of special events. Have JATV tape events for their public access television programming. 6. Partner with the City of Janesville, the JACVB and other events and attractions in Janesville to include reciprocal links on their Web sites to coordinate scheduled events and activities taking place on the grounds or in the Lincoln-Tallman House. 8. Develop a relationship with local media agencies and local billboard companies for advertising of special events and regular tours at the Lincoln-Tallman House on unsold inventory. 9. Update and increase signage for the Lincoln-Tallman House. a. Including securing Interstate I-39/90 signage through the Department of Transportation Specific Information Signage Program. b. Refurbish and relocate Lincoln-Tallman House signs along the street frontages of the grounds to increase on-site visibility. c. Install new informational and directional signs along major roadways directing individuals to the Lincoln-Tallman House and Grounds. Objective 3. Develop and maintain an annual balanced budget by increasing the overall revenue for RCHS and decreasing the overall expenses of the Society and the city’s annual subsidy to the Lincoln-Tallman House. 1. Develop and implement a direct mail campaign of brochures to each target market: visitors, group tours and event planners. A goal of 2,000 brochures going to the visitor and group tour market and a 5% return would create 100 new responses in area. A goal 4 of 500 brochures going to meeting planners and a 5% return would create 25 new responses. 2. Develop specialty merchandise specifically related to the Lincoln-Tallman House. Partner with gift shops at Rotary Botanical Gardens to include each other’s logoed merchandise at each gift shop. 3. Expanded programming offered at the Lincoln-Tallman House, thereby increase the number of paid visitors to the Lincoln-Tallman House by 10% each year. 4. Move Archives and Collections out of the Wilson-King House and into a renovated Charles Tallman House and rent/lease the Wilson-King House to another non-profit for revenue to be used to offset the city’s operating support. 5. Encourage the growth of bus tours by offering packages with other local attractions and off season price reductions. Partner with the JACVB for a presence at group tour tradeshows throughout the Midwest. Prepare group tour specific marketing brochure for the Lincoln-Tallman House to be distributed to 2,000 area group tour operators. The goal would be to increase the number of admissions through group tours by 20% from 2010 to 2012 and by 10% from 2013 to 2014. 6. Include discounted use of the facility as a member benefit, increasing interest and awareness of the rental of the facility. 7. Examine the potential of reclaiming the lower level exhibition area of the Helen Jeffris Wood Museum for programming, rental and exhibit space by moving the existing storage to a portion of the Charles Tallman House or other locations on the Lincoln-Tallman Grounds. 8. Evaluate event potential by soliciting sponsorships. If sponsors are available to cover basic costs for an event, those events should go forward. If the potential exists to lose net revenues, events should be carefully considered for their value by the Board of Directors. 9. Develop a data base of existing members of the RCHS and increase those members 5% over a 5 year period through active solicitation of members at all events and activities taking place. Offer a discounted membership to individuals who rent the facility to build new loyalty for the Lincoln-Tallman House. V. Capital Projects Currently the RCHS has operated the Lincoln-Tallman House on the funds provided by the City along with the revenue generated from the Lincoln-Tallman related events such as the Tallman Arts Festival, and the admissions to the House itself; however, the Society cannot afford to be responsible for the capital repairs required to maintain the City owned buildings on the grounds of the Tallman property. A separate sub-committee is working on prioritizing the necessary structural improvements to the Lincoln- Tallman House and paying for and programming those repairs. However, in order to generate additional revenue for events and activities some City and/or RCHS expenditures to the House and Grounds will have to be made. The Committee has recommended that a portion of the House be made available to rent for small private events including business functions, weddings, and other receptions. In order to accomplish this some funds will need to be expended to prepare the House for evening use and protect the carpets and furnishings. These improvements may include installation of additional lighting, and the purchase of carpet pad covers, and stanchions. The anticipated outcome would be to increase revenue in order to potentially reduce the City operating 5 support with the goal of having the programming and events to cover RCHS’s operating cost of the House and Grounds. The exterior lift which provides ADA accessibility to the House is currently not working and needs to be refurbished or replaced. In addition, the bathrooms are in poor condition, not ADA accessible and are not functional for large groups use. Therefore monies need to the be programmed for the ADA lift and refurbish the bathrooms. Community Development Block Grant funds could be used to make the House and bathrooms ADA accessible. The Ad Hoc Committee has also recommended that the Carriage Barn be programmed for renovation. It is currently not used because of its poor structural condition. A recent estimate by AYA to renovate the Carriage Barn into meeting space with bathrooms and a prep kitchen identified the cost of this improvement to be $280,000 (not including 25% design, construction management and contingency). Attachments F and F1 show the concept proposed for the renovated Carriage Barn. The Committee believes that if bathrooms and a preparation kitchen could be added to the Carriage Barn those improvements could facilitate additional programming in the Lincoln-Tallman House and on the Grounds. The Committee also recognized the need to install landscape improvements and potentially grade a portion of the Tallman grounds to accommodate a tent for outdoor activities. In 2008 RCHS acquired the Charles Tallman House located at 430 North Jackson Street which completed the purchase of the original Tallman grounds containing the Lincoln-Tallman House at 440 North Jackson, the Charles Tallman House at 426 North Jackson and the Helen Jeffris Wood Museum at 420 North Jackson formerly occupied by Stanley Tallman. RCHS is considering relocating the archives from the Wilson-King Stone House to the Charles Tallman House and using the house for archive storage. This would allow the Stone House to be rented or leased to provide additional income and reclaim programming space in the Helen Jeffris Wood Museum current used for archive storage. In order to accomplish these improvements, the following expenditures will need to be programmed. See Summary of Capital Expenditures Table on page 12 which includes Lincoln-Tallman House renovation estimates. Renovating the bathrooms for the Lincoln-Tallman House (City cost) $30,000 (Eng. est.) Purchase of an ADA accessible lift for the Lincoln-Tallman House (City cost) $15,000 (Eng. est.) Lighting at Lincoln-Tallman House (RCHS cost) $5,000 (est.) Carriage Barn improvements for reuse as lease and programming space. (City cost) $280,000 (AYA est. plus 25% design, const. mgmt. and conting) Renovate the Charles Tallman House for Archive use and storage (RCHS cost) N/A Improve site signage (RCHS cost) $2,000 VI. Admissions Recommendations Over the past 11-years, admissions revenue has declined from $29,587 in 1999 to $10,031 in 2009. Attachment C depicts Admissions revenue for 1999 to 2009. Admissions revenue peaked in 2001 at $30,028 and has steadily declined to a 2009 level of $10,031. Renewed efforts to increase regular, group, and student admissions to the House are important to help increase this key source of revenue. Personal selling contacts should be made to improve relationships with tour companies and other sources of admissions. 6 From 2008 to 2009, group tours to RCHS and the Lincoln-Tallman House fell from 70 to 42, or 40%. This decrease was in part due to reduced advertising and marketing to group tour operators. RCHS has applied for grant monies from the JACVB for preparation of a marketing brochure for group tour companies. If this grant is approved and the brochure prepared it is anticipated that it will be distributed to 2,000 area group tour operators in the JACVB database in 2010. This effort is expected to generate an increase in group tours for RCHS and the Lincoln-Tallman House. A mailing of 2,000 group tour brochures followed by follow-up phone calls from RCHS staff and volunteers with only a 1/2% return would produce 10% additional tours, or an additional 23 tours. Because tour operators book several years in advance we estimate a 20% increase would take place from 2010 to 2012 and a 10% increase would take place from 2013 to 2014. An average tour group is 40 individuals; therefore a 20% increase each year from 2010 to 2012 would result in an estimate of 1,200 additional admissions and a 10% increase each year from 2013 to 2014 would result in an additional 600 admissions. Also, identified in the Objectives section of this report, the goal is to increase regular admissions through the Lincoln-Tallman House by 10% annually over the course of the Five (5) Year Business Plan. In order to accomplish this goal, the RCHS will create a comprehensive marketing package for the Lincoln- Lincoln-Tallman House that will promote special events, rentals, and the House in general. The creation and execution of the plan will be attainable by fully utilize the already existing cooperative marketing partnership with JACVB, Janesville Performing Arts Center, and Rotary Botanical Gardens. This partnership utilizes the services of a cooperative Marketing Director and a $2,500 grant towards those services. Additional marketing services used beyond what is granted are billed out at a minimal hourly rate. The partnership also participates in cooperative marketing for reduced individual costs. The Marketing Director’s skill set includes, but is in not limited to, writing press releases, ad layout and design, creating and implementing marketing plans, social median, still photography and videography, placing ad buys, and grant writing. In addition to the cooperative marketing partnership with JACVB, an additional $5,000 has been programmed into the fiscal projects in order to provide the event planner resources to further market the House and Grounds for events and to increase admissions. Attachment D provides a breakdown of the admissions by adult, student, and senior through the House either by individual (regular) or group tours from 2003 to 2009. No change in admission fees are proposed. Regular adult admissions are charged $8.00, seniors $7.50, and students $4.00. Group admissions are charged $7.50 for adults, $7.00 for seniors, $3.50 for non-Rock County students and $3.00 for Rock County students. 2003 to 2009 Admissions Actual to Lincoln-Tallman House Admissions 2003 2004 2005 2006 2007 2008 2009 Regular Admissions 1841 1282 n/a 1472 n/a 797 984 Group Admissions 2035 2454 n/a 2400 n/a 2166 1109 Comp Admissions 846 789 n/a 334 n/a 301 168 Total Admissions 4722 4525 n/a 4206 n/a 3264 2261 Total Revenue $19,486 $20,244 $18,083 $20,284 $18,684 $16,000 $10,031 Projected Future Admissions/Revenue* Admissions 2010 2011 2012 2013 2014 Regular Admissions 1083 1191 1310 1441 1585 Group Admissions 1463 1755 2106 2316 2547 Comp Admissions 222 266 319 351 386 Total Admissions 2,768 3,212 3,735 4,108 4,518 Total Revenue $12,195 $ 14,111 $ 16,363 $ 17,996 $ 19,792 *10% annual increase for regular admissions from 2010-2014, a 20% for group admissions from 2010-2012 and 10% for group admissions for 2013-2014. 7 VII. Events The RCHS has hosted the Tallman Arts Festival fundraiser on the grounds of the Lincoln-Tallman House for 52 years. This long running event has regularly brought in $14,000 to $18,000 and shows the current capability of special event funding for the RCHS. This past December RCHS opened the Lincoln-Tallman House to evening tours during the holiday season. This event brought in $1,600 in net profit and could expand in the coming year up to $2,000 or $3,000. RCHS also holds a historical house tour in August. Although this tour takes place off of the grounds of the historical campus, it has recently brought in $25,000 in support for RCHS. In addition to holding the Tallman Arts Festival on the grounds of the Lincoln-Tallman House, RCHS intends to expand its events programming to include events such as boxed picnics/concerts on the lawn, antique shows, appraisal fairs, folk festival outdoor dinners, historic trades weekends, Mother’s Day teas and/or fashion shows, Father’s day antique car shows or tool fairs, Civil War Days, poker runs, holiday photograph shoots, dinner parties in the carriage house, and wine tastings on the grounds. If RCHS were to host the Tallman Arts Festival, the Historic House Tour and Gala, the Twilight Tour event, and two other smaller fundraisers, the potential funding for RCHS could generate $75,000 to $100,000 in annual support. Other possibilities emphasize the inclusion of children. When school groups or children perform, the events are usually well-attended since Janesville is a family- centered community. In order to successfully market the House and grounds as a desirable event space, the Committee recommends an event planner be hired on a part time or commission basis to execute a number of previously listed Goals and Objectives. An event planner can also be responsible for organizing a rental calendar, plan and coordinate events, assist in the promotion of the House and establishing public relations with the community at large. The goal of all of these efforts will be to increase revenue, make the house and grounds more useable and accessible to the community and provide a greater awareness of the House and the services provided. Tallman Arts Festival Net Revenue 2000200120022003200420052006200720082009 $18,773$18,715$18,929$17,717$14,868$17,487$12,113$18,049$8,185$0 Projected Net Event Revenue-Lincoln-Tallman Properties Only Events 2009 2010 2011 2012 2013 2014 Actual Proposed Proposed Proposed Proposed Proposed Tallman Arts N/A $20,000 $30,000 $40,000 $50,000 $50,000 Festival Father’s Day Event N/A $2,000 $3,000 $3,000 $3,000 Mother’s Day Event N/A $1,000 $1,000 $1,000 $1,000 Concerts on the N/A $2,000 $2,000 $2,000 $2,000 $2,000 Tallman House Gds. Tallman Holiday $1,600 $2,000 $3,000 $5,000 $7,500 $7,500 Tour Cookout/Picnic on N/A $1,000 $1,000 $1,000 $1,000 $1,000 Tallman Gds. Total $1,600 $25,000 $39,000 $52,000 $64,500 $64,500 N/A --event did not exists. 8 VIII. Lincoln-Tallman House Rental Recommendations Rental of the Lincoln-Tallman House, Carriage Barn and surrounding grounds is a new concept for increasing revenue for the operation budget, broadening the donor list and generating new interest and relations with the community at large. Rentals inside the House could include business meetings, receptions, photography only rentals, and ceremonies. Rentals inside the House would be limited to one room and the main hallway on the ground floor (see floor plan of House and site plan of grounds Attachments E and E1. In order to accomplish this, the RCHS plans to remove standing artifacts and furniture from the formal entry hall; remove standing artifacts and furniture from the back parlor; close the doors or stanchion off the formal parlor, dining room, front parlor; and restrict access to the second story and basement. Restricting access in the building is intended to encourage repeat visits for tours and safeguard the Tallman collection. Small receptions (hours d’oeuvres and white beverages only) could be hosted in the rear dining room and tea room. Additional fees could be charged for tours of the Lincoln- Tallman House and for events on the grounds. Similar outdoor and indoor combination facilities such as Beloit’s Rotary River Center oversaw 150 rentals in the 2009 calendar year with similar rental fees and security deposits. Donor solicitations will be a necessary component of the success of this effort. Necessary improvements to the Lincoln-Tallman House and Grounds would include: lighting the interior and exterior of the Lincoln-Tallman House o repairing or replacing the handicap access lift to the House, o renovating the bathrooms for handicap access, o restoring the rear porch for outdoor seating, (This cost is included in the Lincoln-Tallman House o improvements.) adding stanchion barriers to the second floor and the basement, o restoring the Carriage Barn for meetings and facilitating catering of larger outdoor o receptions/events, and improve Lincoln-Tallman House signage o Meeting, reception, and ceremony capacity of the Lincoln-Tallman House would be held at 60 for standing events and 40 for sitting events. A rental fee would be established to cover costs such as moving furniture, staff time at events, heating/electrical costs, marketing and other ancillary costs. Because RCHS staff is small and relies heavily on volunteers, rentals would be limited to weekends. Rentals would not take place at the same time as established Lincoln-Tallman tours/public events. Outdoor events could host up to several hundred depending on the event. Additional fees for valet parking with drop off/pick up at the front door or rentals of equipment such as chairs, tables, coffee makers and microphones could be gradually incorporated in to the services offered. The outdoor event could utilize a renovated Carriage Barn space especially if a prep kitchen was created on the first floor. This would allow for the potential for large catered events on the grounds. It is estimated that the Carriage Barn would be renovated in 2012 so the summer rental would be possible. The renovated space would also allow for smaller venues 30 to 60 in size to occur in the Carriage Barn during the fall, winter and spring. The Ad-Hoc Business Planning Committee estimates the following fees: Business Meeting $500 for a half day and $1000 for a full day, groups of 30 to 40 includes use of rear dining room, rear parlor and main hallway. Ceremony/Reception $1,000 for a three hour time period, $200 for each additional hour, groups of 40 to 60. Includes use of rear dining room, rear parlor and main hallway. 9 Ceremony Only $500 for a three hour time period includes use of rear dining room, rear parlor and main hallway. In House Photograph Shoot Only $250 for a 90 minute session, $100 for each additional hour. Outdoor Events on the Grounds $500 for an event on the grounds, using the renovated Carriage Barn 200-250 individuals could be accommodated. $1,000 for events on the grounds which require erection of a tent ? A security deposit will need to be established in the case of cancelation of an event or damage to the House, Carriage Barn or grounds. ? Discounts could be offered for groups that rent multiple times throughout the year to utilize and nurture established business relationships. The Ad Hoc Business Planning Committee estimates the following bookings of rentals. Bus. Ceremony/ Photo Ceremony Outdoor Year Meetings Reception Shoot Only Events Gross Income Expenses Net Income 2010 2 2 2 2 0 $4500-$5000 $760-$820 $3740-$4180 2011 2 3 4 2 0 $6000-$7000 $1100-$1160 $5400-$5840 2012 4 4 6 2 4 $8500-$9500 $1440-$1560 $9060-$9940 2013 6 5 8 4 8 $11500-$13500 $2080-$2260 $14920-$16240 2014 6 6 10 5 10 $14000-$16000 $2390-$2630 $18610-$20370 Projected costs/event Staff at Event $15/hour, 2 staff minimum Moving furniture $15/hour, 2 hours Cleaning If necessary, $15/hour, 2 hours Marketing of rentals Brochure publications $1,750 The type of rentals that are possible at the Lincoln-Tallman House, Carriage Barn or on the grounds include but are not limited to: Indoors Outdoors Weddings no larger than 60 people Music Festival/Concerts Corporate meetings/retreats Larger Weddings Business After Five Wine Tastings Author Readings/Signings Holiday Events: ex: Easter Egg Hunt Traveling Exhibits Car/Antique/Art Fair Photography Settings War Reenactments IX. Philanthropy and Facilities Development In order to accomplish goals related to increased attendance, special events, and capital improvements, it is necessary that an aggressive marketing and development campaign be undertaken. The purpose of these efforts will be to attract both audiences at the Lincoln-Tallman House as well as create 10 $ opportunities for philanthropy. It is proposed that a part-time position to coordinate events and pursue philanthropy opportunities either be created under the auspices of the RCHS or be a contract position. At present there is very limited opportunities to follow-up with visitors at the facilities let alone undertaking a well organized and serious fund raising effort. The cost for such a position is estimated to be in the $25,000 range. Given the ownership relationship of the buildings and grounds by the City, they may wish to participate financially for a to be determined period of time to grow this activity at the Lincoln-Tallman House in the hopes of reducing the City’s long term capital costs associated with maintaining this operation. X. Fiscal Projections Fiscal Projections/Operating Cost - Lincoln-Tallman House and Grounds 2009 2010 2011 2012 2013 2014 Actual Budget Proposed Proposed Proposed Proposed Personnel Services $41,633 $54,965* $69,114 $71,187 $73,323 $75,523 Contractual Services $22,838 $23,523 $29,229 $30,106 $31,009 $31,939 Supplies & Materials $2,882 $2,968 $3,057 $3,149 $3,243 $3,341 Capital Outlay (RCHS) $7,100 Total $67,353 $88,556 $101,400 $104,442 $107,575 $110,803 Capital Outlay (City) $16,436 *A part- time event coordinator/fund raiser is programmed ½ year in at $12,500 and in 2011 $25,000 Revenue generated from the Lincoln-Tallman House and Grounds 2009 2010 2011 2012 2013 2014 Actual Budget Proposed Proposed Proposed Proposed City Funding $52,545 $49,400 $49,400 $49,400 $? $? Admissions $10,031 $12,195 $14,111 $16,363 $17,996 $19,792 Events $1,600 $25,000 $39,000 $52,000 $64,500 $64,500 Rentals $0 $3,740 $5,400 $9,060 $14,920 $18,370 Contributions $5,888 Other Income Total $70,064 $90,335 $107,911 $126,823 $97,416 $104,662 11 XI. Summary of Capital Expenditures 2009 2010 2011 2012 2013 2014 City Projects Renovate bathrooms $30,000 Replace/repair ADA lift $15,000 Carriage Barn $280,000* improvements Tallman House $10,000 $500,000* $517,500* $101,500* improvements City Subtotal $10,000 $825,000 $517,500 $101,500 RCHS Projects Purchase stanchions $100 Renovate Charles N/A Tallman House Install first floor lighting $5,000 Improve site signage $2,000 RCHS Subtotal $7,100 Total - RCHS & City $10,000 $832,100 $517,500 $101,500 *Does not include a 25% design, construction management and contingency ATTACHMENT A: 11 year Lincoln-Tallman House Analysis of Budget ATTACHMENT B: Summary Chart of Lincoln-Tallman Revenue, Expense, City Capital Expenditures ATTACHMENT C: Lincoln-Tallman Admissions 1999-2009 Revenue Chart ATTACHMENT D: 2003 to 2009 Admissions Actual and Projected Future Admissions 2010 to 2014. ATTACHMENT E-E1: First Floor Plan of Tallman House and Site Plan of Grounds ATTACHMENT F-F1: Carriage Barn First and Second Floor Renovations Concepts 12 13 14 15 ATTACHMENT D 2003 to 2009 Admissions Actual to LTH Admissions 2003 2004 2005 2006 2007 2008 2009 Regular - Adult 852 529 638 461 517 Regular - Student 243 173 163 110 176 Regular - Senior 310 227 340 214 262 Regular - Discount 436 353 331 12 29 Group - Adult 431 353 650 10 92 Group - Student 1,342 1,485 1,526 1,572 863 Group - Senior 166 574 212 433 81 Group - Paid Chaperones 96 42 12 151 73 Comp 846 789 334 301 168 Total 4,722 4,525 5,095 4,206 3,264 2,261 Projected Future Admissions – 10 % Increase for Regular – 2010-2014 20% increase for Group—2010-2012 and 10% increase for Group – 2013-2014 Projected Admissions 2010 2011 2012 2013 2014 10%/year Regular - Adult 569 626 688 757 833 Regular - Student 194 213 234 258 283 Regular - Senior 288 317 349 384 422 Regular - Discount 32 35 39 42 47 Group - Adult 121 145 174 191 210 Group - Student 1,139 1,367 1,640 1,804 1,984 Group - Senior 107 128 154 169 186 Group - Paid Chaperones 96 115 138 152 167 Comp 222 266 319 351 386 Total 2,768 3,212 3,735 4,108 4,518 16 17 18 19 20 LINCOLN-TALLMAN HOUSE EXTERIOR CONDITIONS REPORT April 21, 2010 I. EXECUTIVE SUMMARY In October, 2009 the City Manager appointed an Ad Hoc Committee to review the Lincoln-Tallman House conditions report which was prepared by Engberg-Anderson and make recommendations on improvement options, prioritization of improvements and funding alternatives. The Committee was also charged with preparing a business plan for the Lincoln-Tallman House and grounds which is being prepared as a separate report (the two sub-committees are: the Structural Improvement and Facilities Plan sub-committee and the Programming and Business Plan sub- committee). The Committee focused their efforts on evaluating the cost of the repairs, consulting with various contractors to determine the most cost effective options and also investigated funding sources through various local Trusts and Foundations. Table 1 summarizes the list of needed repairs, estimated cost and recommended priority. A more detailed description of improvements recommended in Table 1 is attached as Exhibit A. The Committee recognizes the importance of conducting the exterior repairs in a manner that is sensitive to the historic character of the structure. In doing so, the Committee remained sensitive to cost and attempted to balance cost while preserving the historic appearance of the structure. The Committee also recognized the importance of undertaking the improvements in a timely fashion in order to avoid further deterioration of the building. Finally, the Committee recommends that the City and Rock County Historical Society (RCHS) develop an annual building maintenance program to set aside funds to ensure that the house is adequately and proactively cared for in the future. II. BACKGROUND In October, 2008 the City contracted with Engberg Anderson, an architectural firm specializing in historic buildings and restoration, to prepare an exterior conditions report for the Lincoln-Tallman House. The report has been finalized and provides an evaluation and assessment of building materials and elements, and identifies appropriate sequencing of repairs. The project team involved a collaborative effort led by Engberg Anderson with field expertise support from J.P. Cullen & Sons, Millen Roofing Company and Sutterlin Restorations. The study was limited to the exterior of the Lincoln-Tallman House and basement area; however, some limited investigation of the interior face of the exterior walls was made. A review of the documents from the City’s previous restoration and repair efforts for the property was also conducted. The report captures the physical state of the Lincoln-Tallman House as evaluated in October/November, 2008 and therefore is time sensitive. The Committee reviewed the Engberg Anderson report and independently evaluated improvement and repair options in consultation with industry experts in order to provide a more accurate estimate of cost. The Committee consulted with J.P. Cullen & Sons, Renaissance Restoration, Inc. and Wisconsin Restoration, Inc. on tuck-pointing estimates; Mc Dermaid Roofing and Madison Sheet Metal on roofing alternatives; Strass-McGuire & Associates on the treatment and repair options for efflorescence on the Tallman House basement walls and Carriage Barn repair options; and AYA regarding revised Carriage Barn renovations estimates. However, as with any construction project final cost will not be determined until bids are taken. Several major condition problems are threatening the integrity of the building including: ? a collapsed stone foundation wall in the privy area (rear portion of the house), ? spalling stone foundations along the west elevation, ? a leaning retaining wall, ? eroding mortar joints, ? failing paint, ? rotting ornamental woodwork at the porches and conservatory, ? rotting soffits and brackets, ? chronic leaking of the built-in gutters, and ? a roof at the end of its useful life. Each of these conditions represents significant physical challenges to the building. Of these, the report recommended that immediate attention be directed to the collapsed privy foundation wall, which has been completed. The report then prioritized improvements from the roof of the structure down to the foundation. III. LINCOLN-TALLMAN HOUSE EXTERIOR CONDITIONS REPORT The conditions report evaluated specific exterior components including site, masonry, foundation walls, brick walls, brick chimneys, carpentry and roofing and flashings. Table 1 (on following page) summarizes the list of needed repairs, estimated cost and recommended priority. For this project, a 15% cost has been included to cover design and construction management services and 10% contingency to cover unexpected cost which amounts to 25% of the total project cost. The Committee believes that the construction management costs may be reduced if city staff handles that portion of the construction project. In addition, the contingency cost would also likely be reduced following receipt of bids when costs are known. A detailed description of improvements recommended in Table 1 is attached as Exhibit A. TABLE 1 PRIORITY RESTORATION PROJECTS AND COST ESTIMATES Phase I: Immediate Priority Work (2009) COMPLETED Revised Cost Architect Estimates Cost Estimate Privy Foundation Wall Stabilization and Repairs $8,500 $32,500 Temporary Roof Repair $1,500 $50,000 Phase I Total $10,000 $82,500 Phase II High Priority Work (2010-11): Roof, Chimneys, Cupola and Gutter Replacement Complete replacement of existing roof with a standing seam roof $160,000 $350,000 Repair and restoration of cupola woodwork including finial $34,000 $34,000 Repair and pointing of chimneys includes mortar testing $35,000 $136,000 Complete removal and reworking of existing gutter system $26,000 $26,000 Regrade and install combination of downspout extensions and piping system $33,000 $33,000 Carpentry Work- Soffits, and Friezes $210,000 $210,000 Masonry Wall Stabilization and Repair $0 $46,000 Salvage Threatened Ornament $2,000 $3,000 Subtotal $500,000 $838,000 Phase II A. Carriage Barn Improvements Structural Improvements – Foundation, roof, exterior walls, rough plumbing, exterior woodwork. $145,000 Phase II B. Carriage Barn Improvements Interior Improvements – Finishes, prep kitchen, ADA bathroom $135,000 Carriage Barn Subtotal $280,000 $297,000 Phase II Total $780,000 $1,135,000 Phase III: Near Term Priority Work (2011-2012) Repair stone steps at Conservatory stair $3,500 $3,500 Storm Window (Sash) Refurbishment $55,000 $55,000 Portico restoration $130,000 $130,000 Conservatory restoration $51,000 $51,000 Masonry Foundation Restoration $80,000 $189,000 Masonry Superstructure Repointing $198,000 $519,000 Phase III Total $517,500 $947,500 Phase IV: Long Term Priority Work (2012-2013) Fence repair and landscaping $10,000 $20,000 Stabilize stone retaining wall $30,000 $65,000 Carpentry Work - Carriage Porch $45,000 $45,000 Cast Iron Crown and Sill Restoration $16,500 $16,500 Masonry Foundation Restoration – Interior Face $0 $413,000 Phase IV Total $101,500 $559,500 Restoration Projects Phases I-IV Tallman House Total $1,129,000 $2,427,500 Carriage Barn Total $280,000 $297,000 Project Total $1,409,000 $2,724,500 Design, Construction Management and Contingency (25% - Phases II-IV only) $350,000 $660,500 Grand Total $1,759,000$3,385,000 Table 1 shows that there is a significant difference between the Committee’s cost estimates and those provided by Engberg Anderson in certain categories of repair. The primary areas where those differences occurred are as follows: Phase I The City was able to repair the privy wall and do some temporary roof repair for significantly less than estimated. The roof repair estimated by the architect was far more extensive, however, since the proposed roof replacement schedule has been accelerated a minor repair was preformed. Phase II The most significant cost difference in Phase II was changing the roof specification from a red painted copper roof to a red prefinished metal roof. Although the life expectancy of copper is longer than a pre-finished metal (75 verses 35 years) because of its lower cost and similar architectural appearance the Committee supported the metal roof option. Following discussion with tuck-pointing contractors, cost estimates for tuck- pointing the chimneys was significantly reduced. The masonry wall stabilization and repair cost was deleted since the scheduling of tuck-pointing on the exterior of the Home was accelerated and if completed as planned these emergency repairs would no longer be needed. Phase III Significant reductions in Phase III also occurred with regard to tuck-pointing cost estimates for the exterior walls of the Home and the foundation following discussions with tuck-pointing contractors. Phase IV The significant cost savings in Phase IV represents the elimination of the cost associated with repair of the basement wall mortar joints and removal of the efflorescence on the walls. A structural engineer, who looked at the efflorescence on the walls and the condition of the mortar joints, concluded that this work would not be necessary at this time since the foundation is structurally sound. He indicated that solving the water management/drainage issues around exterior perimeter of the Home would reduce if not eliminate the efflorescence problem. IV. CARRIAGE BARN CONDITIONS REPORT Although not a part of the conditions report for the Lincoln-Tallman House a separate report was prepared in 2005 for the Tallman House Carriage Barn. This is a separate building on the Tallman property which once housed the stables and carriage storage area. The Carriage Barn was remodeled in the 1950’s and used as a gift shop and offices for the Rock County Historical Society. When the Rock County Historical Society moved into the old Armory on High Street the Carriage Barn was used for collection storage. Because of the deteriorating and structural condition of the building in recent years, collection storage was removed. Although the building has been stabilized, it is currently vacant. The report evaluated the condition of the building and its potential conversion to either a programming space for the Rock County Historical Society or a complete internal and external restoration of the building for use as an historic exhibit of a mid-19th century carriage barn and stable. The Committee considered the Lincoln-Tallman House and the Carriage Barn together when considering how best to improve programming and new revenue sources. The Committee believes that the most appropriate effort would be to convert the building into meeting space with a kitchen area which could be used by caterers for events in the house or on the grounds and ADA accessible bathrooms. This converted space could provide a long-term potential to more fully utilize the house and grounds for events and other revenue generating activities. In addition, the creation of a prep kitchen for use by caterers could facilitate programming of receptions on the grounds of 200 to 250 in size and smaller receptions in the Lincoln-Tallman House or in the Carriage Barn which are not currently practical. Joe Stadelman with AYA recently provided a revised renovation estimate based on renovating the Carriage Barn into meeting space on the first and second floors, bathrooms and a prep kitchen. The Committee recommended that the improvements for the Carriage Barn be programmed concurrently with the Lincoln-Tallman House improvements. The first phase listed as Phase II A structural improvements, in Table 1 includes foundation, roof, exterior walls, exterior woodwork and windows and is estimated to cost $145,000 not including design, construction management and contingency. This work would be performed with Lincoln- Tallman House Phase II improvements. The second phase listed as Phase II B, interior improvements includes the interior work and finishes, prep kitchen, ADA bathrooms and is estimated to cost $135,000 not including design, construction management and contingency. This work is also scheduled with Tallman House Phase II improvements. V. OPTIONS FOR FUNDING This memorandum also outlines alternative funding options for immediate and long-term improvements for the Lincoln-Tallman House and Carriage Barn. In 2006, the City Council included with the General Fund Note Issues, $100,000 for tuck- pointing of the Lincoln-Tallman House. A project scope was developed for tuck-pointing and bids were obtained, however, the bids came in much higher than the $100,000 amount that the City had borrowed and therefore all bids were rejected. Since 2006, some of the $100,000 has been used for repairs to the bathrooms, funding the structural condition report, minor repairs to the Lincoln-Tallman House roof and repair of the privy wall as identified by this study and shown as a Phase I improvement in Table 1. In 2009 the balance of the 2006 note was reduced by approximately $10,000 to pay for Phase I improvements. The remaining balance is approximately $60,000. These funds could be applied toward the priority repairs listed above. In 2009 the City Council included $250,000 in the General Fund Note in order to start the funding of this multi-year repair project. In the 2010 Budget, the City Administration tentatively programmed the potential for an additional $500,000 in 2010 General Fund borrowing to provide for some additional repairs. The Council however, has not committed to any specific amount of additional funding at this time. Therefore, the current balance of funds borrowed through the General Fund, minus the $10,000 Phase I 2009 improvements is $310,000. Community Development Block Grant funds may be an eligible source of funding to cover some costs associated with improving ADA accessibility to the Home and upgrading the bathrooms in the Home to ADA standards. In addition to public financing, there are historic preservation grants which could be pursued to fund a portion of the needed improvements. City staff has contacted several Trusts and Foundations which have funded projects in the Janesville area. Although none of the Trusts or Foundations have made any commitments for funding the Lincoln-Tallman House or Carriage Barn repairs, several indicated that they would consider such a grant request. Some general requirements for Trusts and Foundations grant requests often include one or more of the following items: ? a local match, ? a multi-year request, ? targeting a specific improvement, ? a solid business plan for the operation of the House and grounds to make the home and grounds useable and available to the public ? providing a long term maintenance plan to avert future condition problems, and ? repairing the home in a manner sensitive to the building’s historic architecture and consistent with the National Register Historic Preservation Guidelines. The grant cycle for many of the Foundations and Trusts are mid-year or at the end of the year for funding distribution the following year. It is critical to file grant applications this year in order to start this funding program for next year. Many of the Foundations and Trusts have indicated that they would consider a multi-year commitment for a project of this scale and complexity. Because many of the improvements will be programmed over several years this multi-year funding strategy is workable. If significant private funds are secured less city funds will be needed in the out years of the improvement schedule. If private funds are not received additional general fund borrowing will be needed. In any case the city’s commitment will not likely be less than 50% of the project cost since Foundations and Trusts typically require a local match for their support. Due to the scale of this project, financial assistance from outside the city is critical. VI. COMMITTEE RECOMMENDATIONS The Committee recommends that the City Council proceed with the exterior improvements to the Lincoln-Tallman House in the order of priority provided in Table 1. Because of the scale of the exterior improvements, this will be a multi-year project. A multi-year funding strategy may also provide Trusts and Foundations a better opportunity to contribute funds for various building improvements over a number of years. The Committee believes that even with a very successful fund raising campaign the City will likely have to cover a minimum of 50% of the improvement costs. The City has available $310,000 in previous note issues for Lincoln-Tallman House improvements. The Committee recommends that the City borrow a minimum of $500,000 in 2010 and $60,000 in 2011 in order to start this improvement program. At the same time, staff should be directed to begin applying for grants in order to cover the remaining costs. Based on the success of grant awards and the actual construction cost, additional public borrowing may need to occur in 2012 and 2013. The Committee believes that an early substantial public commitment to the project may facilitate interest and support from Trusts and Foundations. The following table illustrates the improvement schedule with funding needs. Total 2009 2010 2011 2012 2013 Phase & Phase I Phase II Phase III Phase IV Improvement Cost $10,000(1) $780,000 $517,500 $101,500 $1,409,000 (3) $1,759,000 (2) City funds $880,000 $320,000 $500,000 $60,000 ? ? Grants/Donations $300,000 $300,000 $279,000 $879,000 $1,759,000 (1) Improvements covered in 2006 note funds. (2) Includes $70,000 from 2006 note and $250,000 from a 2009 note. (3) Includes 25% design, construction management and contingency for Phases II-IV. The Committee believes that the Carriage Barn is an integral part of the Lincoln-Tallman campus and recommends that the Carriage Barn improvements be scheduled concurrently with the improvements to the home. The Committee recommends that it be included as part of Lincoln-Tallman House Phase II improvements since renovating the Carriage Barn could facilitate programming of activities in the House and on the grounds and thus generate revenue to off-set operating costs for the museum. The Committee recommends that a vigorous fund raising effort be conducted in order to secure private funds to supplement city contributions. The Committee recognizes that ongoing maintenance of the House and grounds is necessary and that an annual building and grounds maintenance plan be prepared and funded in order to avoid future major building repairs. The Committee recommends that a communication structure between RCHS and the City be established to facilitate these efforts.