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

[Paulette Mastio]

I support! Great ideas for use of the space.

On Mon, Jun 1, 2020 at 12:32 PM Gary and Melodie Eyster <meyster1 at me.com>
wrote:

> 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.
>
>
>
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