03/10/2006 - Teen Advisory Board` City of Ea�an
Mr. Tom Hedges
Pat Geagan 3830 Pilot Knob Road
MAYOR Eagan, MN 55122
Peggy Carlson
Cyndee Fields
Dear Mr. Hedges,
Mike Maguire
Meg Tilley Thank you for taking the time to listen to our presentation. For almost two years we have
COUNCIL MEMBERS been working toward this goal of adding a coffee shop to the Eagan Teen Center and with
your help, we can finally make this goal a reality. We are sometimes a loud group of
Thomas Hedges individuals whose voices are often silenced or not taken into consideration. We applaud
CITY ADMINISTRATOR the City of Eagan for providing us the unique opportunity to represent the voice of our
peers before you and the Parks Advisory Commission.
We thought that by utilizing a cart it would give both the Oasis and the ECC the most
MAINTENANCE FACILITY flexibility and could also be used for special events. Something more permanent would
3501 Coachman Point be even more exciting for us. We understand that fiscally, it may make more sense to
Eagan, MN 55122 have the coffee exclusively at the concessions area, however we were delighted to hear
651.675.5300 phone
that you support a blended approach where services are available at both locations.
651.675.5360 fax
Again, thank you for helping us attain our goal of making the teen center a booming
651.454.8535 TDD place. We look forward to your guidance and direction.
www.cityofeagan.com Respectfully,
rd �.ir/r'1
Eagan Teen Advisory Board Member
THE LONE OAK TREE
The symbol of
strength and growth
in our community.
After your departure last week we continued to meet and discuss your feedback.
Attached you will find a brief summary of our discussion for your consideration. We
respect your suggestions and have divided up some of the tasks in order to work
effectively as a group. We want to express our gratitude for your commitment to help
MUNICIPAL CENTER
make this coffee shop a part of the Oasis and the community center. We are excited
3830 Pilot Knob Road
about the possibility of offering these services in the Oasis and Concessions. We truly
Eagan, MN 55122-1810
believe that by adding components to the Oasis we are not only achieving our goal to
651.675.5000 phone
create our Oasis niche in the teen center market but we are also providing opportunities
651.675.5012 fax
for job training, a marketing point for recruiting more patrons, and strengthen the overall
651.454.8535 TDD
atmosphere of the room. We will do our part to help assure its success.
We thought that by utilizing a cart it would give both the Oasis and the ECC the most
MAINTENANCE FACILITY flexibility and could also be used for special events. Something more permanent would
3501 Coachman Point be even more exciting for us. We understand that fiscally, it may make more sense to
Eagan, MN 55122 have the coffee exclusively at the concessions area, however we were delighted to hear
651.675.5300 phone
that you support a blended approach where services are available at both locations.
651.675.5360 fax
Again, thank you for helping us attain our goal of making the teen center a booming
651.454.8535 TDD place. We look forward to your guidance and direction.
www.cityofeagan.com Respectfully,
rd �.ir/r'1
Eagan Teen Advisory Board Member
THE LONE OAK TREE
The symbol of
strength and growth
in our community.
It was almost two years ago when the Eagan Teen Advisory Board came before
this council to accept an award from the Minnesota Recreation and Parks Association for
Volunteer Initiatives in Parks and Recreation. During that time, we shared with you a
little bit about who we are as a group, what we do and what our plans are for the future.
Our mission and vision remain unchanged-- the Eagan Teen Advisory Board strives to
strengthen the community with a teen voice as well as to project a positive image of
Eagan teens to the community. Along these guidelines, the board has developed goals to
f indraise;.promote safe, social events for teens; and to provide service in the community.
When we met with you in April of 2004, we discussed a future plan of adding a
coffee and beverage bar within the Oasis teen center in the Eagan Community Center.
This is the plan that brings us before you tonight. This idea is progressing, but in order to
take the next steps and make it a reality, we are asking for your help. Our goal for the
last year and a half has been to add coffee and beverage services in the Oasis at the
community center. The services will include coffee, specialty drinks, smoothies, bakery
items and snack foods and be coordinated under the current concessions management and
Oasis staff. We believe that this would enhance the atmosphere of the Oasis and the
services of concessions at the ECC, making it more teen oriented. The Oasis currently
attracts younger teens; we feel that the beverage bar services would help bring in older
teens as well as keep the kids who already come to the center happy with what it offers.
The idea for the addition of a coffee bar stemmed from the model of Eagan High
School's MUSE Coffeehousea semi-annual event where bands and musicians play
while students enjoy coffee beverages and a mellow atmosphere. As we thought of how
we could enhance our own environment at the Oasis, coffee was a natural choice.
At the Oasis, we host a bimonthly event known as Bring the Noise where local
teen bands or solo musicians can come and play while teen center patrons enjoy the live
entertainment and socialize with their peers. We feel that the addition of these services
will enhance these and other events and make then even more successful. The coffee bar
idea evolved into one where these services could be available to anyone that comes to the
Oasis or the community center in general. The National Coffee Association polls only
those who are over the age of 18, and so credible statistics regarding an increase in teen
coffee consumption are limited, however just going to a coffee venue one can see the
evident change in customer demographics. No longer are businesspeople the only ones
spending their time and money in coffee shops, teens are as well. There has been a major
increase over the past ten years in the number of teens who drink coffee and in the
amount of money they spend on it. We felt that if we could get Eagan teens to spend
some of their "coffee money" at the Oasis, we could introduce a revenue -generating
element that contributes to overhead costs. Teens would be spending their money at the
ECC to help support Eagan teen advisory goals, so we feel there would be a greater
benefit to the community. One of our main goals as a Teen Advisory Board is to develop
programs and services that support and enhance the "Oasis," and the community. Our
fundraising efforts have provided us some opportunities to enhance the center since it
opened in September, 2003, but we feel that developing concepts that enhance the Oasis
and have potential to generate revenue would be worth investing in. It is also a way for us
to be involved, give back to the community and express our voice.
2
By all means, the addition of a coffee bar isn't going to generate instant profit.
We anticipate that revenue will cover all expenses for general operating materials, within.
the first year. We also anticipate that within 3-5 years we will be generating enough
revenue to contribute to overhead. As a board, we are asking for your assistance. We
would like you to approve the addition and consider investing in the project financially.
In our business plan we have outlined three options for you to consider to
accomplishing this task. We have also presented options for funding the addition. The
options range from $20,000-$40,000. By no means is this an exhaustive list. of potential
options, but it is a starting point. As a Board, we feel united in the need for the addition
and are presenting a repayment schedule for the initial capital investment from our annual
fundraising campaign.
If you look at the handout of our proposed budget, on page 4, you will see that in
our projected expenses and revenue we estimate a balanced budget after the first year of
operation. The budget that we have prepared is for services during the Oasis hours of
operation. Additional hours can be added based on -demand and if staffing support can be
arranged financially. We intend to continue working at reducing the initial investment by
working with potential vendors and the Eagan Foundation. (ie: discounts towards labor
and materials)
Once the services have been added we feel that the potential consumer base
increases significantly due to our location. With specialty coffee services available, it is
our hope that teens will account for a large percentage of our consumer base and be the
essential users during Oasis hours. After conducting a survey of 415 teens at the Oasis
and area high schools we found that 63% are interested in a coffee bar just for teens.
73% would support the addition and 71% would stop for a beverage if the coffee bar
opened.
Our intention is to continue to increase awareness of the Oasis and the coffee bar
enhancement. We met with teen advisory board members from the Hopkins Depot, who
provide advisory feedback to the Depot management and assist in marketing. We are
using some of what they have done as a model.
We have worked with the Eagan High School Business Department Head Paul
Kovach to formulate marketing ideas which will be executed by business students. These
strategies tie the development of marketing techniques and promotion into business
classes at Eagan High School. We feel that when teens are putting their energy into an
idea, they will bring in as many people as possible to make sure that they succeed. When
teens come together, they can make great things happen, like our Silence the Violence
and Chill `n' Grill events. Other promotional tools that we feel would be effective are
fliers, community bulletins, public access television and by having Oasis Staff and ETAB
members circulate community events to spread the word.
Teens are not the only group coming and going in the Eagan Community Center.
Currently there are 250.-300 individuals/members that visit the Community center health
club each day, and every one of them walks past the Oasis to reach the club. Instead of
leaving the gym and stopping by a Caribou or Starbucks, we feel having coffee available
within the community center would be much more convenient for them. After surveying
146 of these community center users through voluntary response, we found that 82% of
the users drink coffee or tea and that 81 % would stop by the Oasis for a beverage, either
before or after their workout.
The Community Center is also host to many meeting areas, the blast, gym, and
senior center. These areas are frequently used by renters, athletic associations and
members of the community. We feel the Oasis coffee bar will provide a wonderful
amenity for all of the Community Center users. The Community Center's location is near
El
one of the largest commercial zones in Eagan, making it convenient for employees at area
businesses to utilize the availability of coffee nearby. Lockheed Martin, Unisys, as well
as Argosy University with its 1500 faculty/students are within walking distance. ETAB
was only permitted into Argosy to do surveys. 55 surveys were collected from the
faculty and students there; 71% of the individuals surveyed indicate an interest in a coffee
bar at the nearby community center. As we anticipate that during teen center hours, most
of our. customers in the Oasis will be teens, the Community Center has wonderful
gathering places that other customers would be able to utilize during teen hours in the
Oasis to enjoy their treats.
Obviously such a project as this is a huge investment. This is why ETAB has
researched several implementation options for the coffee bar, depending on the response
from you, the Eagan City Council. If you would like to follow in your copy of our
business plan, you will find this information on page 7. The first option would be to have
a mobile coffee unit which could be used in and outside of the teen center, depending on
the time of day. The cost is approximately $20,00.0.for the unit and the necessary
equipment. On the other end of the spectrum would be to construct a full-service coffee
bar into the Oasis teen center. After extensive research and cost analysis, we have found
that the estimated cost for this option is $40,000. As a good middle -ground we also
propose an option which combines elements of both. Cabinetry and a mobile cart would
be about $30,000. The decision is yours based on how you feel money would be best
spent, if you choose to support us in this endeavor.
On the same page in your copy of the business plan, you will find four ideas for
funding.
We are not asking you for these amounts blindly, we have done extensive
research in preparation for this project and have already made huge steps toward
gathering the background information by working with many people and companies in
and around our community. With the help of the Mike Ferber from Fundraising
Solutions, we have created formats for our annual fundraising campaign and grants.
We've met with Skip Fay and Brent Hagen from Dunn Brothers Coffee and have
received invaluable information and help from these industry experts. They have shared
coffee store business plans, budget guidelines, answered many questions and have even
offered to help us create "Oasis" label coffee to sell as well as training opportunities for
staff. Cindy Douthett Nagel with the architects Krech, O'Brien, Mueller and Wass, Inc.
has turned our vision into reality by developing a floor plan, and providing us with a bid
and list of necessary equipment. After stripping the equipment list to the essentials, we
met with Pamela Steinbach a representative from the Minnesota Department of Health; to
look over the floor plan and equipment and make sure we were heading in the right
direction with code compliance.
You have heard our idea and have before you a packet of information that we
hope you find helpful. We'd like to take this time to open up for questions.
EAGAN TEEN ADVISORY BOARD
REVISED 3/10/06
BUSINF,SS PLAN
EXPANDING THE OASIS SERVICES TO
INCLUDE A COFFEE / BEVERAGE BAR
BUSINESS PLAN
EXPANDING THE OASIS SERVICES TO INCLUDE A
COFFEE / BEVERAGE BAR
COMPANY SUMMARY
Eagan Teen Advisory Board is a volunteer youth empowerment board working to ensure a teen
voice is represented in the community. The board is active in the operations of the teen center, teen
program development, surveying their peers and developing services through volunteering to
enhance the community. This specific concept is designed to add to the services and atmosphere of
the Oasis and the Community Center.
CORPORATE OBJECTIVES
One-year: 1) Open a coffee / beverage bar in the Oasis, the Eagan Teen Center.
Five-year:
1) Realize a revenue source that supports the activities of the teen center,
programs and concessions of the community center. The goal is not to
recover all of the costs associated with these operations, just help support
them.
2) Cover costs of operating the coffee / beverage bar during non -teen center
hours.
3) Enhance the atmosphere of the teen center to reflect the interests of the
teen population.
4) Enhance the atmosphere and services of the Eagan Community Center.
BUSINESS STRUCTURE
The Eagan Teen Advisory Board is a volunteer board that provides a voice for teen perspectives.
However the daily operations and management of the coffee / beverage bar would fall under the
management of the concessions provided by the Eagan Community Center and the Eagan Teen
Center Supervisory staff The service would be a branch of concessions service based in the Oasis.
The equipment will be available for concessions to utilize during non Oasis hours/events.
STORE LOCATION
The Oasis teen center located in the Eagan Community Center, 1501 Central Parkway, Eagan
Minnesota 55122.
W
PRODUCTS & SERVICES
Private label "ETAB" high-quality coffee and specialty drinks, smoothies, light healthy snacks,
cookies, brownies, rice crispie bars, muffins, (coordinated with concessions) live music some
evenings and a comfortable environment in which to enjoy them.
COMPETITIVE COMPARISON
There are. a number of local coffee shops including Caribou Coffee, Starbucks and Dunn
Brothers within Eagan service areas. Our location presents some unique characteristics which
provide a competitive_ edge and are driven by location, policies and current audience requests. These
will be discussed in the Marketing Plan section.
BUDGET
The proposed budget outlines minimal operations for the coffee/beverage bar and only during
Oasis regularly scheduled teen hours. The staff wages will be absorbed by the Oasis staff unless the
burden for managing both is not possible to be handled by one person. The budget outlines the
wages to provide a realistic picture of costs, however removes them from the totals to show actual
revenue over expenses already part of the City budget.
The special events outlined in the budget are Oasis special events. In addition to these regularly
scheduled events we anticipate relocating the moveable cart to the lobby or other areas of the ECC
to accommodate services for other large functions; such as the employment fair, MOMs garage sale,
EAA tournaments, etc.
The budget is conservative. Daily, there are over 300 patrons visiting the Community Center.
The daily attendance in the Oasis is between .5-15 youth. Special events attract anywhere from 45-
450 attendees. ECC member visits range from 250-300 daily. This does not include potential
consumers who utilize the blast, oaks, gyms or lone oak room. -
These services would be available to add to regular concessions during -non -teen hours/special
events and would increase the potential for income. This addition is not included in the attached
budget.
. All proceeds will be captured under the concessions revenue itemizing under coffee services to
efficiently identify actual revenues collected.
3
I Projected Annual Budget
C:nf nP/RP\iPranP I Prnnrnm
Program:
Bar
�I Number:
I
+ 3058/6811
REVENUE:
Description
Price/avg.
#
daily
Days
Open
Weeks/yr
Total $$
Average Daily Coffee/Beverage Sales
$2.75
5
6
52
$4,290.00
Average Spec Event Coffee/Beverage Sale
$3.75
25
1
24
$2,250.00
Treats only sales
$2.05
2
6
52
$1,279.20
Subtotal product sales
$7,819.20
Potential Impact in Vending
$0.25
25
6
52
$1,950.00
Projected Revenue
$9,769.20
EXPENSES
Coffee Bar General Oasis Hours
Hrs
# of Emp.
Pay Rate
#
hours
# days
# weeks
Total
M -F
2:30-8:30
1
8.08
6
5
52
$12,605.00
Sat
12:30-6:30
1
8.08
6
1
52
$2,521.00
SubTotal Seasonal Salaries
$15,126.00
Special Events
teen center staff wages absorb these expenses
Varies
1
8.08
5
24
1
$970.00
Total Wages ' •
$16,096
(wages currently budgeted in 3058)
($11,555.00)
Total Salary not included in Oasis Budget
$4,541.00
Estimated Costs of Operation
9
Price/avg.
#
daily
Days
Open
Weeks/yr
Total Cost
Beverage Materials
(average cost per bev.)
$1.04
5
6
52
$1,622.40
(coffee beans, smoothie mixes...)
special events ay.sale
$1.41
25
1
24
$ 846.00
Paper Products / yr
$ 750.00
Treats
$.90
2
6
52
$ 561.60
Subtotal Goods Expenses
$3,780.00
Total Expenses
$8,321.00
Marketing Plan — Initial Customer Base
Teens
The coffee / beverage bar -is to be located in the Oasis, which is in the Eagan Community
Center. The Oasis is the city teen center and home to drop in activities, programs, and special events
for -area teens: Currently teens are attracted to the location, primarily for programs and special events
from Eagan and surrounding cities, which include; Hastings, St. Paul, Apple Valley, Farmington,
Burnsville and such. Over, 5600 teens have visited the Oasis or participated in special events hosted
at/by the Oasis since September 2003. ETAB members have surveyed over 300 teens and
interviewed participants at .Oasis special events, receiving overwhelming support and enthusiasm
from peers for the addition of a coffee bar as an amenity to the Oasis. Attendance at the Oasis has
gradually increased since its opening in September of 2003. In 2005 over 2700 teens participated in
drop-in, special events or programs based in the Oasis, surpassing the total numbers for the 2004
calendar year. Students search us out, for program development, special events and booking for
performances.
Store opening is expected to occur mid 2006.
MARKETING STRATEGIES
PROMOTION
The Oasis would offer a unique service in a pleasurable atmosphere that would appeal to anyone.
During teen center hours, customers who are not teenagers would be able to take advantage of the
services and then enjoy their beverages in the welcoming lobby of the community center complete
with comfortable lounging and fireplace. Flyers will be distributed to individuals registered in
programs, daily users, fitness member's newsletters, in sports manager's packets and by the
community center. In addition, promotional information tables will be set up during key events,
tournaments and special events to market the coming opening of the facility.
At least four percent of revenues will be devoted to promotional activities. This fund is to be
used to further general public recognition, conduct market research, and promote awareness of
services and products. In addition, time will be spent on developing community sponsorship,
donations, and local marketing activities such as flyer and coupon distribution and local signage.
A team of Oasis / ET -AB members will visit area businesses, civic groups, organizations and
schools during lunch hour, meetings, or gatherings with an information and sample booth
announcing the services and offer coupons for incentives to visit.
Public service announcements will be distributed to local paper, TV and radio spots as well as
local church newsletters and community brochures, and flyers.
Teens will become involved through business classes, school projects and contests in the
development of marketing components of the Oasis including the coffee bar.
PRICING
Prices will be set to be competitive with the average price at area coffee shops.
5
SALES FORECAST
The sales forecast is included as part of financial projections that follow.
POTENTIAL CUSTOMER BASE
The following customers are identified by proximity to the Oasis or as current users of the
Community Center facility. Although these customers are not teens they will be welcome customers
and will be encouraged to use ECC lobby during Oasis teen hours.
College students and faculty
Argosy University is located less than a block away from the Community Center and currently
has 1500 students and faculty. These students and faculty will not only be a source of customers, but
also employees. Students will appreciate the relaxed environment in which to study, plan a school
work session or volunteer as a mentor during teen center hours. Surveys were distributed through
the front desk to faculty and to students via the student lounge to gauge their interest in our project.
The survey results primarily reflect interests of the faculty as students were difficult to gain results
from due to the informality of the distribution of the surveys. The surveys were made available for
one and a half weeks, after which 55 were completed. Of these 85% were coffee drinkers and 71%
would patronize the Oasis coffee bar. Literature drops in mail boxes, coupons and flyers would be
distributed to the college to market the services.
Communiy center customers — Fitness — the Blast — Banquet Facilities — Gym — Lone Oak
The Community Center is a hub of activity. There are natural customers by nature of the
activities and services that are offered at the center. This include a full fitness membership, adult and
youth sports leagues and tournaments, the indoor playground the Blast, meetings and weddings, and
large scale community festivals. All of which are potential customers for our coffee / beverage bar.
Currently there are 250-300 individuals/members that visit the community center health club each
day. Over the past year there have been 1200 adult league participants, 7,000 blast passes sold to
youth with parents free, over 5,000 adult/youth participants in open gym programs, and over 7,000
area youth athletic association participants. A few ETAB members staffed a table near the entry to
the Fitness center during winter break. The table remained available for ECC members to complete
surveys for one and a half weeks. 146 surveys were completed. 82% of these patrons drink coffee
and 81% of them would utilize the coffee bar at the Oasis if they were provided with these services.
The addition of these services will be promoted in program newsletter (seniors/teens), flyers,
brochures, posters community bulletin boards with opening announcements and coupons to
introduce individuals to the new amenities.
Residents
The community center is located within walking distance of a large neighborhood which includes
single family homes, town homes, condominiums and apartment buildings totaling over 1,500 units.
Flyers will be distributed to announce the opening of the services.
Professionals
Local corporate companies boarder the Eagan Community Center / Oasis facility, they include,
Lockheed Martin, Northwest, Wells Fargo and Unisys. All of these large companies are within
walking distance of the community center / Oasis. The marketing plan will include strategies to
promote the services to employees of these local businesses. These strategies may include,
establishing a sample booth at their location, car flyers, end of shift distribution of information.
They will work with the Business classes at EHS to identify other strategies that may be beneficial to
entice new customers. ETAB were unable to survey current employees to gauge their interest due to
restrictions on access to these facilities.
IMPLEMENTATION OPTIONS
The Eagan .Teen Advisory Board recommends Option 1. It is the intention of the board to
further research potential costumer base and minimizes the initial investment by starting small. If
funds are available for a blended approach Option 2 would be a great start and afford us more
flexibility.
Option 1: purchase a mobile bar with equipment.
Estimated Cost: $21,000
Option 2: Purchase of a mobile bar with equipment and cabinetry on back wall.
Estimated Cost: $30,000
Option 3: add the coffee/beverage bar full service into the Oasis.
Estimated Cost: $40,000
FUNDING IDEAS
Idea 1: Eagan City Invest in the capital, construction and start-up costs. Eagan Teen Advisory
Board will re -pay the entire start up investment over time, with yearly contributions, from their
annual fundraising campaign.
Idea 2: Coordinate a Capital Improvements Campaign along with their annual fundraising
campaign to include the coffee / beverage bar and other teen requested items.
Idea 3: Allocate the forecasted income from operations towards the capital investment.
Idea 4: Incorporate and purchase necessary equipment through ECC Snack Bar operations.
Coordinate use of equipment and serving areas during Oasis open time and events to promote use by
both teens and ECC users.
City Council Recommendation.
7
Capital Investment Option 1
Total Cost
Espresso Cart
$21,150.00
Cart and start up product included
Espresso Cart
Shipping Unsure/ CMC espresso will offer a 10% discount on the purchase
Delivery
Total Cost Option 2
$ 1,600.00
1 $28,883
$890.00
Plumbing / Electrical Estimate
Total Cost Option 1
$21,150.00
Capital Investment Option 2
Unit Cost Total Cost
CabineLry
Labor/Installation
$ 5,243.00
$ 890.00
Espresso Cart
$21,150.00
Delivery
Total Cost Option 2
$ 1,600.00
1 $28,883
Capital Investment Option 3
Unit Cost
Cabinetry Front and Back
$11,205.00
Labor/ Installation
$890.00
Plumbing / Electrical Estimate
$10,000.00
Equipment / Start Up Materials: brewers, fqg, signs....
$15,304.00
Delivery
$ 1,600.00
Total Cost Option 3
PROFESSIONAL AND ADVISORY SUPPORT
The professionals listed below have provided expert advisory support to the teens, and have
committed to assisting through implementation.
ARCHITECTS
Cindy Douthett Nagel, CID
Krech, O'Brien, Mueller & Wass, Inc
6115 Cahill Avenue
Inver Grove Heights, MN 55076
FUNDRAISING
Michael Ferber
Fundraising Solutions
725 Granite Drive
Eagan, MN 55123-3992
9
DUNN BROTHERS
Skip Fay
Dunn Bros. Coffee, Franchise Office
111 Third Avenue South, Suite 160
Minneapolis, MN 55401
Brent Hagen
Dunn Bros. Coffee
Independent Franchise Owner
607 Marquette Avenue, Skyway
Minneapolis, MN 55402
APPENDIX A: OASIS/ EAGAN COMMUNITY CENTER LOCATION
LOCATION
The Oasis is located on Central Parkway just off of and -west of Pilot Knob Road. The map
below shows the location and surrounding area.
r
nity center
Central Pkwy
Yantee Doodle Rd
The map below shows the layout of the development surrounding the Community Center
location.
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RD -Research and Development.= LB -Limited Bwswcsz, NS-Neighbvfhamd 6osine:s CSC -Community Shopping Center 7 P -Park
R-1 -Residential Single Family = R-1 S -Small Lot Single Family = R -2 -Residential Double = R -3 -Residential Townhouse
= PD -Planned Development = R -4 -Residential Multiple
7
