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Mill Mountain
Mill
Mountain Conservancy |
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"Don't
be afraid to hold on to your best land for the public realm." |
Business Model Concerns of VF Restaurant Proposal |
Non-Profit
status
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The Valley Forward restauraunt project would be owned by a non-profit foundation ("Mill Mountain Community Foundation"), so it would not pay real estate taxes, though the city may negotiate a fee for land use as is often done with non-profit organizations which operate money-making activities (such as a childcare center operated by a church). However, VF's financial overview includes no such payment to the city. The risk factors of operating a business under the umbrella of a non-profit foundation are different from those of a conventional privately-held business backed by investment. The foundation model allows the directors to avoid financial risk, since it is the foundation's funds and responsibility, not individuals' funds or careers the enterprise rests upon. This absence or reduction of personal accountability makes the non-profit enterprise less predictable than a business resting on investor funds. |
Sustainability
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Valley Forward's projection of the income of the Mill Mountain project ("Rockledge") includes, in the first year, $110,000 to the Mill Mountain Community Foundation (MMCF) from the lease of the dining restaurant, $40,000 from the lease of the cafe, $25,000 CAM (cleaning/maint.) fees from operators, and $60,000 income from rentals of the so-called Fishburn Community Room. After expenses (insurance, mgt. fee, maintenance and debt payment), $42,400 cash is expected to remain. The obvious weak point is the assumption that $60,000 income can be realized in a year from rentals of the "community room," an average of a little over $1,150 per week.The community room rental is the only non-fixed income item and must reach $17,607 (first year) for the project to break even. The only surplus or "profit" is whatever amount can be realized on room rental beyond the $17,607 threshhold. |
| Empty promise | Valley Forward's promise of funding to the zoo should be seen in the light of the above figures, showing the unlikelihood of any surplus funds remaining after expenses. As usual, promises of crumbs from the table are easily made. But, note also that VF states that "profits" will go to the zoo "and other mountaintop amenities." |
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