ConsultEcon, Inc. Management & Economic Insight April 13, 2017

Paul Revere Heritage Site Feasibility Study and Business Plan

FINAL REPORT

Prepared by: ConsultEcon, Inc.

Prepared for: Town of Canton April 2017 ConsultEcon, Inc. Management & Economic Insight April 13, 2017

TABLE OF CONTENTS

Section Page

TABLE OF CONTENTS i

LIST OF TABLES ii

LIST OF APPENDIX TABLES iv

LIST OF FIGURES v

LIST OF APPENDIX FIGURES vi

EXECUTIVE SUMMARY 1

Section I INTRODUCTION AND ASSUMPTIONS I-1

Section II PAUL REVERE HERITAGE LOCATION CONTEXT AND PROJECT OVERVIEW II-1

Section III MARKET CONTEXT III-1

Section IV GOVERNANCE AND MANAGEMENT OPTIONS IV-1

Section V VISITATION POTENTIAL AND PHYSICAL PLANNING PARAMETERS V-1

Section VI OPERATING POTENTIAL VI-1

APPENDIX A CASE STUDIES A-1

APPENDIX B FIVE-YEAR MID-RANGE VISITATION SCENARIO TABLES B-1

APPENDIX C ALTERNATIVE OPERATING SCENARIO C-1

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LIST OF TABLES

Table Page

Table II-1 Proposed Housing Profile - Maximum Bedroom Count Plymouth Rubber Redevelopment II-8

Table II-2 Illustrative Pre-Design Program of Spaces for the Barn and the Rolling Mill Paul Revere Heritage Site Subject to Further Refinement - For Illustrative Purposes Only II-17

Table III-1 Population Trend in Resident Market Area – 2010, 2016, 2021 Paul Revere Heritage Site III-3

Table III-2 Age Profile in Resident Market Area – 2016 Paul Revere Heritage Site III-4

Table III-3 School Age Children in Resident Market Area – 2016 Paul Revere Heritage Site III-5

Table III-4 Household Profile in Resident Market Area – 2016 Paul Revere Heritage Site III-6

Table III-5 Income Profile in Resident Market Area – 2016 Paul Revere Heritage Site III-7

Table III-6 Hotel Inventory, Canton Area III-11

Table III-7 Massachusetts NPS Historical Sites III-14

Table III-8 Types of Event Venues in Canton Area III-23

Table V-1 Visitation Potential in a Stable Year of Operations Paul Revere Heritage Site V-6

Table V-2 Five-Year Facility Visitation Potential Paul Revere Heritage Site V-7

Table V-3 Estimated Monthly Visitation Distribution Paul Revere Heritage Site V-8

Table V-4 Facility Sizing Analysis based on Demand Parameters Paul Revere Heritage Site V-9

Table VI-1 Visitation by Type and Ticket Price and Membership Assumptions in a Mid-Range Visitation Scenario in a Stable Year in 2017 Dollars Museum and Cultural Center at PRHS VI-5

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LIST OF TABLES (continued)

Table Page

Table VI-2 Operating Assumptions in Current Dollars under a Mid-Range Scenario Museum and Cultural Center at PRHS VI-6

Table VI-3 Earned Revenue Potential Museum and Cultural Center at PRHS VI-12

Table VI-4 Illustrative Personnel Positions and Personnel Costs by Department Museum and Cultural Center at PRHS VI-15

Table VI-5 Operating Expense Estimates in a Stable Year in 2016 Value of the Dollar Under a Mid-Range Scenario Museum and Cultural Center at PRHS VI-19

Table VI-6 Summary of Revenues and Expenses in a Stable Year in 2016 Value of the Dollar Under a Mid-Range Scenario Museum and Cultural Center at PRHS VI-21

Table VI-7 5-Year Net Income Summary under a Mid-Range Scenario Museum and Cultural Center at PRHS VI-22

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LIST OF APPENDIX TABLES

Table Page

Table A-1 Metropolitan Waterworks Museum Boston, MA A-7

Table A-2 Dedham Historical Society Dedham, MA A-10

Table A-2 Dedham Historical Society Dedham, MA A-11

Table A-3 Eleanor Cabot Bradley Estate Canton, MA A-13

Table A-4 Park City Museum Park City, UT A-17

Table A-5 Museum of Durham History Durham, NC A-20

Table B-1 Five-Year Visitation by Type and Ticket Price and Membership Assumptions under a Mid-Range Visitation Scenario Museum and Cultural Center at the Paul Revere Heritage Site B-2

Table B-2 Five-Year Earned Revenue Potential under a Mid Range Visitation Scenario Museum and Cultural Center at the Paul Revere Heritage Site B-3

Table B-3 Five-Year Operating Expenses under a Mid-Range Visitation Scenario Museum and Cultural Center at the Paul Revere Heritage Site B-4

Table C-1 Summary of Revenues and Expenses Under a Mid-Range Visitation Scenario Museum and Cultural Center at the Paul Revere Heritage Site C-2

Table C-2 Pros and Cons of the Museum and Cultural Center Use in the Rolling Mill and in the Barn C-3

Table C-3 Pros and Cons of the Restaurant Use in the Rolling Mill and in the Barn C-4

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LIST OF FIGURES

Figure Page

Figure II-1 Paul Revere Heritage Site – Regional Context II-2

Figure II-2 Town of Canton and Surrounding Towns II-3

Figure II-3 Town of Canton Regional Highway Context II-4

Figure II-4 Paul Revere Heritage Site – Town of Canton Suburban Context II-6

Figure II-5 Satellite View of Plymouth Rubber Site, Location of PRHS and Canton Center II-7

Figure II-6 Site Plan for the Plymouth Rubber Property II-9

Figure II-7 Site Plan for PRHS II-10

Figure II-8 First Floor Plan for the Barn at the Plymouth Rubber Development Property (aka Paul Revere Heritage Site) II-11

Figure II-9 Second Floor Plan for the Barn at the Plymouth Rubber Development Property (aka Paul Revere Heritage Site) II-12

Figure II-10 Basement Floor Plan for the Barn at the Plymouth Rubber Development Property (aka Paul Revere Heritage Site) II-13

Figure II-11 First Floor Plan for the Rolling Mill at the Plymouth Rubber Development Property (aka Paul Revere Heritage Site) II-14

Figure II-12 Second Floor Plan for the Rolling Mill at the Plymouth Rubber Development Property (aka Paul Revere Heritage Site) II-15

Figure III-1 Map of Resident Market Area – 10-, 20-, and 30-Minute Drive Times Paul Revere Heritage Site III-2

Figure III-2 Visitor Origin of Domestic Visitors to Boston, 2013 III-8

Figure III-3 Seasonality of Boston Hotel Occupancy January 2015 – October 2016 III-9

Figure III-4 Hotel Inventory, Canton Area III-12

Figure III-5 Restaurants in Canton III-21

Figure III-6 Restaurants in South Canton III-22

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LIST OF APPENDIX FIGURES

Figure Page

Figure A-1 American Museum of Tort Law Winsted, CT A-2

Figure A-2 Charles River Museum of Industry & Innovation Waltham, MA A-2

Figure A-3 Edison and Ford Winter Estates Fort Myers, FL A-3

Figure A-4 Eli Whitney Museum and Workshop Hamden, CT A-4

Figure A-5 Garst Museum and National Annie Oakley Center Greenville, OH A-4

Figure A-6 Highfield Hall & Gardens Falmouth, MA A-5

Figure A-7 Slater Mill Pawtucket, RI A-6

Figure A-8 Metropolitan Waterworks Museum Boston, MA A-8

Figure A-9 Metropolitan Waterworks Museum Interior Boston, MA A-9

Figure A-10 Dedham Historical Society Dedham, MA A-11

Figure A-11 Dedham Historical Society, Program Attendees Dedham, MA A-12

Figure A-12 Eleanor Cabot Bradley Estate – Front of House Canton, MA A-15

Figure A-13 Eleanor Cabot Bradley Estate – Wedding Canton, MA A-15

Figure A-14 Eleanor Cabot Bradley Estate – Interior Canton, MA A-16

Figure A-15 Park City Museum Park City, UT A-18

Figure A-16 Park City Museum – Skier Subway Theater Exhibit Park City, UT A-19

Figure A-17 Park City Museum – Mega Mine and Days of Ore Exhibits Park City, UT A-19

Figure A-18 Museum of Durham History – Exterior Durham, NC A-22

Figure A-19 Museum of Durham History – Visitors to Museum Durham, NC A-22

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EXECUTIVE SUMMARY

ConsultEcon, Inc. was retained by the Town of Canton to evaluate the feasibility of and prepare business and operating plans for the Paul Revere Heritage Site (PRHS). This report evaluates the project’s potential market support, the proposed programming, and financial analysis for the reuse and operation of existing buildings on PRHS as a museum and community art center and a destination restaurant. It also lays out options for governance and management structures and their implications for the operations of the Town, the proposed museum and community art center, and restaurant on the PRHS.

Location and Context The PRHS is in Canton, Massachusetts a suburb of Boston located in Norfolk County, about 20 miles south of Boston and 30 miles north of Providence, Rhode Island. Canton’s location is characterized in part by is highway accessibility as well as its being served by two train stations on the MBTA commuter rail’s Providence/Stoughton Line. PRHS is a segment of a larger project called the Plymouth Rubber Redevelopment. The Plymouth Rubber Redevelopment will include both new-build structures and existing structures that can be leveraged for the interpretation of the site’s history. The historic structures and public open space will make up the PRHS portion of the project. The site’s accessibility and unique existing structures are favorable for the proposed historic interpretation and programming.

Project Concept for PRHS Building Use The PRHS will be a heritage attraction, appealing to area residents as well as visitors to Canton, encompassing new public open space, a Town Green for large scale community events, an event lawn for smaller outdoor gatherings, and recreational and interpretive walking trails. The two historic buildings would be a locus of community, cultural and commercial activity onsite. The two uses of the onsite buildings are assumed to include a history themed destination restaurant in the Barn and a heritage museum and cultural center in the Rolling Mill. There is a total of 19,300 gross square feet of building area in the two buildings, and approximately 13,000 square feet of net leasable space. The most available space is in the Rolling Mill with over 8,200 net leasable space. The Barn contains 4,800 net leasable space. The courtyards adjacent to the buildings are assumed to be designed and operated to be advantageous to the both the museum and cultural center and the restaurant for cultural, community and private events, onsite catering, and seasonal alfresco dining.

Market Context The potential usage patterns for PRHS will depend on several market factors, including Resident Market population and demographics, tourist market behaviors, regional attractions, and other area facility needs.

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Resident Markets The Resident Market Area for PRHS has been defined in terms of drive time rings from the project’s site in Canton. These rings include the area within a 10-minute drive of the site, the area between a 10- and 20-minute drive from the site, and the area between a 20- and 30- minute drive from the site. This area within a 30-minute drive has a current population of about 1.0 million that is growing at a rate similar to that of the Commonwealth as a whole. The population is also on the older side, with a declining but still substantial population of school-aged children. The area profile suggests that there are many families in the area, and this area has a substantial portion of affluent households.

Tourist Markets In 2014, Massachusetts welcomed 25.0 million domestic visitors, 2.5 million overseas visitors, and 735,000 visitors from Canada. Norfolk County, where Canton is located, was the location of $1.1 billion in tourism spending in 2014, which represented 6.2 percent of tourism spending in the state. It is estimated that if spending is proportional to the number of visitors, there were approximately 1.76 million visitors to Norfolk County in 2014. Some of the tourists to the area, though, may be associated with business travel of some of the major corporations with offices in Canton and nearby municipalities, including MEDITECH, Computershare, and Dunkin’ Brands. Overall, large numbers of tourists to the area represent a market opportunity; however, because Canton is located outside the core urban tourist zone, it may be challenged in marketing to the main tourist segments in a very competitive tourism environment. The key segments of potential visitors to PRHS would be overnight leisure visitors to the region, especially those staying in hotels nearby, visitors staying with friends and relatives in the area, and visitors on organized tours.

Local Attractions and Regional Heritage There are myriad historical attractions in the greater Boston area, including several in Canton and neighboring towns. Because Paul Revere is a widely-known historic figure, this site may be included in the itineraries of some regional visitors. Unique programming and distinctive interpretation would be necessary to warrant visits by most heritage tourists who are focused on other areas. Paul Revere sites in Boston are mostly associated with the Freedom Trail and the Boston National Historical Park, including several attractions that are free to visit, such as the Granary Burying Ground. The Paul Revere House, a late-17th century house in the North End, is the oldest remaining structure in downtown Boston and the Freedom Trail’s only private residence, achieving about 300,000 visitors annually. The ticket price to the historic house museum is $5.00 and includes admission to the new Lathrop Place, which includes exhibits about Paul Revere’s “Midnight Ride” and early industrial history. Other historic sites from the early 19th century around the Boston Area are managed by individual organizations, such as local historical societies, the National Park Service, Historic New England, and the Trustees of Reservations. Admission to these museums and attractions ranges in price from free to $10.00. Most of these organizations serve a highly local audience and achieve only

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modest attendance annually, supplementing historical programming and interpretation with outdoor recreational activities and access to wooded hiking trails.

Alternative Commercial Use of PRHS Buildings In general, if the PRHS buildings were to be reused as 100 percent commercial space, for either office or restaurant use or some combination thereof, it would generate market rate rents for commercial space in the area. Restaurant and retail space in Canton Center typically achieves rents of between $20 and $25 per square foot and is well occupied. Area shopping centers can achieve over $30 per SF. Office space achieves similar rent levels as retail and restaurant, although there is more affordable spaces available in Class B and C office and commercial buildings. Assuming the PRHS buildings were to achieve an average of $20 rent per square foot of net leasable space, the total project would be expected to bring in $261,000 on an annual basis at 100 percent building occupancy. (It is assumed in this illustrative example that the commercial tenants would pay all the building’s operations and maintenance costs under a “triple net” or NNN lease. Actual occupancy may be lower than 100 percent. Including an allowance for 5 percent vacancy yields $247,950 in commercial rent annually.)

Visitation Potential The visitation potential of the proposed museum and cultural center at PRHS establishes the design, programming and operating parameters for the next phase of planning and development. The visitation potential analysis assumes that the museum and cultural center at PRHS will be aggressively marketed, competently operated, and will receive full community support in the public and private sectors. The stabilized annual visitation potential range for the project is estimated at 15,000 to 34,000, with a mid-range estimate rounded to 25,000 in a stable year of operation. Due to opening period excitement about a new visitor attraction, there will likely be a strong surge in visitation during the opening years, up to 15 percent or more. Visitation patterns at the site will be seasonal with peak visitation during summer months and following the school calendar. Under the mid-range visitation potential estimate, approximately 68 percent of visitation is estimated to be from the resident market and 32 percent from tourist market visitation. Residents, school and other tour groups will be an important audience in the non-peak periods and during shoulder seasons. Moreover, building resident market visitation, membership and volunteer activities will support visitation from visiting friends and relatives, who comprise a large proportion of the tourist market and are heavily influenced by resident recommendations of places to go.

Earned Revenue Potential The stable year earned revenue potential for the PRHS museum and cultural center is estimated at $394,000, under a mid-range visitation scenario and in 2017 dollars. Earned revenue is based on PRHS visitation potential, ticket pricing, retail, memberships and other revenue assumptions, including rental income from the restaurant, which assumed to be passed through the Town to the non-profit tenant in this operations analysis. The initial years of operation will benefit from higher visitation levels than is expected in the stable year. The

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actual dollar amounts for Year 1 and subsequent years will depend on future rates of inflation, project performance, and the number of years the project takes to develop before opening.

Staffing and Operating Expenses The staffing plan to operate PRHS includes 6.2 full time equivalent (FTE) positions. It is assumed that full and part time staff positions will be supplemented by hourly workers and volunteers who will have duties associated with education, collections care, special events, visitor services and other important functions. Personnel direct salary and fringe benefit costs are approximately 66 percent of total operating expenses, which is within the norms of the cultural industry.

Estimated operating expenses are $670,000 in a stable year of operations in current dollar value, under a mid-range visitation scenario. The expense factors used in this analysis conform to cultural industry norms for facilities of this size and scale. As design, program, leasing and business plans advance, operating expense estimates and factor assumptions will need to be re-evaluated and updated accordingly.

Non-Earned Revenue and the Need for Annual Public and Private Contributions PRHS has good capacity to generate earned revenue from a variety of sources, including admissions, retail, and facility rentals. At the same time, operating a complex and labor- intensive operation such as the PRHS museum and cultural center requires considerable operating expenses. As is typical of projects of this type, it is anticipated that the museum and cultural center will require substantial on-going annual non-earned or contributed revenue support for operations. Based on the earned revenue potential and operating expense estimates for the project, this analysis indicates the museum and cultural center will require $276,000 on an annual basis to sustain operations as earned revenues represent 59 percent of total needed revenues to support operations in a stable year. This ratio is also within museum industry norms.

Contributed revenues should be targeted at levels higher than contained herein, as these will allow more robust levels of service provision, will create revenues to cover any shortfalls in earned revenue that may occur in certain time periods, and could contribute to increasing the financial reserves and endowment. With the efforts of a well-established board of directors and advisors, an active development and fundraising program, this should be an attainable goal. Establishing an endowment before project opening will contribute to the long-term sustainability of the project.

Pre-Opening Operations This report evaluates the operating potential of the museum and cultural center at PRHS after project opening. In addition to funds for construction and development, the project’s museum operations will need to be ramped up over a period before occupancy. Before opening there will be operating costs such as program development, staff training, fundraising, marketing,

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cleaning, etc. The amount of these costs will depend on when various personnel are hired and how the pre-opening period is organized and implemented. These operations are typically capitalized as a part of the overall development plan. Detailed pre-opening costs are not included in this analysis which focuses on ongoing operations of the museum and cultural center at PRHS after project opening.

Recommendations and Next Steps Based on the findings of the feasibility, governance and operations analyses, the following are recommendations and next steps for the Town, its partners, and other project stakeholders to pursue. ♦ Town Governance and Operations – It is recommended that the Town of Canton explore more thoroughly the option to operate the museum and visitor center components of the project through existing Town operations in Parks and Recreation. If the Town is to operate PRHS through it Parks and Recreation Department, operating the museum too will create further operating efficiencies for the Town and streamline the visitor experience in both the museum and cultural center and throughout the site. Many municipalities across country, in the Commonwealth and in the Boston region operate historic sites and museums through their parks and recreation departments. Museums and community art centers provide important recreational and cultural services to support artistic expression and promote community quality of life that make communities distinctive. The Town should consider carefully its financial participation in a) the Barn and Rolling Mill “tenant” costs to complete interior construction and exhibits and b) support of the proposed museum and cultural center operations on an annual basis. The financial feasibility analysis already includes the assumption that the Town offers the museum and community arts space for an annual rent of $1. The Town could provide in addition, either through direct financial support or in- kind services, the building occupancy costs. Removing some or all the estimated $76,000 in occupancy costs for the museum and cultural center can potentially fill some of the $276,000 annual non-earned revenue requirement for breakeven museum and cultural center operations in a mid-range visitation scenario. ♦ Private Operating Partner - The Museum and Cultural Center is recommended to be operated in cooperation with a private partner in collections, interpretation and exhibits, the Canton Historical Society. Often municipally operated museums are supported by a private, non-profit, a “friends of the museum” group. “Friends” groups typically raise funds and coordinates volunteers and sometimes delivers educational programs and special events. Existing and other community groups have the potential to fill a supportive roll. ♦ Other Partners and Advisors – The Town needs to build relationships with private project partners to generate sufficient funds for implementation of a sustainable museum and cultural center. In addition to the operating partner, other potential promotional and programming partners and advisors could include the Paul Revere

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House, the Massachusetts Historical Society, the National Park Service, Greater Boston Convention and Visitors Bureau, the Trustees of the Reservations, and Museum of Bird Art at Mass Audubon in Canton, MA, among others that have yet to be determined. Defining further the community arts space and how that would be configured and operated will impact its ability to be used by Town Parks and Recreation and its partners. ♦ Develop Design Plan, Cost Estimates and Update Operating Plan for Public Components – The Town is recommended to advance integrated planning and design for the public site components. An integrated design team of site, building, interpretive planners, and exhibition designers need to be engaged to develop schematic plans, cost estimates, and construction documentation of the full project. This may include multi-media production companies and other specialized sub- consultants for creating the optimal visitor experience plan. As design plans change, the operating plan for the public components of the project must be updated to reflect physical changes and updated governance, management and operating assumptions based on public-private partnership between the Town and the private partners. Ideally, the Town would establish a relationship with a non-profit partner to help complete the fit out of the museum and cultural center. There are advantages to the Town identifying a private partner to complete the fit out of the proposed museum and cultural center. A non-profit partner will have access to different sources of capital and operating funds than the Town. With public and private partners the museum and cultural center will have access to the widest array of capital and operations funding sources than either would have on their own. In the cultural industry, capital sources are typically easier to obtain than operating funds from government and philanthropic sources. Contributed funds for operations are most often directed towards cultural programs and events rather than general operating support for administrative or occupancy costs. Therefore, the museum and cultural center will need to tailor its development and fundraising activities towards finding donors that will provide direct financial support of programs after project opening and for long-term operations. ♦ Commercial Components – The proposed restaurant onsite will be available for rent to generate revenue for the site and museum operations run by the Town. The Town needs to identify the tenants that will complete the design and interior construction and operate the proposed restaurant. It is not recommended that the Town complete the interior construction of the restaurant without operators in place. These commercial operations will be negotiated by the Town with a leaseholder that will generate additional private investment in tenant improvements to support sustainable operation and the community’s goals for historic preservation and themed historical experience to develop within a well- designed, constructed and operated restaurant. The restaurant would also be encouraged to offer catering for events at PRHS public buildings and open spaces. Developing a lease marketing strategy, plan and request for proposals (RFP) for the project are important next steps for the Town to take towards recruiting a

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commercial operator. For the restaurant, the Town should establish a roster of restaurant operators that may have the capacity to invest in a restaurant at the PRHS as well as understand the Town’s vision for the site. The Neponset Valley Chamber of Commerce and real estate brokers in the region are important promotional partners that may generate new business leads for restaurant location at PRHS. An RFP should be prepared to secure a tenant for the restaurant that will complete the fit out of the restaurant space and operate it. The proposals should include both design plans and financial plans for the restaurant.

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Section I INTRODUCTION AND ASSUMPTIONS

ConsultEcon, Inc. was retained by the Town of Canton to evaluate the feasibility and prepare business and operating plans for the Paul Revere Heritage Site (PRHS) in Canton, Massachusetts. This report evaluates the project’s market support, the proposed programming, and financial analysis for the reuse and operation of existing buildings at PRHS as a museum and cultural center and a destination restaurant.

Report Assumptions In preparing this report, the following assumptions were made. This study is qualified in its entirety by these assumptions. 1. The size and design of the Paul Revere Heritage Site development will be appropriate to its market potential, and will serve the community as a high-quality, stimulating educational attraction with broad-based audience appeal and a distinctive image. The proposed project will be a unique education and recreational resource for the area. 2. The Paul Revere Heritage Site under the Master Plan will be competently and effectively managed to provide outstanding guest experiences. Programming and admission prices will be consistent with the entertainment and educational value offered, and with other comparable institutions in the area. 3. There will be no physical constraints to impede visitors to the facility, such as major construction activity. Changes in economic and social conditions due to events including, but not limited to, major recessions, major environmental problems or disasters that would negatively affect operations and visitation may impact on the results of the findings in this study, including visitor projections. 4. Every reasonable effort has been made in order that the data contained in this study reflect the most accurate and timely information possible, and it is believed to be reliable. This study is based on estimates, assumptions and other information developed by ConsultEcon, Inc. from its independent research efforts, general knowledge of the industry, and consultations with the client. No responsibility is assumed for inaccuracies in reporting by the client, its agents and representatives, or any other data source used in the preparation of this study. No warranty or representation is made that any of the projected values or results contained in this study will actually be achieved. There will usually be differences between forecasted or projected results and actual results because events and circumstances

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usually do not occur as expected. Other factors not considered in the study may influence actual results. 5. Possession of this report does not carry with it the right of publication. This report will be presented to third parties in its entirety and no abstracting of the report will be made without first obtaining permission of ConsultEcon, Inc., which consent will not be unreasonably withheld. This report may not be used for any purpose other than that for which it was prepared. 6. Outputs of computer models used in this report are rounded. These outputs may therefore slightly affect totals and summaries. All amounts are expressed in current 2017 value of the dollar. 7. This report was prepared based on a study period from November 2016 through February 2017. It represents data available at that time.

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Section II PAUL REVERE HERITAGE LOCATION CONTEXT AND PROJECT OVERVIEW

This section summarizes the location context of the Paul Revere Heritage Site (PRHS) in Canton, Massachusetts.

Regional Context Canton is a suburb of Boston located in Norfolk County, about 20 miles south of Boston and 30 miles north of Providence, Rhode Island. Figure II-1 is a map showing the location of the site in its regional context.

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Figure II-1 Paul Revere Heritage Site – Regional Context

Source: Google Maps; ConsultEcon, Inc.

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Local Context Canton is bordered by the towns of Dedham, Milton, Norwood, Randolph, Sharon, Stoughton, Westwood and the Hyde Park neighborhood of the City of Boston. Figure II-2 is a map showing Canton and the site in relation to its surrounding towns.

Figure II-2 Town of Canton and Surrounding Towns

Source: ESRI; ConsultEcon, Inc.

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Highway Context Canton’s location is characterized in part by its excellent highway accessibility. Within the boundaries of the Town of Canton are portions of US Highway 1, Interstate 93, Interstate 95, Massachusetts Route 24, and Massachusetts Route 128. Importantly, this includes the interchange between Interstates 93 and 95, US Highway 1, and Massachusetts Route 128. Figure II-3 is a map showing the borders of the Town of Canton, as well as the highways passing through the town’s borders. Through Town, Route 138 and Washington Street are primary arterial streets.

Figure II-3 Town of Canton Regional Highway Context

Source: Google Maps; ConsultEcon, Inc.

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Public Transit In addition to being regionally accessible by highway, Canton is served by two train stations on the MBTA commuter rail’s Providence/Stoughton Line. These stations are Canton Junction and Canton Center. Trains departing from Boston’s South Station split at Canton Junction to reach either Providence or Stoughton. Trains run throughout the day, seven days per week. There are typically about 20 trains per day to Providence and 15 per day to Stoughton. During morning and evening rush hours, the frequency of service is 3-4 trains per hour through Canton Junction, with two going to each Providence and Stoughton. During non-peak periods, on weekends and middays midweek, the frequency of service is lower than during peak periods at about one train per hour to each Providence and Stoughton. Given the route of the train, the site would be accessible to visitors originating from both Boston and Providence. The Canton Center Station has 215 parking spaces, while the Canton Junction Station has 764 parking spaces. Both lots offer parking at a rate of $4.00. Figure II-4 shows a map of PRHS in relation to the MBTA Stations and the context of Canton Center.

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Figure II-4 Paul Revere Heritage Site – Town of Canton Suburban Context

Source: Google Maps; ConsultEcon, Inc.

Nearby Context PRHS is proximate to Canton’s historic downtown center, which contains a mix of civic and commercial uses. It is contained within the redevelopment of the Plymouth Rubber factory. Figure II-5 is a satellite view of Canton Center and an outline of the Plymouth Rubber Factory property. PRHS is approximately 40 acres with 9 to 10 acres of public spaces and conveniently located near downtown businesses, visitor services, public amenities and Town facilities, such as Town Hall and the Canton Public Library.

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Figure II-5 Satellite View of Plymouth Rubber Site, Location of PRHS and Canton Center

Note: Yellow outline shows approximate boundaries of Plymouth Rubber property. Source: Google Maps 2016; ConsultEcon, Inc.

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Plymouth Rubber Redevelopment Site Plans PRHS is a segment of a larger project called the Plymouth Rubber Redevelopment. The Plymouth Rubber Redevelopment will encompass PRHS, with adaptive use of two historic buildings onsite and new residential construction, including 272 new housing units. The distribution of the housing units by type of unit is shown by data in Table II-1. It should be noted that this is the maximum bedroom count and the actual bedroom counts may vary based on the site plans and market conditions.

Table II-1 Proposed Housing Profile - Maximum Bedroom Count Plymouth Rubber Redevelopment

Units For Sale Flat Garden Style Units One Bedroom 34 Two Bedroom 152 Total 186

Age Restricted Apartments One Bedroom 6 Two Bedroom 54 Total 60

Town Houses Two Bedroom 16 Three Bedroom 10 Total 26

Grand Total 272

Source: Canton Holdings, LLC and Town of Canton, MA.

Site and Building Plans The historic buildings—the rolling mill and the barn—will be leveraged for the interpretation of the site’s history as part of PRHS. These historic structures and related open space will be owned by the Town of Canton and comprise the PRHS portion of the Plymouth Rubber

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Redevelopment. Figure II-6 is the proposed Plymouth Rubber Redevelopment site plan from the development agreement. Figure II-6 Site Plan for the Plymouth Rubber Property

Source: VHB.

PRHS Site Plan Figure II-7 is the PRHS site plan that is currently under construction.

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Figure II-7 Site Plan for PRHS

Source: Jones Leblanc Landscape Architects.

Building Plans The developer of the Plymouth Rubber site will be delivering to the Town complete buildings, with mechanical HVAC installed, utilities hooked up and plumbed with bathrooms, elevators and stairways. Figure II-8 through Figure II-10 show proposed building plans for the existing barn. Figure II-11 and II-12 are building plans for the rolling mill. It is anticipated that the Town will work with the future tenants to complete fit out and furnishing of buildings.

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Figure II-8 First Floor Plan for the Barn at the Plymouth Rubber Development Property (aka Paul Revere Heritage Site)

Source: VHB.

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Figure II-9 Second Floor Plan for the Barn at the Plymouth Rubber Development Property (aka Paul Revere Heritage Site)

Source: VHB.

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Figure II-10 Basement Floor Plan for the Barn at the Plymouth Rubber Development Property (aka Paul Revere Heritage Site)

Source: VHB.

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Figure II-11 First Floor Plan for the Rolling Mill at the Plymouth Rubber Development Property (aka Paul Revere Heritage Site)

Source: VHB.

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Figure II-12 Second Floor Plan for the Rolling Mill at the Plymouth Rubber Development Property (aka Paul Revere Heritage Site)

Source: VHB.

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PRHS Concept PRHS, as proposed, will be a heritage attraction, appealing to area residents as well as visitors to Canton, encompassing new public open space, a Town Green for large scale community events and an event lawn for smaller outdoor gatherings, recreational and interpretive walking trails. The two buildings onsite would be a locus of community, cultural and commercial activity onsite. For the purposes of this analysis, the two uses of the buildings onsite are assumed to include a destination restaurant in the Barn and a museum and cultural center in the Rolling Mill. Data in Table II-2 show the amount of gross building area and net leasable space in the buildings. Net leasable area includes reductions to gross area for wall widths, vertical circulation, entry foyers and restrooms on building plans for the Rolling Mill and the Barn. The percentage of gross floor area that is assumed to be leasable, based on ConsultEcon measurements of the building plans. The courtyards adjacent to the buildings are assumed to be designed and operated to be advantageous to the both the museum and cultural center and the restaurant for cultural, community and private events, onsite catering, and seasonal alfresco dining.

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Table II-2 Illustrative Pre-Design Program of Spaces for the Barn and the Rolling Mill Paul Revere Heritage Site Subject to Further Refinement - For Illustrative Purposes Only

Area in Square Feet Estimated Estimated Gross % Net Net Program Spaces Area 1/ Leasable 2/ Leasable

Rolling Mill (Museum and Cultural Center) First Floor 6,347 84.8% 5,383 Second Floor 6,347 45.1% 2,862 Total 12,694 65.0% 8,245 Barn (Restaurant) First Level 2,197 68.8% 1,511 Second Level 2,221 68.7% 1,526 Third Level 2,221 79.2% 1,758 Total 6,639 72.2% 4,796 Grand Total 19,333 67.5% 13,041 in 2 buildings

Low Range High Range Distribution of Parking Restaurant Spaces 33 50 Museum Spaces 27 31 Total Parking Spaces 60 81

1/ Gross area is measured to the perimeter of the exterior walls. 2/ The percentage of gross floor area that is assumed to be leasable, based on ConusultEcon measurements of the building plans. Net leasable area includes reductions to gross area for wall widths, vertical circulation, entry foyers and restrooms on building plans for the Rolling Mill and the Barn. Source: Exhibits U and V of Plymouth Rubber Site Development Agreement; ConsultEcon, Inc.

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Location Context and Project Overview Summary PRHS is located in Canton, a suburb of Boston in Norfolk County, about 20 miles south of Boston and 30 miles north of Providence, Rhode Island. Canton’s location is characterized in part by is highway accessibility as well as its being served by two train stations on the MBTA commuter rail’s Providence/Stoughton Line. PRHS is a segment of a larger project called the Plymouth Rubber Redevelopment. The Plymouth Rubber Redevelopment will include both new-build structures and existing structures that can be leveraged for the interpretation of the historical significance of the site. The historic structures and public open space will make up the PRHS portion of the project. The accessibility and unique existing structures make the location are favorable with regard to potential historic interpretation and programming.

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Section III MARKET CONTEXT

The following section summarizes the market context for the Paul Revere Heritage Site (PRHS). The market segments include both residents of the area and visitors to Canton or other towns south of Boston. This section also includes an overview of relevant regional and comparable attractions that may inform the competitive context for the proposed interpretive elements at PRHS.

Resident Market The Resident Market Area for PRHS has been defined in terms of drive time rings from the project’s site in Canton. These rings include the area within a 10-minute drive of the site, the area between a 10- and 20-minute drive from the site, and the area between a 20- and 30- minute drive from the site. This area has been compared to the populations of Canton, Norfolk County, the Boston Metropolitan Statistical Area (MSA), the Boston Designated Market Area (DMA), the Commonwealth of Massachusetts, and the United States as a whole. Figure III-1 is a map showing the extent of the Resident Market Area.

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Figure III-1 Map of Resident Market Area – 10-, 20-, and 30-Minute Drive Times Paul Revere Heritage Site

Source: ESRI; ConsultEcon, Inc.

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Population Data in Table III-1 show the population trend for the Resident Market Area for the years 2010, 2016 and 2021. The data show that the population of Canton and the area around PRHS is growing at a rate similar to that of the Commonwealth as a whole.

Table III-1 Population Trend in Resident Market Area – 2010, 2016, 2021 Paul Revere Heritage Site

% Change % Change 2010 2016 2021 2010-2016 2016-2021 0-10 Minute Drive 47,384 49,129 50,768 3.7% 3.3% 10-20 Minute Drive 224,800 233,083 240,820 3.7% 3.3% 20-30 Minute Drive 706,627 732,470 757,355 3.7% 3.4% Total 0-30 Minute Drive 978,811 1,014,682 1,048,943 3.7% 3.4%

Town of Canton 21,561 22,774 23,788 5.6% 4.5% Norfolk County 670,850 693,976 715,313 3.4% 3.1% Boston MSA 4,552,402 4,739,348 4,929,486 4.1% 4.0% Boston DMA 6,322,433 6,570,080 6,813,644 3.9% 3.7% Commonwealth of Massachusetts 6,547,629 6,780,933 7,009,033 3.6% 3.4% United States 308,745,538 323,580,626 337,326,118 4.8% 4.2%

Source: U.S. Census Bureau 2010 Census; ESRI Population Projections, 2016-2021; ConsultEcon, Inc.

Age Profile Data in Table III-2 summarize the age profile for the Resident Market Area in the year 2016. The data show that, with a median age of 43.4, the population of Canton is moderately older than the population of the Commonwealth as a whole with a median age of 39.8.

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Table III-2 Age Profile in Resident Market Area – 2016 Paul Revere Heritage Site

Median Age 0-17 18-24 25-34 35-54 55-64 65+ 0-10 Minute Drive NC 21.0% 7.7% 10.6% 27.2% 14.4% 19.1% 10-20 Minute Drive NC 21.9% 8.8% 11.0% 27.1% 14.1% 17.1% 20-30 Minute Drive NC 22.4% 8.9% 12.4% 27.5% 13.5% 15.3% Total 0-30 Minute Drive NC 22.2% 8.8% 12.0% 27.4% 13.7% 15.9%

Town of Canton 43.4 21.7% 7.8% 10.4% 27.2% 14.2% 18.6% Norfolk County 41.5 21.6% 8.5% 12.0% 27.5% 13.9% 16.5% Boston MSA 39.2 20.9% 10.0% 13.9% 26.8% 13.2% 15.2% Boston DMA 40.0 20.9% 9.8% 13.3% 26.8% 13.6% 15.7%

Commonwealth of Massachusetts 39.8 20.9% 10.1% 13.3% 26.5% 13.5% 15.9% United States 38.0 22.9% 9.7% 13.6% 25.9% 12.8% 15.0%

Source: U.S. Census Bureau 2010 Census; ESRI Population Projections, 2016-2021; ConsultEcon, Inc.

Data in Table III-3 summarize the population of school age children (ages 5 to 17) in the Resident Market Area in 2016. The data show that there are an estimated 170,000 school age children residing within a 30-minute drive of PRHS, a number that is projected to decline nearly 4 percent by 2021 – but is still above the percentage of school age children for the Commonwealth as a whole.

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Table III-3 School Age Children in Resident Market Area – 2016 Paul Revere Heritage Site

% Change 2016- 2016 2021 2021 0-10 Minute Drive 7,831 7,478 -4.5% 10-20 Minute Drive 39,020 36,906 -5.4% 20-30 Minute Drive 122,815 118,957 -3.1% Total 0-30 Minute Drive 169,666 163,341 -3.7%

Town of Canton 3,795 3,613 -4.8% Norfolk County 114,378 108,366 -5.3% Boston MSA 745,185 724,345 -2.8% Boston DMA 1,031,776 1,003,579 -2.7%

Commonwealth of Massachusetts 1,062,945 1,032,877 -2.8% United States 54,101,834 54,840,778 1.4%

Source: U.S. Census Bureau 2010 Census; ESRI Population Projections, 2016-2021; ConsultEcon, Inc.

Household Profile Data in Table III-4 summarize the household profile in the Resident Market Area in 2016. The data show that there are a larger proportion of families in Canton and in close-in drive time areas compared to in the Boston MSA and Commonwealth as a whole.

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Table III-4 Household Profile in Resident Market Area – 2016 Paul Revere Heritage Site

Percent Families to Number of Number of Total Average Households Families Households Household Size 0-10 Minute Drive 19,524 13,019 66.7% NC 10-20 Minute Drive 87,281 59,357 68.0% NC 20-30 Minute Drive 274,628 179,406 65.3% NC Total 0-30 Minute Drive 381,433 251,782 66.0% NC

Town of Canton 8,772 5,969 68.0% 2.56 Norfolk County 264,977 172,856 65.2% 2.55 Boston MSA 1,825,779 1,137,380 62.3% 2.51 Boston DMA 2,546,954 1,663,189 65.3% 2.49

Commonwealth of Massachusetts 2,625,978 1,646,226 62.7% 2.49 United States 121,786,233 80,307,260 65.9% 2.59

Source: U.S. Census Bureau 2010 Census; ESRI Population Projections, 2016-2021; ConsultEcon, Inc.

Income Profile Data in Table III-5 summarize the income profile in the Resident Market area in 2016. The data show that, based on Median Household Income, Canton is more affluent than many other areas of the Boston MSA and Commonwealth. Nearly 50 percent of Canton households earn over $100,000 annually.

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Table III-5 Income Profile in Resident Market Area – 2016 Paul Revere Heritage Site

Median Household Less than $25,000 to $50,000 to $75,000 to Income $25,000 $49,999 $74,999 $99,999 $100,000 + 0-10 Minute Drive NC 13.8% 15.2% 14.8% 13.0% 43.2% 10-20 Minute Drive NC 13.5% 15.6% 14.2% 12.3% 44.4% 20-30 Minute Drive NC 16.8% 18.0% 15.2% 12.0% 38.0% Total 0-30 Minute Drive NC 15.9% 17.3% 15.0% 12.1% 39.8%

Town of Canton $96,698 11.6% 12.8% 13.0% 14.0% 48.5% Norfolk County $90,903 12.9% 14.7% 13.9% 12.2% 46.3% Boston MSA $76,809 16.9% 17.1% 14.8% 12.4% 38.8% Boston DMA $73,425 17.0% 18.1% 15.5% 12.7% 36.6%

Commonwealth of Massachusetts $69,456 18.9% 18.4% 15.3% 12.4% 35.1% United States $54,149 22.6% 23.4% 17.7% 12.3% 24.1% Source: U.S. Census Bureau 2010 Census; ESRI Population Projections, 2016-2021; ConsultEcon, Inc.

Tourist Market The following section summarizes the tourist market context of the PRHS in Canton, Massachusetts. The tourist market segments for the Greater Boston area include: ♦ Overnight destination visitors to Boston, and the surrounding area. . Visitors staying in area hotels, motels and other paid lodging. . Visitors staying with friends and relatives (VFRs) in private homes. ♦ Day trip and pass through tourists, including . Massachusetts residents from outside the defined Resident Market Area

Tourism is an important part of the economy in the Greater Boston Area and has substantial economic impact in the area and for the State. Information presented in this section is based on data collected from the Greater Boston Convention and Visitors Bureau and the Massachusetts Office of Travel and Tourism.

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Tourism to Massachusetts Tourism is a major part of the Massachusetts economy, due in part to the history and popularity of Boston and its surrounding area as a destination. During the 2014 Calendar Year there were an estimated 25.0 million domestic visitors to the Commonwealth of Massachusetts, 2.5 million overseas visitors and 735,000 visitors from Canada for a total of 28.2 million visitors. This indicates that international visitors make up just over 10 percent of total visitation to the Commonwealth. Domestic and international travelers in Massachusetts directly spent $19.5 billion on transportation, lodging, food, entertainment and recreation, and retail shopping in 2014, generating $1.2 billion in state and local taxes, and supporting 132,000 jobs. .

Domestic Visitor Profile The majority of domestic visitors to Boston originate in New England and the Mid-Atlantic Region of the United States. Figure III-2 summarizes the origins of domestic visitors to Boston in 2013.

Figure III-2 Visitor Origin of Domestic Visitors to Boston, 2013

Source: Greater Boston Area Convention and Visitors Bureau; ConsultEcon, Inc.

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Overseas Visitors Overseas visitors are also from a great variety of origins with the United Kingdom representing the largest source of international visitors, followed by China and Germany.

Seasonality of Visitation Data in Figure III-3 show the seasonality of hotel occupancy in the Greater Boston Area for the 2013 and 2014 Calendar Years. The data show that there is some seasonality to hotel stays in Boston, with the peak occupancy of over 90 percent occurring during the summer months of June, July, and August, and lower occupancy around 60 percent occurring in the winter months of December, January, and February.

Figure III-3 Seasonality of Boston Hotel Occupancy January 2015 – October 2016

Source: Greater Boston Convention and Visitors Bureau; Pinnacle Advisory Group

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Tourism in Canton and Norfolk County Norfolk County is included in the Greater Boston Tourism Region. Canton and surrounding communities are home to several large corporations that may draw business travelers, including Computershare (EquiServe), MEDITECH, and Dunkin’ Brands, Inc. Reebok is currently located in Canton, but announced in November 2016 that it plans to move its corporate headquarters to South Boston’s Seaport District.

Tourists in Norfolk County spent $1.1 billion in 2014, representing 6.2 percent of tourist spending in the state. Assuming the number of visitors in Norfolk County is proportional to the tourist spending, there would be approximately 1.76 million visitors to Norfolk County.

Hotel Inventory in Canton Area An inventory of hotels in the Canton area was conducted to evaluate the capacity for tourism in the area. Data in Table III-6 summarize the names, locations and number of rooms in local area hotels. Figure III-4 is a map showing the locations of the area hotels. There were 16 hotels counted in the area, representing a total of 1,892 rooms. Most of these hotels were located in the business districts of Dedham and Norwood along Route 1 and Interstate 95. Many of these hotels have facilities for meetings, conferences, and events, strategically located by many of the office parks and industrial complexes of the area. Assuming a relatively conservative 65 percent occupancy rate and 1.5 persons per room staying an average of 1.5 nights, there would be approximately 450,000 overnight guests in hotels in the area annually. It should be noted that the occupancy of these facilities is dominated by business travelers, attendees of social events and through travelers. In addition, two hotels with a total of 238 rooms that are proposed to be developed near the Homewood Suites on Route 138 would add another 50,000 overnight guests annually.

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Table III-6 Hotel Inventory, Canton Area

Number of Name of Hotel Location Rooms Hilton Boston/Dedham 25 Allied Dr, Dedham, MA 02026 247 Holiday Inn Boston - Dedham Hotel & Conference Center 55 Ariadne Rd, Dedham, MA 02026 200 Comfort Inn Randolph-Boston 1374 N Main St, Randolph, MA 02368 158 Hampton Inn Boston - Norwood 434 Providence Hwy, Norwood, MA 02062 155 Courtyard by Marriott Boston Stoughton 200 Technology Center Dr, Stoughton, MA 02072 152 Fairfield Inn by Marriott Boston/Dedham 235 Elm St, Dedham, MA 02026 150 Courtyard Boston Norwood/Canton 300 River Ridge Dr, Norwood, MA 02062 148 Four Points by Sheraton - Norwood 1125 Boston-Providence Turnpike, Norwood, MA 02062 123 Homewood Suites by Hilton 50 Royall St, Canton, MA 02021 98 Residence Inn Boston Norwood/Canton 275 Norwood Park S, Norwood, MA 02062 96 Best Western Plus the Inn at Sharon / Foxborough 395 Old Post Rd, Sharon, MA 02067 96 Holiday Inn Express & Suites Norwood-Boston Area 225 Norwood Park S, Norwood, MA 02062 85 Residence Inn Boston Dedham 259 Elm St, Dedham, MA 02026 81 Econo Lodge 775 Providence Hwy, Sharon, MA 02067 53 Budget Inn Westood 71 Providence Hwy, Westwood, MA 02090 26 Walpole Motel 2200 Providence Hwy, Walpole, MA 02081 24

Source: Google Maps; Trip Advisor; ConsultEcon, Inc.

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Figure III-4 Hotel Inventory, Canton Area

Note: Purple Star shows location of the Paul Revere Heritage Site Source: BatchGeo; ConsultEcon, Inc.

Competitive Attractions The Boston Area has a number of history and heritage attractions that may be competitive with or complementary to the PRHS, including regional historical parks interpreting Revolutionary history, Paul Revere specific sites, and small historical organizations in the area around Canton, Massachusetts. This section provides an overview of these types of local and competitive attractions for PRHS in Canton. These local attractions provide some operating

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insight to the future PRHS. Additional case studies of attractions that may be considered comparable are included in Appendix A.

Regional Historical Attractions Massachusetts and the Greater Boston Area have an abundance of history and heritage attractions relating to the history of the United States as a whole, particularly Revolutionary history, because of Boston’s status as one of the first colonies. Many of these historical attractions are managed by larger organizations, such as the National Park Service, the Freedom Trail, and the Massachusetts Historical Society.

National Park Service The National Park Service (NPS), a program within the Federal Department of the Interior, manages a number of historic sites within parks in Massachusetts and New England as a whole. Data in Table III-7 list the historic parks managed by NPS in the Boston Area and their 2015 attendance by recreational visitors.

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Table III-7 Massachusetts NPS Historical Sites

2015 Recreational Name of Park Location Attendance Boston National Historical Park Boston 2,262,841 Minute Man National Historical Park Concord, Lincoln, and 964,330 Lexington Lowell National Historical Park Lowell 531,055 Boston African American National Historic Site Boston 412,377 Salem Maritime National Historic Site Salem 264,780 Adams National Historical Park Quincy 183,632 New Bedford Whaling National Historical Park New Bedford 167,790 Longfellow House Washington’s Headquarters Cambridge 50,784 National Historic Site Springfield Armory National Historic Site Springfield 21,825 John Fitzgerald Kennedy National Historic Site Brookline 18,485 Frederick Law Olmstead National Historic Site Brookline 9,473 Saugus Iron Works National Historic Site Saugus 9,327 Blackstone River Valley National Historical Park South-Central MA N/A and RI Essex National Heritage Area Essex County N/A

Source: National Park Service; ConsultEcon, Inc.

One of the most highly-visited parks, the Boston National Historical Park, features historic sites that are thematically related to the idea of Freedom in different eras of Boston’s History. Some of these sites include visitor centers at the Bunker Hill Monument, Faneuil Hall, and the Charlestown Navy Yard. Other sites are identified as “partner sites” and are operated separately, including the Old State House, Old North Church, and the Paul Revere House (all of which are on the Freedom Trail).

Overall, Boston-area NPS sites tend to be historical in nature and through the well-recognized national brand of the NPS provide an accessibility that individual historic sites do not typically have.

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The Freedom Trail The Freedom Trail is an interpretive approach, way-finding guide, and interpretive trail that was first implemented in 1958 to guide visitors to 16 of Boston’s most important historic sites. Each site has its own governing authority, patterns of visitation, and general admission charges. The Freedom Trail Foundation was formed in 1964 to serve as steward for the trail itself, though not the sites that the trail links together. Many trail sites are marketed cooperatively with the Boston National Historical Park.

Historic New England Historic New England was founded in 1910 to preserve and present the cultural and architectural heritage of New England, from small artifacts to historic homes. The historic properties in the organization’s collection include both stand-alone homes and larger properties. Twenty-one of the organization’s thirty-six properties are located in Massachusetts. Sites are interpreted through storytelling, interpretive programs, courses and workshops, craft and food festivals, concerts, and private function rentals.

The Trustees of Reservations The Trustees of Reservations is an organization that was established in 1891 to preserve natural and historic places in the Commonwealth of Massachusetts. The organization has 100,000 dues-paying members, and owns the title to 117 properties and over 25,000 acres open to the public. The properties include trails, historic homes, gardens, farms and lighthouses and are organized regionally and by activity type. Interpretive programs highlight the natural resources available within Massachusetts, as well as community building, conservation, and sustainability.

Paul Revere History Paul Revere is a well-recognized historic figure, most notable for Henry Wadsworth Longfellow’s dramatized poem about Revere’s midnight ride. In addition to his patriotic ride,

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Revere was a silversmith, engraver, and early industrialist. There are a number of sites in and around Boston that interpret his legacy.

Paul Revere House The Paul Revere House in Boston’s North End is an historic house museum located on the Freedom Trail. Built in the late 17th century, the house is the oldest remaining structure in downtown Boston and the Freedom Trail’s only private residence. Operated by the Paul Revere Memorial Association, a private nonprofit, the house museum features interpretation not only about Paul Revere’s domestic life, but also about his involvement in industrial history, his famed “midnight ride,” and about the history of the house and neighborhood since Revere’s residence there, especially as a boarding house and home to immigrants during the early 20th Century. The museum is open from 9:30 AM to 5:15 PM during the summer, and to 4:15 PM during the winter. Admission is $5.00 for adults, $4.50 for seniors and students, and $1.00 for children ages 5-17. The museum welcomed a record 300,000 visitors in 2016.

In purchasing the adjacent Lathrop Place in 2007, the Paul Revere Memorial Association underwent a 9-year master planning process, capital campaign, and campus expansion. The renovated new facility, opened in December of 2016, now provides the organization and visitors with additional gallery space, a full gift shop (previously, the house had very limited inventory sold from the ticket booth), and meeting rooms for events and programs. Since the expansion, the museum has seen stable attendance compared to the same period last year, despite raising its ticket price from $3.50 to $5.00. The new gallery space provides an opportunity for the organization to designate space for interpretation of Paul Revere’s greater history (specifically, “the ride” and his industrial history), outside of the historic home. The additional space has allowed the organization to host new programming and events, for instance, workshops with local craftsmen to showcase their craft, such as basket-weaving. Following a recent basket-weaving program, the museum was able to hold several of the weaver’s baskets on consignment in the new gift shop, which brought additional revenue to the organization, as well.

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Granary Burying Ground Located adjacent to the Park Street Church on the Freedom Trail, the burying ground is the final resting place of Benjamin Franklin’s parents, John Hancock, and Paul Revere, among other notable Bostonians. Maintained by the City of Boston, it is open to the public from 9:00 AM to 5:00 PM.

Old North Church First opened in 1723, Christ Church in the City of Boston is best known for its 191-foot steeple and its role in the midnight ride of Paul Revere. The church is still home to an active Episcopal parish, though its campus also features an historic chocolate and print shops, showing the methods of chocolate- and print-making from the 18th century. Admission to the church is free, though a $3.00 donation is suggested, plus$1.00 per additional family member. The campus is open variably from 9:00 AM to 6:00 PM, depending on the season. The Church also offers “Behind the Scenes” tours. Tour Prices are $6.00 for general admission, $5.00 for students, seniors, and military, and $4.00 for children under 12. Tour hours vary depending on the season, but are typically hourly between 10 am and 4 pm.

Site of the Boston Massacre Among the sites in Boston related to Paul Revere, this is among the less-well-known. As a silversmith and printmaker, Revere is known for his depiction of the Boston Massacre and other important events; by his engravings, he helped to incite anger against the British control over the colonies.

Paul Revere Monument This monument, located on the Freedom Trail (though not an official site), between the Paul Revere House and the Old North Church, was sculpted by Cyrus Edwin Dallin and installed at this site in September of 1940.

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Minuteman National Historical Park The Minute Man Visitor Center in Lincoln, MA is located near the eastern entrance to the National Historical Park. “The Road to Revolution” is a multimedia theater program that plays in the visitor center, depicting Paul Revere’s ride before the battle, and the battle itself.

Local Area Attractions and Sites As the whole Boston area is historic in nature, so, too, is Canton and the surrounding towns. The following are historic attractions and organizations in Canton and the surrounding towns of Dedham, Easton, Milton, Norwood, Randolph, Sharon, Stoughton, Walpole, and Westwood. ♦ The Canton Historical Society, Canton – This organization maintains a facility that is open the second Sunday of every month, as well as a rotating exhibit at the Canton Public Library. The organization keeps collections of historic documents and objects, preserving a number of historic firsts and events that occurred in Canton. ♦ Eleanor Cabot Bradley Estate, Canton – This 90-acre estate is preserved by the Trustees of Reservations, featuring a large historic manor from 1902, elegant gardens, carriage rides, and walking trails. Admission is free. There are regular tours for a fee of both the house and gardens. ♦ Historic Prowse Farm, Canton – An historic farm located on a 44-acre property, featuring a 5/8-mile oval equestrian track and historic home suitable for event rentals from weddings to music festivals. ♦ Dedham Historical Society, Dedham – Founded in 1859, this organization maintains a museum and a library to interpret the history of the original “Dedham Grant,” which included a number of towns to Boston’s southwest. The Museum is open Tuesday to Friday from 12:00 PM to 4:00 PM, admission is $2.00. ♦ Fairbanks House, Dedham – Thought to be the oldest-standing timber frame building in North America, the house of Jonathan and Grace Fairebanke was built between 1637 and 1641. The historic house is now open May 1 through October 31 for tours Tuesday through Saturday from 9:00 AM to 3:00 PM, and Sundays 1:00 to 4:00 PM. Admission is $12.00 for adults and $6.00 for children. ♦ Governor Oliver Ames Estate, Easton – This historic 36-acre estate is managed by the Trustees of Reservations, featuring property formerly owned by Governor Oliver Ames. The legacy of the Ames family is evident around Easton, including several examples of Henry Hobson Richardson architecture, as well as the shovel factory, which has been adaptively reused as office space and apartments. The estate grounds managed by the Trustees does not cover all of the former grounds, so some areas are private property and not accessible to the public.

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♦ Forbes House Museum, Milton – Located atop Milton Hill with a view of Boston’s skyline, this historic house, built in 1833, was the home to the Forbes family, known for their entrepreneurial endeavors and trade business. Among the artifacts includes a large collection of Chinese trade items. Tours are typically 1.5 hours and cost $10.00 for adults and $8.00 for seniors and students. The museum is undergoing preservation work in 2016-2017, so opening hours are by request and tours have been suspended. ♦ The F. Holland Day House & Norwood History Museum, Norwood – Built in 1859, the F. Holland Day house is the headquarters for the Norwood Historical Society and is open for tours on Sundays from April through July. ♦ Walpole Historical Society, Walpole – This organization organizes events around Walpole and Massachusetts history. The organization also maintains the Deacon Willard Lewis House, built in 1827. Volunteers staff the house and offer assistance with archival collections to visitors.

In addition to history organizations and attractions, there are a number of other attractions and museums related to art, nature, and other topics:

♦ The Milton Art Museum, Canton – The art collection of Massasoit Community College is maintained at this museum. The museum hosts both Asian and Western collections, as well as some modern art prints. The museum is open six days a week and admission is free. The museum achieves attendance of about 10,000 annually. ♦ The Museum of American Bird Art at Mass Audubon, Canton – Located on a 121- acre wildlife sanctuary, this museum features a collection focused on American birds, including fine art, illustration, impressionism, folk art, and pop art. Admission is $4.00 for adults, $3.00 for children and seniors, and free for members. The museum is open Tuesday through Sunday from 1:00 PM to 5:00 PM. ♦ Irish Cultural Centre of New England, Canton – An organization with the mission of promoting and organizing Irish cultural, educational, sporting, and social events for the New England community. Events and programs include the annual Irish festival, Irish dancing lessons, Gaelic language lessons, and a pub open weekly for food, drink, and live Irish music. The organization also maintains a library and archives for local Irish history and genealogical studies. ♦ Pequitside Farm, Canton – A 33-acre facility owned by the Town of Canton and managed by the Canton Conservation Commission. The property is comprised of open lawns and shaded meadows bordering a large Colonial Era Main House. The first floor of the main house is available for function rentals for a wide variety of formal and informal functions such as bridal and baby showers, wedding receptions, business meetings, school or family reunions, holiday parties and picnics. Functions in the main house are limited to 65 occupants. Larger events, such as

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weddings, are possible outside. Tents up to 40' by 60’ can be located on the side lawn. The serving of liquor is allowable upon request. Other Facility uses and amenities: Playground, Picnic area, Recreation Fields, Vegetable Garden Plots, and Walking Trails ♦ Blue Hills Trailside Museum, Milton – This museum, operated by Mass Audubon, is an interpretive center featuring natural history and outdoor live animal exhibits. The museum is open year-round, with limited hours in the winter. Admission is $5.00 for adults, $4.00 for seniors, and $3.00 for children 2-12. ♦ Moose Hill Farm, Sharon – This property is preserved by the Trustees of Reservations as an historic farm and network of trails. Admission is $4.00 for adults and free for children 12 and under.

Alternative Use In addition to the potential for historical interpretation at PRHS, other alternative uses are being considered for the adaptively reused space. Some of the alternative uses under consideration in addition to restaurant are retail space, office space, and event rental facilities.

Retail and Restaurant Use Rents in Canton range from $15 to $35 per square foot for retail or restaurant space, based on information provided by commercial property owners, listings of available space, and real estate brokers. The highest rent for small spaces are located in shopping centers. Canton Center rents range from about $20 to $25 per square foot for small spaces in the 1,000 to 2,000-square foot range. There is a limited amount of vacant space available in Canton Center, which may be indicative of a healthy demand for space in the area.

There are an estimated 58 restaurants in Canton, of which 37 are full-service restaurants. Many of the restaurants are small operations; only ten of the restaurants have 10 employees or more. Most of these restaurants are located on the primary roads through the town, Route 138, Washington Street, and Neponset Street. Figure III-5 is a map showing the distribution and concentration of food service establishments in Canton. Figure III-6 is a detailed map of the area around PRHS, denoted by the red star, and Canton Center, where many of the restaurants in the town are located.

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Figure III-5 Restaurants in Canton

Note: Numbers indicate number of restaurants near the Blue Point. No numbers means only one restaurant is associated with that point. Source: ESRI; ConsultEcon, Inc.

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Figure III-6 Restaurants in South Canton

Note: Red Star is the location of PRHS. Numbers indicate number of restaurants near the Blue Point. No numbers means only one restaurant is associated with that point. Source: ESRI; ConsultEcon, Inc.

Office Space Office space has varying prices for different suburban areas of Boston. Metro South, the region in which Canton is located, has asking rents that average $19.00 per square foot. The occupancy in the Metro South region is about 80 percent. Based on information provided by commercial property owners, listings of available space, and real estate brokers, asking rents for office space in Canton range between $8.00 and $20.00 per square foot, depending the class and size of space leased.

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Event Facilities Based on an inventory of event facilities, there are 52 event facilities in Canton and adjacent towns. There are also several town-owned facilities that are not included in the inventory, including the Public Library and Pequitside Farm. The fees for these facilities vary considerably, ranging from just $50 to $100 for meeting spaces to $3,000 to $5,000 for wedding venues.

There are a wide variety of types of facilities, including many associated with hotels; restaurants that book parties, either in dedicated event spaces or in their regular dining rooms; specialized facilities, like movie theaters and museums; and dedicated event venues and banquet facilities. Data in Table III-8 summarize the distribution of types of event facilities in the Canton Area.

Table III-8 Types of Event Venues in Canton Area

Type Number Hotel 14 Restaurant 14 Special Event Venue 8 Movie Theater 4 Gallery / Museum 3 Conference Center 2 Education Facility 2 Entertainment Venue 2 Banquet Facility 2 Golf Course 1 Total 52 Source: cvent.com

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Summary of the Market Context The Resident Market Area for PRHS has been defined in terms of drive time rings from the project’s site in Canton. These rings include the area within a 10-minute drive of the site, the area between a 10- and 20-minute drive from the site, and the area between a 20- and 30- minute drive from the site. This area within a 30 minute drive has a current population of about 1.0 million that is growing at a rate similar to that of the Commonwealth as a whole. The population is also on the older side, with a declining but still substantial population of school-aged children. The area profile suggests that there are many families in the area, and this area has a substantial portion of affluent households.

In 2014, Massachusetts welcomed 25.0 million domestic visitors, 2.5 million overseas visitors, and 735,000 visitors from Canada. Norfolk County, where Canton is located, was the location of $1.1 billion in tourism spending in 2014, which represented 6.2 percent of tourism spending in the state. It is estimated that if spending is proportional to the number of visitors, there were approximately 1.76 million visitors to Norfolk County in 2014. Some of the tourists to the area, though, may be associated with business travel of some of the major corporations with offices in Canton and nearby municipalities, including MEDITECH, Computershare, and Dunkin’ Brands. Overall, large numbers of tourists to the area represent a market opportunity; however, because Canton is located outside the core urban tourist zone, it may be challenged in marketing to the main tourist segments in a very competitive tourism environment. The key segments of potential visitors to PRHS would be overnight leisure visitors to the region, especially those staying in hotels nearby, visitors staying with friends and relatives in the area, and visitors on organized tours.

The proposed alternative uses for the historic buildings at PRHS include an interactive center for historical interpretation, retail or restaurant space, office space, and facilities for event rentals. There are myriad historical attractions in the greater Boston area, including several in Canton and neighboring towns. Because Paul Revere is a widely-known historic figure, this site may become a destination among regional visitors. Unique programming and distinctive interpretation would be necessary to warrant visits from further afield. Restaurant and retail

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space in Canton Center typically achieves rents of between $20 and $25 per square foot and fairly high occupancy rates. Office space is similarly attractive in this easily-accessible suburban area; the region where Canton is located achieves about 80 percent occupancy on average. There are an estimated 52 event facilities in Canton and adjacent towns that vary in size and service range, from just $50 for small meeting spaces to as much as $5,000 for wedding venues. All of these alternative uses, or a combination of them, could pose an opportunity for earned revenue at PRHS.

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Section IV GOVERNANCE AND MANAGEMENT OPTIONS

The following section reviews the possible governance structures and management options for the Paul Revere Heritage Site (PRHS). The governance and management structure is intended to establish the operating parameters for PRHS in the future for consideration by the Town of Canton, stakeholders and civic leadership. The ultimate business model and operating plan of PRHS will need to be refined as project planning and development proceeds and development and operating agreements with tenants are in place.

Underlying the future governance and management of the site is the assumption that PRHS can attract tenants to support the vision for the reuse of the Rolling Mill as a museum and cultural center and the Barn as a restaurant, and that the Town will operate, at least, the park and recreation components of PRHS. Therefore, a public-private partnership would be required to operate the site, so that the visitor experience is seamless, of similar quality, and operations are run in a complementary fashion. Cooperation in scheduling and coordinating public and private events and facility rentals onsite will require cooperation among all the partners, especially if three independent entities operate the Rolling Mill, the Barn and the park. The larger PRHS park and recreational infrastructure would be maintained and operated by the Town of Canton through its Parks and Recreation and Public Works Departments primarily. Outdoor community events and recreational programming may originate from the Town, from outside community groups, non-profits and businesses, and onsite tenants, the museum and cultural center and restaurant operators.

Governance Structure and Management Options The Town of Canton has identified several possible governance structures to manage the museum and cultural center and restaurant tenants onsite. One option is to use a management entity to deal directly with the museum and cultural center and restaurant. The

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other option is for the Town to deal directly with the tenants. Because there are two tenants, the Town could deal directly with one, the museum and cultural center because it will be more closely aligned with its operation vis-à-vis use of the site for community, cultural and heritage programming, and contract with a management entity for the restaurant.

Potential Benefits and Downsides of a Management Entity The benefit of this model is that the Town is not required to handle the day to day responsibilities of managing the facilities, such as maintenance, janitorial and security. It hands over the operation to an experienced real estate management company. Instead of the Town dealing directly with two parties (i.e. the museum and cultural center and restaurant operators) the Town would be dealing with one party.

The downside of this option is that the Town may have less control over the operations and maintenance of the facilities. In addition, the inclusion of a management entity would introduce an additional expense element into the overall PRHS operations, potentially impacting its operating sustainability. Because of the small amount of real estate under management, the costs associated with a management entity may be relatively high and outweigh the potential benefits. Perhaps, most importantly, dealing with the museum and cultural center and the restaurant through an intermediary may not be advantageous to achieving the overall goals and objectives of PRHS.

Leasing Plan The programming for the fit out of the buildings requires the Town to have a leasing plan to secure tenants to partner in design, build and operation of the new facilities. Visioning, planning, and programming for the reuse of the historic buildings at PRHS is still in the conceptual stage, lagging the site’s open space development, which is under construction. The ultimate fit out of the building spaces will be determined by the lease agreements the Town can make with tenants, who presumably in return for the lease will bring investment resources to complete the fit out of the buildings and manage the ongoing operations of the

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museum and cultural arts center and the restaurants. Lease agreements with tenants may also need to consider programming of exterior courtyards adjacent to the buildings, to minimize conflict and coordinate overall site utilization.

Restaurant in the Barn The Barn tenancy may be more straightforward for the Town than the museum and cultural center. A restaurant operation should be structured in such a way as to offer a suitable return on investment to the investor-operator and to the Town. The Town will have ownership of the property without debt and therefore may be agreeable to more flexible financing terms and a public-private partnership, especially given the district increment financing used by the Town in the Plymouth Rubber Redevelopment. The Town may be interested in such an arrangement because it is looking for a restaurant that will support the heritage theme and vision for PRHS and that will complement the operation of the museum and cultural center and parks and recreational facilities. Public use of the site will be the primary use of the site and is the main reason for the Town’s investment in the overall Plymouth Rubber Redevelopment. The commercial use onsite will complement public use by providing a visitor amenity and by supporting the operating sustainability of the overall PRHS site. The Town would ideally be able to find a restaurant tenant that has the investment capacity to complete the fit out of the restaurant.

Museum and Cultural Center in the Rolling Mill Identifying a tenant for the museum and cultural center requires a different investment perspective than one would use for a restaurant. Cultural facilities such as heritage sites, museums, and cultural centers do not typically earn enough revenue to support the operating expenses of the operation, nor do they typically generate income that would support a return on the initial upfront investment. That is why most cultural facilities are operated by public agencies or non-profit organizations, to garner public and private donations and contributions on an ongoing basis.

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As in the restaurant space, the cultural tenant would only need to fit out the space with fixtures, furnishings and equipment as well as exhibits and interpretive materials. Museum exhibits can range in cost significantly, from $200 per square foot to $800 per square foot or more, depending on the interpretive approach, extent of flexibility and change and interactive nature of the exhibits. Different exhibit installations have varying degrees of artifacts, technology, materials, research and planning as well as costs of fabrication and installation. It should be noted that there is not a direct correlation between higher exhibit cost and higher quality or better visitor experience. Therefore, individual exhibit costs must be balanced against the overall visitor experience plan and the operating requirements to implement that plan.

The historical interpretive opportunity is to tell the history of the site through the lens of the life and family of Paul Revere, one of the most famous and identifiable characters of the American Revolution as well as an important entrepreneur and industrialist with deep ties to the site and its historical development. Interpretive planning and exhibit design to date have been diffuse and highly conceptual in nature, and more work needs to be done to refine the concept. The project’s financial feasibility as reflected in this business and operations plan may inform the interpretive and experience planning for the site, especially as it pertains to the sizing of spaces program areas within the buildings and around the site. As the cultural project concept and planning advance, this business and operations plan will need to be updated to reflect any changes in building use and more detailed building and site programming that may occur.

Governance Options for the Museum and Cultural Center The governance of the museum and cultural center at PRHS might fall into one of the following categories:

♦ Town Operation – In this approach, the Town of Canton would operate the museum and cultural center from within one of its departments, either existing or new. Personnel would be Town employees.

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♦ Dedicated Non-Profit Operation – In this approach, a non-profit organization would be designated as operator. The operating contract they would sign would offer considerable organizational autonomy and responsibility for the facility and operations. This private operator could be a new or an existing non-profit organization. ♦ Public-Private Partnership – In this approach, a non-profit operator would be designated, but the responsibilities would be focused on museum and cultural center operations with ongoing partnership with the Town providing operating inputs in the areas in which it has expertise and capacity. These might include maintenance, janitorial, finance, purchasing and personnel services, insurance, web site, security and so forth.

More and more museums and cultural facilities are employing the Public-Private Partnership approach to governance, especially for public land and building assets. In this approach, the non-profit operator, with its complement of personnel could focus on the visitor experience, programs, marketing, events, retail and fundraising. These activities typically are most successful when executed by a private operation. The non-profit could specify the exhibits, programs and operations that fundraising for gifts and grants would support. The Town of Canton could effectively and efficiently provide operating inputs in categories, in which it has capacity and capability, such as building maintenance and security, as well perhaps as utilities and janitorial. In a publicly run cultural operation, private sector fundraising is often constrained, and operating revenue from general funds as a percent of operating expenses can run high. In a non-profit operation, the Town of Canton would be turning over to a private sector (non-profit) operator responsibility for the public programming of its building asset, changing the span of control. In addition, a non-profit organization would not benefit from the capacities and scale of the Town operation. For all scenarios, there would be in place preexisting performance standards. Clearly much additional research, planning and legal investigations will be necessary to finalize the governance approach to operating the museum and cultural center. Regardless, the public-private spectrum of cultural operations is an important factor in evaluating the operational feasibility of the overall PRHS project.

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Section V VISITATION POTENTIAL AND PHYSICAL PLANNING PARAMETERS

This section evaluates the visitation potential of the proposed museum and cultural center at the Paul Revere Heritage Site (PRHS) to inform the physical planning for the project and develop inputs into the operations analysis. The evaluation of visitation potential for is based on a number of factors: the size and characteristics of the resident and tourist markets; the location of the project in Canton, MA; the experience of local attractions and similar heritage sites and museums; the competitive context in the region as a whole; the building and site design and visitor experience plans as provided by the Town and its consultants; other plans and information provided by the Town; and, the consultant’s industry experience.

As project planning and design is advanced, this visitation analysis may need to be adjusted, especially given the conceptual nature of interpretive planning, exhibit and interior building design that has occurred to date. The visitor experience is currently based on the PRHS project concept, as articulated in Section II, as well as the potential heritage themes and topics, education and community arts programs, events and activities that may occur.

Attraction Success Factors Planning, creating and operating a new heritage attraction that offers both on-site and off-site programs and services is a substantial challenge in today’s environment; but a challenge that communities achieve throughout the United States on an on-going basis. Audiences today are exposed daily to extremely high-tech, high quality media at work, school and home. Compelling story telling and creation of compelling public spaces occurs in a variety of locations, spaces and media. Due to high audience standards and expectations, those developing new projects that rely on on-site visitors or program attendees have adopted those same high quality techniques to attract visitors. As the expectations by audiences of leisure time products are very high, a successful project must meet audience expectations of value provided in terms of both money and time spent. In addition to meeting the high

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standards of today’s visitors, the macroeconomic environment is forcing start-up projects to think creatively about long-term financial sustainability, with an emphasis on earned revenue, partnerships that reduce operating risk, and endowment built into the initial capital campaign.

To achieve its goals for interpretive and economic success, a project such as PRHS should fulfill the following criteria: ♦ Strong Mission – A mission statement needs to be concise and communicative of the essence of the non-profit attraction. The mission and vision project has yet to be established fully for the project because finding tenants that can implement the project concept has yet to occur. The process of identifying and securing an appropriate tenant will advance the project concept closer to realization, and enable the Town and its partners to proceed with detailed design documentation. ♦ Authenticity and Quality – The interpretive elements should have a high degree of interest and/or relevance to the audience. Audience expectations of content and presentation have risen dramatically. Paul Revere is one of the most iconic and recognizable figures in the story of the American Revolution. Little told and less well known is his story as an industrial entrepreneur whose life and family enterprises embody the transition the early American industry from artisan and craft made goods to factory made and machined goods. This site is an excellent case study of how one site represents the arch of American industry, from colonial times through the 21st century, because it contains structures and landscape features that help to tell the history. The ultimate extent and quality of the visitor experience and the museum exhibitions will be determined in future stages of interpretive planning and exhibit design. However, for the purposes this report the museum is assumed to contain about 4,000 square feet of exhibit, and be of a quality worthy of museum accreditation. ♦ Excellent Site and Location – The accessibility and visibility of the location is critical to the facility’s market success. Facilities in outstanding locations, from an accessibility and visibility perspective, naturally have the greatest market opportunity. The site is highly visible and accessible to Canton residents. It is within a short walking distance of Canton Center and two regional rail stations. The site is not close to the highway but it will be made more visible through highway and other roadway signage and wayfinding. ♦ Strong Community Support – The project must meet the needs of the community broadly defined and have a broad base of support.

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The base of community support is evidenced by the involvement of the Town, local residents and volunteers that advocated for the reuse of historical structures and the creation of public open space as a part of the Plymouth Rubber Redevelopment. While it is unclear which entity at this point will operate the museum and cultural center, potential partners that have expressed interest in supporting the reuse of the Rolling Mill as a museum and cultural center during the course of this study include: the Town of Canton, the Canton Historical Society, Trustees of the Reservations, and the Paul Revere House. ♦ Appeals to a Broad Audience Mix – There must be sufficient attraction content to appeal to a diverse audience with a degree of subject interest, ages and education. There must be a variety and quantity of experiences for the visitor to feel they have visited a special place. PRHS will offer: 4,000 +/-square feet (SF) of exhibition space, 4,000 +/- SF of other public and back of house space, and courtyards and interpretive trails for outdoor programs. While still in design development, it is assumed that exhibitions, educational programs and events are designed to draw on resident and tourist market segments. The ticketed exhibition and experience is the focus of this visitation analysis and is assumed that tickets will provide access to all indoor exhibitions, including an orientation theater, permanent and changing exhibit galleries. Outdoor areas of PRHS will be accessible to the public free of charge and will be designed in such a way to support visitation to the museum and cultural center. Community arts programming will be consistent with the offerings of existing organizations in Canton, contributing to the overall profile of the arts education in the community. PRHS will be of special interest to cultural heritage tourists, contribute to longer stays in the area, and will diversify the mix of arts and cultural venues in Canton. As a community facility, it will appeal to a regional audience as a place for community and business meetings, conferences, events, and social and cultural gatherings. ♦ Critical Mass of Attraction Elements/Length of Stay/Attraction Content – The project must have sufficient quality and quantity of content to warrant a special trip, and to possibly forego alternative/competitive activities. Interpretive context and exhibit plans are still in development. For the purposes of this analysis, however, visitors are assumed to stay between 1 and 3 hours for their entire site visit. The retail and restaurant planned for the site as well as the exterior walking trails, and public open space will support longer stays onsite, providing amenities for visitor respite as well as additional revenue potential. ♦ Repeatability – For most projects, the resident market is an important part of their total market. In order to bring this audience back repeatedly, the project must have program, service, exhibit and site qualities that justify repeat visits. Dynamic changing and interactive interpretation and exhibits, consistently new and innovative programming and special/annual events are successful ways for projects of this type to encourage repeat visitation.

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The PRHS building program should include a small changing exhibit gallery. The ability to accommodate events should be factored into the design of the project so that indoor and outdoor areas can accommodate large programs and events, and support facility rentals. Community arts education, cultural and heritage programs and events will contribute to the overall repeatability among resident markets. Having strong membership and volunteer programs will also support repeat visitation to the facility while also contributing to the overall operations. ♦ Serves Resident and Visitor Markets – Most successful projects serve both resident and visitor markets. Planning for and marketing to both groups ensures both maximum and year-round visitation. PRHS will need to program events and admissions targeted to resident and tourist markets in the Boston area. The PRHS can encourage resident and tourist market visitation by building an annual calendar of regular programs and events throughout the year in sync with school and vacation calendars as well as the schedule of events and festivals already occurring in Canton, many of which may move to PRHS when it is open. ♦ Earned Revenue Opportunities – Today’s economic climate demands that new projects consciously build earned revenue opportunities into their operations. Thinking creatively about earned revenue through collaborations and other non- traditional opportunities will help to ensure long-term financial success. As the PRHS project evolves, there may be opportunities that arise to collaborate with other organizations, which can in turn, help to generate additional earned revenue. In addition, any restaurant tenants chosen for the Barn must be capable of returning a high return on investment and delivering a high degree customer satisfaction to PRHS’s visitors that supports PRHS’s mission, brand and operational objectives. ♦ Sound Financial Basis and Appropriate Scale – Appropriate project scale for the potential audience is important so that revenues can support both operations and the physical infrastructure of the facility. Program fees, as applicable, must be set to maximize revenues while maintaining optimum visitation levels. Operations and marketing must sustain the audience size and the physical infrastructure and drive philanthropic giving. Operations must be scaled to the particular attributes of the facility, including staffing, seasonality and other factors. Because of the suburban location, small scale, and the completive context, PRHS will need to rely more heavily on its resident market for visitation than its tourist market. Drawing Boston cultural tourists may be challenging, though not insurmountable, due to the suburban location. Building heritage, arts and community-based programming within the heritage site context will appeal to multiple niche resident audiences and build awareness and local affinity for the project. Having the restaurant will further reinforce awareness of the site locally, provide an onsite visitor amenity and generate rental income that can support the operation of the museum and cultural center and/or the Town of Canton’s operations and maintenance costs onsite.

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Preliminary Visitation Potential Based on the assumptions in this report, a range of visitation potential for the proposed project has been established. Data in Table V-1 provide a range of stable year visitation potential for PRHS. Stabilized visitation levels are assumed to be achieved in the third year after project opening. The visitation analysis is also based on the assumed ticket pricing and discounts for admission to museum exhibits. It also considers the potential programs, special events and facility rentals offered by PRHS, as detailed in Section VI. This visitation analysis takes both a top down and a bottom up approach to evaluate visitation both in terms of available markets as well as in terms of proposed arts and cultural programs, special events and facility rentals and the capacity of the museum and cultural center organization.

Depending on the program of the facility and range of potential capital costs, the annual visitation potential of PRHS museum and cultural center is estimated at 15,000 to 34,000, with a mid-range estimate rounded to 25,000 in a stable year of operation. The evaluation of visitation potential represents a range of market response, but it also reflects the site, building, proposed project concept, and its location. The mid-range visitation potential assumes that an estimated 68 percent of its visitors will come from the resident market (including school children) and 32 percent of visitors will come from the tourist market.

Should building plans, program of interior spaces and exterior spaces change based on new project plans, development prior to project implementation, and construction or changes made during construction, additional refinement of the visitation potential may be warranted. It should be noted that this visitation analysis focuses on the museum and community arts programming at PRHS programs only. It does not factor in visitation and ticketed operations from separate use of PRHS grounds for events and programming by the Town of Canton’s Parks and Recreation Department, other Town departments, or outside arts and cultural artists, groups, and organizations. Further analysis of cultural and recreational programming in PRHS parks, trails and open spaces may be warranted to evaluate the visitation patterns and impact on the museum and cultural center operations.

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Table V-1 Visitation Potential in a Stable Year of Operations Paul Revere Heritage Site

Market Penetration Rates Visitation Range Estimated Percent of 2020 Market Low Range Mid Range High Range Mid Range Population 2/ Low High Visitation Visitation Visitation Visitation Resident Market Primary Market Area 50,768 5.0% 10.0% 2,538 3,808 5,077 15% Secondary Market Area 240,820 2.0% 4.0% 4,816 7,225 9,633 29% Tertiary Market Area 757,355 0.5% 1.0% 3,787 5,680 7,574 23% Total Resident Market 1,048,943 1.1% 2.1% 11,142 16,712 22,283 68% Tourists as a Percent of Total Visitation Low Range Mid Range High Range Low High Visitation Visitation Visitation Tourist Market 25% 35% 3,715 7,858 12,000 32%

Total Stabilized Visitation Potential Range 14,857 24,570 34,283 100% Rounded Visitation 1/ 15,000 25,000 34,000

1/ Visitation totals rounded to the nearest 1,000. Source: ESRI and ConsultEcon, Inc.

Five-Year Visitation Pattern For a project of this type, visitation in the first years of opening is typically higher than in later stabilized years due to market excitement and pent up anticipation created by the presence of a new attraction in the area. Most attractions experience opening year high visitation levels, followed by a period of “stabilization.” For this analysis, it is assumed that visitation of 15 percent above stabilized visitation could be anticipated during the opening year for PRHS. Stabilized visitation levels are assumed to be achieved in the third year after project opening. Data in Table V-2 show an estimated five-year visitation trend, with an early year surge and visitation subsiding after opening. It is assumed that PRHS will offer changing exhibits once or twice annually to create “new” reasons to visit and renewed excitement about the project. In addition, a robust calendar of regular programs, special

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events and a wide array of cultural and community activities will need to be maintained to sustain visitation over the long run and build support and affinity for PRHS.

Table V-2 Five-Year Facility Visitation Potential Paul Revere Heritage Site

Stabilized 1/

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Percentage of Stabilized Visitation 115% 110% 100% 101% 102%

Low Range Visitation 17,250 16,500 15,000 15,150 15,300 Mid Range Visitation 28,750 27,500 25,000 25,250 25,500 High Range Visitation 39,100 37,400 34,000 34,340 34,680

1/ Year 3 represents a stabilized year of attendance. Growth rate in subsequent years assume new changing exhibits and new program activity each year and market growth. Source: ConsultEcon, Inc.

Seasonality of Visitation The seasonality of visitation at PRHS will be determined primarily by the composition of its audience, the timing of special programs and events, and regional weather patterns. The experience of visitor attractions nationwide indicates that those facilities with a larger percentage of visitors from tourist markets have the most highly peaked visitation patterns, while those which draw more from resident markets have a more even visitation pattern. Typical high visitation months for tourist oriented attractions are during the summer months when tourism is at its peak, children are out of school, and residents of an area go on a larger proportion of their day-trips. During the remainder of the year, the facility will primarily receive market support from school groups and local area residents. Based on these conditions, PRHS could expect to have a peaked visitation patterns, with

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strong visitation during peak summer months (July). Data in Table V-3 show the estimated monthly distribution of visitation at PRHS.

Table V-3 Estimated Monthly Visitation Distribution Paul Revere Heritage Site

Low Visitation Scenario Mid Range Visitation High Visitation Scenario

Seasonality Total Visitation Seasonality Total Visitation Seasonality Total Visitation

January 6.0% 900 6.0% 1,500 6.0% 2,040 February 6.0% 900 6.0% 1,500 6.0% 2,040 March 7.0% 1,050 7.0% 1,750 7.0% 2,380 April 8.0% 1,200 8.0% 2,000 8.0% 2,720 May 8.0% 1,200 8.0% 2,000 8.0% 2,720 June 10.0% 1,500 10.0% 2,500 10.0% 3,400 July 12.0% 1,800 12.0% 3,000 12.0% 4,080 August 11.0% 1,650 11.0% 2,750 11.0% 3,740 September 9.0% 1,350 9.0% 2,250 9.0% 3,060 October 10.0% 1,500 10.0% 2,500 10.0% 3,400 November 6.0% 900 6.0% 1,500 6.0% 2,040 December 7.0% 1,050 7.0% 1,750 7.0% 2,380 Total 1/ 100.0% 15,000 100.0% 25,000 100.0% 34,000

1/ Visitation totals rounded to the nearest 1,000. Source: ConsultEcon, Inc.

Physical Planning Parameters The information provided by data in Table V-4 uses the estimated stable year visitation to prepare estimates of high day visitation during the peak season, facility sizing parameters based on market factors, and illustrative parking requirements during that period.

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Table V-4 Facility Sizing Analysis based on Demand Parameters Paul Revere Heritage Site

Low- Range Visitation 1/ Mid- Range Visitation 1/ High- Range Visitation 1/ Annual Visitation 15,000 25,000 34,000

Peak Month at 12% of Annual Visitation 1,800 3,000 4,080 High Week at 28% of peak month 504 840 1,142 High Day at 20% of high week 101 168 228

Length of Stay / (1.5 hr. stay - (2.0 hr. stay - (1.5 hr. stay - (2.0 hr. stay - (1.5 hr. stay - (2.0 hr. stay - Percent On-Site 2/ 28%) 32%) 28%) 32%) 28%) 32%)

Peak On-Site Population for High Day 28 32 47 54 64 73

(30 sq. (35 sq. (30 sq. (35 sq. (30 sq. (35 sq. Public Space Sizing ft./attendee) ft./attendee) ft./attendee) ft./attendee) ft./attendee) ft./attendee)

Range of Public Circulation Space 840 1,120 1,410 1,890 1,920 2,555

Facility Sizing 3.0 Times 3.0 Times 3.0 Times 3.0 Times 3.0 Times 3.0 Times Total Facility Size Range 2,520 3,360 4,230 5,670 5,760 7,665

Visitor Peak Period Parking Demand 3/ 11 13 19 22 26 29 Parking for Personnel 4/ 6 6 6 6 6 6 Parking for Volunteers 2 2 2 3 4 4 Total Peak Parking Demand 5/ 19 21 27 31 36 39

1/ Visitation totals rounded to the nearest 1,000. 2/ While interpretive context and exhibit plans have yet to be produced, visitor stays may range from 1 to 3 hours, based on the experience of other museums. For the purposes of this analysis, therefore, visitors are assumed to stay on average between 1.5 and 2 hours.

3/ Assumes 95% arrive by car, 2.5 persons per car and 5% turnover requirement. Does not include bus parking, event parking, or parking for personnel and volunteers. 4/ One parking space per full time equivalent staff member (rounded). See Table VI-6 for the detailed personnel schedule. 5/ Does not include parking for events. Source: ConsultEcon, Inc.

The analysis uses the estimate of the visitation during a peak month (the peak month, likely July); a high week during that period (28 percent); and a high day in that week (20 percent of weekly visitation, probably a Saturday); to arrive at an appropriate “high day” visitation level for the facility/site. Depending on the associated length of stay and opening/closing times for the facility and the site, a factor of peak on-site population of 28 percent to 32 percent of that day’s total visitation can be anticipated based on an assumed average length of stay of 1.5 to 2.0 hours. This assumes that visitors would be actively engaged both inside the museum and

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cultural center. These factors provide an estimate of the instantaneous “in-house” population that is useful in project planning.

From these figures, estimates of high period parking demand can be made. For PRHS, a high day during the peak summer months under a mid-range visitation scenario could have a parking demand of 19 to 22 spaces plus parking for staff (7 spaces) and volunteers (2 spaces). However, outside of the peak periods, parking demand will be much lower. The parking demand estimate does not include parking for buses, nor does it include the early opening year demand, which may create additional parking demand. Plans to provide overflow parking and other mitigation measures should be used during large events. Large events up to 250 people based on the capacity of the exterior courtyards (see Table onsite at the museum and cultural center may require parking for up to 100 spaces, given the potential capacity of the exterior courtyards for events and an average of 2.5 persons per car.

The parking lot at PRHS is intended to be shared between the restaurant, the museum and cultural center and the public park. Large events on the event lawn or Town green in PRHS may occur throughout the year, and peak events, such as July 4 celebration, may only occur one or two times per year. Parking management strategies may include overflow parking at the commuter rail stations, which is an excellent shared parking situation because most events are on weekends or holidays when businesses are typically closed and demand for the commuter rail parking is low.

Summary The visitation potential analysis assumes that the museum and cultural center at PRHS will be aggressively marketed, competently operated, and will receive full community support in the public and private sectors. The stabilized annual visitation potential range for the project is estimated at 15,000 to 34,000, with a mid-range estimate rounded to 25,000 in a stable year of operation. There will likely be a strong surge in visitation during the opening years, up to 15 percent or more. Visitation patterns at the site will be seasonal with peak visitation during summer months that follows a pattern of tourist visitation to Canton and school calendar.

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Under a mid-range visitation potential, approximately 68 percent of visitation is estimated to be due to resident market visitation and 32 percent is due to tourist visitation. Residents, school and other tour groups will be an important audience in the non-peak periods and during shoulder seasons. Moreover, building resident market visitation, membership and volunteer activities will support visitation from visiting friends and relatives, who comprise a large proportion of the tourist market and are heavily influenced by resident recommendations of places to go.

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Section VI OPERATING POTENTIAL

This section of the report provides an analysis of the operating potential for PRHS, with a focus on the operations of the proposed museum and cultural center in the Rolling Mill. The assumptions made are based on the mid-range visitation potential identified for the project, the facility plans and designs as advanced as of the date of publication of this report, and additional research on operating and development factors associated with the type of project being considered.

Operating and Revenue Assumptions The museum and cultural center at PRHS will operate under the norms of such organizations/facilities nationally, adjusted for local conditions. Operating assumptions used in this analysis are as follows: ♦ For analytic purposes, the museum and cultural center at PRHS is assumed to operate as a standalone 501(c)(3) not-for-profit corporation. As such, this analysis does not include any property or corporate taxes, nor does it include depreciation, bond or mortgage payments, or management fees. It focuses on estimating net operating income and the amount of non-earned or contributed revenue required for breakeven operations. Any alternative governance that operates the museum and cultural center may affect future operating results and the business plan adjusted accordingly. Ultimately, PRHS may be operated as an independent non-profit organization or as part of the Town of Canton. The Town’s role in the operations of the museum and cultural center has yet to be determined. Therefore, an operating analysis based on an independent non-profit organization offers a complete view of the operating potential of the project, without direct financial or other support from the Town that may change the project’s financial analysis. Analyzing the museum and the cultural center in PRHS as a standalone organization is the most suitable analytic framework to inform the Town’s due diligence efforts on PRHS operational planning and business growth. ♦ PRHS and the facilities it contains, including the museum and cultural center and the restaurant, will be well constructed when completed and opened and be operated in a manner that complements one another and is mutually advantageous to each other’s operational success. PRHS and its facilities will be of a scale in size and in quality to be recognized as a facility of excellence nationwide. For analytical purposes, this operations analysis assumes PRHS is completed with a total of 19,000 gross square

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feet building area and the net interior program of spaces as shown by data in Table II- 2. Any design or program changes that occur after this report may affect future operating results. ♦ Visitation potential at the museum and the cultural center at PRHS is evaluated in Section V of this report, with visitation a function of the available markets and the size and scope of the project, its location, and its marketing profile and ticket prices. The mid-range visitation potential for a stable year is used as a basis for the mid-range operating scenario in this operating potential analysis. ♦ The museum and the cultural center at PRHS will be open year-round – six days per week. In addition, special events and facility rentals could occur after-hours at the facility when they do not disrupt regular visitation or programs. ♦ The museum and the cultural center at PRHS will be well managed and will have the appropriate staff, management and leadership infrastructure to support a project of this nature. The structure, its exhibits, fixtures and finishes, mechanical equipment and support systems will be well maintained to minimize insurance risks and unexpected repair and maintenance expenditures. Maintaining the exhibits, program materials, grounds, and facility in excellent condition is central to customer satisfaction. The museum and the cultural center at PRHS will continue to build a compelling organizational vision, with strong and distinguished advisors and staff, and the project will have a strong base of community support, especially among the Town residents. The facility and site will be used for special events and cultural activities both during regular open hours and after hours to promote community support and generate additional income. Educational groups will be encouraged to visit and will receive a worthwhile and enjoyable educational experience. Community outreach and partnering / collaborations with other public and private organizations particularly in Canton and in the region, including arts, cultural, community, and tourism organizations, and state and local governments, will be cornerstones of the programming effort. ♦ The museum and the cultural center at PRHS will develop an aggressive marketing program to achieve and maintain visitation and interest in the evolving program. Building cross-promotional programs with other town assets such as the local restaurants, historic and recreational attractions, the public library and Town Hall, and train stations, among others, will be important to building awareness of the museum and cultural center on an ongoing basis. Pricing for programs, events and services will be attractive and commensurate with overall experience and value delivered. The project will also be managed to provide dynamic, repeatable and effective educational programs that meet and exceed educational standards and engaging, entertaining and continually evolving interpretive content. Changing programs and exhibits are essential to attracting new visitors and members and to maintaining repeat visitation. A regular schedule of weekly, seasonal and annual cultural activities, events and experiences is critical to maintaining repeat visitation.

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♦ For selected revenue and expense categories, an assumed annual rate of inflation of 2 percent is used. Future operating results therefore will vary depending on actual rates of inflation in the future. In addition, personnel costs, including both salaries, wages, and taxes, fringe and benefits costs are assumed to increase at 3 percent annually.

Operating Revenues Operating revenues for PRHS will be derived primarily from ticket sales, but additional revenue will be derived from earned revenue sources such as gift shop sales, programs, memberships, and use of the facility for receptions and special events. This revenue analysis focuses on estimating earned revenue. Like virtually all cultural facilities, non- earned or contributed revenue support, such as grants and donations, and endowment income, are needed to provide necessary operating funds to sustain the organization. Following is a review of the revenue potential for the proposed project.

Museum Admissions Revenues Average per capita museum admissions revenue is a product of ticket prices and the mix of ticket types sold (adults, children, etc.). The benchmark adult ticket price is assumed to be $7.50. Discounts for children, youth, seniors, and groups will be offered. Further, coupons and other discounts will be offered to encourage visitation. The achieved per capita museum admission revenue is $4.54 for mid-range visitation in stable year (in current dollars), based on the visitation mix (i.e. adults, seniors, children, etc.) that is expected, as shown by data in Table VI-1. Members and supportive and corporate members are assumed to enter free of charge. There is also provision made in the analysis for a limited number of complimentary and VIP tickets. These are included in the Free/Complimentary category, which is largely composed of children under the age of 3 who will attend for free.

This is a ticket pricing policy designed to encourage strong visitation levels, and to reflect the quality experience proposed, along with the characteristics of resident and tourist markets. Higher ticket prices would likely result in lower visitation levels. Ticket price assumptions used in this report are in current dollars. Ticket prices are assumed to

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increase at a rate of 4.5 percent every other year, slightly higher than the two-year compounded and assumed rate of inflation.

Student group visitation will be driven by the level of investment in education programs. Approximately 1,500 students in groups annually on-site in a stable year of visitation is estimated. This number is conservative in terms of market penetration of the total school- age population in the resident market area. However, schools at present are facing challenges in terms of affording bus transportation for school field trips. If these costs can be offset for regional schools through sponsorships/grants and school group visits can be subsidized, then onsite visitation from school groups could be higher. In addition, it is expected that the museum and cultural center at PRHS will have a robust outreach program and will serve many students in their schools in Town and other towns in the area. Outreach programs to schools will broaden the audience and market reach of the educational programs through such programs as in person educator demonstrations, a “museum” in a box, and long-distance learning over the internet. In addition, outreach programs can be designed to support onsite visitation. For example, a semester or yearlong education program that culminates in an event at the museum and cultural center at PRHS.

Data in Table VI-2 provide operating assumptions as inputs into the operating and financial analysis, based on the PRHS facility and business plans advanced to date. These assumptions form the basis for the analysis of earned revenue potential for PRHS. Other revenue assumptions are described in more detail below.

It should be noted that this analysis focuses on the museum and community arts programming at PRHS programs only. It does not factor in visitation and ticketed operations from separate use of PRHS grounds for events and programming by the Town of Canton’s Parks and Recreation Department, other Town departments, or outside arts and cultural artists, groups, and organizations. Further analysis of cultural and recreational programming in PRHS parks, trails and open spaces may be warranted to evaluate the visitation patterns and impact on the museum and cultural center operations as a whole.

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Table VI-1 Visitation by Type and Ticket Price and Membership Assumptions in a Mid-Range Visitation Scenario in a Stable Year in 2017 Dollars Museum and Cultural Center at PRHS

Admissions Achieved Analysis of Visitation by Type based % to Total Achieved Revenue Per Per Cap % to on Mid-Range Visitation Scenario Visitation Visitation By Type Ticket Price Capita Total

Museum Admissions Adult 22.0% 5,500 $7.50 $2.43 50.8% Seniors (65+) 12.0% 3,000 $6.50 $1.15 24.0% Children (ages 5-17) / Student 9.0% 2,250 $4.00 $0.53 11.1% Student Groups 6.0% 1,500 $4.00 $0.35 7.4% Adult Group 4.0% 1,000 $5.50 $0.32 6.8% Members / Corp Members 10.0% 2,500 $0.00 $0.00 0.0% Free / Complimentary 1/ 5.0% 1,250 $0.00 $0.00 0.0% Total Museum Admissions Revenue Per Capita $4.78

Coupons & Discounts as a percent of -5.0% ($0.24) achieved per capita ticket revenue

Total Museum Admissions Revenue Per Capita after Coupons and Discounts $4.54

Programs, Events and Rentals Arts and Cultural Programs 3.0% 750 $15.00 Special Events 4.0% 1,000 $25.00 Facility Rentals 25.0% 6,250 $0.00 see Table VI-2 Total Programs, Events and Facility Rentals 100.0% 25,000

Estimated Percent to Number of Avg. Price By Memberships Estimates Membership Types Total Memberships Type No. of Member Visits 2,000 Individual (Admit 1) 10.0% 25 $40 No. of Corporate Member Visits 500 Dual (Admit 2) 20.0% 50 $75

Average Annual Member Visits Per Family / Grandparent Membership 8 (Admit 5) 60.0% 150 $115 Est. Total Memberships 250 Supporter 2/ 10.0% 25 $250 Membership Revenue $28,250 Total 100.0% 250 $113.00 Rounded: 250 $113.00

1/ Includes children under 3, VIPs, business visitors, and other non-cultural program attendees given free admission. 2/ There would likely be several categories of supportive memberships with fees ranging from an estimated $200 to $500. Source: ConsultEcon, Inc.

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Table VI-2 Operating Assumptions in Current Dollars under a Mid-Range Scenario Museum and Cultural Center at PRHS

Square Feet (SF)

Net Leasable Main Building Program Gross Area Area Rolling Mill 12,694 8,245 Barn 6,639 4,796 Total Building Area 19,333 13,041 Site Area 10.00 acres General Annual Inflation Rate 2.0% Personnel & Benefits Costs Inflation Rate 3.0% Days Open Per Week 6 Mid-Range Visitation 25,000 Museum Visitation 17,000 Average Visitors Per Day 83 Admission Fees and Revenue Adult Ticket Price $7.50 Per Capita Ticket Revenue $4.54

Ticket Price & Membership Increase % every other year 5.0% Coupons & Discounts as a % of Per Capita Ticket Rev. 5.0% Corporate Memberships Number of Corporate Memberships 10 Average Corporate Membership Fee $1,000 Average Visits per Corporate Membership 50 Retail Retail Sales per Capita $2.00 Cost of Goods Sold (COGS) as a % of Gross Sales 52% Outside Sales as a % of Visitor Sales 10%

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Table VI-2 (continued) Operating Assumptions in Current Dollars under a Mid-Range Scenario Museum and Cultural Center at PRHS

Square Feet (SF) Vending Sales per Capita $0.25 Percent of Gross to Paul Revere Heritage Site 20% Facility Room Rentals Small Events 100 Average Attendance, Small Event 25 Average Revenue, Small Event $300 Large Events 25 Average Attendance, Large Event 150 Average Revenue, Large Event $2,000 Catering 3/ Total Facility Rentals Attendance 6,250 Average per Capita Catering Revenue $64 Percent of Gross to Paul Revere Heritage Site 10% Arts and Cultural Programs / Education Number of Program Events 75 Average Attendance per Event 10 Real Estate Rental Income 4/ Per Square Foot Rent on Net Leasable Area in the Barn $20 Annual Percent Increase in Rent 5% Net Rent based on Leasable Area in the Barn $96,000

1/ Areas for Cultural Programming and Events are approximations, based on ConsultEcon take offs of Leblanc Jones Landscape Architects plan.

2/ Capacity of outdoor areas based on 20 square feet per person. 3/ Catering operation are assumed to be operated by a third party operator, including, but not limited to, the proposed restaurant in the barn building. 4/ Mid-range between $18 and $22 per square foot. Assumes a triple net lease where any building utilities, maintenance, and taxes are Source: ConsultEcon, Inc.

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Retail Sales Retail store sales are an important revenue source for many museums and visitor attractions. Visitor retail spending of $2.00 per capita is assumed, including sales at the museum store. Cost of goods sold is estimated at 52 percent of gross sales. For the purposes of this analysis, Web and other outside sales are assumed to increase sales 10 percent.

Food Service Visitors to attractions such as PRHS typically desire at least a drink and light snack when they visit which also contributes to the length of stay onsite. The restaurant in the Barn at PRHS would satisfy this need. As a separate business, the restaurant would not contribute directly to operations of the museum and cultural center. However, the two operations would natural partners due to the proximate of their respective facilities, as well as their interest in taking advantage of the outdoor space for community events, facility rentals, and programming that may have a catered component. The restaurant, for example, may be a preferred caterer for events and facility rentals at the museum and cultural center. In addition, having a shared booking and scheduling function between the restaurant and the museum and cultural center may contribute to better onsite coordination of activities. Some degree of coordination, if not shared function, should include the Town’s recreational programming on PRHS parkland, which has the potential to disrupt both museum and cultural center and restaurant operations, especially is the events are large and unanticipated.

Restaurant Rent The proposed restaurant in the Barn building would generate an estimated $96,000 annually based on the net leasable area and $20 per square foot. The lease is assumed to be a “triple net” or NNN lease, where all building operations and maintenance costs are passed through and paid by the restaurant tenant. For analytic purposes, the Town of Canton is assumed to pass through the entire restaurant rent to support the operations of the museum and cultural center at PRHS. Should the Town direct these financial resources

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to the museum and cultural center, the financial sustainability of the museum and cultural center will be better than without this revenue stream.

Supportive Memberships Membership programs are often an important revenue source for cultural facilities. Membership to PRHS may appeal to some due to interest in and affinity for American history and local arts and culture. Free admission with the purchase of a membership is an important economic incentive for becoming a member, particularly for residents. Local corporations and businesses perceive membership more as philanthropy and / or promotional value and additional exposure and affinity with the Town. This analysis has an assumed a small number of supportive and corporate memberships as shown in Table VI-2.

Arts and Cultural Programs Included in admissions revenue estimates, arts and cultural programs are assumed to support admissions overall and encourage repeat visitation for regular educational programs and special events. Some programs may be included with admissions fees, such as school programs and teaching carts, tours, an introductory film and historic anniversaries activities. Program fees would be charged for other programs such as lectures, demonstrations, performances, storytelling, film series, and so forth. As arts and cultural programs are further developed, visitation and revenue estimates will need to be revisited. While program fees may vary depending on the program, for the purposes of this analysis, an average program fee of $15.00 per visitation is used, as shown by data in Table VI-2.

Special Events Special events include regular and special events and fundraisers sponsored by the museum and the cultural center. For the purposes of this analysis an average net revenue of $25.00 per attendee is assumed. Further programming of events at the cultural center may warrant revisiting special event visitation and revenue assumptions.

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Facility Rentals Increasingly, museums and cultural facilities are targeting private businesses and groups for facility rentals for private functions. Rental of the new PRHS for events, along with catering income from groups and events at the facility, can be an additional revenue source. In addition to local business, educational, social, and tour group use of the facility, small meetings, receptions, programs and events for Town departments, non-profit organizations, business and corporations could also be served at the facility, given its unique setting. The assumptions regarding facility rentals are based on a facility design that is assumed to be accommodating to such programs with venues such as exhibition areas, and classroom and board room space, and outdoor courtyards that are suitable for events. Further, the facility is expected to be utilized by a wide variety of community organizations, business and corporations, including the Town departments and area residents. Estimates of facility rental events and visitation are shown in Table VI-2. This analysis assumes that facility rentals will be operated by the museum and cultural center. In addition, it assumes that facility rentals will be adequately promoted via the website and through Town and other promotional vehicles. Overall, the facility has strong facility rental potential given its unique architecture, indoor and outdoor setting and art and cultural programming. For the purposes of this analysis, PRHS is assumed to generate both room rentals for small and large events as well as catering revenue at 10 percent of the gross catering revenue, as shown by data in Table VI-2.

Non-Earned Revenue The museum and cultural center at PRHS will be active in generating substantial non- earned or contributed revenue support for the facility on an on-going basis. This analysis estimates the amount of non-earned revenue support for breakeven operations. The financials presented in this report emphasize (after earned revenue), the non-earned revenue needed for the museum and cultural center on an annual basis. In many non-profit cultural facilities, local government, such as the Town of Canton, provide direct, indirect and in-kind financial support. For example, in the operating expenses estimated in this analysis, the Town of Canton is assumed to be lease the Rolling Mill to a non-profit museum

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and cultural center for $1 per year. It is assumed that the internal capacity to fundraise for PRHS will be appropriate to the scale of the organization, and that the organization will rely considerably on non-earned revenues to provide on-going support for the organization. The organization is expected to engage in on-going fundraising, to establish financial reserves and endowment, and to secure operating grants and government sector support. Further, the organization may seek support from corporate sponsors or other sources to help offset the cost of utilities and maintenance through “in kind” or similar arrangements.

While no assumptions have been made about an endowment in this analysis, an endowment is often an important component of non-earned revenue for many cultural facilities. Museums and cultural facilities typically build endowments into the initial campaign for a start-up project prior to opening the facility. Endowments are important to providing a predictable source of non-earned revenue for operations, and in assuring other potential funders of the long-term financial viability of the organization. Because the Town is presumed to fill much of the needed revenue required for initial development and ongoing operations, it functions as an endowment of sorts, funding the museum and cultural center, from its capital and operating funds on an as needed basis. Nonetheless, the Town may consider establishing separate capital and operating fund vehicles that are dedicated to sustaining the museum and cultural center operations. This will lead to more predictable revenue stream that is outside the influence of Town budgeting process that may be less predictable depending on priorities in Town government that may vary year to year. Though not included in this operations analysis, the Town can offer the museum and cultural center in-kind building management services, security and utilities.

Earned Revenue Potential Based on the project concept as advanced to date, the visitation potential, ticket pricing, memberships and other revenue assumptions, data in Table VI-3 present a summary of earned revenue potential in a stable year of operations. The initial years of operation will benefit from higher visitation levels than is expected in the stable year. The first year estimate is in current dollars. The actual dollar amounts for Year 1 and subsequent years will depend

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on future rates of inflation, project performance, and the number of years the project takes to develop before opening.

The stable year earned revenue potential for PRHS is estimated at $394,000, based on the findings and assumptions of this report.

Table VI-3 Earned Revenue Potential Museum and Cultural Center at PRHS

Percent Sources of Earned Revenue Amount to Total Museum/Community Arts Museum Admissions $77,000 19.5% Memberships 28,000 7.1% Retail, Net 26,000 6.6% Special Events 25,000 6.3% Program Fees 11,000 2.8% Corporate Memberships 10,000 2.5% Subtotal $177,000 44.9%

Facility Rental Restaurant Rent 1/ $96,000 24.4% Facility Rentals 80,000 20.3% Catering, Net 40,000 10.2% Vending 1,000 0.3% Subtotal $217,000 55.1%

Total Earned Revenue Potential $394,000 100.0%

Note: Sources rounded to nearest $1,000. 1/ Assumes that the Town of Canton passes through the entire gross revenue to the museum and Cultural Center at the PRHS. Restaurant rent is assumed at $20 per square foot of the net leasable area and a triple net lease, where all building operations and maintenance costs are paid by the restaurant tenant. Source: ConsultEcon, Inc.

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Operating Expense Profile Museums and cultural facilities such as PRHS have high fixed costs. These fixed costs include utilities, insurance, personnel, exhibits and collections care, basic marketing, and maintenance. However, there is some variability in expenses for visitor services, changing exhibits, education programs, marketing and so forth based on visitation levels and hours of operation per week. In this analysis, the expense profile was developed to reflect the site, building and program plans supplied by the Town, the developer and their consultants, and the experience of other projects of this type, adjusted for local conditions. The operating performance of regional heritage attractions was reviewed as well as that of other case studies. Inputs to the operating expenses analyses include the experience of similar facilities nationally and the “metrics” of the new facility – its size, program, type of exhibits, visitation potential and locational factors. Increasingly detailed operating expense plans should be developed in subsequent planning during the construction phases and pre-opening of the project. The expenses reflect a tightly operated project with a “bottom line” orientation. These profiles do not reflect the capitalized reinvestment in PRHS that will be necessary over time for the physical structure. If higher revenues than those projected are attained, additional reinvestment in programs and exhibits could be possible. Following are discussions of some of the major expense categories for the project.

Personnel Expenses Data in Table VI-4 provide illustrative staffing schedules for PRHS based on facility size and program, projected visitation patterns, and operating scenario. Compensation levels for the project were developed based on the experience of similar not-for-profit organizations, museum industry surveys, and occupational salary data from the U.S. Bureau of Labor Statistics. These salary levels are for comparative and analytical purposes only and are not meant to be used to set the compensation levels for any given individual. A fringe rate for taxes and benefits of approximately 25 percent is used in this analysis. The staffing profile prepared for this analysis is appropriate for a facility of this size and a mid-range visitation scenario. The staffing profile assumes that the organization will be very active in educational

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programming both on and off site, with facility rentals and events, as well as collaborations with other community organizations and partners throughout the region, state and nation.

The staff required to operate PRHS is 6.2 full time equivalent (FTE) positions. It is assumed that full and part time staff positions will be supplemented by an hourly workers and volunteers who will have duties associated with education, facility/collections care, special events, visitor services and other important functions. As funding and operating experience allow, additional staff positions could enrich the offerings and operations of PRHS. The total payroll for the project, based on this staffing profile, is estimated to be $427,000 inclusive of overhead and benefits.1 Personnel direct salary and fringe benefit costs are approximately 66 percent of total operating expenses, which is within the norms of the cultural industry.

1 The salary level assumptions are based on U.S. Bureau of Labor Statistics occupational data for Southeastern Massachusetts, and typical cultural industry pay scales. If THE TOWN wage and benefit scales are used, personnel costs may vary from those shown in this report.

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Table VI-4 Illustrative Personnel Positions and Personnel Costs by Department Museum and Cultural Center at PRHS

Annual Number of Number of Total Hours Total Salaries Hourly Full Time Part Time for Hourly Salary Position (FTE) Salaries Positions Positions Workers Budget Responsibilities Administration Executive Director $100,000 1 $100,000 Day to day management, fundraising

Administrative Assistant/Bookkeeper $50,000 1 $25,000 Reception, bookkeeping, office management

Marketing, Membership, Facility Rentals and Events Director of Public Outreach $55,000 1 $55,000 Membership program, facility rental and special events, volunteer coordination

Facility Rentals Attendants 1/ $17.50 500 $8,750 Host and guest relations

Education, Programs, Exhibits Director of Visitor Experience $70,000 1 $70,000 Exhibits, curatorial and collections management, and educational program development Educators $20.00 300 $6,000 Deliver education programs, tours Visitor Services / Retail / Admissions Visitor Services / Retail Manager $40,000 1 $40,000 Oversight of admissions, retail, reception, and buying merchandise Cashiers - Admissions/Retail $15.00 2,500 $37,500 Guest services, reception, retail store

Facility Operations Maintenance Outside Contract - see expenses NA Custodial Outside Contract - see expenses NA Grounds (Parklands and Courtyards) Town of Canton NA

Total 4 1 3,300 $342,250 Taxes, Fringe & Benefits as a percent of 2/ Total Salaries @ 24.8% $85,015 Total Salaries, Taxes, Fringe & Benefits $427,265

3/ Total Full Time Equivalent (FTE) Positions 6.2

1/ Large events only. Based on an average of 10 hours per event and an average of 2 attendants per event. 2/ Weighted average assuming that Taxes, Fringe and Benefits are 28% of full time salaries and 14% of part time salaries. 3/ Part Time Employees Calculated at 50% FTE and Total Hours of Hourly Workers divided by 2,000 hours. Source: ConsultEcon, Inc.

Non-Personnel Operating Expenses Data in Table VI-5 provide a summary of operating expense estimates for a stable year of operations in current dollars. Following is a summary of expense categories for the project.

Administrative Costs Administrative costs include costs associated with phone and internet, equipment rental and lease, travel and professional development, entertainment, and dues and subscriptions, professional services, supplies and materials and development and fundraising costs.

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Professional services include: consulting fees, accounting and payroll, tax preparation and auditing, legal fees, consulting contracts for information technology, etc. Supplies include consumable items such office supplies, custodial supplies, paper products and other materials. It should be noted that this category does not include merchandise in the store and gift shop, which is netted out of this operations analysis.

Occupancy This expense category includes rent utilities, repairs and maintenance, custodial, security, and insurance. As noted, it is assumed that the Town of Canton charges $1 in annual rent. Although not reflected in this analysis, the Town may also absorb other occupancy costs to improve the organization’s financial sustainability by delivering building management services to the museum and cultural center.

Marketing and Programs Marketing encompasses the cost of advertising, promotion, printing and publications include the design, production and distribution expenses for web, television, radio, newspaper, posters, brochures and rack cards and other printed matter including office stationary and letterhead, press release packages, educational kits, tour guides and others. It is assumed that PRHS will prepare a marketing plan appropriate for the facility, the visitation potential and the marketing channels in the Canton and Boston regional markets. In addition to the marketing budget, it is expected that PRHS will receive much free publicity by the Town, as well as local media stations and sources initially and over time. PRHS will work with state and local tourism promotion channels as well as other local museums, visitor attractions, artists, arts, cultural and community organizations on collaborative marketing initiatives. Further, it is anticipated that PRHS will also seek corporate underwriting for additional advertising, promotions, sponsorships and memberships.

Costs associated with the production of onsite education programs sponsored by PRHS are assumed at $2 per school group attendee. While not included in this operations analysis, the costs of education programs can be supported by sponsorships, gifts, grants and other

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revenues that support education, arts and culture. In addition, other Town departments, arts, cultural, and community partners may use the facility for events and programs. The costs of externally produced programs would largely be borne by the external partner and are therefore assumed to be revenue neutral to the museum and cultural center operations, with revenues/chargebacks to partners cover the cost of hosting the event.

Exhibits Exhibit costs include the cost of changing exhibits, collections care/storage, and an allowance for ongoing exhibit reinvestment due to wear and tear and minor replacements. Major replacements of exhibits would occur infrequently and require capital fundraising.

Outdoor Areas Outdoor area costs are for operations and maintenance are assumed to be borne by the Town of Canton through its operation and maintenance of PRHS park and recreation facilities.

Other Other expenses include miscellaneous expenses such as postage, shipping, and other staff and administrative costs.

Capital Reserves A capital reserves fund is used to cover major non-recurring expenses for mechanical, electrical and plumbing repairs and maintenance contracts. These costs are expected to be less during the early years of operation due to new construction and extended warranty periods. Capital reserves may also contribute to future changing programs and exhibits, collection care, minor building improvements and replacement of large equipment under heavy use such as HVAC units. This reserve can also double as an operating expense contingency fund in emergencies. Contributions to this fund are usually made from surplus net operating income, but can also be funded through fundraising. An annual budget of approximately 5 percent of the subtotal of operating expenses for capital reserves is included in this analysis.

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Total Operating Expenses Estimated operating expenses are $670,000 in a stable year of operations in current dollar value. The expense factors used in this analysis conform to cultural industry norms for facilities of this size and scale. As design, program, leasing and business plans advance, operating expense estimates and factor assumptions will need to be re-evaluated and updated accordingly.

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Table VI-5 Operating Expense Estimates in a Stable Year in 2016 Value of the Dollar Under a Mid-Range Scenario Museum and Cultural Center at PRHS

Project Parameters Gross Square Footage 12,694 Rolling Mill Only Stable Year Annual Visitation 25,000 School Group Visitation 1,500 Employees (FTEs) 6.2 See Personnel Schedule

Annual Detailed Budgetary Analysis Amount Expense Factors 1/ Percent of Total

Personnel Costs Salaries (FTE, PTE) $342,250 See Personnel Schedule 51.1% Overhead and Benefits 85,015 See Personnel Schedule 12.7% Interns 15,000 1,000 hrs @ $15/hr. 2.2% Administrative Costs Telecommunications (Phone and Internet) 6,000 @ $500 per Month 0.9% Equipment Rental/Lease 4,000 budget 0.6%

Travel/Professional Development/Entertainment 4,920 @ $800 per FTE 0.7% Dues & Subscriptions & Prof. Affiliations 2,153 @ $350 per FTE 0.3% Professional Services 9,600 @ $800 per Month 1.4% Supplies & Materials 2,400 @ $200 per Month 0.4% Development & Fundraising Costs 5,000 budget 0.7% Occupancy Costs Rent 1 @ assumed to Town 0.0% Insurance 12,694 @ $1.00 per GSF 1.9% Utilities (Water/sewer, gas, electric) 25,388 @ $2.00 per GSF 3.8% Repairs and Maintenance 25,388 @ $2.00 per GSF 3.8% Custodial 12,694 @ $1.00 per GSF Security 0 assumes Town police 0.0% sufficient Marketing and Programs Costs Advertising and Promotion 25,000 @ $1.00 per Attendee 3.7% Printing, Publications and Postage 6,250 @ $0.25 per Attendee 0.9% School Programs 3,000 @ $2.00 per School Attendee 0.4% Changing Exhibits 20,000 budget 3.0% Exhibit Reinvestment 8,750 @ $0.35 per Attendee 1.3% Special Events 10,000 budget Other Operating Expenses 12,310 @ 2.0% of other expenses 1.8% Subtotal Operating Expenses $637,813 95.2% Capital Reserves $31,891 @ 5.0% of subtotal 4.8%

Total Operating Expenses $669,703 100.0% Rounded to nearest $1,000 $670,000 Selected Operating Metrics Expenses per Gross Square Feet $52.76 Expenses per Attendee $26.79 Expenses per FTE $108,895

TBD = To Be Determined 1/ Operating factors are based on industry standards. 2/ Costs are adjusted by 65% due to allocation of space to Cultural Center and non-Cultural Center operations (i.e. Cultural Services offices and collections/storage), as shown in Table II-2. occupancy and maintenance costs of the facility would be higher than amounts shown here. Source: ConsultEcon, Inc.

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Non-Earned Revenue Required for Breakeven Operations Data in Table VI-6 show the non-earned revenue requirement for breakeven operations at PRHS in a stable year of operations in the current value of the dollar. PRHS has capacity to generate earned revenue from a variety of sources, including admissions, retail, and facility rentals. At the same time, operating a complex and labor-intensive operation such as PRHS requires considerable operating expenses. As is typical of projects of this type, it is anticipated that PRHS will require substantial on-going annual non-earned or contributed revenue support for operations. Based on the earned revenue potential and operating expense estimates for the project, this analysis indicates that PRHS will require $276,000 on an annual basis to sustain operations as earned revenues represent 59 percent of total needed revenues to support operations in a stable year.

Contributed revenues should be targeted at levels higher than contained herein, as these will allow more robust levels of service provision, will create revenues to cover any shortfalls in earned revenue that may occur in certain time periods, and could contribute to increasing the financial reserves and endowment. With the efforts of a well-established board of directors and advisors, an active development and fundraising program, this should be an attainable goal. Establishing an endowment before project opening will contribute to the long-term sustainability of the project.

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Table VI-6 Summary of Revenues and Expenses in a Stable Year in 2016 Value of the Dollar Under a Mid-Range Scenario Museum and Cultural Center at PRHS

Percent to Stable Year of Total Operations, Operating 2017 Dollars Expenses

Mid-Range Visitation 25,000

Earned Revenue Museum / Community Art Center $177,000 26.4% Facility Rentals 217,000 32.4% Total Earned Revenue $394,000 58.8%

Operating Expenses $670,000 100.0% Net Income Before Non-Earned Revenues ($276,000) -41.2%

Non-Earned Revenue Requirement 1/ $276,000 41.2%

Net Income After Non-Earned Revenue Requirement $0 0.0%

Earned Revenue as a Percent of Operating Expenses 59%

1/ The difference between the estimated operating expenses and the earned revenue potential. Potential sources of contributed, non-earned revenue include government and private gifts, grants, in-kind and other donations, and proceeds from investments and interest. Source: ConsultEcon, Inc.

Multi-Year Operating Performance The operations analysis presented so far has focused on a stable year of operations under a mid-range visitation scenario to highlight the operating potential possible for the museum and cultural center at PRHS. The operations of the facility will ultimately depend on the market response to the project and the extent of programs and operations established by the facility operator, the tenant the Town identifies for the project. In the early years after to facility opening, when visitation is higher than in a stable year, and awareness of PRHS is heightened, ticket and other visitation driven revenue (e.g. retail) is likely to be higher than in later years. During a five-year period, there will be some variability in operating performance based on the years’ individual circumstances (general economic climate, travel and weather

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patterns, etc.), with higher levels of non-earned revenue support allowing higher levels of cash flow and/or enhanced operations. Analysis of the five-year operations for the project, including visitation, earned revenue and operating expenses, are reflected by data in Appendix Table B-1 through Appendix Table B-3. Data in Table VI-7 show the five-year summary of revenue and expenses, along with the annual requirement for non-earned revenue support.

Table VI-7 5-Year Net Income Summary under a Mid-Range Scenario Museum and Cultural Center at PRHS

Stabilized Mid Range Scenario YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 ATTENDANCE 28,750 27,500 25,000 25,250 25,500

Earned Revenue Museum / Community Art Center $203,000 $197,000 $192,000 $195,000 $206,000 Facility Rentals 206,000 210,000 214,000 219,000 223,000 Total Earned Revenue 1/ $409,000 $407,000 $406,000 $414,000 $429,000

Operating Expenses $649,000 $656,000 $659,000 $678,000 $697,000 Net Income Before Non-Earned Revenues ($240,000) ($249,000) ($253,000) ($264,000) ($268,000) Non-Earned Revenue Requirement 1/ $240,000 $249,000 $253,000 $264,000 $268,000

Net Income After Non-Earned Revenue Requirement $0 $0 $0 $0 $0

Earned Revenue as a Percent of Operating Expenses 63.0% 62.0% 61.6% 61.1% 61.5%

Note: Year 1 shown in 2017 dollars. 1/ Does not equal total shown in Appendix Table B-2, Five-Year Earned Revenue Potential under a Mid Range Visitation Scenario due to rounding. 2/ The difference between the estimated operating expenses and the earned revenue potential. Potential sources of contributed, non-earned revenue include government and private gifts, grants, in-kind and other donations, and proceeds from investments and interest. Source: ConsultEcon, Inc.

Pre-Opening Operations This report evaluates the operating potential of the museum and cultural center at PRHS after project opening. In addition to funds for construction and development, the project’s museum operations will need to be ramped up over a period before occupancy. Before opening there will be operating costs such as program development, staff training, fundraising, marketing, cleaning, etc. The amount of these costs will depend on when various personnel are hired and how the pre-opening period is organized and implemented. These operations are

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typically capitalized as a part of the overall development plan. These pre-opening costs are not included in this analysis which focuses on ongoing operations of the museum and cultural center at PRHS after project opening.

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APPENDIX A CASE STUDIES

This appendix includes several case studies of museum developments that may provide operating insight to the business plan for the Paul Revere Heritage Site. They were selected based on one or more of the following criteria, including: ♦ Location in the Greater Boston Area; ♦ Location in a suburban context; ♦ Facility square footage of approximately 10,000 square feet; and, ♦ Interpretive themes surrounding industrial history, city history, or historic personalities.

Case studies include: ♦ Metropolitan Waterworks Museum – Boston, MA (Table A-1) ♦ Dedham Historical Society – Dedham, MA (Table A-2) ♦ Eleanor Cabot Bradley Estate – Canton, MA (Table A-3) ♦ The Park City Museum – Park City, UT (Table A-4) ♦ Museum of Durham History – Durham, NC (Table A-5)

Additional museums and organizations that were considered for analysis in this section included: ♦ American Museum of Tort Law, Winsted, CT: Opened in early fall of 2015, this museum provides an overview of the history of Tort Law in the United States and a selection of significant cases. Its suburban location between Boston and New York makes it fairly accessible to either city, though it is not in an urban location.

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Figure A-1 American Museum of Tort Law Winsted, CT

Source: UMass Dartmouth School of Law

♦ Charles River Museum of Industry & Innovation, Waltham, MA: This museum features a collection of historic industrial equipment and interpretation of New England industry and innovation history. The museum is located in the former Boston Manufacturing Company – Francis Cabot Lowell’s first manufacturing mill. The organization has leveraged its location and large, unique facility as a popular venue for programs, concerts, and private events. An estimated 13,000 people visit the museum annually.

Figure A-2 Charles River Museum of Industry & Innovation Waltham, MA

Source: BillDamon.com

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♦ Edison and Ford Winter Estates, Fort Myers, FL: 20 acres of botanical gardens and 9 historic buildings make up the Edison Ford Museum. Facilities include the historic homes, as well as the historic botanical laboratory and the Edison Ford Museum. Interpretation includes the significance of botanical and other research conducted by Edison and Ford, as well as the friendship between the two inventors. The museum welcomes an estimated 250,000 visitors annually.

Figure A-3 Edison and Ford Winter Estates Fort Myers, FL

Source: Wikimedia user Euku

♦ Eli Whitney Museum and Workshop, Hamden, CT: This museum was established in 1979 as a not-for-profit historic and educational organization. The Museum preserves the site on which Whitney constructed the first American factory in 1798. The Eli Whitney Museum and Workshop is an experimental learning workshop for students, teachers, and families. The organization collects, interprets, and teaches experimentation as the root of design and invention. The museum welcomes an estimated 48,000 visitors annually in its location just north of New Haven, CT.

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Figure A-4 Eli Whitney Museum and Workshop Hamden, CT

Source: eliwhitney.org

♦ Garst Museum and National Annie Oakley Center, Greenville, OH: Located in the Historic Garst House, a former inn, the museum features over 300,000 artifacts in its 35,000 SF of exhibit space within six major and two minor venues. Exhibit highlights include the National Annie Oakley Center, and information about the Treaty of Greeneville, and other moments of historical significance. The museum achieves attendance of about 20,000 annually.

Figure A-5 Garst Museum and National Annie Oakley Center Greenville, OH

Source: Wikipedia User Nyttend

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♦ Highfield Hall & Gardens, Falmouth, MA: The mission of Highfield Hall & Gardens is to preserve Cape Cod’s preeminent historic estate by offering an engaging environment to experience the arts, explore nature, and appreciate history. The building was first built in 1878, and restored in the late 1990s to serve the community as a museum, as well as a program and event space. Upstairs space is leased to local businesses. The organization celebrated 10 years of being open to the public in 2016.

Figure A-6 Highfield Hall & Gardens Falmouth, MA

Source: Highfield Hall and Gardens

♦ Slater Mill, Pawtucket, RI: Slater Mill was the first successful cotton-spinning factory in the United States, leveraging its riverfront location to engineer an efficient water-powered mill when it was built in 1793. It is recognized as the “Birthplace of the American Industrial Revolution.” Preserved by the Old Slater Mill Association, the campus is now designated as a National Historic Landmark District, featuring three historic structures, a gift shop, an exhibition gallery space, the Jencks Education Conference Center and Rental Hall, and the Hodgson Rotary Park. Previously, there was a café located onsite. The mill welcomes an estimated 25,000 visitors annually.

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Figure A-7 Slater Mill Pawtucket, RI

Source: Slater Mill

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Table A-1 Metropolitan Waterworks Museum Boston, MA

Name and Location Metropolitan Waterworks Museum, Boston, MA Attendance (Total) Between 8,000 and 10,000 Annually Attendance by Type General attendance includes school groups, programs, etc. School • General Admission groups include at least 500 annually from Brookline Public Schools, and • School Groups some other occasional groups. • Programs • Facility Rentals Facility rental attendance makes up 7,000 visits annually. • Other Events Number of Facility 40 to 50 per year, though the organization is feeling mission-drift from Rentals facility rentals. They have become a popular and affordable use for the museum, and, while the revenue generation is nice, the operations are suffering from having weddings almost every weekend. Fees for: No admission fee, but donations are accepted. • General Admission • School Groups • Programs • Facility Rentals • Other Events

Number of Staff 3 Full Time (Executive Director, Operations Director, and Director of Events); 2 Part Time (Education and Development); 2 Part Time Weekend Mangers; Rotating cast of interns. Number of Volunteers Currently 20, though there is capacity for more. Most volunteers are former/professional engineers, who have a lot of background appreciation for hardware in the museum. Volunteers run tours, staff the welcome desk, answer the phone… the organization relies heavily on volunteers. Total Revenue Between $350,000 and $375,000 annually. Also supported by a $1.2 million endowment. Revenue from: Revenue streams include: • Admissions • Condo Fees (112 residents pay annual fee to museum, though not • Programs always painlessly) • Facility Rentals • Condo Sales (museum receives 1-3 percent on any given condo • Memberships sale, which, on a $3 million condo, isn’t bad!) • Annual Appeal ($10-12,000) • General donations ($10,000) • Rentals ($40-50,000) • Gift shop (negligible) • Grants (MCC, other…) Total Expenses Organization consistently breaks even – about $350-375,000. Facility Size Somewhere between 20,000 and 22,000 SF. The “party line” is 22,000, and that is what the website says.

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Table A-1 (continued) Metropolitan Waterworks Museum Boston, MA

Success Factors / • Accessibility close to T, but still somewhat off the beaten path. Lessons Learned • Need more signage, visibility. • Limited parking, need more parking. • Exhibits static and considering reinvesting in them to make them more relevant to current topics in water access, especially advocacy for water access, both in U.S. and globally. • Capital projects and maintenance take a lot of time in adaptive reuse. • Facility rentals take up a lot of time, require closure of the museum on weekends for general admission audience • Staff and leadership turnover disruptive to setting organizational goals. • Early mission statement did not highlight educational value of interpretive elements. Recent developments have shifted focus of museum. Source: Waterworksmuseum.org; Interview with Eric Peterson, Director of Operations, 1/27/2017.

Figure A-8 Metropolitan Waterworks Museum Boston, MA

Source: Waterworks Museum

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Figure A-9 Metropolitan Waterworks Museum Interior Boston, MA

Source: the Garden Club of Back Bay

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Table A-2 Dedham Historical Society Dedham, MA

Name and Location Dedham Historical Society, Dedham, MA

Attendance (Total) Est. 1,650 Attendance by Type General: 200 School: 250 Programs: 400 Facility Rental: Not Applicable Other: 800 (Includes off site attendance, participants in Dedham’s annual Flag Day Parade, those who stop at a table at the weekly summer farmer’s market, and fundraising events off site) Number of Facility Not Applicable Rentals Fees for: • General Admission $2 adults;$1 children • School Groups $1 per child; teachers free • Programs Varies $5 - $25 Not Applicable • Facility Rentals Fundraising events vary $50 - $100 per ticket • Other Events Number of Staff 1 FT; 3 PT; 2 contractors

Number of Volunteers 5 weekly; 25 special committees; 12 board Total Expenses Est. $140,000 Total Revenue Est. earned revenue $105,000 Earned revenues fall short of expenses, but difference between revenue and expenses is made up of the endowment drawdown. Revenue from: Annual appeal 45% Membership 23% Museum shop 5% Endowment drawdown 5%. Research fees 2% General contributions 2% Admissions: 1% Programs: Less than 1% Other sources of income include: event sponsorships, local operating grants (from organizations like the Rotary Club), fundraising events, and event and program sponsorships. Facility Size 4,700 sq. ft.

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Table A-2 Dedham Historical Society Dedham, MA

Success Factors / • Dedham Town history reaches back to the Dedham Grant, which Lessons Learned reaches from Bellingham in the South to Natick and Wellesley in the north – interpretation of more than just the town’s history. • Dedham Historical Society owns the name and original trademark of Dedham Pottery, making and selling reproductions of the products. • Operations include both museum and research library with extensive archival collections, deemphasizing visitor services and interpretation, and focusing on preservation of collections. • The Dedham Historical Society building was built specifically for the organization in 1887-1888 and the organization has no mortgage or occupancy cost associated with the building. Source: Dedham Historical Society

Figure A-10 Dedham Historical Society Dedham, MA

Source: Trip Advisor

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Figure A-11 Dedham Historical Society, Program Attendees Dedham, MA

Source: Dedham Historical Society

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Table A-3 Eleanor Cabot Bradley Estate Canton, MA

Name and Location Eleanor Cabot Bradley Estate, Trustees of Reservations, Canton, MA

Attendance (Total) Estimate of 19,500 in 2016 (estimate based on car counter calibrated to reflect visitors)

Attendance by Type Estimated 19,500 visitors to the property. • General Admission 2,500 estimated to have participate in public programs, including house • School Groups tours. • Programs There is not currently a school / education program on site, so visits by • Facility Rentals school groups are not relevant to this site. • Other Events Facility rentals make up about 2,000 site visits annually (most weddings are Friday nights. Number of Facility Average of 22 event rentals. Most weddings are June-October. Rentals Fees for: • General Admission Free Admission • School Groups Not Applicable • Programs House tours, $5.00; Other programs average $10.00 • Facility Rentals Range depending on event size, but typically average $2,000 to $5,000. • Other Events Not Applicable Number of Staff One Trustees staff member is designated as engagement coordinator for the Bradley Estate. Other on-site staff are associated with different departments and regions of the Trustees organization. 2 Stewardship staff manage the Southeast Gardens region, which has 7 sites. One horticulturalist manages gardens at 2 other properties. Number of Volunteers The Bradley Estate benefitted from 1,200 hours of volunteer service between both public programming and gardening. It is one of the more active volunteer sites because of the growing programming component, the gardening opportunities, and nature of the community in which it is located. Total Expenses Not Available

Total Revenue Not Available

Revenue from: Not Available • Admissions • Programs • Facility Rentals • Memberships Facility Size House of 8,448 SF was previously used as offices for the Trustees, but was left vacant for several years. In summer of 2016, the house was opened for tours, but does not have an extensive collection or active programming. Focus is on architecture.

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Table A-3 (continued) Eleanor Cabot Bradley Estate Canton, MA

Success Factors / • House was first opened to the public in August of 2016 and Lessons Learned programming is still in development. The house does not hold an historic collection, so the focus of programming inside is on architecture and the family history. • Public engagement with public garden sites is active. The community is excited about opportunities to engage with activities and volunteer opportunities on site, more so than on nature preserve sites with trail networks. • The estate is one of 117 sites in Massachusetts managed by the Trustees of Reservations. The organization sorts and staffs these sites based on region and site programming opportunities (public gardens, trails, historic house museums, etc.) Not all sites are open to the public. Distributing staff across sites is key to managing operations at otherwise low-visitation sites. • Trustees recently underwent reorganization process that balances general management at individual sites / regional groupings of sites with specialized services from central office, including curatorial and horticultural services. This allows the organization to be more active with programming on each site. • Bradley has become a focus site for 2017, meaning that the operations and programs and executive teams have advised the manager at Bradley to prioritize activation of the site for visitors, in terms of both property significance and the “spirit of place.” • Site has limited accessibility because of its location on Washington Street. Trustees try to offer basic amenities at each site, acknowledging necessity of ease of access, parking, restrooms, and basic food options at each site as appropriate. • Trustees are very much interested in innovative partnerships and the idea that “rising tides lift all ships.” Potential of partnership between Bradley Estate and Paul Revere Heritage Site may be of interest to the organization. Source: TheTrustees.org; Interview with Ross Moran, Regional Property Manager for Southeast Gardens and South Coast Trustees Sites (January 31, 2017); Interview with Cindy Brockway, Program Director for Cultural Resources for The Trustees of Reservations (February 1, 2017)

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Figure A-12 Eleanor Cabot Bradley Estate – Front of House Canton, MA

Source: TheTrustees.org

Figure A-13 Eleanor Cabot Bradley Estate – Wedding Canton, MA

Source: TheTrustees.org

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Figure A-14 Eleanor Cabot Bradley Estate – Interior Canton, MA

Source: TheTrustees.org

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Table A-4 Park City Museum Park City, UT

Name and Location Park City Museum, Park City, Utah Attendance (Total) An estimated 125,000 people enter the front doors of the museum annually. Typically between 25 and 30 percent of them stay and pay the admission price. Attendance by Type • Programs and Groups are counted on top of general attendance. • About 1,800 to 2,000 children in school groups attend the museum annually. • There are some member-only events, including a monthly hiking trip that attracts 20-40 attendees. • Walking tours are open to the public daily. • Annual historic house tour (which includes admission into people’s houses) attracts about 400 people annually. Number of Facility Minimal facility rentals. When it does happen, it is a cash-cow. In Rentals previous years, the museum was rented as a venue for the Sundance Film Festival. Facility rentals can earn the museum between $50,000 and $100,000 for a week-long Sundance rental. Fees for: General Admission: Adults: $10.00; Seniors/Students/Military: $8.00; • General Admission Children (7-17): $5.00 • School Groups School Programs are Free. • Programs Programs include walking tours, which cost $5.00 per person, or $12.00 • Facility Rentals for a museum/tour combo ticket. Private tours are $15.00. • Other Events

Number of Staff 4 Full Time Staff (Director, Education, Curatorial, and Archives). 1 Part Time Store manager 9 Chamber of Commerce staff work the front desk. They are on the Chamber payroll, but the museum serves as the town’s visitor center. Number of Volunteers 200 Volunteers Total Expenses (From 2014 990): $938,765 Annual occupancy expense: $10,000 to city to cover maintenance expenses, as building is owned by the city. Total Revenue (From 2014 990) : $1,164,837 Revenue from: • Admissions $149,426 • Programs $28,246 • Facility Rentals $115,225 • Memberships $87,238 Facility Size Building is about 12,000 square feet, but about 3,000 are reserved for offices, library, and gift shop space. About 9,000 square feet are exhibit space, some of which is a “teaser” exhibit that is available to the non- paying public.

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Table A-4 (continued) Park City Museum Park City, UT

Success Factors / • Museum renovation and expansion cost $8.9 million and opened in Lessons Learned October, 2009. The museum entered into an agreement with the city, where they raised money to expand and renovate the historic City Hall to house the museum, and pay $10,000 per year on a 100- year lease to the City. • City is unique in its demographics – there are about 5,000 year round residents and many other non-permanent residents. Many of the local population are wealthy and older, making for a good corps of volunteers, except that many of the volunteers are unreliable, because they travel frequently. • Popular winter and summer vacation destination, tourism is highly seasonal, with the Sundance Film Festival, in particular, drawing about 45,000 visitors to Park City over a ten-day period annually. Source: Park City Museum; Interview with Sandra Morrison, Executive Director (February 1, 2017)

Figure A-15 Park City Museum Park City, UT

Source: Park City Museum

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Figure A-16 Park City Museum – Skier Subway Theater Exhibit Park City, UT

Source: Park City Museum

Figure A-17 Park City Museum – Mega Mine and Days of Ore Exhibits Park City, UT

Source: Park City Museum

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Table A-5 Museum of Durham History Durham, NC

Name and Location Museum of Durham History, Durham, North Carolina

Attendance (Total) 9,130 visitors in 2014-2015 Fiscal Year. 8,874 attended off-site exhibits. Total visitation increased 18 percent over preceding year. Number of Facility Occasionally – not an earned revenue option. 3-4 times per year. Rentals Mostly relating to Duke University or small holiday parties. Not a huge earned revenue stream. Fees for: No fees for programs Number of Staff 2 FT, 2 PT weekend managers, other staff are outsourced. Organization is not sure that the museum have internal curatorial expertise. Relationship with the community is the biggest assets. Fundraising cannot be outsourced – lots of cultural capital, but not real capital. Number of Volunteers Over 135 volunteers donated 4,800 hours in FY 2014-2015. Total Expenses $167,531 Fundraising: $29,198 Operations: $40,819 Programs and Exhibits: $97,514 Total Revenue $175,753 Revenue from: No Admission Fee • Admissions Individual Donations: $69,392 • Programs Sponsorship: $39,939 • Facility Rentals City/County Gov. $32,500 • Memberships Foundations $22,500 Businesses $9,024 Other: $2,398 Facility Size 1,200 Square Feet (old bus depot, familiar, lots of windows, lets light in, lets Durham in) Future goal: 5,000 Square Feet. Exploring alternative locations, hoping to expand the building on the current site and improve accessibility. (Worked with an architect for that space needs evaluation). Keeping it small means they can keep being a museum without walls.

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Table A-5 (continued) Museum of Durham History Durham, NC

Success Factors / • A community-driven museum, this organization was set into Lessons Learned motion when a 2004 Cultural Master Plan for the City/County of Durham rated a history museum as one of the community’s highest priorities. Lots of small parts of history, but not a single place to stitch it together. • 80-year history of organizations and community groups wanting to form a history museum for Durham. • Business model: Goal to grow organically from community support. • The current museum facility is a 900-square foot historic bus depot. The organization was incorporated in 2008, and the first facility opened to the public in October 2013. • Inspiration: Levine Museum of the New South (Charlotte, NC). Unfortunately, most museums are larger, so they have more physical space for earned revenue. • Great people involved – “movers and shakers” from the community. Not all donor-class. More Boomers and professionals from Duke and other larger organizations. Goal – we want to be the best. • Museum Without Walls – hired by developers in the area to create exhibits in the lobbies of buildings. Small consulting or exhibit development efforts. • One exhibition annually in places outside the museum – one in the baseball stadium this past year. Big sponsors for those exhibits that help sustain operations. • Just because a city “deserves” a museum devoted to its nuanced history, doesn’t mean that the museum must be made. There are other interpretive options. • Before launching into the future, the organization needs to shore up community / public sector financial support; however, balancing that with the future vision. • Big challenge in location – on Main Street, but not easy to get to for foot traffic. • Important to make sure the museum is meaningful to the local audience, and they are all busy! The out-of-towners won’t have the same level of busy-ness or connection to the content. Keeping it small and easy makes it palatable for a busy local audience. Source: Museum of Durham History

Paul Revere Heritage Site A-21 ConsultEcon, Inc. Management & Economic Insight April 13, 2017

Figure A-18 Museum of Durham History – Exterior Durham, NC

Source: Durham CVB

Figure A-19 Museum of Durham History – Visitors to Museum Durham, NC

Source: Park City Museum

Paul Revere Heritage Site A-22 ConsultEcon, Inc. Management & Economic Insight April 13, 2017

APPENDIX B FIVE-YEAR MID-RANGE VISITATION SCENARIO TABLES

Paul Revere Heritage Site B-1 ConsultEcon, Inc. Management & Economic Insight April 13, 2017

Appendix Table B-1 Five-Year Visitation by Type and Ticket Price and Membership Assumptions under a Mid-Range Visitation Scenario Museum and Cultural Center at the Paul Revere Heritage Site

Low-Range Scenario Stabilized % to Total Visitation Year 1 Year 2 Year 3 Year 4 Year 5 Regular General and Group Admissions Adult 28.0% 25.0% 22.0% 22.0% 22.0% Seniors (65+) 16.0% 13.5% 12.0% 12.0% 12.0% Children (ages 3-17) / Student 12.0% 10.5% 9.0% 9.0% 9.0% Student Groups 4.0% 5.0% 6.0% 6.0% 6.0% Adult Group 2.0% 3.0% 4.0% 4.0% 4.0% Members / Corp Members 10.0% 10.0% 10.0% 10.0% 10.0% Free / Complimentary 1/ 6.2% 5.5% 5.0% 5.0% 5.0% Programs, Events and Rentals Arts and Cultural Programs 1.0% 2.0% 3.0% 3.0% 3.0% Special Events 2.0% 3.0% 4.0% 4.0% 4.0% Facility Rentals 18.8% 22.5% 25.0% 25.0% 25.0% Total 100.0% 100.0% 100.0% 100.0% 100.0%

Visitation By Type Regular General and Group Admissions Adult 8,050 6,875 5,500 5,555 5,610 Seniors (65+) 4,600 3,713 3,000 3,030 3,060 Children (ages 3-17) / Student 3,450 2,888 2,250 2,273 2,295 Student Groups 1,150 1,375 1,500 1,515 1,530 Adult Group 575 825 1,000 1,010 1,020 Members / Corp Members 2,875 2,750 2,500 2,525 2,550 Free / Complimentary 1/ 1,783 1,513 1,250 1,263 1,275 Programs, Events and Rentals Arts and Cultural Programs 288 550 750 758 765 Special Events 575 825 1,000 1,010 1,020 Facility Rentals 5,405 6,188 6,250 6,313 6,375 Total 28,750 27,500 25,000 25,250 25,500

Achieved Per Capita Ticket Revenue 2/ Regular General and Group Admissions Adult $7.50 $7.50 $7.90 $7.90 $8.30 Seniors (65+) $6.50 $6.50 $6.80 $6.80 $7.10 Children (ages 3-17) / Student $4.00 $4.00 $4.20 $4.20 $4.40 Student Groups $4.00 $4.00 $4.20 $4.20 $4.40 Adult Group $5.50 $5.50 $5.80 $5.80 $6.10 Members / Corp Members $0.00 $0.00 $0.00 $0.00 $0.00 Free / Complimentary 1/ $0.00 $0.00 $0.00 $0.00 $0.00 Programs, Events and Rentals Arts and Cultural Programs $15.00 $15.00 $15.80 $15.80 $16.60 Special Events $25.00 $25.00 $26.30 $26.30 $27.60 Facility Rentals $0.00 $0.00 $0.00 $0.00 $0.00

Per Capita Admissions Revenue, before Coupons and Discounts $4.54 $4.59 $4.94 $4.94 $5.18 Less Coupons & Discounts ($0.23) ($0.23) ($0.25) ($0.25) ($0.26) Per Capita Admissions Revenue, After Coupons and Discounts $4.31 $4.36 $4.69 $4.69 $4.92

Memberships Number of Memberships 360 340 310 320 320 Average Regular Membership Revenue 2/ $113 $113 $119 $119 $125 Average Corporate Membership Revenue 2/ $1,000 $1,000 $1,050 $1,050 $1,103 Per Capita Retail/Food Sales 3/ Gross Retail Sales Per Capita $2.00 $2.04 $2.08 $2.12 $2.16 Vending Sales Per Capita $0.25 $0.26 $0.27 $0.28 $0.29

Note: Year 1 shown in 2017 dollars. 1/ Includes children under 3, VIPs, business visitors, and other non-cultural program attendees given free admission. 2/ Ticket prices and membership fees are assumed to increase at a rate of 4.5% every other year. 3/ Assumed to increase each year by the rate of inflation. Source: ConsultEcon, Inc.

Paul Revere Heritage Site B-2 ConsultEcon, Inc. Management & Economic Insight April 13, 2017

Appendix Table B-2 Five-Year Earned Revenue Potential under a Mid Range Visitation Scenario Museum and Cultural Center at the Paul Revere Heritage Site

Stabilized

Low Range Scenario YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL ATTENDANCE 28,750 27,500 25,000 25,250 25,500 Regular and Supportive Memberships 360 340 310 320 320 Corporate Memberships 8 9 10 10 10

EARNED REVENUE Museum/Community Arts Admissions / Program Fees $123,999 $119,848 $117,373 $118,546 $125,582 Retail, Net 30,360 29,621 27,456 28,264 29,082 Memberships 40,680 38,420 36,890 38,080 40,000 Corporate Memberships / Sponsorship 8,000 9,000 10,500 10,500 11,030 Facility Rental Real Estate Rent 96,000 97,920 99,878 101,876 103,913 Facility Rentals, Room Revenue 1/ 60,000 61,200 62,424 63,672 64,946 Catering, Net 40,000 40,800 41,616 42,448 43,297 Vending 10,000 10,200 10,404 10,612 10,824 TOTAL EARNED REVENUE $409,039 $407,009 $406,541 $413,999 $428,676 Rounded to nearest $1,000 $409,000 $407,000 $407,000 $414,000 $429,000

NOTE: Year 1 is in 2017 dollars with future years at rate of annual inflation. Revenue categories are rounded to the nearest $1,000. 1/ Facility rentals and catering would ramp up in early years, unlike admission which is an initial surge of attendance, requiring the museum to grow the facility rental business over time. For the purposes of this analysis, facility rental room revenue and catering are assumed at 75% of a stable year in Year 1 and 90% of a stable year in Year 2. Source: ConsultEcon, Inc.

Paul Revere Heritage Site B-3 ConsultEcon, Inc. Management & Economic Insight April 13, 2017

Appendix Table B-3 Five-Year Operating Expenses under a Mid-Range Visitation Scenario Museum and Cultural Center at the Paul Revere Heritage Site

Low Range Scenario Stabilized Operating Expenses YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Salaries (FTE, PTE) $342,250 $352,518 $363,093 $373,986 $385,205 Overhead and Benefits 85,015 87,565 90,192 92,898 95,685 Telecommunications (Phone and Internet) 6,000 6,120 6,242 6,367 6,495 Equipment Rental/ Lease 4,000 4,080 4,162 4,245 4,330

Travel/Professional Development/Entertainment 4,920 5,018 5,119 5,221 5,326 Dues & Subscriptions & Prof. Affiliations 2,153 2,196 2,239 2,284 2,330 Professional Services 9,600 9,792 9,988 10,188 10,391 Supplies & Materials 2,400 2,448 2,497 2,547 2,598 Rent 1 1 1 1 1 Insurance 12,694 12,948 13,207 13,471 13,740 Utilities (Water/sewer, gas, electric) 25,388 25,896 26,414 26,942 27,481 Repairs and Maintenance 25,388 25,896 26,414 26,942 27,481 Advertising and Promotion 28,750 28,050 26,010 26,796 27,602 Printing, Publications and Postage 7,188 7,013 6,503 6,699 6,901 School Programs 2,300 2,805 3,121 3,215 3,312 Changing Exhibits 20,000 20,400 20,808 21,224 21,649 Exhibit Reinvestment 10,063 9,818 9,104 9,378 9,661 Other Operating Expenses 12,310 12,556 12,807 13,064 13,325 Early Year Expenses 1/ 18,013 9,227 Subtotal Operating Expenses $618,431 $624,345 $627,920 $645,468 $663,511 Capital Reserves $30,922 $31,217 $31,396 $32,273 $33,176

Total Operating Costs $649,353 $655,563 $659,316 $677,741 $696,687 Rounded to nearest $1,000 $649,000 $656,000 $659,000 $678,000 $697,000

Note: Year 1 shown in 2017 dollars. 1/ Early Year expenses assumed at 3% in Year 1 and 1.5% in Year 2. Source: ConsultEcon, Inc.

Paul Revere Heritage Site B-4 ConsultEcon, Inc. Management & Economic Insight April 13, 2017

APPENDIX C ALTERNATIVE OPERATING SCENARIO

This section presents the net operating income summary table if the museum and cultural center is in the Barn rather than the Rolling Mill. Key operating assumptions that impact the net operating income include:

♦ Reduction of stable year, mid-range attendance by 10% from 25,000 to 22,500, which in turn yields a reduction in earned revenue due to the museum and cultural center from $177,000 to $160,500. ♦ Increase in restaurant rent from $96,000 to $165,000 due to the overall increase in net leasable area. This increase in restaurant rent accounts for most of the increase in revenue due to facility rentals. ♦ Reduction in operating expenses from $670,000 to $625,000 due to lower operating costs associated with the smaller square footage. ♦ Overall, non-earned revenue required for breakeven operation decreases from $276,000 to $181,500.

Data in Table C-1 shows the net operating income summary of museum and cultural center operations in the Barn as opposed to the Rolling Mill.

Suitability of the Barn and the Rolling Mill for Museum Use and Restaurant Use Because of the adaptive reuse context, the proposed museum and cultural center and restaurant uses have pros and cons about how they would fit into the available building space. Data in Table C-2 show the pros and cons of the museum and cultural center use in the Rolling Mill and in the Barn. Data in Table C-3 show the pros and cons of the restaurant use in the Rolling Mill and in the Barn.

Paul Revere Heritage Site C-1 ConsultEcon, Inc. Management & Economic Insight April 13, 2017

Appendix Table C-1 Summary of Revenues and Expenses Under a Mid-Range Visitation Scenario Museum and Cultural Center at the Paul Revere Heritage Site

Percent to Stable Year of Total Operations, Operating 2017 Dollars Expenses

Mid-Range Visitation 22,500

Earned Revenue Museum / Community Art Center $160,500 25.7% Facility Rentals 282,000 45.1% Total Earned Revenue $442,500 70.8%

Operating Expenses $625,000 100.0% Net Income Before Non-Earned Revenues ($182,500) -29.2%

Non-Earned Revenue Requirement 1/ $182,500 29.2% Net Income After Non-Earned Revenue Requirement $0 0.0%

Earned Revenue as a Percent of Operating Expenses 71%

1/ The difference between the estimated operating expenses and the earned revenue potential. Potential sources of contributed, non-earned revenue include government and private gifts, grants, in- kind and other donations, and proceeds from investments and interest. Source: ConsultEcon, Inc.

Paul Revere Heritage Site C-2 ConsultEcon, Inc. Management & Economic Insight April 13, 2017

Appendix Table C-2 Pros and Cons of the Museum and Cultural Center Use in the Rolling Mill and in the Barn

Paul Revere Heritage Site C-3 ConsultEcon, Inc. Management & Economic Insight April 13, 2017

Appendix Table C-3 Pros and Cons of the Restaurant Use in the Rolling Mill and in the Barn

Paul Revere Heritage Site C-4