Fort Worden Public Development Authority: Our Next Five Years July - - PowerPoint PPT Presentation

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Fort Worden Public Development Authority: Our Next Five Years

July 2019

Why are we here?

• The PDA has arrived at a crucial stage in its development
• Five years of success: how can we sustain it over the next 5 years?
• Complex issues, in a complicated setting, requiring creative solutions
• Relationships & community involvement are key to a shared future

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A unique organization… The PDA is not a:

• Is a special purpose public entity

with a lifelong learning mission

• Manages 95 acres & 100+ year-old

buildings leased from Washington State Parks

• Must follow same rules as a city

(open public meetings, no gift of public funds, etc.)

• Must be financially self-sustaining

The PDA:

• Department of the city or county
• Part of State Parks
• For-profit business
• Non-profit organization

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A unique organization… The PDA has a triple bottom-line:

• 60,000 square feet of meeting

spaces, 396 beds and 4 food

• utlets
• A legacy of $100 million in deferred

capital needs

• Diverse interests, tenant partners,

groups and public needs The PDA manages:

• 1. Operate the Fort’s hospitality and

food & beverage services

• 2. Preserve and renovate historic 73

buildings

• 3. Fulfill lifelong learning mission—

and be community serving

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A unique organization… Revenue in 2018: $6.36 million PDA has no:

• Endowment
• Taxing authority
• Government subsidy

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A unique organization… 2018 operating expense: Manages an historic, national treasure and operates a large hospitality business

• 1.5 million visitors a year
• 15 tenant partners —

nonprofits and creative enterprises

• 87 full-time staff with benefits
• 73 historic buildings

Maintains annual capital budget (depending on funding)

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A busy first five years… Hospitality Services:

• Installed Wi-Fi and internet
• Built in-house food & beverage business
• Acquired housekeeping services
• Developed new marketing channels
• Increased occupancy
• Expanded visitor shoulder season

Historic Preservation/Development:

• Collaborated/completed Building 202
• Renovated lodging units
• $5+ million leasehold improvements
• Designed Makers Square & Glamping
• Assumed all maintenance responsibilities
• Prepares annual maintenance and capital

improvement plans with WSP

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A busy first five years…(con’t) Lifelong Learning/Partner Support:

• Eliminated Discover Pass requirement in

Campus (sales of over $250K annually)

• Developed partner earnback on lease

rates (nominal increase in 5 years)

• Improved partner/group services
• Collaborative marketing
• Established FW Foundation

Economic and Community Development:

• Increased City LTAC & Sales taxes
• Furthers City’s tourism & economic

goals

• More local control at Fort
• Growth as major employer in county
• Hosted community events
• Initiated sustainability programs

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The next five years: some serious challenges … Hospitality Services:

• Hospitality income will plateau

(peak season capacities reached)

• Limited capacity for growth in residential

programming and group visitation

• Lack of “hotel” style units
• Workforce housing needs

Historic Preservation/Development:

• Crumbling infrastructure & buildings in

disrepair;

• Historic property constraints
• The high cost of building renovation and

maintenance

• Emergency repairs
• Access to capital for building maintenance

and improvements

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The next five years: some serious challenges… Lifelong Learning/Partner Support:

• Increasing costs to Partners and groups

for non-residential programming

• Ability to recruit new Makers Square

tenants or partners

• Partner and group income vulnerable in

an economic downturn Economic and Community Development:

• Need to develop new partnerships,

events and activities

• Reliance on state funding for capital

needs

• Need for strengthened relationships

and collaboration with state, city and community

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Priority capital expenditures, next five years WSP Responsibilities:

• $3M

Fix failing water lines

• $1.5M

Fix failing sewer lines

• $3.4M

O-Row lead & paint

• $2.75M Fix failing roofs
• $1.68M Campus fire alarm system
• $1M

Electrical undergrounding

• $500K Road & sidewalk repairs
• $????

Replace PTMSC pier $14M+ TOTAL PDA Responsibilities:

• $14M

Makers Square

• $1.6M

Glamping

• $1M

Boilers and HVAC repairs

• $450K Employee housing
• $2M

NCO housing improvements

• $250K Major kitchen equipment repairs
• $200K Bathrooms in Bldgs 16 & 225
• $200K Electrical upgrades in mtg rooms
• $2M

Replacement of Lock System

• $21M+ TOTAL

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What if the PDA fails?

• State Parks unlikely/unable to resume management
• Meanwhile, buildings and grounds deteriorate
• “Lifelong Learning” mission may be abandoned
• For-profit concessionaire best solution—would significantly raise prices
• Restricted community access if operated by concessionaire
• Potential loss of local public control over a major community asset
• Loss of economic driver for the city and county

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Our long-term success depends on our ability to…

Hospitality Services:

• Weather external influences and economy fluctuations
• Provide seasonal workforce housing
• Develop system efficiencies in operations

Historic Preservation/Development:

• Sustain funding for building renovations and adaptive reuse
• Maintain strong partnership with State Parks for building and infrastructure repair
• Build cash reserve for emergencies

Lifelong Learning/Partner Support:

• Support programmatic growth and innovation
• Expand residential programming in shoulder seasons
• Recruit new partners that are mission aligned
• Develop FW foundation fundraising

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Meeting priority PDA capital needs through 2023 will require…

• 5-7% annual growth in operating budget

from $6.36M in 2018

• 3% annual growth in occupancy rate

2016: 42.1% 2017: 47.6% (not including dorms) 2018: 56.2%

• Significant increase in contributed income

$10M in capital fundraising $5M in operations fundraising Access to capital financing

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Our Vision for 2023

• Thriving partners able to evolve and grow their programming
• A vibrant and thriving Makers Square
• Dynamic new partners and off-site partnerships for diverse, creative programs
• Improved marketing attracting more meetings, events and other group

visitation

• Continued improvements in expanded facilities and services
• Growth in philanthropic and other funding sources for priority capital

improvements

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Why success is important: the Fort’s promise

• Brand position statement, developed with valuable input from staff, partners,

community and PDA board: Surrounded by sea and mountains in historic Port Townsend, Fort Worden is a national treasure that enriches lives by engaging people in the arts, ideas, wellness, nature, community and play.

• The position statement highlights:
• Our “lifelong learning” charter
• Our unique character of this special place
• Our intimate, symbiotic connections between the community and Fort
• Our support for diverse and engaged partners

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Solutions for moving forward & a call to action….

• Develop and execute vital operational plan for Makers Square
• Collaborate with partners in developing new, market-driven residential programming
• Recruit new partners who generate significant visitation, especially overnight visits
• Grant longer term partner leases with discounts for partners who generate overnight

stays and who invest in facility capital improvements

• Continue emphasis on group sales and lifelong learning focus
• Develop and conduct a regional pubic awareness and marketing campaign
• Develop and execute Fort Worden Foundation fundraising plans to increase

contributed revenues

• Leverage outside capital investment

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Thank you! Your thoughts? Questions?