[jyl]

Starting to get more info on operating costs of this property when actively rented as a venue. Looks like there’s three possible states.

1. Mothballed. Cost $1K/mo to hold it, zero revenue, net loss about $12K/yr. We can support that for years. However, eventually a major expense will arise (most likely roof, in few/several years), and property won’t have generated enough income to pay. Not a long term strategy.

2. Limited use, just occasional use for neighborhood meetings and low key rentals by yoga teachers etc. The little management it will need can be handled by volunteers. Costs $2K/mo (add more insurance, janitorial, landscaping, expenses etc), probably $1K/mo revenue, net loss about $12K/yr. Same “however” as above. Volunteers also will burn out eventually. Not a long term strategy.

3. Full commercial use, actively marketed and rented out. Needs a nearly full time manager, non-wage costs $5-6K/mo (add even more expenses, property tax, income tax) plus manager wage/cost, probably $170K to $200K/yr revenue, net income about $30K to $60K/yr, less a reserve for major expenses. Sustainable long term strategy (the non profit did this for many decades).

We’d start in state 1) of course, Covid gives us no choice, and stay there well into 2021. Transitioning to state 2) won’t be terribly hard. Transitioning to state 3) will be tricky, because weddings and similar events are booked many months in advance, and if you spend the deposits (rather than reserving them) you can get in trouble fast.