Portsmouth mulls revenue ideas for Glen, Elmhurst properties

Posted 3/29/15

PORTSMOUTH — Town Administrator John Klimm wanted creative, thinking-outside-the-box ideas, and Emil Cipolla did not disappoint.

When a fellow member of the New Revenue Working Group mentioned that it costs the town $50,000 annually just …

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Portsmouth mulls revenue ideas for Glen, Elmhurst properties

Posted

PORTSMOUTH — Town Administrator John Klimm wanted creative, thinking-outside-the-box ideas, and Emil Cipolla did not disappoint.

When a fellow member of the New Revenue Working Group mentioned that it costs the town $50,000 annually just to cut the grass at Glen Farm, Mr. Cipolla offered a cheaper method of keeping the turf short.

“How about running an outdoor farm with goats?” Mr. Cipolla suggested.

There’s no such thing as a bad idea on this town panel, which was formed by the Town Council last year to examine ways to bring in new revenue streams to improve Portsmouth’s longterm financial health.

At a recent meeting of the panel Mr. Klimm, who put the committee together after advertising for members, urged everyone to be creative “and not be afraid of hearing, ‘That’s the oddest thing I’ve ever heard in my life.’”

The town-owned Elmhurst and Glen Farm property was the hot topic at the panel’s most recent meeting. The town has owned the former Elmhurst Academy property (including Glen Manor House) since 1973, and Glen Farm since 1989.

Committee members said the town has a golden opportunity in the Glen Manor House — rented out for weddings and special events — since last year’s demolition of the Elmhurst School opened up the waterfront property.

Mr. Klimm said the town’s lease with the caretakers of the historic home ends in June 2017. “The niche it takes care of there is very good. But the question is, are we maximizing our opportunities there?” said Mr. Klimm, who suggested putting it out to bid.

Mr. Cipolla agreed that the town could be making a significantly larger profit from the Glen Manor House. “We should be getting at least seven digits out of that,” he said.

Another member, Tom Gorski, suggested having an outside group — “maybe it’s the Marriott Corpotation or maybe it’s an independent company — come in to develop the property for maximum usage and profit.

"To rent the Marble House for a wedding, it starts at $25,000. Blithewold is like $10,000 and that’s just for the tent,” said Mr. Gorski.

Mr. Klimm said he liked the idea of hiring an outside vendor to manage some of the town’s properties, such as what’s happening at the Melville Campgrounds. In December the town hired WP Management Group, LLC to run the campground operations.

“They’re responsible for al the upkeep and maintenance,” he said. “We’re out of the campground business. All we have to do is collect the check. That’s a real win for the town.”

A similar arrangement, he and other members said, could work for other properties at Glen Farm.

David Gleason, one of two Town Council members who serve on the revenue panel — the other being James Seveney — said the town needs to find a way to take the burden of repairing the farm’s barns off taxpayers’ backs.

“We just can’t find the capital to put into those buildings,” he said.

The town rents out the stables for use as an equestrian center, but there is no lease — presenting another opportunity for the town, said Mr. Klimm.

Tapping into polo

Some members said the town isn’t doing enough to draw revenues from Newport International Polo, which rents the lower fields at Glen Farm from the town for “$18,000 or $20,000 annually,” according to Mr. Seveney, who called it “the second- or third-largest business in Portsmouth.”

When the lease for the polo fields ends in a few years, Mr. Seveney said, the town should look for more revenue opportunities, such as getting a percentage of the gate receipts or making it a condition that the business rent the town-owned barns for its horses.

Two other structures at Glen Farm — the Phelps House and the Brown House — should also be improved and leased out, members said.

Mr. Klimm said the first time he came to Portsmouth, then-Town Council President Joseph Robicheau showed him the dilapidated Phelps House and joked that it was his new home.

It recently struck him, however, that it wasn’t such a bad idea, Mr. Klimm said. Why not work a deal with the next administrator to live in the house while paying for repairs? he asked.

"That house would have been fixed and you would have had $72,000 to pay back on the loan. When the council interviews the next manager, perhaps you’ll want to throw that out,” he said.

Committee member Steve Sebolt said he envisioned “staycations” with the Phelps House. “What I think would be cool is, if I could just go there, kind of like Anna D’s (Cafe), and have a cup of coffee and then walk the trails,” he said.

As for the Brown House, Mr. Klimm suggested putting it out to bid.

“I think we should put them all out to bid, to be honest. We need to find tenants for these buildings,” replied Mr. Gleason, referring to the Phelps House, the Brown House and the south side of the former Coggeshall School.

He suggested advertising a request for proposals (RFP) and let people make their own proposals for Glen Farm and the Elmhurst property. “Let’s leave it up to the creativity of the bidder.”

What do people want?

It would be important to find out what residents really want at the Glen, said Mr. Gorski. “Do we want a concert venue there?” he asked, noting that Newport recently lost a major music venue when the Newport Yachting Center was sold.

Mr. Gleason said residents have told him that the town should take advantage of its farming history in making money at Glen Farm. “People have talked to me about have a Sturbridge Village-type thing,” he said.

Mr. Sebolt suggested an annual Harvest Fair or Oktoberfest at the Glen. He also said the east side of Glen Farm would be a great spot for a community center run by the town’s new recreation department, with an outside group or corporation helping to fund it.

Mr. Klimm said said some residents want to see “radical” changes at Glen Farm, while others like it the way it is. The town’s annual citizens survey would be an ideal forum to poll residents on the issue, he said.

Next meeting April 2

Mr. Klimm served as chairman of the panel until March 19, when the group selected Mr. Cipolla to take his place. A new leader was needed since Mr. Klimm is leaving Portsmouth to become the city manager in Aiken, S.C. starting April 27.

The New Revenue Working Group’s next meeting is scheduled for 4 p.m. on Thursday, April 2, in the Portsmouth Room on the second floor of Town Hall.

Impartiality questioned

A local resident has questioned the appropriateness of Town Council members serving on a board that ultimately reports back to the council.

At a March 19 meeting, Judi Staven told members of the New Revenue Working Group that it was improper for council members to serve on the committee since it could present a conflict of interest.

"To the best of my knowledge this is the first time we’ve had a committee in this town where we have sitting members of the Town Council on it. It’s just not done,” said Ms. Staven.

The revenue group periodically reports back to the council, which has the final say in approving any proposals the committee makes.

“Now you’re going to the council and there are already two votes. You’re not an impartial body at that time,” said Ms. Staven.

Mr. Gleason actually brought up the matter first, asking other members of the panel whether his and Mr. Seveney’s presence on the committee posed a conflict of interest. He mentioned that the chairwoman of the School Committee, Terri Cortvriend, also serves on another town panel (the Redevelopment Agency).

“But that has nothing to do with the School Committee,” Ms. Staven replied.

On the suggestion of Mr. Klimm, Mr. Gleason said he would ask Town Solicitor Kevin Gavin for his opinion.

Ms. Staven also questioned the selection process for the committee. Mr. Klimm said the town advertised for members and he selected a list of residents, some of whom he didn’t previously know.

“If there are other citizens who want to join us — I’m sure we want to keep it at a manageable number — they’re more than welcome,” said Mr. Klimm.

“All right, I’ll put my application in,” replied Ms. Staven.

Brown House, Elmhurst School, Glen Farm, Glen Manor House, Newport International Polo, Phelps House

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