HomeMy WebLinkAboutStory Mansion - The Plan.pdf 1
1
1
The Stor .
FRIENDS of THE
STORY MANSION
}
The Plan: The Future of the Story Mansion
Presented to the Bozeman City Commission by the Friends of the Story Mansion
February 7, 2011
The Stori.
FRIENDS of THE
STORY MANSION
The Plan: The Future of the Story Mansion
Presented to the Bozeman City Commission by the Friends of the Story Mansion
February 7, 2011
The Friends of the Story Mansion (FOS) hereby present to the Bozeman City
Commission the following Plan regarding the continued operation of the Story Mansion
as a popular and valued Community Center and asset of the City of Bozeman. FOS
appreciates the opportunity to present this information and your thoughtful review of our
plan as part of a continued productive relationship between the City and community.
Mayor: Jeff Krauss
Commissioners:
Cyndy Andrus
Sean Becker
Chris Mehl
Carson Taylor
City Manager: Chris Kukulski
I
Table of Contents
Recommendations Preview................................ 3
Introduction................................................. 4
Accomplishments.......................................... 5
Directives of Strategic Business Plan................... 6
Recommendations...........................................7-8
Capital Recovery................. .......................... 9
Fundraising.................................................. 9
Conclusion................................................ .. 10
Board Friends of the Story Mansion................... 10
Advisory Board FOS...................................... 10
Acknowledgments........................................................1 1
2
Recommendations Preview
(These are explained in detail on pages 7-8.)
1. Extend the January 2011 deadline for recovery of$392,000 to
2018.
2. Renew December 14, 2009 "Memorandum of Agreement on the
Story Mansion" between Friends of the Story Mansion and the
City of Bozeman for an additional year at least.
3. Work with FOS to successfully complete the renovation of the
second and third floors.
4. Commit to securing a long-term lease agreement for the second
and third floors with an "anchor tenant" such as the MSU
Humanities Institute.
5. Retain introductory rental rates through 2011.
I i
1
t
....,z..,mrrr nmrrc r.. rrcrrn.. .n r rremrmmrr.. ..... nmmmrnmrer_erarnercnrrrrrm_._... ...;
3
Introduction: Friends of'the Story Mansion
The tipping point in the recent history of the Story Mansion occurred in December 2008
when the Bozeman City Commission activated a$493,840 Save America's Treasures
(SAT)grant from the National Park Service to renovate the first floor and basement of
the mansion for public use. The large SAT grant was equally matched by the City for a
total of$987,680 toward interior renovations. A requirement of the grant was that
renovations be completed by July 2009 necessitating an immediate start. Construction
plans were in place but missing was$391,222 in a cost overage. The overage was
approved in a motion called the Becker Amendment,with provision that these funds be
returned to the City from private donations by January 2011.
Enter the Friends of the Story Mansion Inc.,which having just received its official non-
profit status in August 2008 and subsequently in February 2009 its IRS approval for
fundraising,supported the terms of the Becker Amendment. As a loosely organized
cadre of concerned citizens,FOS seized this opportunity as the best strategy to
successfully preserve and protect the Mansion in the long term.
The Friends of the Story Mansion Inc.,now two years old,has accomplished a great
deal in a short time. The Board of Directors has grown from three to six and now boasts
an Advisory Board of seven. Official members number 183 with volunteers for events
and tours totaling over 60. This diverse group dedicates time and talent to market the use of
the mansion and park to their fellow citizens,making it the most successful of the city's
park facilities. The FOS has raised over$68,285 and after expenses, currently have a
cash balance of$23,000 to continue fostering use and renovation of the Story Mansion,
owned and operated by the City of Bozeman. The FOS has secured informal verbal
commitments of contributions in the amount of$26,500 toward its 2011 budget and
donor interest in excess of$100,000 toward renovation of the mansion's second and third
floors, depending on disposition of the property.
Friends of the Story Mansion have organized and secured the efforts of numerous
volunteers and supporters from all parts of the local,regional and national community
over the last two years, resulting in the construction of a solid foundation on which to
build a vibrant,viable community resource for years to come. Although total dollars
raised by FOS does not meet the $392,000 from the city, the FOS has contributed
thousands of priceless volunteer hours. We can state with complete confidence that
continued pragmatic operation allied with the broad support seen in the public use will
insure that the city coffers will be amply reimbursed.
4
Accomplishments by Friends of the Story Mansion:
• NON-PROFIT STA TUS A TTAINED: The group called Friends of the Story
Mansion immediately took steps in 2008 to incorporate as a 501 C (3)non-profit
organization, in order to legitimately receive contributions and manage funds. A
copy of our non-profit status is attached.
• STRA TEGIC B USINESS PLAN DEVELOPED:FOS enlisted the help of
Bozeman's Senior Core of Retired Executives(SCORE)to develop a comprehensive
Strategic Business Plan for the Story completed in August 2009. A copy of this Plan
is attached. The Strategic Business Plan provides important guidance and direction
for FOS activities and remains a cornerstone of our operations.
• `BOZEMAN'SHERITAGE TRAIL"NAME REGISTERED: Bozeman and the
Story Mansion are part of a larger movement to promote historic sites and
organizations dedicated to use and display of historic properties and relics. The name
`Bozeman's Heritage Trail"was registered in 2009 with the State of Montana by
Friends of the Story, Inc. with the intent of a creating a historic city route and a
coalition of organizations that promote Bozeman's aura. Nationwide,the Cultural
Tourism Program is recognized as a dynamic engine of economic growth. Senator
Max Baucus and the Bozeman Chamber of Commerce have both expressed support
for promoting cultural tourism as a component of an overall economic development
strategy for the community.
. I
J
5
FOS operations & directives in accord with the Strategic Business Plan:
✓ Establishment of"Memorandum of Agreement"with the City of Bozeman
defining duties,roles, and responsibilities
✓ Successful membership drives
✓ Creation of presentations and marketing brochures for public outreach.
✓ Fundraising events such as Story Under the Stars and A Victorian Holiday Tea
✓ Establishment of a committed Board of Directors
✓ Dialogue with MSU leaders for the long-term rental by its Humanities
Institute or similar MSU related educational entity in the Story Mansion.
✓ Enlistment of Senator Max Baucus and his office for continued support (copy of
letter attached)
✓ Partnership with the City to actively market and promote events
✓ Appointment of a diverse Advisory Board to broaden volunteer base and
participate in the decision-making process of the Board of Directors
✓ Development of a job description for a Development Coordinator to lead
fundraising activities over the next three to five years
✓ Solicitation for and collection of historic furnishings the first floor and purchase
benches and other improvements for the grounds
✓ Docent tours,wide variety of community awareness events--including
Halloween trick-or-treat festivities and the Story Mansion Centennial Celebration
✓ Website www.friendsofthestory.org and Facebook page
(http://tinyurl.com/4ha8hj5)
✓ Monthly informational meetings in communication with City staff.
_ TIIL T,R.';TORY MANSION
A
3• Mansion Second Floor
I
1
` 6
)
Recommendations
1. Extend the January 2011 deadline for recovery of$392,000 to 2018:
The Friends of the Story Mansion stand committed to the city's full recovery of
$392,000 capital outlay for completion of the basement and first floor renovations,but
we ask for more time to accomplish this. While FOS(as it existed in 2008)worked to
achieve this on behalf of the City within the last two years,the task proved unattainable
for many important reasons. These include the most serious economic recession in the
country since 1929,the formidable obstacles facing any newly created unincorporated
volunteer organization,and the absence of a long-term plan expressed by the city for the
property that would encourage major donors.
Based on advice solicited from a variety of successful fundraising professionals, the FOS
have instead worked tirelessly to organize and develop multifaceted activities during the
past two years to create a broad and solid foundation for completion of the long-term
goals. Fundamental to our request that the City extend their deadline to recover capital
outlay are these realities:
A. The real opportunity to recover the City's capital outlays for the purchase and
renovation of the Story Mansion lies in entering into long-term lease agreements with
entities such as the MSU Humanities Institute for occupancy of the second and third
floors.
B. Given current real estate market conditions, 2011 would be a terrible time to
attempt to sell the Story Mansion. The real estate market remains depressed and sale
of the property would be far below the current level of public investment. Senator
Max Baucus and others all advise against selling the property for these and other
crucial impediments.
2. Renew December 14,2009"Memorandum of Agreement on the Story
Mansion"between Friends of the Story Mansion and the City of Bozeman.
On December 14, 2009,the City of Bozeman and FOS entered into a Memorandum of
Agreement on the Story Mansion, the purpose of which was to establish the
"...understanding and agreement of the parties for the activities surrounding preservation,
restoration,and development of the Story Mansion and Carriage House(hereinafter
referred to as `the Story')as an educational,cultural and social center in the City of
Bozeman,Montana." (Section 1., MOA) The MOA has proven useful as a framework
within which FOS and the City have collaborated for the past year. Section 12 of the
MOA describes the term of the Agreement as being"...one year renewable with the
agreement of both parties."
7
Capital Recovery & Fundraising
Basic strategies for the City's recovery of$392,000, as well as for longer term, larger
fundraising efforts are found in the Friends of the Story Mansion Strategic Business
Plan (pp 34-35). Several of these strategies are already being implemented by FOS,
including operating within an established budget and maintaining a balance sheet and
other financial statements. A copy of FOS current financial statement is attached.
Rental Income: Rental income paid by users covers the City's direct operating expenses.
Direct operating expenses are defined as Supplies and Materials; Repair and
Maintenance; Utilities; Contracted Services;Advertising; Taxes and Assessments; and
Other. A copy of the most recent Operating Profit(Loss)statement produced by the
City is attached for your reference. It should be noted that operation in the black for its
first 17 months of rentals occurred when rental rates were at introductory levels. As
noted above,FOS recommends keeping rates at the introductory levels at least through
2011.
Shortfalls& Overages: FOS recognizes that it is important for the Story to "break even"
in terms of direct operating expenses and rental income,and that there is a possibility that
income revenues in a given year could fall short of matching direct operating expenses.
Accordingly,FOS will commit to covering any shortfall in annual direct operating
expenses, as long as the 2010 introductory rates are in effect. Overage: In the event
rental revenues continue to marginally exceed direct operating expenses,FOS would
recommend that the"overage" count toward recovery of the City's $392,000 capital
investment in completing the basement and first floor of the Mansion.
Grant Awards: FOS will apply with the City and other interested entities such as MSU
for all relevant regional and national funding sources to finish the second and third floors.
Donor Contributions: FOS consulted with development specialists who counseled that
the uncertain future of Mansion ownership would prevent any serious fundraising. After
the Mansion is secured, the main focus of a capital campaign is to solicit donations from
private individuals and corporations to help recover the City's$392,000 and to complete
the second and third floors (estimated cost: $1.5 million). It is anticipated that a
successful capital campaign will occur under the direction of a paid development
director. The Strategic Business Plan states that effective fundraising will enable the
City to complete Phase II of Mansion improvements,complete site improvements (such
as parking lot facilities and underground sprinklers), and then renovate the Carriage
House
9
Conclusion
This plan represents the countless hours of hard work and years of passionate
commitment to the Story Mansion held as a public asset by volunteer citizens of
Bozeman and Gallatin County, in close cooperation with dedicated City staff members.
The results of this broad-based, collaborative effort have been impressive.
Approximately 9,000 people have attended over 200 events at the Story, including
weddings, family reunions, concerts, lectures, office parties, meetings, concerts and the
extremely successful Story Under the Stars summer film series. Rental revenues cover
most of the direct expenses associated with the maintenance and operation of the
property. The Friends of the Story Mansion and all the citizens who support this effort
sincerely hope that the City Commission will consider this Plan and vote to continue
ownership and management of this rare historic gem. The Story Mansion and grounds
have become an integral part of the community and a vibrant reminder of Bozeman's
historic legacy.
The Board of Directors of the Friends of the Story Mansion welcomes your questions
and clarifications on any subject in this Plan or other related issue.
President: Andy Epple
Vice President: Jane Klockman
Treasurer: Jack Davant
Membership: Jean Neil
Community Outreach&Education: Jerry Coffey &Elizabeth Darrow
The Advisory Board of the Friends of the Story Mansion
Al Wagner
Kaaren Jacobson
Mara-Gai Katz
Dede Taylor
Connie Ostrovsky
Jim Webster
Ron Gompertz
10
Acknowledgments
Friends of the Story Mansion wish to thank the many citizens who have
given precious time in volunteer work and all those who support this civic
effort for the future of the Story Mansion as a community asset.
Design & Production: Elizabeth Darrow, Ellen Ziegler & Allyson Darroch
Credits: Kim Everts at Comma-Q Architecture, Inc.; Joy Baker, Michelle
Gantt, Meta Newhouse, & Paul Heaston.
11
.�
1
1
t
1
1
1
I
a
1
9
A
1
J