1. education
2. school

Five Island Community Center - Emmetsburg, Iowa
Business Plan
January 9, 2012
Executive Summary
This business plan for the Five Island Community Center has been prepared following
guidance provided by the United States Small Business Administration available at:
http://web.sba.gov/busplantemplate/BizPlanStart.cfm It was prepared by the Emmetsburg
Community Development Corporation (ECDC) for Emmetsburg Municipal Utilities (EMU) as
part of a funding process the City of Emmetsburg is pursuing with the Iowa Economic
Development Authority’s Vision Iowa program for construction of this new community center.
How will the proposed Five Island Community Center be used?
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The Five Island Community Center will enhance and showcase Emmetsburg and the
surrounding area and fit the forward vision of our region.
The Five Island Community Center will promote the recreational opportunities of Five
Island Lake, Five Island Golf Course and adjacent Kearney State Park campground.
The Five Island Community Center will create a facility for weddings, graduations,
dances and other receptions; meetings, community functions, clubs, family events,
senior events, business events, and recreation needs, with seating capacity of 25-350
people and including an outdoor veranda and green spaces.
The Five Island Community Center would create a centralized location for
organizations and sign-ups for all city sporting activities including basketball, softball,
basketball, soccer, volleyball, ice skating, cross country skiing, snowshoeing, ice
fishing, and golf.
What will the proposed Five Island Community Center cost?
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The Five Island Community Center project is estimated to cost from $1.5 to $1.9
million for construction and furnishing of a 10,392 square foot facility, including
demolition of the current building.
The Five Island Community Center project cost is estimated at $120 to $150 per
square foot, depending on finishes (windows, trim, doors, etc.).
The Five Island Community Center will replace the current structure on the site. The
current building has been evaluated by several contractors who have said it is
impractical to bring the building up to Building Code or to substantially renovate it at
an equivalent price to that of new construction. Some of the major problems with the
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current building are collapsed sewer lines, asbestos, mold, rotting wood, leaky roof,
leaky windows and old furnace.
The Five Island Community Center will meet the Americans with Disabilities Act
(ADA) code for handicapped accessible. Renovation of the existing building cannot
be done without bringing it up to these ADA requirements, which would require a
substantial cost without addressing other building improvements.
How will the proposed Five Island Community Center be financed?
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The Five Island Community Center will need financial commitments of the public,
grants (local, state and federal), benefactors and community-wide gifts. Contributions
will be tax deductible.
The Five Island Community Center received a $500,000 pledge from the City of
Emmetsburg for development of the site. The City designated funds received from the
Palo Alto County Gaming Development Corporation and funds paid directly by Wild
Rose Casino to fiancé the commitment.
The City of Emmetsburg has stated the Five Island Community Center will not use
property tax funds in the construction or operations of the facility.
The City of Emmetsburg purchased the lakeside property in 2008 from Wild Rose
Casino and Resorts at a capital outlay of $272,206. This capital outlay, together with
the $500,000 pledge from the City and the $250,000 proposed pledge from
Emmetsburg Municipal Utilities, serve as the $1,000,000 match required to apply for
the Community Attraction and Tourism (CAT) $500,000 grant.
The City of Emmetsburg may fund operating shortfalls from reserve funds, including
the hotel/motel tax revenue.
How will the proposed Five Island Community Center benefit the community?
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The Five Island Community Center will increase Emmetsburg’s appeal as a tourist
attraction and a destination location.
The Five Island Community Center will enhance the use of Five Island Lake, Five
Island Golf Course, campgrounds and area parks.
The Five Island Community Center will attract people to the Emmetsburg area. This
facility enhances quality of life and will bring revenue to existing businesses such as
motels, restaurants, gas stations, retail shops and the casino.
How will the proposed Five Island Community Center be managed?
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The Five Island Community Center management will be provided by the City of
Emmetsburg.
The Five Island Community Center Recreation Director position cost is projected to
be approximately the same as the current part-time Recreation Director and current
part-time Club Manager positions. A proposed ordinance to restructure the two
current positions to create the new Recreation Director position is to be considered by
the Emmetsburg City Council.
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The following sections will describe in greater detail the vision, market, organizational
management, marketing and sales strategy and financial management of Five Island
Community Center.
Business Description and Vision
Mission Statement
The Emmetsburg Community Development Corporation’s work to develop the Five Island
Community Center directly results from the core mission of ECDC. This mission statement is:
“The Emmetsburg Community Development Corporation (ECDC) will provide leadership to
improve the quality of life for residents of the City of Emmetsburg by promoting growth and
economic development in the areas of existing business expansion, new business
opportunities, job retention, marketing and tourism.”
Vision
To enhance the quality of life for residents of Emmetsburg and the surrounding area by
providing a community center that capitalizes on the recreational amenities of the Five Island
parks system and fosters economic growth for the community.
Business Goals
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Develop an existing city-owned property adjacent to Five Island Lake into a
community center that caters to a variety of patrons, recreational opportunities, and
programs.
To provide a space for community meetings and events that draws people to the lake
and provides an indoor facility to serve families.
To promote an active and healthy lifestyle by enhancing the use of the area’s natural
resources.
Brief History of the Project
The City of Emmetsburg purchased the clubhouse and a two-acre tract of ground adjacent to
the Five Island Golf Course in August 2008 to preserve the public right-of-way to the property
in order to ensure that the public would continue to have access to the property.
The first decision to be made was whether it was feasible to preserve the existing clubhouse
or consider the option of constructing a new community center to meet broader community
needs. To that end, a series of visioning sessions, architectural and contractor evaluations of
the existing facility, feasibility studies, public input sessions, task forces and fundraising
committees have completed their work and it has been determined that the community would
benefit more through construction of a new facility that would accommodate a variety of uses
for a greater number of citizens. The following timeline illustrates the various planning efforts
that have gone into creating the Five Island Community Center vision.
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March 2009: Vision Session with Abbie Gaffey, Community Development Program
Specialist, Iowa State University Extension
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October 2009: Dan Cooper, Gary Schmidt and ILCC carpentry class evaluated the
existing facility
December 2009: Public Input and Feasibility Study conducted by Hanser &
Associates
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February 2010: Public Input and Feasibility Study presented by Hanser & Associates
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June-August 2010: Task Force met, toured different centers, and discussed options
on recommending floor plans
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Task Force Members met several times with Matt Barstad, lead designer for Cannon,
Moss, Brygger & Associates to develop current plans
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October 2010: Hired Tom Vance from Multivance Inc. to conduct a Campaign
Strategic Readiness Assessment for the Five Island Community Center
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February 2011: Report completed from Tom Vance and made available to the public
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March 2011: Established Marketing Committee for Five Island Community Center and
prepared brochures. Ordered video to market the center to donors
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July 2011: Joint meeting with Emmetsburg City Council, Emmetsburg Community
Development Corporation (ECDC), Golf Committee and Task Force to discuss future
of the Five Island Community Center
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July 2011: Emmetsburg City Council unanimously votes to commit $500,000 to
construct a new community center and tasks ECDC with raising funds for the project
Definition of the Market
There are other privately owned facilities in Emmetsburg that serve similar purposes. The
VFW provides a 175-person maximum occupancy, banquet-style facility. The Wild Rose
Casino provides banquet facilities for a 500-person maximum occupancy. Five Island
Community Center fills a mid-range need with a 350-person capacity. Not having a mid-range
facility limits the ability to find space to accommodate several events on the same day such
as weddings, graduation parties, holiday parties, and corporate retreats. It has been decided
that the proposed size of the Five Island Community Center fills a gap within the existing
market without detracting from the two other venues. Not only will it not detract, it is
envisioned that Five Island Community Center will be able to augment the services provided
by the VFW and the Wild Rose Casino. Five Island’s unique setting on the lake also caters to
recreational customers such as boaters, golfers and campers at adjacent properties and this
customer base is an unmet need. It is envisioned that Five Island Community Center will
have the capacity to host conferences and regional events for the community and provide a
lower-cost alternative to facilities that take advantage of the Okoboji-area’s similar natural
amenities.
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Target Market
The Five Island Community Center will open on Day 1 with a built-in existing customer base
of golfers, boaters and campers who have long enjoyed the existing clubhouse throughout
the years. The Five Island Golf Course has 174 members who pay membership fees (46
couples at $385.20 annually; 25 families at $481.50 annually; 92 singles at $321 annually
and 11 students at $133 annually). While these paid memberships in the golf course do not
entitle the holders to any special privileges or discounts at the Five Island Community Center,
they do represent customers who have already made a financial contribution to the
recreational area and use the existing facility. They would be better served and have more
opportunities for recreation in a new facility that is handicapped-accessible with more flexible
and usable spaces.
The new facility will also accommodate new customers for family reunions, weddings, class
reunions, and conferences. The Five Island Community Center would complement existing
facilities such as the Wild Rose Casino rather than stand in direct competition to the casino.
For example, during conferences, it would be expected that attendees would enjoy other
community amenities such as the hotel and casino, area restaurants, downtown retail
shopping and recreational opportunities.
It is also envisioned that the facility will serve a broader population in neighboring
communities and counties within a 25 mile radius. Within that range lives a 30,000-person
population that could also potentially use the center because similar facilities may not be
available in their communities. In gathering public input about this project, Hanser &
Associates reached out to neighboring zip codes. Seventy percent of survey respondents to
the community survey (both in Emmetsburg and surrounding area) said they would visit the
facility at least on a monthly basis.
Market Share
The current facility is capturing less than five percent of community fee-based activities. We
anticipate capturing 35% of all targeted events within the first five years of operation. While
there is a building on the site and the building is used, it is in deteriorating condition and
needs to be replaced. It is serving as much of the market as its condition will allow. As stated
above, we hope to capture a portion of a mid-range market as well as completely unserved
markets in neighboring communities.
Description of Products and Services
The Five Island Community Center will be a 10,392 square foot facility on the lake. It will
feature a 44’ X 62’ Community Room, two 27.6’ X 35.6’ meeting rooms, a 19.6’ X 34.6’
meeting room, a bar, fully-operational kitchen with commercial freezer/cooler, a lobby and an
office space. An open-air veranda on three sides of the building will also provide outdoor
spaces for use. It is envisioned that the space would be used for the following purposes:
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Multipurpose space for classes
Multipurpose space for meetings and social events
Lounge/bar
Pro-Shop for golfers
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Youth day camps
Birthday party space
Community performances
Stage plays and dance performances
Children’s theatre or other family programs
Watercraft rentals
Gas station for watercraft
Convenience store accessible from lake
Teen center
Senior activity center
Preschool or childcare activity space
Passive use green spaces
Competitive Service
There is no direct competition in that other existing facilities are not located on a lake, with a
golf course, and with a campground. This facility is sized to accommodate events larger than
can be provided at the VFW and events smaller than the casino. The VFW charges $100 for
use of their space and the casino charges $500. The casino applies the fee to the required
food service. Five Island Community Center recommends $350 for renting the entire building.
This initial price is based on square footage of the facility, the number of people it will
accommodate and prices at similar facilities in the area. The price would be reduced
proportionally to rent the smaller rooms available. The Conference Room will rent for $75;
South Meeting Room $100; North Meeting Room $150, and Center Community Room $200.
Any existing restaurant, caterer or private party can supply food for any event they are
sponsoring. All alcoholic beverages will be purchased on premises and the City of
Emmetsburg will continue to hold the license. The final pricing will be determined by the
Emmetsburg City Council upon completion of the building.
Organization and Management
The City of Emmetsburg owns the facility and is responsible for the on-going operations and
maintenance of the new facility. The City will work in conjunction with a Recreation Board to
be created by City Ordinance. The Recreation Board will advise the City Council on all
matters involving recreational programs. The City of Emmetsburg retains final financial
responsibility.
The City has completed a Phase 1 Archeological Study through the Iowa Department of
Natural Resources and State Historic Preservation Office clearance that were required for a
U.S. Department of Agriculture grant. The Vision Iowa grant the City of Emmetsburg is
seeking is provided by the Iowa Economic Development Authority. The City of Emmetsburg
has completed requirements for demolition of the existing structure and construction of the
proposed facility that would be required upon receipt of this grant.
The lead agency for the Five Island Community Center is the Emmetsburg Community
Development Corporation (ECDC). ECDC is the non-profit economic development
organization assigned the task of developing the property by the City of Emmetsburg. The
current list of ECDC board members is attached.
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Marketing and Sales Strategy
The City of Emmetsburg and the Emmetsburg Chamber of Commerce will actively promote
the new facility using the following marketing strategies:
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Scale model to display to public groups
Marketing packet
Web presence both on the City of Emmetsburg website and Chamber of Commerce
website
Brochure
Promotional video
Stories and paid advertising in twice-weekly newspaper
Radio stories and paid advertising on Chamber of Commerce-owned station and area
stations in Spencer, Algona, Fort Dodge, and Okoboji
Stories and paid advertising (as needed) in television markets serving Emmetsburg
(Sioux City, Ames/Des Moines)
Full time recreation director will provide personal marketing through public speaking,
meeting with groups while part-time events and recreational coordinator will work with
people one-on-one to plan events
Financial Management
The City of Emmetsburg is responsible for the management of the Five Island Community
Center. An Income Statement and Cash Flow Projection developed by the Emmetsburg
Community Development Corporation is attached for your review. Assumptions utilized to
develop the cash flow projection including the following:
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The driver for income is usage. As stated earlier in the business plan, The Five Island
Community Center projects to capture 35% of the community facility rental activity
after 5 years. Facility rentals begin with 16% of the local market in Year 1 and
increase 20% each year.
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Facility rentals directly impact food/beverage sales and staff expenses. An annual
20% increase in food/beverage sales is projected in Year 2 and Year 3. An annual
15% increase in food/beverage is projected in Year 4 and Year 5.
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Facility rental is based on multi-year actual results at the Hap Ketelsen Community
Center (HKCC), Everly, IA. The assumption is the Five Island Community Center may
generate 100% of HKCC activity due to relative size of Emmetsburg to Everly. The
City of Everly also has a smaller community room available at the Green Plains
Cooperative.
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Facility revenue generated by Center Room and Building rentals serves as the basis
for beverage sales. Based on the number of large events, the estimate is $1,000/
beverage revenue per event. This is based on an average crowd of 150 and an
average $6.67 spent per person.
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Smaller room rentals may generate beverage revenue; however, no estimate is
included in the cash flow projection.
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A full-time Recreation Director position detailed earlier in the Business Plan, a parttime Events Coordinator position and part-time service employee costs are included
in the cash flow projection.
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Salary expenses project a 10% annual increase with Operating expenses increasing
5% per year. Food/Beverage expenses are projected at 50% of income. MidAmerican Energy has indicated utilities will reduce in the new larger building due to
the use of high efficiency lighting/appliances and energy efficient construction.
A net loss is projected to continue for several years with breakeven projected in the
5th year. The City of Emmetsburg currently subsidizes the existing clubhouse due to
limited facility rental opportunities. The cash flow projection assumes continued use
of hotel/motel tax receipts by the City of Emmetsburg, decreasing each fiscal year, to
assist in funding the Five Island Community Center during the initial five years of
operations.
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Five Island Community Center
2/14/2012
Income Statement & Cash Flow Projection
Does not include Golf Course
REVENUES
Facility Rental
FEES
Food/Beverage
MISC
TOTAL
EXPENSES
Actual FY 09
Actual FY 10
Budget FY 11
Cash Flow Proj Yr 1
Budget FY 12
CFP Yr 2
CFP Yr 3
CFP Yr 4
CFP Yr 5
$1,120.10
$2,501.00
$2,500.00
$2,500.00
$15,000.00
$18,000.00
$21,540.00
$26,050.00
$31,300.00
4,018.64
6,343.96
5,000.00
3,750.00
6,000.00
7,200.00
8,640.00
10,368.00
12,441.60
34,694.12
55,084.34
63,000.00
65,000.00
100,000.00
120,000.00
144,000.00
165,600.00
190,440.00
7,527.41
7,696.41
6,100.00
4,600.00
5,500.00
6,600.00
7,920.00
9,504.00
11,404.80
$47,360.27
$71,625.71
$76,600.00
$75,850.00
$126,500.00
$151,800.00
$182,100.00
$211,522.00
$245,586.40
Actual FY 09
Actual FY 10
Budget FY 11
CFP Yr 2
CFP Yr 3
CFP Yr 4
CFP Yr 5
Cash Flow Proj Yr 1
Budget FY 12
$16,601.45
$53,413.43
$45,567.00
$38,618.00
$65,000.00
$71,500.00
$78,650.00
$86,515.00
$95,166.50
OPERATIONS
34,938.15
36,272.48
42,125.00
37,580.00
45,000.00
47,250.00
49,612.50
52,093.13
54,697.78
Resale Food/Bev
18,852.24
30,866.50
36,500.00
32,000.00
50,000.00
60,000.00
72,000.00
82,800.00
95,220.00
$70,391.84
$120,552.41
$124,192.00
$108,198.00
$160,000.00
$178,750.00
$200,262.50
$221,408.13
$245,084.28
($48,926.70) ($47,592.00)
($32,348.00)
($33,500.00)
($26,950.00)
($18,162.50)
($9,886.13)
STAFF
TOTAL
NET LOSS
CAP OUTLAY
($23,031.57)
$502.12
272,206.00
Assumptions:
Assumptions: Paid
Ave
Annual Incr. →
20%
20%
20%
20%
Base: 100% of HKCC-Everly
Events-Small Rooms
$100
40
48
57
68
82
Population - 603
Events-Center Room
$200
20
24
29
35
42
Eburg Population - 3,904
Events-Building
$350
20
24
29
35
42
Days
80
96
114.6
138
166
$15,000.00
$18,000.00
$21,540.00
$26,050.00
$31,300.00
Assume 500 events/annually
Annual Income
FICC share: Yr 1-16%; Yr 5-33%
Income
Events:Yr 1: 40x$1k; Yr 5: 82x$1k
Average: 150 = $6.67/person
Fees
Annual Incr. →
20%
20%
20%
20%
Food/Beverage
Annual Incr. →
20%
20%
15%
15%
Misc.
Annual Incr. →
20%
20%
20%
20%
Staff
Annual Incr. →
10%
10%
10%
10%
Operations
Annual Incr. →
5%
5%
5%
5%
50% of Gross
50% of Gross
50% of Gross
50% of Gross
Expense
Yr 1 - Rec. Director $40,000
Resale Food/Bev
FICC CFP 1-8-12.xls