[Neighbors] Possible temporary development of the restaurant pad at the deAnza Motor Lodge

[Gary and Melodie Eyster]

Jim Trump of the da Anza Motor Lodge has reached out to Nob Hill
Neighborhood Association for an expression of support for a temporary (5
year) use of the restaurant pad at the motor lodge.

Nob Hilleños are invited to reply to this email with any comments and/or to
participate in the discussion at our NHNA board meeting Wednesday night,
June 3.

Reach Jim at 321-6493. Here is what he provided:

 

The Restaurant Pad is targeted for a two story building that will complement
the residential units. With the economic impact to existing restaurants
(expected 60% to close), the marketing and demand time has probably been
extended five years from 2020.

 

Leaving the site vacant has concerns that impact the residential units and
East Nob Hill activity. Therefore a temporary use  being considered is an
open beer garden with family entertainment. The design is to have containers
for the Bar and freezer area, restrooms, and restaurant. All tables will be
outside in the air, allowing safer surroundings.

 

The De Anza Beer Garden will be a brewery, creating some of their own
recipes. The balance of the beer will be guest kegs from other Albuquerque
breweries.

 

The De Anza Brewery will only be open Friday, Saturday, and Sunday. Special
events may take place during the week. Hours of operation will be from 10 AM
to 10 PM, always making sure events end prior to midnight so that residents
and neighborhoods are not disturbed.

 

The De Anza Brewery will not operate the restaurant, the goal is to work
with new start up restaurants/food trucks, to give them a better opportunity
for exposure.

 

Large trees, colorful canopies, exterior lights will be throughout, a theme
that supports Route 66 and the De Anza. Ping-Pong tables, Corn hole, and
other activities will be included on site.

 

Occupancy is expected not to exceed 50 people at any one time.

 

This is a temporary use, not disregarding the original concept. It will need
to gain neighborhood support and City approvals. The goal would be to have
it operational March/April 2021.

 

Once the pad is ready for long term development and occupancy, most of the
De Anza Brewery improvements can be relocated to another site. 



A preliminary design concept is attached. Residents at the De Anza are very
excited. The next step is to meet with the neighborhood association to find
out if they support the concept.

 

The Request to City:

 

1.     Modify Development Agreement to current conditions.

2.     Release the $90,000 to Anthea that was to reimburse for the
refurbishing of the De Anza sign and securing the murals.

3.     Approve the De Anza Beer Garden (once completed) as a successful
alternative to complying with 100% of the development agreement.

 

 

Financial Plan:

 

1.     Land Cost: On a land lease, cost to cover property taxes and
landlord’s insurance.

2.     Occupants will be limited to 50 people at one time. Pro forma used an
average of 35, which turned over four times a day during a 10 hour period.
An average of 27 people at one time is a breakeven on the income expense
projections.

3.     Using the above assumptions, during a 3-day weekend there would be
420 customers.

4.     Three days a week open, no special events or other income (i.e. shirt
or growler sales) were included.

5.     Each person would have two beers, cider, or wine during their stay.
All sales are calculated at $5.00 a pint, cider, wine. Did not consider
additional income from our brew or celebrity beer masters.

6.     One Keg can generate 124 pints, used 100 pints to account for wasted
product.

7.     Assuming that 50% of the customers will spend $10.00 on food. 

8.     The restaurant operator would have no real estate or utility expense.
Therefore 10% of their sales will be their lease rate. 

9.      Budgeted a capital investment of $140,000.00.

10.                        Budgeted a manager with six 30 hour employees.

11.                        Annual Net Operating Income with only being open
eight months, approximately $35,000.

12.                        Annual Return on Investment is projected at
approximately 25%, 100% payback of investment in four years.

 

Nest Steps:

1.     Get conceptual design.

2.     Have a meeting with Nob Hill Neighborhood Association to review
concept and get their approval.

3.     Have a preliminary meeting with L.U.C.C. to get their conditional
approval.

4.     Price out the cost of construction with TLC and Pat Maloy.

5.     Prove the income and expense projections with existing operator.

6.     Firm up accounting rules for depreciation of this type of
improvement.

7.     Raise 100% of the capital required.

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.swcp.com/pipermail/neighbors_nobhill-nm/attachments/20200601/a6944d45/attachment.htm>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: IMG_8171.jpg
Type: image/jpeg
Size: 92237 bytes
Desc: not available
URL: <http://mailman.swcp.com/pipermail/neighbors_nobhill-nm/attachments/20200601/a6944d45/attachment.jpg>