Tall Ship Providence Foundation Alexandria, Virginia
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Tall Ship Providence Foundation Alexandria, Virginia Tall Ship Providence Foundation Quick Facts . Tall Ship Providence Foundation (TSPF) is non-profit created to acquire and operate the Providence, an historically significant replica Tall Ship to be permanently based in Alexandria. The TSPF purchased the ship in September 2017. A year-long restoration is now underway. The Providence will arrive in Alexandria in the Spring of 2019. Once in her new home port, the Providence will serve as a floating classroom for the Alexandria Seaport Foundation and local schools, a dockside visitor attraction, and a venue for private events. The Providence will also run daily cruises to Washington DC and Mount Vernon. TSPF’s organizers and initial officers are Serge Sarandinaki (Accenture) and Scott Shaw (Alexandria Restaurant Partners). TSPF will be managed by a 12 person board and has engaged Redmon, Payton, Braswell as counsel and KWA as auditors. The TSPF is seeking private donors and corporate sponsors to fund its $2M project budget. This budget includes $800,000 for acquisition and restoration, $400,000 for soft costs, and $800,000 for an operating reserve. Positive cash flow and self-sustaining at 75% of year 3 revenue projections. TSPF is registered with the IRS as a 501c3 educational non-profit, all donations are tax deductible. 2 Tall Ship Providence Foundation 2 Common Questions . Why a Tall Ship and why the Providence? . How will it be used and where will it be docked? . What kind of impact will the Providence have? . Who are some of the key players on the team? . How will the Foundation be managed? . What’s the financial model? . What’s the project timeline look like? . What’s the fundraising strategy? 3 Tall Ship Providence Foundation 3 Why a Tall Ship? The reminders of our maritime heritage -- the Port City -- are all around us. Having our own Tall Ship would… • Enhance the newly redeveloped waterfront with a signature attraction that celebrates our maritime history • Create educational opportunities for children (and adults!) to learn more about Colonial maritime history, and to experience first-hand life aboard an 18th century sailing ship • Host other learning programs, with a special focus on middle school STEM learning through a partnership with the Alexandria Seaport Foundation • Help local retailers and restaurants by adding a proven draw for tourists; beneficial impact for commercial property owners • Serve as a catalyst for future investments in our maritime history 4 Tall Ship Providence Foundation 4 Why the Providence? Historically Significant “Small” Tall Ship • Colonial-era history makes for a compelling • 110’ length overall, 61’ on deck story, relevant to Alexandria • Able to navigate the Potomac River • Unique US Naval history creates links to (9’ draft) other organizations and will help fund raising • Significantly lower operating efforts expenses than larger ships • Still big enough to be a worthwhile attraction Attractive Financials • Ship will arrive fully restored for under $800,000 • Fiberglass hull reduces future maintenance and capital costs • Low break-even costs; multiple, proven revenue streams 5 Tall Ship Providence Foundation 5 Historical Significance The original Providence was built by John Brown, and served as the flagship of the Rhode Island Navy, protecting colonial trade from British harassment. Commissioned into the newly created Navy of the Continental Congress in January of 1775, she went on to play a central role in the American Revolution: • First American ship to fire on a British warship • Sent by George Washington to seize gunpowder in Bermuda • Cleared the Chesapeake Bay of enemy British ships • First command of John Paul Jones, father of the U.S. Navy • Launched US Marines on their first amphibious assault on foreign soil The current ship is a full size, historically accurate replica, built by the Brown family in 1975 to celebrate America’s Bicentennial. John Paul Jones Subsequently owned by the City of Providence, she participated in Tall Ship Regattas and has been used in the filming of The Pirates of the Caribbean, and other movies. 6 Tall Ship Providence Foundation 6 Where will the Providence be docked? Through an arrangement with the City and the Alexandria Seaport Foundation, the Providence will be docked at Waterfront Park, adjacent to the newly created Fitzgerald Square. • Placement is central to Old Town high foot traffic areas, luring more people to local business, parks, and attractions • Visibility from the foot of King Street, Park, Terraces, Marina, Torpedo Factory, and Waterfront Restaurants • Location enables dockside events in the park and easy launch for Providence Potomac River cruises 7 Tall Ship Providence Foundation 7 How will the ship be used? Dockside Tours • Interactive historical immersion on 18th century naval vessel • Led by guides in period clothing discussing the history, technology, and perceptions during the American Revolution Daily Cruises • Public-ticketed cruises to DC or past Mount Vernon • Special theme cruises Educational Programs & Events • Floating classroom for Alexandria Seaport Foundation apprentice and APS middle school math programs • Custom one-day programs to be offered to other area schools Private Events • Dockside private parties, charity events • Chartered cruises for weddings, corporate events, private parties • US Navy retirement ceremonies 8 Tall Ship Providence Foundation 8 What kind of impact will the ship have? Increased civic pride Greater appreciation and understanding of Alexandria’s maritime history Get local school kids on the water and engaged with history Increased Tourism • Direct benefit to restaurants, retail stores and hotels • New asset to help strengthen competitive position vis-a-vis The Wharf, other areas • Ambassador for city at regional Tall Ship events Foster new connections with potential regional partners (Jamestown, Chesapeake Maritime Museum, Sail Norfolk, Independence Seaport-Philadelphia, and others) Positive impact for businesses that support this project Vibrant waterfront also strengthens commercial and residential property values. 9 Tall Ship Providence Foundation 9 Case Study: Hermione Visit (2015) 20,000+ total visitors, 5,250 tickets sold (max capacity) Visitor center traffic up 124% Torpedo Factory visitors up 166% 85.1% June hotel occupancy, best since 2005. Avg Daily Rate up 11% and Revenue per room up 14.3%, both best in region. Similar results with 2016-2017 Tall Ships (Eagle and El Galleon); 2-hour waits to go aboard, and restaurant sales up 50-100%. We know that short term visits from larger ships will naturally draw larger crowds. But the success of these ships’ visits demonstrates the ongoing allure of Tall Ships. 10 Tall Ship Providence Foundation 10 City Support “The effort to bring the Tall Ship Providence to Alexandria is exciting on many levels: The ship will be a fitting, and perfectly timed, addition to our redeveloped waterfront. The Providence will serve as a visible reminder and engaging connection to our maritime history. And the ship will also serve the community as a floating resource for learning and skills development. Last but not least, this project is bringing our entire community together. Businesses, non-profits, residents, and City staff are all aligned and supportive. I am happy to offer my own support to this project, and l look forward to welcoming the Providence to her new home in the Port City.” Allison Silberberg, Mayor “Bringing the Providence to Alexandria would be great for tourism – adding to the City’s new waterfront in way that is authentic to our history. We know that tall ships drive interest and engagement like nothing else and are a top draw for web visits and engagement. They are a magnet for visitors that want an on-the-water experience that is up-close and personal. The ship would also be a unique selling point for meetings and conventions, as well as serving as an ambassador for the City. I have no doubt that the Providence will quickly become an iconic symbol of our historic ‘Port City.’” Patricia Washington, CEO, VISIT ALEXANDRIA 11 Tall Ship Providence Foundation 11 Project Financial Highlights $2M overall project budget Includes healthy allowances and reserves . $789K for acquisition & restoration Includes 50% contingency for overages . $381K for soft costs thru 2020 Includes staff ramp up, 2 years operating deficits . $115K for new floating dock . $723K initial capital reserves Revenue plan calls for 3 year gradual build (50%, 75%, 100%), allowing time to react and adjust as needed. Positive cash flow, and self-sustaining at 75% of year 3 revenue projections Detailed revenue and expense assumptions have been vetted by Rob Hofmann, former Exec Director of Providence Maritime Heritage Foundation and former owner of the Providence. Plan is always funded at over 100% of forward-year operating expenses. 12 Tall Ship Providence Foundation 12 Project Timeline Maiden Voyage Arrival Bath, ME to Providence, RI To Alexandria, VA April 2019 Spars & Rigging March 2019 Gloucester, MA to Bath, ME Hull Restoration June 2018 Somerset, MA to Gloucester, MA, October 2017 Captain and Marketing/Sales Director Hired Acquisition Executive Director Hired October 2018 Develop programming and partnerships, September 2017 continue fundraising February 2018 First $1M Raised January 2018 13 Tall Ship Providence Foundation 13 Building a team of experts to make this project successful • Leon Poindexter, Master Shipwright • Rob Hoffman, former Exec