Loading...
HomeMy WebLinkAbout085Pleasant Harbor Exhibit F Di rect J oh Verifi cation PTEASANT HARBOR MARINA AND GOLF RESORT PROJECT Sponsored by Sound RC, LLC EXHIBIT F DI RECT JOB VERIFICATION ACTUAT BUSINESS PLAN Exhibits LL7 HO ITY AD OUP Jnly 17,2014 Mr. Jeffrey D. Holland Puget Sound Regional Center LLC c/o: ieff.holland@statesmanusa.com Ms. Marianna Tarantur Wright Johnson LLC c/o : Marianna@wri shtjohnsonllc. com Dear Ms. Tarantur and Mr. Holland: Hospitality Advisors Group has undertaken a review of the Business Plan and associated development and operational plans and documents for the purpose of determining job creation and associated staffing levels associated with the Pleasant Harbor Marina and Golf Resort in Jefferson County, Washington. The purpose of this study was to determine the validity of development assumptions and projections as they relate to direct job creation in the form of year-round full time positions. We have reviewed the Business Plan and other financial and operational data for the purpose of delineating and verifying direct job creation. We have reviewed the projects plans and operating data and analyzed thern in relation to industry standards and benchmarks, including performance measures and standards. It is our opinion that this project will create not fewer than 65 direct year round full time jobs as set forth in the accompanying report. It is our conclusion that these jobs are verifiable based on the scope of the project and applicable industry standards. Please do not hesitate to contact us if we may provide additional information. Sincerely, Zachary Z. Zotil Chairman and Chief Executive Officer L k4*at ANALYSIS OF EMPLOYMENT FOR PLEASANT HARBOR MARINA AND GOLF RESORT _ PHASE I Hospitality Advisors Group has been engaged by Puget Sound Regional Center, LLC to undertake an analysis of employment associated with the Pleasant Harbor Marina and Golf Resort to determine the level ofjob creation directly related to the operation of the property. This report is intended to summarize and delineate our findings with respect to employment generated by Phase I ofthe project. PROJECT OVERVIEW The Pleasant Harbor Marina and Golf Resort is a master planned resort community being developed on256 acres along U. S. Highway 101 in Jefferson County, Washington near the City of Brinnon. The property borders the Hood Canal on Puget Sound, a natural harbor. The resort is being developed on a phased basis with the initial operating phase to consist of restaurant, retail, marina, accommodations, and recreational amenities and programming including administrative and operational support services. In evaluating job creation and employment resulting from this project, Hospitality Advisors Group has reviewed and analyzed the following documents: o Pleasant Harbor Marina and Golf Resort Business Plan o Project site plans and elevations o Resort operating budget and pro forma o Project Phasing Plan o Phase I personnel schedule In addition to our review of the aforementioned materials, we have utilized hospitality industry data to ascertain the validity of employment projections. We have utilized industry benchmarks in conjunction with the operational experience of the Hospitality Advisors Group management team to assess employment levels by function within each amenity component of the project. RESORT AMENITIES. FACILITIES AND PROGRAMMING Phase I of the Pleasant Harbor Marina and Golf Resort will consist of the following resort amenities, facilities, and programming elernents : Food and Beverase: There will be three food and beverage venues in Phase I consisting of the following: Gallev Bistro: A two story 30,000 square foot restaurant and lounge will be located on the riverfront and will - in Phase I - seat 80 guests. This venue will serve breakfast, lunch and dinner. 2 STUDY METHODOLOGY Sports Bar: Located in the Maritime Village building between the Grocery Store and Family Fun Center will be a Sports Bar that will seat 70 guests indoors with additional seating on the Veranda for another 20 guests. This will primarily be a late afternoon and evening venue. Center Cafe: This casual dining venue and party room will be located on the second floor mezzartine overlooking the Family Fun Center and will feature a casual environment with a limited menu including pizzas. Marina: Located along the shore of the Hood Canal, a deep water harbor will be a285 slip fulI service Marina. The Marina will feature a full complement of marine services including slips, moorings, mechanics shop, laundry, showers, boat shop, fuel, and pool. Accommodations: Lodging accommodations will be provided in the form of 66 (primarily) one bedroom suites. These hotel style suite accommodations will allow for both short term and extended stay reservations. The suite rooms are located in floors one, two and three of the Maritime Village building. Family Fun Center: This facility will serve as a center for both indoor and outdoor recreation. The 6,000 square foot indoor facility will feature an uuray of recreational elements for youth and adults including rock climbing zip lines, arcade, laser tag, youth programming, party room, and play, fitness, and sports equipment. A second mezzanine level area will serve as a food and beverage outlet and party room and allow for special events, birthday parties, and family gatherings with an allowance for catering service. The facility will integrate with an outdoor zip line adventure course. An adjacent Sports Bar is also a component of this facility. Retail: The Maritime Village building will house a number of retail and service establishments including a Grocery Store as an anchor on the main level. A component of the Grocery Store is a Coffee and Tea Shop similar to a Starbucks designed to accommodate up to 40 guests. The second floor will feature a Dive Shop, Clinic, and two other commercial spaces in addition to a Yacht Club for Marina guests. Administration: An administrative office for the property will be located on the second floor of the Maritime Village building. Securitv: Security services will be provided by on-site Security personnel. RESORT OPERATIONS The Pleasant Harbor Marina and Golf Resort has been designed to offer a full complement of high quality resort facilities and services. The resort facilities have been designed and will be constructed to a state of the art standard incorporating the elements of an active multi- dimensional family resort for an active life style. The wide array of services, venues, and outlets, including recreational programming will require specialized staffing in all disciplines. Employment standards for resort properties are the appropriate benchmark for projecting job creation and employment. The resort is expected to be highly seasonal in terms of occupancy and utilization. 3 JOB CREATION AND EMPLOYMENT The project pro forma and operating plan sets forth the following staffrng levels associated with the aforementioned services, outlets, and venues as it relates to full time, year round positions. Food and Beverage: 13 Marina 8 Accommodations 5 Family Fun Center 31 Retail 5 Administration 1 Security 2 Total 65 An assessment of staffing needs by function and venue/outlet is as follows: Food and Beverage: The food and beverage functions consist of three venues as referenced. The staffing level of 13 fulI time positions is attributable to the Galley Bistro as delineated in the Personnel Matrix (Exhibit II). These positions include Restaurant Manager, Cooks, Servers, and Bartenders. The jobs associated with the Sports Bar and themezzanine level Caf5lParty Room of the Family Fun Center are included in the Family Fun Center jobs allotment. This is delineated in the Personnel Matrix. The Galley Bistro in Phase I will have a seating capacity of 80 guests and will serve breakfast, lunch and dinner daily. It is expected to be highly seasonal in terms of business levels. Because the property is on a busy highway with little or no services for travelers within a sixty mile radius, the level of transient business is difficult to ascertain and business projections do not account for this segment of the market. Staffing requirements for the venue have been based on scheduled staff from 6 a.m. to 10 p.m. daily. This equates to 5,850 hours. Two full time cooks will staff the venue which includes a Prep Cook. In order to staff the culinary requirements for a restaurant with a capacity of 80, industry standards require not fewerthan 11,680 hours which equates to five full time cooks. The lounge bar will be staffed ten hours a day with a variable schedule. To provide bartender coverage including two staff during weekend and holiday peak periods, two full time bartender positions are required. Service standards in terms of wait staff and host duties have been based on an ayerage daily guest count of 40 with t'wo turns. This is also highly variable based on the season. In order to provide service coverage at this level, five full time wait/host staffpositions are required The staffing levels provided for in the development plan have been analyzed in relation to industry benchmarks and, in particular, those set forth in the "Restourant Industry Operations Report" published by the National Restaurant Association. This report sets forth staffing levels for restaurants based on sales volume and menu price point. Based on sales projections furnished by the development plan and a mid-tier menu price point, we were able to ascertain and verify that the delineated staffing level of not fewer than13 full time positions is appropriate and consistent with industry standards. Marina: The jobs associated with the Marina function include a Marina Manager, Dockmaster, Mechanic, and deckhands. There are 8 full time positions associated with this function. A 286 slip marina is considered to be a substantial marine operation and given the array of services offered requires a fulI complement of operational and supervisory personnel for the planned hours of operation. 4 The Marina will be staffed daily from 6 a.m. to 10:00 p.m. This equates to 5,840 operating hours. With shift change overlap and down time, this equates to 3 fuIl time deckhand positions at the minimum staffing level of one per operating hour to tend to boats, dispense fuel, perform maintenance functions, and respond to other boater needs. 2 additional full time deckhand positions are needed to meet the required staffing level of two per operating hour which will encompass weekends, holidays, and the three month summer high season. One full time mechanic position will staff the mechanic shop which will be open forty hours a week and accommodate boat repair and service needs. One Marine Manager position will supervise the operation and provide administrative support and customer service. One full time guest service position will staff the dockhouse and provide customer service and administrative support for the facility. The staffing levels provided for in the development plan for the Marina have been analyzed in relation to industry standards and, in particular, the "Financial and Operations Benchmark Study for Marina Operations " published by the Association of Marina lndustries. The study sets forth industry benchmarks for staffing levels associated with marinas based on capacity, facility design and service levels. Based on the projected Marina operations in the development plan, we have determined that the staffing level of eight fuIl time positions is necessary and appropriate for a 250 plus slip marina and consistent with industry standards. Accommodations: The accommodations function consists of operating the 66 lodging suites and is primarily a housekeeping function. Occupancy rates are variable and seasonal. The housekeeping staff provided for herein will handle the guest rooms as well as common areas. The housekeeping function is associated with the year-round operation of these units which will generally be booked on a short term rental basis for periods of one to two weeks in duration. While daily service is available, it is anticipated that most guests will utilize the standard three day service level offered as part of the standard rate. Occupancy is projected at 85o/o during the three month "high" season, 50% during the four month "shoulder" season, and 35Yo during the five month "low" season. In calculating fuIl time staffing requirements associated with the aforementioned occupancy levels, room nights by season are as follows: High: Shoulder Low: 5,329 3,960 3,465 Total: 12,754 There are 5 full time jobs associated with this function whose duties are housekeeping in nature. Industry standards set forth a 30 minute allotment of staff per occupied guest room for guest room housekeeping. Given 12,754 room nights, this equates to 6,377 labor hours or 3 full time housekeeping positions. Additionally, an integral function of housekeeping is laundry. Industry standards provide that one full time laundry position is required for every 50 guest rooms. Because the service standard will generally be every three day service with linen and towel turn, one position is reasonable for 66 guest rooms. An additional position is associated with corlmon area cleaning, stocking, ordering, inspection, and supervision. The industry standard for this is one position for every 50 guest room with a 25o/o common area square footage area calculation. Again, because of the three day service standard, one position for these functions is considered sufficient. 5 The staffing levels provided for in the development plan for the Accommodations function has been analyzed in relation to industry standards including those set forth in the "Uniform System of Accounting for the Lodging Industry" and "Housekeeping Managemenl" published by the American Lodging Association. The manual and report set forth standards for housekeeping staffing and supervision including time calculations based on guest room size, design, and service levels. Based on projected occupancy and service standards, the staffing projections set forth for Accommodations are consistent with industry standards and are deemed to be necessary and appropriate. Family Fun Center: The Family Fun Center incorporates a number of diverse programs and activities, including active sports and programming warranting a high level of supervision and -in some cases - a level of specialization and compartmentalization in terms of duties. Additionally, the staffing of the Sports Bar, the food bar, and special event catering in the Center is assigned to this category. There are 31 full time jobs associated with this function of which 14 are related to the food and beverage function of the Center. The planned staffing level for the recreational and programming element of the Family Fun Center is 17 fulI time positions. To supervise a 6,000 square foot facility of this nature, one fulI time management position is required. To provide full time hands on supervision and oversight of the operation, 4 full time supervisor positions are required. This includes two supervisory positions during peak operating hours on weekends, holidays, and throughout the three month surlmer "high" season. Four instructor positions will assist guests with amenities and activities such as rock climbing, the zip line, and hee topper. There will be an additional 8 attendant positions providing programming assistance and operations for all of the amenity and recreational elements of the property. As it relates to the Family Fun Center, we have relied primarily on experiential data and knowledge to analyze staffing levels. There is not an industry standard or benchmark that can be readily applied to a facility as unique as that designed for Pleasant Harbor. Recreational facilities and parks are often operated by municipalities. ln order to provide comparative data that is relevant to Pleasant Harbor, we have consulted the Intemational City/County Management Association and, in particular, its publications setting forth perfofinance measures including the report uParlcs and Recreation Performance Measures" and "Comparative Performance Measurement Data" and associated case studies. Staffing levels vary considerably and are higtrly subjective based on levels of service and risk management. Based on our analysis of the recreational component of the Family Fun Center, the staffing level of 17 full time positions is considered to be reasonable and appropriate. The Family Fun Center will offler two food and beverage outlets - a Sports Bar and mezzarine level overlook Cafe which will also host special events and parties. There arc 14 full time food and beverage related positions associated with these venues. The food offering in both is considered limited and light in nature and will include pizzas, sandwiches, and appetizers. The magnitude of the two venues is considered comparable to the Galley Bistro. These outlets will also provide back of the house support for the Coffee and Tea Shop. As referenced previously in relation to the Galley Bistro restaurant, the staffing levels for the Food and Beverage component of the Family Fun Center as provided for in the development plan have been analyzed in relation to industry benchmarks and, in particular, those set forth in the "Restaurant Industry Operations Report" published by the National Restaurant Association. Based on sales projections furnished by the development plan and a mid-tier menu price point, 6 we were able to ascertain and verifu that the delineated staffing level of not fewer thanl4 full time positions is appropriate and consistent with industry standards. Retail: The primary retail function is the Grocery Store which will serve as the retail anchor and a focal point of the Resort. The store managff will also supervise other retail activities including two second level shops. In addition to this position there will be four fuIl time retail clerk and support positions. Staffing levels associated with this function are directly attributable to operating hours. The Grocery store will have daily operating hours of 7:00 a.m. to 7:00 p.m. This equates to 4,380 hours per annum and two full time positions. One component of the store is a Coffee bar which will be staffed eight hours a day equating to 2,920 hours. The store will staff an additional Clerk for the store and coffee shop for an additional 1,020 hours. Given the scale and scope of this retail operation, a staffing level of five fulI time positions is deemed to be reasonable and appropriate. Administrative: An administrative office will be staffed on the second floor of the Maritime Village building. This will be staffed as occupancy levels dictate. One full time position is planned. This position will provide administrative support for operations during regular business hours. While there is no fixed industry standard for administrative services, one position is deemed to be required for the operation of Phase I of this property. Security: The security function will consist of providing on-property security patrol and emergency response. This function will be staffed on a combination of a fixed and variable basis depending upon season and occupancy levels. Security patrol will be provided for one eight hour shift a day. A second eight hour shift will be staffed on weekends - Fridays, Saturdays, and Sundays which also encompasses holidays and special events. 2 full time positions are provided for. Staffing will be as follows: Daily: 365X8hours Weekend Supplemental: 156 X 8 Total Hours 2,920 hours 1,248 hours 4,168 hours The level ofjobs created and the associated staffing levels provided relate only to Phase I of the development. Occupancy and facility utilization levels will increase over time thereby affecting the need for security staffing. There is no industry standard for security levels. This is a highly discretionary service which relates not only to need, but also perceptions regarding safety. Two positions are deemed to be sufficient for the scope and scale of Phase I operations. SUMMARY Based on a review of the referenced materials including project design plan, business plan, operating budgets, and staffing schedules and an analysis of these materials as they relate to industry standards, Hospitality Advisors Group is able to certify that no fewer than 65 full time jobs will be created as a result of Phase I of the Pleasant Harbor Marina and Golf Course development. 7 Hospitality Advisors Group is a hospitality management consulting firm specializing in full seruice resort and hotel properties providing services in the areas of business and development plans, marketing studies, asset management, and hospitality operations. Information on our firm including client lists and credentials may be found at www.hospitalityadvisorssroup.com 8 EXHIBIT I PLEASANT HARBOR RESORT PERSONNEL SUMMARY PAYROLL STAFF FTE Food and Beverage s336,754.00 r3 Marina $285,018.95 8 Lodging - Suites $ 137,134.05 5 Family Fun Center $812,382.24 31 Retail $137,314.05 5 Administration - Office $35,649.00 1 Security $15,464.53 2 TOTAL $1,759,716.82 o5 9 EXHIBIT II PLEASANT HARBOR RESORT PERSONNEL SCHEDULE - FULL TIME POSITIONS FOOD AIID BEVERAGE _ GALLEY BISTRO 13 Manager 1 Servers/Hosts 5 Cooks 5 Bartenders 2 MARINA 8 Manager 1 Dock master (Customer Service/Administrative Support)1 Deckhands/Attendants 5 Mechanic I ACCOMMODATIONS . SUITES 5 Housekeeping Supervisor/Inspector/Common Areas 1 Housekeepers J Laundry Attendant 1 FAMILY FUN CENTER WITH F/B OUTLETS 31 Recreation Director 1 Supervisors 4 lnstructors 4 Attendants 8 Cooks - Sports Bar and Cafe 4 Servers/Hosts 6 Bartenders 4 RETAIL 5 Retail Manager 1 Clerks 1J Barista 1 ADMINISTRATION. OFFICE 1 Administrative Assistant 1 SECURITY 2 Patrol Officers 2 10 I HOSPITALITY ADVISORS GROUP BIOGRAPTry ZacharyZ.Zoul, CHA Chairman and Chief Executive Officer T:rhary Z Zoul has thirty years of qerutive o(perience managing tmepitality, development, and property management operations. Prior to joining Hospitality Advisors Group, Zoul was hesident, Ctdef Bccutive Officer, and Directorof the Cote FamilyCompanies, aresort, hospitality, and red estate/development comPanywithholdingpin the Midwest and Southwestindudingthe award win- ningGrand View l-odge Resort and ifs three charrpionship golf courses and the Tanque Verde Ranctr resort. He served on the ocecutive team of klrretto Bluffin Hilton Head, South Carcline olrcrations forone of the largest resort and residential cpmsurnities in the United States encompass- ing Z),Ofi) acres induding the Inn at Paluretto Bluff - remgnized as the #1 resort in North America. Additiondly, he serrred as General Managerfor two distinctive coastal Georgia propertires, irrcluding tfre Greylield Innon Cumberland Islerd. Rectntly, Zoul served as managingdirectorof the historic lu<ury hotel Deco XV in Omaha, NE. Zoul's focrrs on sales and marketing was ref,ected in his work as an Adirurct Professor for Brenau University teaddng graduate and undergraduate marketing. In addition to his pre-opening and start-up experience, Zoul has been actively involved in hospitality facility design and dwelopment, induding Mirmesota's newest outstate and widely acclaimed mn- ference and event center - the GuIl Lake Center. Zoul holds a ldaster's Degree from Miruresota State University and a Badrelor's Degree fromDrale Universityand is a Certified HotelAdministratorby the Aurerican Hotel and lodging Association. Specidizingin: .Sdes andMarketing .Facilities . Organizationd Development and Assessment .Staffingand taining . Competitive Set Analysis . Renovation hoject Management 11 i/r\ PLEASANT HARBOR MARINA AND GOLF RESORT PROJECT Sponsored by Puget Sound RC, LLC 118ACTUAL BUSINESS PLAN Exhibits