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APPROPRIATION COMMITTEE-ATM 20 t 8
<br /> for a better functioning building that has adequate space for the information desk and patrons thereof,his-
<br /> toric displays, retail area, and restrooms. The plans have been further refined to include first floor bath-
<br /> rooms accessible from the exterior of the building.
<br /> The Tourism Committee and Economic Development Office are in the process of identifying funding
<br /> sources besides the tax levy. They are examining the creation of fee revenue streams that could generate
<br /> up to $3,000 annually, and are looking at potential partnerships with local civic organizations that could
<br /> raise more than $10,000 annually. They have applied for a $675,000 Cultural Facilities state grant, and
<br /> Senator Barrett has included a request for $200,000 that is a candidate for inclusion in the next State op-
<br /> erating budget. Additionally, it may be possible to request funding under the Community Preservation
<br /> Act for items such as the restoration and display of current historical artifacts, including the diorama and
<br /> USS Lexington memorabilia; the creation of new historical displays; and exterior site work which is cov-
<br /> ered by the Battle Green Master Plan approved by the Board of Selectmen in March 2011.
<br /> In addition to operating the Visitors Center and the Liberty Ride, the Tourism Committee and Economic
<br /> Development Office conduct marketing efforts, and the revenues of these activities cover expenses. Their
<br /> "Linger In Lexington" campaign has encouraged tour buses to spend more time in Lexington, and Center
<br /> businesses have experienced increased tourist foot traffic and business over the past five years.
<br /> As one justification for investing in this project, the Tourism Committee has noted that hotel and meals
<br /> tax collections since FY2011 have totaled $8,702,054. Total collections have experienced annual growth
<br /> in year-to-year collections and in FY2017 were over$1,538,639. However, it is important to note that the
<br /> sources of this tax revenue include residents and their visitors,business customers, and tourists.
<br /> The proposed design has the same footprint as the design presented at the fall 2017 special town meeting,
<br /> but the floor plan has been modified. The building would have two stories and a full basement, and would
<br /> have a gross floor area of 6693 sq. ft. The cost of design, demolition,temporary siting, and construction is
<br /> estimated at$4,575,000. The gross floor area of this concept is reduced by 19% from the 8297 sq. ft. area
<br /> of the 2016 concept, which in June 2016 had an estimated design and construction cost of$4,063,675. In
<br /> order to compare the cost estimates of these two designs,the 2016 concept cost has to be adjusted for in-
<br /> flation to a cost of$4,400,000. This comparison shows the cost per square foot of the 2016 concept as
<br /> $530, compared to $645 for the final design. Possible additional changes in the design are being consid-
<br /> ered that could modestly reduce the overall cost by as much as $200,000.
<br /> If approved, the new Visitors Center could be in use by April 2020, in time for the Massachusetts 400
<br /> celebrations beginning in 2020 and the 250th anniversary of the Battle of Lexington in 2025.
<br /> A portion of the requested funding, $200,000, would come from Free Cash, while the balance would be
<br /> obtained by borrowing. The debt service costs would be funded within the levy. Amounts raised from
<br /> other sources as described above would, depending on timing, either reduce the amount borrowed or be
<br /> used for part of the debt service. At this time Town staff is recommending the project be bonded over 10
<br /> years. Using an assumed interest rate of 5%, annual debt service costs would start at$680,000 and decline
<br /> to $480,000 over time. Any new revenue sources including CPA funding would be applied to the annual
<br /> debt service payments, and any one-time grants would be used up front to reduce the total amount bor-
<br /> rowed. For context, FY2019 within-levy debt service costs are budgeted at$10,997,766,prior to any mit-
<br /> igation.
<br /> There may be a modest impact of roughly$100,000 on the FY 2020 operating budget if the Visitors Cen-
<br /> ter sales revenue declines substantially during the temporary relocation.
<br /> The Committee recommends approval of this request(8-1).
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