Here is a proposal for using the 601 dance space.
This is not a legal document. There is no commitment on the
part of anyone in regards to this document.
This is something that I thought might work for everyone.
Let me know if this works for you or not.
If you would like to participate in the use of the 601 dance
space, contact me or David Chayes david.chayes@gmail.com.
If you are not going to use the space, but would like to
participate in joint marketing efforts, contact us.
Thank you,
Andrew
Andrew Weitzen
352-327-3672
www.GainesvilleDance.com
-----------------------------------------------------------
Proposal for using 601 dance space
1. Date: Monday June 9, 2009
Location: 601 S Main Street
2. Parties Involved
Stephen Boyes, Owner
David Chayes, Manager
Christian Campbell, Dance Group Leader - Balboa
Marrie Robinson, Dance Group Leader - Freestyle
Piper Call, Dance Group Leader - Irishsheer
Veronica Lane, Dance Group Leader - Zumba
Andrew Weitzen, Dance Group Leader - Swing
3. Document of Understanding
This document holds no legally enforceable provisions.
This is only a document of understanding of how we intend to proceed.
While the clauses in this document seem reasonable to me at this moment,
we do not know what reality will bring. This document should be used as
a guide. We should all feel to raises issues and make changes as needed.
Until we start signing leases, the only legally binding agreement
we have is that established by Florida law. Since we are all renting
on a short term basis, I believe our obligations are only for the
period of time for which we paid or received payment.
Other than that, you should not feel stuck with anything you have said
so far, nor should you hold anyone to what they have said if they have
changed their mind. Everyone needs to be happy with whatever arrangements
we make as we go along.
4. Costs
The monthly costs are about $2,600 with utilities,
being higher in the summer and lower in the winter.
This proposal sets forth a plan to get the income
to $2,600 by the end of this year.
The owner has said that he can give us time to reach
the $2,600 level, indicating a time frame of around
the end of 2009 and start of 2010.
Please note that $2,600 is meant to approximate the
costs which may be higher or lower and could change
from year to year. Ultimately, the expenses for the
mortgage (as it is currently), taxes, insurance,
utilities, maintenance and capital improvements need
to be met to make this project viable.
5. Air Conditioning
We are going to live with the AC until we have enough
income to justify a capital expense to upgrade the AC.
6. Management
We propose that David Chayes rent 601 from Stephen Boyes
and manage the dance space.
David will be responsible for all aspects of the dance
space as far as the other dance groups are concerned.
Any fixed improvements David wishes to make to the property
need to be negotiated with the owner, with the understanding
that this project may not continue beyond the next month.
7. Dance Leadership Committee
We will form a committee consisting of all the people
that rent the space from David. We will meet as needed,
hopefully not more than once a month.
The committee will have these responsibilities:
- Assist in negotiations between David and Stephen
- Joint marketing, special events and other ways
to grow attendance to increase the income
- Management oversight to make sure our needs are
being met and the place is maintained
8. Insurance
As David will be the sole renter from Stephen, David will
preferably incorporate a LLC and provide a certificate of
insurance to Stephen that will cover all of us. This was
how GDMA functioned.
9. Income
Monthly Rentals Weekly Income Projection
$225 - $45 per night 6:30-9:30 Sunday through Thursday
$210 - $30 two hour classes 4:30-6:30 every day
$75 - Friday night
$125 - Saturday night
-----
$635
$2,540 - 4 weeks per month
This essentially meets the $2,600 monthly cost.
Additional income from special events, day time rentals,
concessions and other income methods.
Note: this income is based on past GDMA rental rates.
Theoretically, a managed dance facility should add value
and significantly increase our attendees. If we can all
double our attendees, and our numbers are small we should
be able to do that, then we can increase the rents say
by 10+% and there are profits for everyone.
A full building is better for all of us, as bringing people
by for one class helps our marketing efforts for other classes.
10. Schedule to Generate Income
To reach the income levels above, we need to rent:
5 - $45 nights
7 - $30 late afternoons
1 - Friday night
1 - Saturday night
Currently rented (prices may vary) are:
$90 - 2 x $45 nights (Irishsheer, Swing beginning August)
$90 - 3 x $30 late afternoons (two Zumba, one freestyle)
$125 - 1 x Saturday night
----
$305 - per week
$1,220 - per month
Half-way there!
Our goal should be to reach the $2,000+ level by
some time in October. Which sets sales goals of:
$90 - 2 x $45 nights
$90 - 3 x $30 late afternoons (two Zumba, one freestyle)
$75 - 1 x Friday night
----
$255 - per week new sales
$1,020 - per month new sales
$2,240 - per month total
This still leaves these openings:
$45 - 1 x $45 nights
$30 - 1 x $30 afternoon
? - 7 x Day time rentals
11. Rental Payments to the Owner and Payment for David's Efforts
All late afternoon and night time rental receipts should
be marked for the owner during this period.
All day time rental receipts, receipts for special events
above the normal rentals, concessions and other income should
go to David.
As of November 1, to incent David to focus on receipts for the
owner and to protect the owner, if the owner's rental receipts
are below the $2,240 level, all additional income that David
brings in as the manager should first go to make up the short
fall.
12. Rents for Individual Groups
This section keeps intact the current rates each person
is paying and provides for a way to charge others.
This a suggested maximum rental rate for one-hour,
which should be posted online and publicly available.
Maximum Hourly Rental Rates for One Hour Rentals
- $15 per hour
before 6 pm Monday-Friday
after 10 pm Sunday-Thursday
- $20 per hour
6 - 10 pm Sunday-Thursday
before 6 pm Saturday and Sunday
- $25 per hour
6 pm - midnight Friday
- $30 per hour
6 pm - midnight Saturday
Rates should be discounted for regulars to encourage year long
monthly rentals and fill empty time slots. People that are easy
to rent to provide consistent income at negligible marketing
and management costs.
Suggested discounts
A. Regular monthly $20/hourly rentals should be charged at a
discount of $5 per hour, with an additional discount of $5
for every 3 hours. This brings us inline with the GDMA rates.
For hours under or above $20, discounts might be a little
less or a little more.
B. Monthly rates should be charged on a basis of 4 weeks
per month, with no charge for the 1/3 extra day, allowing
groups to pass on the monthly discount to their members
and encourage more participation.
C. Give discounts or free hours when there are empty time slots
in exchange for services, volunteer work, participation
on the Leadership Committee and as prizes.
Additional Charges
A. Any events that require extra maintenance should be
charged extra.
13. Class Prices
Since we have a manager for this facility, this adds value to
our programs. Also the pooling of our resources and marketing
efforts also adds value. Our class prices should reflect this.
If you are looking for regular attendees, consider offering
monthly prices and make your class rate one-half the monthly rate.
If your monthly rate is $20, make your individual classes $10.
Suggested individual class prices should be $8 to $15.
Sell the benefits to your attendees of what they get for the
extra money:
- Classy atmosphere
- Beautiful, large dance floor
- Mirrored walls
- Clean, well-maintained facility
- Concessions they can purchase
- Possibly free snacks
- Ameneties: nice tables, chairs, water dispenser, cups
- Lots of parking in fenced area, part of Acrosstown Repetory complex
- Plus the benefits of being part of multiple groups,
bringing in new people, joint programs
14. Marketing Committee
We all need to help out and jointly market all our programs,
grow our groups and assist David in renting the space.
We should form a marketing committee to handle these responsiblities,
which should meet monthly and put into effect a marketing plan.
--- end of proposal ---
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