HomeMy WebLinkAboutExhibit BBusness a
Decerj per 2016
arc
Pro
ecticrs
Repor.
Creating Cultural Capital
Lord Cultural Resources is a global professional practice dedicated to creating cultural capital
worldwide.
We assist people, communities, and organizations to realize and enhance cultural meaning and
expression.
We distinguish ourselves through a comprehensive and integrated full -service offering built on a
foundation of key competencies: visioning, planning and implementation.
We value and believe in cultural expression as essential for all people. We conduct ourselves with
respect for collaboration, local adaptation, and cultural diversity, embodying the highest standards of
integrity, ethics, and professional practice.
We help clients clarify their goals; we provide them with the tools to achieve those goals; and we leave
a legacy as a result of training and collaboration.
TA
3L
F CON TEN
S
1. Introduction 1
1.1 Background to and Purpose of the Study 1
1.2 Scope of Work and Methodology 2
2. Contextual and Comparables Analysis 4
2.1 The Overall Museum Marketplace 4
2.2 Evolution of Black Museums in the United States 6
2.3 Assessment of African American Museums and Cultural Organizations 7
2.4 Selected Civil and Human Rights museums in the South 8
2.5 Miami Museums/Attractions Marketplace 8
2.6 Existing and Potential African American/ African diasporic Sites in Miami 9
3. Market Analysis 12
3.1 Existing Markets for the Virginia Key Beach Park 12
3.2 Potential Markets 13
4. Updated Assumptions 22
4,1 Visitor Experience 22
4.2 Collections 23
4.3 Pre -Design Space and Facilities Plan 23
4.4 Site 29
4.5 Governance and Staffing 30
4.6 Operations and Marketing 31
4.7 Other Assumptions 34
5. Attendance, Revenue and Expense Projections 35
5.1 On -Site Attendance Projections 35
5.2 Projected Operating Revenues 41
5.3 Projected Expenses 46
5.4 Summary of Attendance and Financial Projections 50
1 INTRO
e,
ION
This chapter summarizes the background to and purpose of this updated Business Plan and
Projections study for the Historic Virginia Key Beach Park Museum (HVKBPM) as well as the
methodology to carry it out. The focus is on the Museum and not on a potential Beach Pavilion
or additional recreational amenities in the Park.
1,1 3ac
cround to and
Air
Dose 0
the St.uc
y
The Historic Virginia Key Beach Park is part of the Virginia Key barrier island and is accessible
from the mainland via the tolled Rickenbacker Causeway. The island also features a
combination of attractions and educational/governmental institutions. The attractions include
Miami Seaquarium, the former Miami Marine Stadium and new Flex Park, and the Virginia Key
Beach Outdoor Center. The educational and governmental institutions include the University
of Miami Rosenstiel School of Marine and Atmospheric Science, the National Marine Fisheries
Service, an office of the U.S. National Oceanic and Atmospheric Administration, and the MAST
Academy magnet school. The island also features biking and nature trails as well as several
bars and night clubs
The focus of this business plan update is on Historic Virginia Key Beach Park. The Park was
established in August 1945 after months of protests that people of color were denied access to
all of the beaches in the region. An agreed compromise allowed access to a designated
"colored -only" beach in Miami based on "separate but equal" segregation. The site was
Virginia Key Beach, a relatively small 82 acres with a half -mile of beach compared to the
"white only" Crandon Park at 800 acres with two miles of beach. Nonetheless, the
establishment of the Virginia Key Beach Park established a place of joy and togetherness
among African Americans and offered access to a public beach for the first time. It is seen as
an initial step along the path to civil rights, human rights and civic activism.
Segregation of Miami -Dade beaches finally ended as early as 1959 as a result of various
protests. As a result, Crandon Park and Virginia Key Beach would no longer be used exclusively
by one race or another, but open for all to enjoy. When beaches closer to historically black
residential neighborhoods desegregated, Virginia Key Beach gradually declined both in use and
upkeep. The City of Miami closed the Park shortly thereafter, citing high maintenance costs
and also recognizing that two beaches were not needed after desegregation, and the Park
remained largely abandoned for two decades. As a consequence, its beach was eroded by
storms and its buildings damaged and vandalized. The City had considered selling off the
Lord Cultural Resources 1
rights to Virginia Key to allow for private development but such plans were met with new
protests and demands for the restoration and re -opening of Virginia Key Beach Park.
A Task Force to consider the future of the Park evolved into a Trust that would facilitate its re-
opening as an open green space for a multi -cultural society. The restoration process was
divided into four major areas: environmental, cultural, recreational and historical. The
environmental focus was on removing all exotic vegetation from the park while replenishing
the landscape with native vegetation. In August, 2002 the historical focus was initiated when
the Park was placed on the National Register of Historic Places and given a Florida Historical
Marker. In subsequent years, historic landmarks such as the bathhouse, concession stand,
carousel house, and train and picnic pavilions have all been restored and opened for public use.
In February of 2008, the Virginia Key Beach Park Trust re -opened the park to the public.
The next step for the Historic Virginia Key Beach Park is establishment of a Museum building
to be a focal point of an 82-acre living museum site that tells not only a civil and human rights
story but also, to a lesser extent, an environmental story. This has been long planned and the
need for it increases every year as fewer and fewer residents and visitors are aware of the
historical importance of the site with the passage of time. One estimate heard in the interview
process was that as little as 10% of South Florida African Americans under the age of 50 are
familiar with the Virginia Key Beach Park story, and even fewer among the wider population.
In 2006 Lord Cultural Resources was engaged to prepare a business plan and projections for
the Virginia Key Beach Park Museum but the project was not implemented, partly as a
consequence of the recession of 2008-10. The Business Plan was preceded by detailed facility
and visitor experience plans and capital cost estimates that provided key assumptions for the
2006 business plan. Lord Cultural Resources has been re-engaged to prepare a Business Plan
and Projections update but the facility and visitor experience plans and capital cost estimates
have not been updated. The recommendations and assumptions set out in this report therefore
reflect a business planning perspective as well as client direction and feedback from the
interview process and are subject to modification in future planning and design.
2 Sco
)e of Wor
and Me,hoc
0
oCy
The scope of work and methodology for the Business Plan Update is as follows. The Update
was conducted by Ted Silberberg, a Certified Management Consultant and the Lord Cultural
Resources Senior Principal responsible for Market and Financial Planning. He was assisted by
Lord USA Managing Director Joy Bailey Bryant and researcher Maureen Marshall.
To meet the objectives of this Business Plan Update we carried out the following steps:
• We reviewed background materials provided by museum staff, including an internal
update to the assumptions.
• Ted Silberberg traveled to Miami to tour the Historic Virginia Key Beach Park site to view
changes that have taken place over the past decade, to meet with senior staff, facilitate an
Assumptions Workshop with Trustees and conduct external interviews.
• Trustees and staff of the Historic Virginia Key Beach Park who attended the Workshop or
were interviewed include (in alphabetical order):
o Susanna Castro, Administrative Assistant
Lord Cultural Resources 2
o Guy Forchion, Executive Director
o Gustavo Godoy, Trustee
o Carlos Lozano, Consultant Project Manager, Capital Improvements and Transportation
Program, City of Miami
o Karen Moore, Special Project Coordinator
o Maud Newbold, Trustee
o Nancy Nieves, Finance Coordinator
o Enid Pinkney, Trust Vice Chair
o N. Patrick Range, Trust Treasurer
o Gene Tinnie, Trust Board Chair
o Dick Townsend, Trustee
• Ted Silberberg conducted interviews with the following external key informants:
o William Anderson, Director of Planning and Research, Greater Miami Convention and
Visitors Bureau
o Bob Brazofsky, Executive Director of Social Science, Dade County Public Schools
o Donovan Dawson, Budget Analyst, City of Miami
o Eleazar Melendez, Chief of Staff to County Commissioner Ken Russell
o Fredericke Alan Morley, Community Engagement Officer, City of Miami Mayor's Office
o Alex Peraza, Project Manager, Miami Dade County Cultural Arts Department
o Chris Rose, Budget Director, City of Miami
o Michael Spring, Director, Miami Dade County Cultural Arts Department
• We analyzed available contextual data regarding the overall museums marketplace,
African American museums and other museums in Miami to help establish benchmarks
for operating policies and for subsequent projections of attendance, operating revenues
and expenses.
• We analyzed potential resident, school and tourist markets for Miami and Virginia Key
Beach in particular, taking into account that African American market segments would be
a primary visitor market.
• We prepared recommendations a Phase 1 report that was discussed with the Trustees to
finalize assumptions that provide the basis for attendance, operating revenue and expense
projections in Chapter 5 of this Final report.
Key findings, conclusions, and recommendations are set out in bold italics throughout this
report.
Lorca Cultural Resources 3
2. CONTEXTUAL AND COMARABL
ANALYSIS
This chapter seeks to establish a realistic context for business planning recommendations and
assumptions and the preparation of attendance, operating revenue, and expense projections
for the planned Historic Virginia Key Beach Park Museum (HVKBPM). This includes an
assessment of the experience of specialized and history museums in relation to the overall
museums marketplace and the experience of African American museums in general. The
chapter also includes published market, operational, and financial information regarding other
selected museums in Miami.
2.1 The Overall Vuseurn Var
Ketplace
As a civil rights -focused museum, the HVKBPM would be categorized by the American
Alliance of Museums (AAM) as a combination specialized and history museum. The table that
follows is from the 2009 Financial Survey of the American Association of Museums, which is
the last comprehensive survey available to allow for comparison of museum types and uses
data largely from 2007. It was based on a sample of 671 museums, compared to 809 in 2006.
More recent statistics from AAM's new Museum Benchmarking Online, which replaced the
Financial Survey, are based on a very small number of participants and not valuable for the
purposes of this study. We believe the key findings from the comprehensive 2009 survey are
still largely applicable today. It must be noted that these figures should not be compared to the
current figures for Virginia Key Beach Park, which does not include a museum.
Lord Cultural Resources 4
2009 AAA!' Profile
Sample Size
Median Attendance
%Charging Admission
Fees
Median Adult Admission
Charge
Median Operating
Income
Average Revenues from
Private Donors
Average Revenues from
Investment Sources
Art
Museum -
Children's
or Youth
Museum -
18
130 870
94.1%
$7.50
$1,729,532
48.3%
27.8%
12.1 %
Average Revenues fromMI
Government Sources
Median Value of
Endowment
11.7%
$414,875
Median Earned Income
per Visitor
MedianOperating
Expenses
$6.31
$2,522,615
Operating Cost per
Visitor
Staff salaries as a %of
total expenses 1 Median
Collections care as a
of total -expenses
I Median]
Marketing Budget as a
of total expenses
Marketing Expenses Per1111
Visitor Median]
$15.07
54.5%
4.1 %
8.4%
$0.93
General
Museum
71
58 500
63.2%
$7.00
$1,930,895
24.8%
33.7%
8.8%
32.6%
$2,539,870
$7.16
$1,798,754
$30.21
53.5%
9.9%
5.4%
$1.61
Historic
Home or
Site
1
89
700
77.4%
$6.00
$350,000
31.7%
34.6%
10.7%
23.0%
$1,202,817
$9.44
$298,200
$28.33
56.0%
4.9 %
3.8%
$1.14
History
Museum or
Historical
Society
10 000' `i
492%
$5,00
$260,000 "
24.0%:
.0%
8,5%
36.4%'
$526,500
4.39;
$262,206
$26.73
Living
Collections
17
208 574
64.3%
$8.00
$3,072,452
30.0%
20.3%
14.3%
35.4%
$14,253,806
$4.87
$3,630,530
$15.10
63.9%
26.7%
4.1 %
$0.85
Natural
History or
Anthro-
pology
32
58 176
633%
$8.00
$3,256,810
31.1%
38.3%
6.4%
Science or
Tech
25
357 103
96.0%
$10.00
$7,857,138
48.8%
28.9%
3.0%
24.2%
$5,078,964
19.3%
$1,829,599
$6.76
$3,237,600
$11.14
$6,827,362
$29.74
60.8%
17.3%
4.5%
$1.22
$20.95
45.8%
1.2%
7.5%
$1.32
.Specialized
Museum
73
22 000
$7,00
$602,080
33.2%
37,7%
93%
9.9%
$2,526,508';
10.00
$778,859
Overall Overall
2006
2009 Survey Survey
26 500
7.00<
$1,168,559,
11.5%
809
33 446
60.7%
$6.00
$850,000
31.0%
35.2%
$3225
4.4%_
$2,825,075
2
66'000,
9.6%
24.1 %
$1,580,537
$5.91
$829,037
$23.35
50.9%
9.4%
4.4%
$1.05
Source: 2009 Museum Financial lnjonnation,American Association ofMuseums,2009
From the table it may be seen that:
• Total Attendance: The average U.S. museum reported about 26,500 visitors compared to
about 33,400 in the 2006 survey. The decline reflects the opening of many new small
museums even though total museum attendance increased. The median figure for history
museums was only 10,000 because there are so many community museums and people
often perceive one to be the same as the next. The median attendance for specialized
museums was 22,000. Although there are high attendance exceptions, specialized
museums, including many civil rights or African American -focused museums, tend to
attract somewhat lower than average numbers of visitors because they often appeal to a
specialized or "enthusiast" audiences. The data confirm the need for realism with respect
to potential attendance at a new HVKBPM.
• Admission Charges: Some 41% of all U.S. museums, 43% of specialized museums and
51% of history museums do not charge admission. However, Miami is a charged admission
marketplace and free admission is not recommended or assumed for the HVKBPM. The
specific recommendation for admission charges is set out in Chapter 4.
Lord Cultural Resources 5
• Sources of Operating Income: The average U.S. museum generated about 28% of its
operating income from earned sources, 37% from private sources, 12% from endowments,
and 24% from government sources. History museums generated less than average earned
income (24%) and specialized museums more than average earned income (33%). The
HVKBPM will also likely need to generate income from private sources in addition to
earned income and government grants.
• Value of Endowment: Most museums have an endowment to support operating costs.
The median value of the endowment principal for specialized museums was about $2.5
million and $500,000 for history museums. It would be ideal for the HVKBPM to open
with an endowment to support operating costs but this has not been assumed given the
need to raise capital funds from the project.
• Staff Salaries as a Percentage of Total Operating Costs: Salaries and wages accounted
for an average of 50% of the operating budgets of museums in general, and about 51% for
history museums, and 40% for specialized museums. The challenge in the context of the
HVKBPM is the need to limit increases in staff levels if the new museum is to be
operationally sustainable balanced against the need for staff to meet the mission and
visitor service requirements of the institution.
• Marketing Costs per Visitor: The average history museum allocated about 2% of its
operating budget to marketing compared to an overall museum average of about 4%,
which is also the percentage for specialized museums. The average museum spent $1.29
per visitor on marketing compared to $0.50 for history museums, $0.93 for children's
museums and $1.22 for natural history museums. Marketing expenditures will need to be
in place at a reasonable level to help maximize attendance levels.
2,2
:volLtion of Blac
< MLIseL
ns in the Lfiited States
There are over eight hundred museums in the U.S. dedicated to interpreting the experience of
people of African descent. There have been three generations; initially, Black museums were
started as educational spaces located in places like the Hampton University Curiosities Room
in the late 1860s and New York librarian Arturo Schomburg's collection in the 1920s. In the
mid- to late sixties, evolving into social service conduits in urban areas grappling with the
education and empowerment of exploding black populations as a result of the Great Migration.
This second generation of black museums were founded to sustain black history, culture, and
art and reinforce the value of black communities and instill pride in black youth. Most of these
museums, like the DuSable Museum in Chicago and the Charles H. Wright Museum in Detroit,
focus on history first and art as a component of culture.
A new generation of museums emerged in the last decade of the twentieth century, to
capitalize and highlight the success of the black civil rights movement. For the first time, black
museums occupied purpose-built facilities, often constructed on or adjacent to sites of pivotal
importance, like the National Civil Rights Museum at the Lorraine Motel or the Birmingham
Civil Rights Institute across from Kelly Ingram Park and 16th Street Baptist Church. The
Historic Virginia Key Beach Park Museum will be a part of this movement when it is
implemented. Many of these new facilities maintain active public program schedules to engage
audiences and increase the frequency of visits —historically, people of color are more likely to
be cultural programming participants than visitors to exhibitions. This is a positive aspect of an
already programming focused Virginia Key Beach Park.
Lord Cultural Resources 6
2.3 Assesslent of Africa
I Arr
ericcn.(vuseu
ns and cultL
ral °rc alizations
Like the American Alliance of Museums, the Association of African American Museums has
not updated the last comprehensive survey conducted in 2008. However, it is still more up to
date than the analysis conducted for the 2006 Business Plan for the Virginia Key Beach
Museum. The survey is based on a sample size of 159 and are aggregated without data for
specific museums. Among key findings for the HVKBPM are the following points:
• African American Museums tend to be small and underfunded: Half offer facilities of
less than 5,000 sq. ft., have three or fewer full-time employees and annual operating
budgets of under $200,000. The HVKBPM will be substantially larger and with a larger
staff and operating budget. Some 40% of African American organizations do not have a
gift shop/store.
• There are more African American organizations in the South (54%) than the rest of
the country combined. While the Miami area is not associated with the slavery in other
parts of the South, the segregation story of Virginia Key Beach —as well as the stories of
famous people like Rev. Dr. Martin King, Jr and Muhammad Ali— is one that will surprise
many potential visitors.
• Most African American organizations are history museums (58%) or historic sites
(22%). The HVKBPM will be a combination of the two.
• More likely to offer free admission: Some 53% offered free admission while 47%
charged admission. Of those that charge, 32% offered free admission for seniors and 26%
free admission for children.
• Many are closed to the public on Sundays and/or Mondays: Only 34% were open on
Sundays and 46% on Mondays.
• Relatively low attendance levels: About half reported attendance levels of less than
10,000. About 10% reported at least 100,000 annual visitors.
• Operating budgets tend to be small: Only 14% had operating budgets of $1 million or
more. The HVKBPM is likely to be among these as the current pre -museum operating
budget of the Park is $877,000 in fiscal year 2016-2017.
• A mix of revenue sources is required to sustain African American organizations:
Earned income (including membership) averages about 36%, which is higher than the
figure for the overall museums marketplace, discussed above, with about 43% from
private/endowment sources, and 21% from government sources. The data confirm the
reality that the HVKBPM will require operating support from both private and government
sources if it is to be sustainable.
• Very few African American organizations have endowments that support operating
costs: Only 17% have any endowment at all, and only 6% have an endowment of
$500,000 or more. The recommendation for the HVKBPM is that private funds should be
raised over and above the combined $20.5 million in General Obligation Bond (GOB) and
Convention Development Tax (CDT) and allocated primarily to capital costs and also to
start an endowment.
Lord Cultural Resources 7
2,4 Selected Civi
anc Human
Rig
its IJ1cseurr
s nt
e Sout
1
Although there are wider environmental, natural history and indigenous stories to be told, the
Historic Virginia Key Beach Park Museum is to be a primarily civil and human rights museum
and will be quite unique in that it is part of an 82-acre park. The most relevant comparables,
although substantially larger than the HVKBPM, from a concept perspective, are other civil
rights museums in the South. Data regarding the six selected museums are set out in Chapter
5 to help provide benchmarks for attendance projections.
2,5 Viari VLseurns/Attrac:ions Maretplace
The following table offers published data from the 2016 0fficial Museum Directory regarding
museums and attractions in Miami and Miami Beach that reported at least 30,000 annual
visitors. The data indicate the following points of particular relevance to the HVKBPM:
• Two attractions close to the Virginia Key Beach are Seaquarium and Jungle Island.
They attract substantial numbers of visitors and also have relatively high admission
charges. There may be crossover visitor opportunities with them.
• Admission charges vary substantially. These include substantial charges for the two
above -referenced attractions, the Perez Art Museum, Vizcaya and the Zoo. Other
admission charges are relatively modest. The median adult charge for all is $10.57 and the
median child charge is $6.00.
• Family membership charges also vary widely. The average charge is close to $89 and
the median is $75.
• History museums report relatively modest attendance: History Miami reports 83,000
visitors and the Jewish Museum of South Florida about 47,000.
• Half are open daily. For those that are closed one day per week, the norm is for Mondays
to be the closed day but there are examples of museums closed on Tuesday or
Wednesday.
• Most do not offer any regular evening open hours. The exceptions are mainly the art
museums/centers.
• Staffing levels vary widely, Likely, the most instructive for the HVKBPM is the Jewish
Museum at 11 full-time and 2 part time staff supported by a large number of volunteers.
History Miami reports 28 full-time staff, 20 part time and 19 volunteers.
Lord Cultural Resources 8
Museums/Attractions in Miami Reporting at least 30,000 Annual Visitors
Gold Coast Rairoad Museum
Adult Child Family - Regular Evening _ Full- Part -
Admission Admission Membership Reported Hours (After 6 Time Time Volunteers /
Type _Charge - Charge Charge Attendance Days Per Week pm) Staff Staff Interns
History/
5oecialized
6.00 4.50.00 ;120,000
Daily
Thursdays to 7
Q3n,;
History Miami
History
$10.00
$5.00
$75.00
83,000
Daily
No
28
20
19
"Jungle Island
"Zoo ;
„
$ 34:95 ::
$ 26:95
No
400;000
Daily::
No; ;
-NJA
N/A
N/A
MiamiChildren'sMuseum
Children's
$14.00
$14.00
$150.00
399,000
Daily
No
35
100
280
Miami Sequarium:
Art,Science,
Planetarium
.$42.99:s
$3399
No
500,000
Daily
No
N/A
,N/A
N/A
Patricia and Philip Frost Art
Museum
Art
$0.00
$0.00
$125.00
112,000
Closed Monday
No
18
10
33
Perez Art Museum . `:
Art
--':
=,$16.00_
$12.00
$95.00
.150;000, ,
'
Closed
Wednesday
to ,,
30
29
:45
Vizcaya Museum and Gardens
Historic
Home and
Garden
$18.00
$10.00
N/A
192,741
Closed Tuesday
No
50
6
75
ZooMiami
Zoo
$19.95 .
$15.95 is
; $129.00 ,
2810,998
Daily
No
N/A
".;N/A
N/A
Art
$0.00
$0.00
$75.00
96,000
Daily
Mon-Thur 8 pm,
Fri -Sat to 10 p.m.
Sun. to 9 p.m.
8
6
22
Art Center of South Florida
Bass Museum of Art i
Art
$8.00
$6.00
$75.00
40000; :Closed
Monday
and Tuesday
iyo
10
18
55
Jewish Museum of South
Florida
History and
Specialized
$6.00
$2.50
$40.00
47,000
Closed Monday,
Saturday free
admission
No
11
2
117
Wolfsonian f
Art
$7 00 ;
$5 00 -
.,$75.00
"35;000
Closed :
Wednesday:,..
Friday to 9 p m
33
5. _
11
$14.22
$10,57.'
: $88.90 -
: 229,672
22,4
20.0
67,9
Average . '";
Median `: , ;l
$10.00 =:. $6.00 -.:._ $75.00.
-
-120,000
=
23.0 :
8;0:
39,0,
Source: Official Museum Directory, 2016 Edition and web sites, Data are as reported and not always updated or accurate
2.6 [xistil anc Poteitia
African American/ African ciasioric Sites in Via
T1i
Within the region, there are other museums and related sites that focus on black or African
American history and culture. These are described below based on available data. It must be
emphasized, however, that only three of these sites are actually museums.
• Historic Hampton House: This 30,000 sq. ft. facility in historically black Brownsville
operated as a hotel and jazz club used by prominent African Americans during the late
1950s and early 1960s before the end of segregation. It was restored for $6.4 million in
funding from the General Obligation Bond and is to operate as a mixed use cultural center
featuring a museum and exhibition space, music recording studio and ethnic dance rooms.
Lord Cultural Resources 9
It is not yet operational. Data from the 2014 Form 990 published by Guidestar indicates an
operating budget of only about $43,500, of which about $12,100 was allocated to staffing
costs. Revenue was entirely from contributions, grants and gifts.
• Black Police Precinct and Courthouse Museum: In September of 1944, the Miami Police
Department began hiring black police officers. In May of 1950, a police precinct was
established at 480 NW 11 Street to provide a segregated station house for 41 African
American policemen and a courtroom for African American judges in which to adjudicate
African American defendants. This building is unique as there is no other known structure
in the nation that was designed, devoted to and operated as a separate station house and
municipal court for Blacks. The precinct closed in 1963 and the police department was
integrated at the main Miami Police Department station. The Museum includes displays of
police memorabilia, artifacts, documents, video, and word-of-mouth stories by the men
and women who worked there. It also provides a community center for its citizens, a
tutorial center, and learning center for children in the City of Miami's most underprivileged
neighborhoods. It created outreach programs for juveniles that live in these
neighborhoods. The Museum partners with community organizations in the area and
develop crime prevention programs, all of which enhance the quality of life for children and
families, making our community a better place to live. The admission charge is $15, with
lower rates for groups. The only published data are from the 2012 Form 990 which
indicates operating expenses of only $210, apparently based on no paid staff or other
common operating expenses.
• Haitian Heritage Museum: Founded in 2004 in Miami's Little Haiti to commemorate
Haiti's Bicentennial, the Haitian Heritage Museum (HHM) is a 501c3 organization that is
committed to highlighting and preserving Haiti's rich culture and heritage globally. It is
focused on Haitian art, historic artifacts, ethnic sounds of Haitian music, view Haitian films
and enjoy a collection of Haitian literary works. It is open from Tuesday through Friday
from 10 a.m. to 5 p.m. with other times by appointment. There is an adult admission
charge of $10 and a student charge of $7. The Museum has mounted 30 exhibitions and
welcomed 10,000 students over its 11-year year history and features a 200-seat theatre,
The Official Museum Directory does not indicate attendance figures but indicates in 2015
was operated by three persons. The 2014 Form 990 indicates operating expenses of about
$151,000 of which staffing costs were about $25,700, Contributions, gifts and grants
accounted for about 91% of operating revenues.
• Black Archives History and Research Foundation: The mission of the Black Archives is
to collect and preserve the history and culture of black people in Miami -Dade County from
1896 to the present. There is also an extensive inventory of material available online
through their website. The Black Archives is also leading the way in the final renovations of
the historic Lyric Theatre, a Welcome Center Complex, as well as the development of the
Overtown Folklife Village. The archives is not a museum and is open to researchers and
the public by appointment. The 2014 Form 990 indicates an operating budget of about
$775,000, of which about $354,000 was for staffing costs. The Black Archives receives
about $316,200 (41%) in local government grants, $27,300 in historic site rental income
and the remainder in contributions, other grants and gifts. The non -governmental support
achieved by the Black Archives is a positive indicator for the HVKBP Museum.
Lord Cultural Resources 10
• African Heritage Cultural Arts Center: The Center opened in 1975 and is located at 6161
NW 22nd Ave, The Mission of the African Heritage Cultural Arts is to provide quality
training in dance, drama, instrumental music, vocal music, media, and visual arts; to
develop in-house performing arts companies, to support and assist emerging artists
through our resident artist program; to provide and host quality performances and
exhibitions, to promote and foster the rich and diverse cultural arts perspective of the
people of African Heritage. The African Heritage Cultural Arts Center is the "nucleus of
arts learning, training and access for Miami -Dade County's African -American community"
The complex includes a black box theater, a music building with a concert hall, piano lab
and several practice rooms, a dance studio that is accessible to individuals with disabilities,
an art gallery, several studio spaces, a print shop and classrooms. It is very different from a
civil rights museum. The Center is managed by the Miami -Dade County Department of
Cultural Affairs, with funding support from the office of the Miami -Dade County Mayor
and Board of County Commissioners, No Form 990 data were available from Guidestar.
• Miami Museum of Contemporary Art of the African Diaspora (in -development): The
museum will be located at Miami -Dade Community College, North Campus and is planned
as the preeminent national showplace for the innovative contemporary visual arts
production of Global Africa. The museum will feature a major international artists'
residency program, exhibition and artist exchange programs with the leading U.S., African,
Caribbean, European and Scandinavian museums, galleries, residencies and festivals
currently supporting innovative work in the U.S. and abroad. The new Museum plans to
develop rooted educational and curatorial partnerships with local and national colleges and
universities and the Greater Miami arts community.
The data indicate that there are other existing and planned museums and related institutions
or sites that explore black history and culture but with the exception of the Black Archives do
not have full-time staff and more than modest operating budgets. All should be helped by the
implementation of the HVKBPM through opportunities forjoint marketing, programming, and
other types of collaboration.
Lord Cultural Resources 11
3 MAR
4E ANALYSIS
This chapter focuses on existing markets for the Park and potential resident, school and tourist
markets for the Historic Virginia Key Beach Park Museum, with a particular focus on African
American market segments.
3.1 rxisiinc Mar<ets for tie Virginia Key
each Dare
Data provided by the Park are from FY2009 through FY2015 and help to profile the size and
growth of Park attendance.
• Attendance Patterns: The attendance levels increase in the warmest weather months, on
weekends and during festivals and events, some of which take place in the cooler weather
months. The importance of festivals and events is seen in growth from about 10,600
vehicles in FY2009 to about 22,800 vehicles in FY2015 with the expansion of the
programming and events offered to complement the more substantial beach -going on
weekend days. The value of such programming is seen by the fact that the vehicle entry
levels increased despite the increase in parking charges over time and reached 25,400 in
FY2016. An important consideration for future vehicle access are the increasing popularity
of Uber and Lyft.
• Weekday Attendance: Despite five weekdays compared to two weekend days, the data
indicate fewer weekday vehicle visits. The introduction of a Museum should help to
increase weekday attendance levels. Peak weekday attendance is reported to be in FY2015
at some 16,200 vehicles, but there was a substantial decline to about 6,500 vehicles the
following year because of the completion of a major construction project on Key Biscayne.
• Ride Attendance: The patterns vary widely on a year -by -year basis. The peak year was
FY2011 at about 8,200 persons who took rides. The low year was FY2014 at about 3,700
riders. This is because of increased maintenance and mechanical repairs which took the
historic Mini Train amusement ride out of service.
• Pavilion Rentals: The total number of rentals, currently at $250, per rental, have generally
increased each year and totaled 175 in FY2015.
Lord Cultural Resources 12
• Tent Rentals: These were most popular in the opening in FY2013 at 19, with a decline to 10
in FY2015 because of the reduction in the number of tents on the site and changing visitor
rental patterns.
• Weddings: Relatively few have taken place on site ranging from 3 to 8 per year within the
past three years, but they are increasing. The Museum is likely to expose more people to
wedding opportunities on site, a potentially substantial revenue source along with
reunions.
• Film Shoots: These have also taken place over the past three years and have grown each
year from 7 to 15, and are expected to continue to increase.
Staff estimate that women account for about 60-65% of beach/park users during the week,
including nannies from Key Biscayne who bring children. The gender profile changes to 50-
55% male on weekends because of the barbequing that takes place. Other market segments
reflect the profile of the regional market, with a very substantial percentage of Hispanics.
Despite the importance of the Park to African Americans, they do not currently account for a
disproportionate percentage of visitors to the Park. This was expressed in interviews to be in
part because the site is not close to historically black neighborhoods, because relatively few
African Americans under the age of 50 are familiar with the history of the Park, and because
other beaches are more attractive. Implementation of the HVKBPM should help to change this.
Moreover it was heard that in the past where one lived was based on race/ethnicity, today it is
often based on income and there are far more African Americans who live closer to the site
today.
3.2.
-)otent a
Mar
KO's
The HVKBPM is intended to be of wide public appeal but should be of particular interest to
African Americans. This section considers the implications of the data and interviews
regarding the potential overall and African American resident, school, and tourist markets for
Miami, and for the Museum in particular.
321 R,[SID(-N.1 MARKETS
The resident market is critical to the success of any museum -related institution for several
compelling reasons:
• Residents are available on a year-round basis;
• They can be made aware of the museum and its programs most easily
and economically;
• They are most likely to become repeat visitors, members, and donors;
• Residents will influence the decisions of visiting friends and relatives and
often accompany them to visit.
The key indicators of potential resident demand are the size and projected growth of the
resident population base, particularly the African American (Black) population, the proportion
Lord Cultural Resources 13
of residents who have achieved higher levels of education, and various age, income and other
demographic and socioeconomic categories. For the purposes of this analysis, we have
focused on the Miami -Fort Lauderdale -West Palm Beach MSA (Metropolitan Statistical Area)
as the resident market. Also considered are data for residents within a 10 and 15-mile radius of
the site compared to Miami -Dade County, state and national figures.
While the analysis is of the overall resident market overall, particular attention is given to
available data regarding African American residents, as would be the case with any culturally -
specific museum. It must be noted, however, that the data are not fully comparable. The
definition of the Miami -centered MSA for the 2011 American Community Survey cited by
BlackDemographics in the data comparing the Black demographics to the overall population is
for an area that includes Pompano Beach and not the West Palm Beach figures used for the
other categories. Moreover the data for the other categories are from the 2010 census. These
differences, however, do not change the findings and main conclusions in this report.
31.1 - OP ILATION SIZE AND P
.OJECffONS AM) RACE./ETHNICITY
As seen in the following table, the population of the Miami -Fort Lauderdale -West Palm Beach
Metropolitan Statistical Area (MSA) is very substantial. The population was close to 5.6
million in 2010 and is projected to grow to close to 6.4 million by 2020 and close to 7.2 million
by 2030. Projected population growth over the period from 2010-2030 is expected to exceed
the national average but trail the state average.
Noteworthy is that there are close to 1.1 million residents who live within a 10-mile radius of
Virginia Key Beach and some 2 million residents within a 15-mile radius. The challenge for the
HVKBPM from an attendance perspective is thus not the size of the potential market, which is
substantial, but rather the ability to attract a mass market to it as both first-time and repeat
visitors.
Resident Population`
10 Mile Radius
15 Mile Radius
City of Miami
Miami -Dade County
Broward County
Miami -Fort Lauderdale -Wes
Florida
USA
t Palm Beach MSA
1,007,694
1,849,678
362,470
2,253,362
1,623,018
5,025,900
16,047,510
282,162,410
1,070,381
2,032,059
399,457
2,496,435
1,748,066
5,578,080
18,838,610
309,330,220
N/A
N/A
N/A
N/A
N/A
6,362,530
21,658,120
340,554,350
N/A
N/A
N/A
N/A
N/A
7,174,030
24,774,620
373,751,030
% Change % Change
Actual Projected
5.9%
9.0%
9.3%
9.7%
7.2%
9.9%
14.8%
8.8%
N/A
N/A
N/A
N/A
N/A
22.2%
24.0%
17.2%
:Sources: Policy Map, 2010 US Census,
2010 MSA Profile, Woods & Poole Economics 2014.
The following table indicates the racial/ethnic origin of residents in a variety of jurisdictions
and confirms the very substantial Hispanic population in the region but also a large African
American/Black market.
Lord Cultural Resources 14
White
76.7%
Black
17.1%
Asian
1.3%
American
Indian
0.1%
Other
3.4%
Hispanic
67.2%
Foreign
Born
54.3%
75.2%
19.2%
1.5%
0.1%
2.7%
65.2%
53.4%
72.6%
19.2%
1.0%
0.3%
4.2%
70.0%
N/A
73.8%
18.9%
1.5%
0.2%
3.2%
65.0%
N/A
63.1%
26.7%
3.3%
0.3%
3.7%
25.1%
N/A
35.4%
20.2%
2.5%
0.2%
N/A
41.7%
N/A
75.0%
16.0%
2.5%
0.4%
3.6%
22.5%
N/A
76.3%
13.7%
5.8%
2.1%
5.2%
16.0%
12.9%
comics, 2014
10Mile Radius
15 Mile Radius
Miami
Miami -Dade County
Broward County
Miami -Fort Lauderdale -West Palm Beach MSA
Florida
United States
;Source: Policy Map, 2010 US Census, Woods and Poole Eco
Focusing on the African American (Black) market within the MSA one sees a substantial
population that is projected to continue to grow from the 1.1 million level in 2010 to over 1.3
million in 2020 and well over 1.5 million by 2030. African Americans as a percentage of the
population are projected to grow from about 20% in 2010 to 22% by 2030. This is a large
potential market and likely to have the greatest interest in attending the HVKBPM. However, it
must be emphasized that some 20% of Blacks are foreign born from Haiti and other largely
Caribbean countries and who would not have the same historical ties to Virginia Key Beach.
This emphasizes the need for the Museum to seek to tell a wider Black story where practical.
Miami -Fort Lauderdale -West Palm Beach MSA
2000
958,510
2010
1,126,700
=2015 .-
1,225,250
2020
1,329,540
2030
1,549,170
Black Population
Total Population
5,025,900
5,578,080
5,970,180
6,362,530
7,174,030
Blacks as % of Total Population
19.1%
20.2%
20.5%
20.9%
21.6%
Source: Woods and Poole Economics, 2014
Gender and Ace
Regarding gender, women account for slightly over half the resident population (51.5% and
52,7% of Blacks) but generally account for a disproportionately high percentage of non -school
visitors to most museum types, including African American -focused museums. Women are a
more important market than are men for the following main reasons:
• Women tend to make the decisions regarding the educational experiences of children;
• They are more likely to select the attractions to visit on family vacations;
• They represent the large majority of school teachers making the decisions on field trips;
and
• Women represent the majority of bus tour passengers and trip planners.
Another issue identified in the interview process of particular importance to the HVKBPM is
the relatively high percentage of single female households with children in the African
American community. The data indicate that 30.5% of African American households in the
Miami MSA are female -led with no husband present compared to 15,4% for the overall
population. Transportation access was cited as an important consideration for this market
segment.
With respect to age, there is a general trend to an aging population, particularly in the large
baby boom generation. The figures for the Miami area, whether the city, county or MSA are all
Lord Cultural Resources 15
substantially older than the national average. This reflects a long-standing pattern of
retirements to Florida from elsewhere in the country.
Key Age
Distribution,
2010
0-19 years
20 - 24 years
25-44years
45-64
65 +
Median Age
Miami
o�
20.7%
7.2%
31.4%
24.8%
16.0%
38.8
Miami -Dade froward
County County
24.7%
7.1%
28.5%
25.5%
14.0%
38.2
24.8%
6.0%
27.2%
27.6%
14.3%
39.7
24.2%
6.4%
20.7%
26.5%
13.5%
39.9
23.9%
6.5%
25.2%
27.0%
17.4%
40.7
26.9%
7.0%
27.1%
26.0%
13.0%
37.2
Source: 2010American Community Survey and Woods and Poole Economics, 2014.
The age profile of Blacks in the Miami MSA at under 32 is substantially younger than for the
overall population at around 40 overall. Some 28.2% of Blacks were under age 18 compared
to 21.4% for the overall population. A key issue for the HVKBPM is the extent to which it may
appeal to children, especially African American children. Specific recommendations to appeal
to children are set out in Chapter 4.
With the general aging of the population, the seniors' population is and will continue to grow in
importance over the next two decades. However, in the African American community seniors
(aged 62 and over) account for only 11% of the population compared to an overall figure of
about 19%. Key issues for seniors include mobility and access to the Virginia Key Beach site.
Seniors are more likely to be aware of Virginia Key Beach Park, including some with personal
experiences, and thus constitute a larger potential market. However, the market with a
personal connection will decline over time.
Educational Attainment
The most important indicator of museum and other cultural attendance is level of education,
as the greater the level of education the more likely a person is to attend. Income is less
important, as persons in high education/low income categories are more likely to be "culture
seekers" than those with high income/low education. The data in the table below indicate that
resident market levels of education are somewhat higher than national averages. Whereas
27,5% of Americans had at least four years of college education, it was 29,6% for the Miami
MSA but much less for the City of Miami itself at 22,1%.
Lord Cultural Resources 16
Educational Attainment, 2010 (residents age
25+)
Miami -Dade County
Source: 2010 American Community Survey, Woods and Poole Econo
% of Residents % of Residents with
with BA or lessthan High School
Higher Education
22.1%
32.6%
26.2%
23.0%
29.6%
12.9%
28.3%
17.7%
25.6%
15.1%
27.5%
15.4%
?ics, 2014
Among Blacks in the Miami MSA some 16.6% had at least an undergraduate degree compared
to 28.7% for the overall population. The educational attainment data indicate that in general
terms Blacks will be less likely to attend museums and therefore the need for strategies to
maximize attendance among them. However, the HVKBPM will be telling a largely African
American story and is seeking to be as contemporary, interactive and programming -focused as
possible.
Income
Per capita income levels for Miami MSA visitors are higher than the state and national
averages as well as for the City and County. Household income figures for the Miami MSA
indicate a median of $35,716 for Blacks compared to $45,407 for the overall population. The
per capita income figures are $15,626 for Blacks compared to $25,640 overall, Black families
living in poverty represented 24.4% of all Black families in 2011 compared to 13.9% of the
overall population in 2011. The data and common perceptions that "the poor pay more"
indicate the need to take this factor into account when identifying appropriate admission
charges for the Museum and to seek sponsorships to provide access to those who cannot afford
the price of admission.
Income Levels, 2010
Miami
Miami -Dade County
Broward County
Miami -Fort Lauderdale -West Palm Beach MSA
Florida'
United States
Per Gapita %
Living in Poverty
income
$19,745 11.9%
$18,497 N/A
$28,631 N/A
$41,838 N/A
$38,345 N/A
$27,319 15.9%
aid Poole Economics, 2014
ISource: US Census 2010, 2010 American Community Survey, Woods
Lord Cultural Resources 17
3,2.2 SCHOOL MAR
SETS
Serving an educational mandate is a core component of the mission of all museums, including
the future Historic Virginia Key Beach Park Museum. Offering programming of particular
interest to the school market is critical for the following main general reasons:
• Education is part of the mandate of all museums and related cultural organizations.
• School groups represent a substantial source of visitors.
• For children in lower income households, attending on a field trip may be the only
opportunity to visit a museum or cultural center.
• Children visiting in school groups will sometimes encourage parents to take them again.
The key issues for the HVKBPM relate to the size of the student population, to curriculum
links, the nature of the visitor experience to be offered by the Museum, and field trip policies
and funding.
Enrollment Statistics
The table that follows indicates total school enrollment at schools in the City and Miami -Dade
County, compared to the neighboring Broward County, state and national averages. The table
reveals a substantial student population at all levels including college/university students.
School Enrollment Levels
Population 3+years enrolled
Nursery school (less than 5 years)
Kindergarten (5, 6years)
Elementary (7-14 years)
Highschool (14/15-18yrs)
College or graduate school (18/19yrs+)
Source: 2010American Community Survey
Miami
81,588
6.4%
5.0%
37.6%
22.4%
28.7%
Miami -Dade County
630,404
6.6%
4.7%
37.6%
21.3%
29.9%
Broward County.
446,579
6.9%
-4.6%
39.5%
22.3%
26.7%
Florida
4,455,695
6.4%
4.9%
40.1%
21.3%
27.4%
USA
82,291,141
6.1%
5.1%
39.6%
20.5%
28.8%
2eiationshio to Curricula
School field trips to museums are selected primarily on the basis of their relationship to
curricula and the extent to which they help to address state and local standards and help with
test scores. An interview with the Executive Director of Social Science for the Dade County
Public Schools indicated the best curriculum links for the HVKBPM in grade 4 associated with
state and local history. There is also a strong curriculum link in grade 11 at the high school level
in which there is a unit of study on civil rights. However, there are fewer school field trips that
take place in high school. There are no known changes to the history and social studies
curriculum planned at this time. The objective should be to get the Virginia Key Beach story
infused into the curriculum at on as many levels as possible.
Lord Cultural Resources 18
Field Trb Decision -Making
School field trips take place primarily at the lower grade levels, in large part because at those
levels there is only one classroom teacher. Peak field trip attendance is generally in grades 4-6
and it is critical that educational programs have direct links to curriculum of these grade levels.
There are no mandated field trips in Dade County public schools. The decision regarding field
trip selection is made by the classroom teacher and requires approval by the Principal.
Although the focus of the Virginia Key Beach Park Museum will be on civil and human rights,
the environmental aspects of the Virginia Key Beach site increase the likelihood the Museum
will be selected as a field trip destination. This reflects the fact there are more curriculum links
at a variety of grade levels associated with science and environmental studies and that
science -related field trips tend to be preferred. The history and environmental link may be
enhathced by telling the story of Lancelot Jones, a black environmentalist of Bahamian descent
who turned a substantial amount of land over to the government to preserve it for public
protection.
Student Enjoyment
It is clear that there has been an increasing emphasis on selecting field trip destinations that
are learning -based and age -appropriate in relation to the content and activities, thus offering
students higher levels of learning enjoyment. This is rooted in the knowledge that children and
youth are more likely to learn if their experience is interesting and enjoyable. Field trips,
particularly at lower grade levels, are thus also often selected according to the extent to which
they provide hands-on or interactive participation, Interviews emphasize the importance of
interactive, dynamic and hands-on experiences where stories and traditions can come alive for
students. They also noted the importance of providing pre- and post -visit materials for
teachers. Also important will be access to those who can convey their first person experiences
of historic Virginia Key Beach.
Proximity and Cost
Virginia Key Beach is not accessible by public transportation, and although improved public
transportation has long been discussed it has not yet been implemented and there is
uncertainty when it will take place. This means that school groups attending the Museum
would likely require the use of the school buses often used to transport students to and from
school each day or a fleet of private buses endorsed by the school district. In both cases there
is often a limited window of opportunity of when buses are available (generally 9:30 a.m. to
2:00 p.m.) so that distance is a primary criterion in field -trip selection. The cost of
transportation and admission are both important factors in field trip selection.
Some museums, including History Miami, periodically obtain grant support or sponsorships to
offer free admission and free school busing to Title 1 schools. This would be important for the
HVKBPM to seek as well.
Lord Cultural Resources 19
3,2,3 TOJRIST MAR
<ETS
The Greater Miami and the Beaches 2015 Visitor Industry Overview helps to profile tourist
markets for the region and potential implications for the Historic Virginia Key Beach Park
Museum (HVKBPM). Data are available for all visitors and compared to data for African
American visitors:
• Volume and Origin of Visitors: Some 15,5 million visits to Greater Miami and the
Beaches took place in 2015, a substantial increase from about 14.6 million the previous
year. Of these about 52% are domestic, 33% from Latin America and the Caribbean,10%
from Europe, 5% from Canada, and 1% other. The top cities for domestic tourism to Miami
(New York, Chicago, Philadelphia, Boston, Atlanta and Washington DC are all cities with
large African American populations. On the other hand a key issue is what would cause
tourists to attend the HVKBPM from among the wide variety of things to do in Miami.
Inclement weather was viewed in the interview process as a good motivator to attend an
indoor -focused museum.
• Purpose of Overnight Visits: The large majority (82%) are in the area for
leisure/vacation/visiting friends and relatives, 8% for business/convention, 7% cruise and
3% for personal or other reasons. Those in the area for leisure purposes are the most
likely to attend museums. The figures for African American visitors are almost identical at
82% for leisure, 6% for business, 7% cruise and 5% other.
• Accommodations Used: Some 59% stay at a hotel/motel, 5% an owned or rented facility
and 37% stay with friends or relatives. For African Americans it was 65% hotel/motel,
35% friends and relatives and 1% at rented or owned facility. Those who stay with friends
or relatives are often advised and accompanied by the friends or relatives they are staying
with. Therefore the more successful the HVKBPM is in attracting residents the more likely
it will attract this large segment of the tourist market.
• Areas of Lodging: Some 48% of all visitors stay in Miami Beach compared to 41% for
African Americans who stay there. African Americans are far more likely to stay in North
Dade (28%) compared to 11% overall.
• Historic Site and Museum Attendance: Ranking the highest are Seaquarium (12.3%),
Museums (3,5%) and Vizcaya (1.9%). Proximity to Seaquarium is therefore an advantage
for the HVKBP Museum.
• Average Party Size: This has increased from 1,88 in 2011 to 2.24 in 2015, and indicating an
increase in the number of children.
• Age of Visitors: The average age is about 41, slightly older than the age of the local
population. African American visitors are somewhat younger, with a median of about 38.
• Mode of Transportation: Some 96% of visitors arrive by air. For African Americans it is
74% by air.
• Repeat Visitation: Some 73% of tourists to Miami are repeat visitors. A high level of
repeat visitation is positive as people tend to look for new experiences on subsequent
visits.
• Satisfaction Rating: African Americans are more likely to be "extremely satisfied" with
their visit to Greater Miami (44%) compared to 37% for the overall visitor market.
• Features Most Liked: The beaches rated highest (59%) for the overall market, and was
second highest for African Americans, although still at 59%. The top feature for African
Lord Cultural Resources 20
Americans was the weather at 67% compared to 58% overall. African Americans ranked
the attractions lower (19%) than the 24% for all visitors.
• Features Least Liked: The main differences was greater African American concern about
prices (18%) compared to 8% overall. The data indicate the need for caution in admission
pricing if African American attendance is to be maximized.
• Likelihood of Returning to Miami: Some 53% of African Americans expressed they
would "definitely" return to Miami compared to 46% overall,
Important to emphasize as well is the growth of civil rights tourism in the Deep South. In
addition to the National Civil Rights Museum located at the Lorraine Motel in Memphis is the
National Center for Civil and Human Rights in Atlanta other existing civil rights museums the
Mississippi Civil Rights Museum is to open in Jackson in December 2017, while the
International African American Museum is to open in Charleston South Carolina in 2019.
Opening the HVKBPM would have the advantage of a much stronger existing tourism base
than is available to any of the other civil rights museums in the South.
Lord Cultural Resources 21
UPDAT
D ASS,VTIONS
In order for projections of attendance, operating revenues and expenses to be credible, they
must be based on clearly stated and agreed assumptions grounded in a common
understanding of what "it" is that is being projected for the Historic Virginia Key Beach Park
Museum (HVKBPM). The attendance and financial projections in the following chapter focus
only on the Museum and exclude a separate Beach Pavilion (rental facility), which is to be
implemented in association with a private developer. The projections also exclude additional
recreational amenities that may be implemented on site.
The following additional assumptions reflect the judgment and experience of the consultants
and client direction.
L
1 Vistor FIDerience
For the purposes of this business plan it is assumed that the visitor experience in the HVKBP
Museum will be largely as described in the 2006 Report. Among the key assumptions
regarding the visitor experience of the VKBP Museum are the following points:
• The HVKBP Museum will be a visitor -centered institution that seeks to offer both
educational and entertaining experiences.
• The Museum will seek to attract visitors from all age ranges through the development of
exhibits, activities and performances that are intergenerational in nature. An experience
that will appeal to children and their families will be an important component. It is
assumed that this will be an underlying objective throughout the institution. A new
recommendation is for a separate children's gallery to emphasize the importance of
interactivity.
• Civil and human rights and environmental stories will be told through highly interactive
and multimedia exhibitions with the use of archival photographs, oral histories, labels,
touch screen computers, etc. in the exhibit areas and some use of higher technologies such
as audio-animatronics or holograms, or other to be considered as part of the detailed
exhibition design process.
• Programs will include the screening of films along with lectures and periodic live
performances in a 60-seat theater.
• Temporary exhibitions, programs and events will be implemented to make attending the
Museum more than a one-time experience. This will include periodic temporary
Lord Cultural Resources 22
exhibitions from other museums that will give the HVKBP Museum a strong national
profile as an exhibiting center. The Museum will also generate temporary exhibits from its
own resources.
• Permanent exhibits will seek to tell the civil and human rights stories of Virginia Key Beach
Park through two key principles:
• A Place of Freedom: This is a place where people made a life and a community out of
the natural environment in the midst of their struggle for equality and freedom.
Although this place had its origins as a Native American site and gained notoriety as a
segregated beach for people of color, it is now a place that is open to all who respect
its history and its portent for the future.
• A Meeting Place: It will also serve as a type of community center and meeting place of
people with common or conflicting historical, social and cultural perspectives. This will
also include a variety of public programs together with the opportunity for the
community to rent facilities for their own use. Examples include wedding receptions,
reunions, community art exhibitions, after -school programs, lecture series, and the
hosting of community festivals.
• Stories associated with the environmental importance of the site will be told largely by
means of film and related presentations in the 60-seat theater along with some exhibits
and will respect Native American origins. Much of the visitor experience, however, will be
focused on the civil and human rights stories associated with Virginia Key Beach.
• The exhibition space will include a children's gallery. This reflects that many adults are
motivated to attend museums when they believe they will be of interest to their children.
Moreover, Virginia Key Beach Park is already attractive to children with its beach, carousel,
train and other program opportunities. A hands-on children's gallery will help to motivate
repeat visits and therefore the value of membership. It will also increase the likelihood of
school group visits at lower grade levels and should be easily sponsorable.
2 Go
lectioiis
The space plan below assumes relatively few artifacts and that the Museum will be a largely
non -collecting institution. This has the benefit of leading to lower capital costs for the building
and lower staff and other operating costs. Collections would be used for display and teaching
purposes and not for preservation purposes.
3 Pre -Design Space a
1C
aci
I es Ian
The following is an update of the facility plan, which remains preliminary and subject to
modification in detailed architectural design, including a determination of the number of floors,
but is assumed to be reasonable for the purposes of the attendance, operating revenue and
expense projections in Chapter 5.
The spaces are allocated into the four zones set out below with a summary table at the end of
the section in which the Museum is reduced to about 24,400 net sq. ft. or about 34,150 gross
square feet.
Lord Cultural Resources 23
HISTORIC
REVISED
ZONE
ZONE
A
+ 1
VIRGINIA KEY BEACH
PRE DESIGN SPACE
•<.•••••.......
Space Name,
Public Non -Collection Space
Vestibule
PARK
PROGRAM
Revised
Program
NSF
90
MUSEUM
r
StSne,l
Ceiling
Height
(clear)
8
Technical Comments
Doors must be atleast 10 ft setpapartson first
set can before
EtCa ",'
Public Non -Collections
Zone B
Public Collections
Zone C
Non -Public Collections
I��',':
Critical Adjacencies
Museum main entrance
Non -Public Non -Collections
Functional Comments
Allows for 1 public entrance @ 90 sf
Stroller/wheelchair storage
25
8
Main Lobby/Orientation
Closed storage for courtesy items
Open floor space
Ail,
Eje
Public Washrooms, Men's &
Women's
720
8
Main Lobby and public areas on
each floor, Restaurant
On each floor with public access, each
with one handicapped stall
Standard washroom equipment, capacity
to Code
Al
First Aid/Sickroom
45
8
Main Lobby
Rest and first -aid space for visitors also
used by ER teams in emergency
Counter w/ sink, supply cabinets, cot
I ES
Lobby/School Orientation
1,320
12
Freedom Theater; Activity Room;
Reception/Rentals space; through
access to the Galleries; access to
Washrooms, First Aid, Backpack
Storage
Combined assembly and ticketing space
of 1350 sf
Electronic display boards or video
monitors or computerized information
stations TBD
r a
Board/Conference Room
450
12
Executive Offices, Reception
Space available for staff and Board
meetings and rentals, with flexible
conference room setup and excellent
presentation facilities
Network connectivity, presentation
facilities, blackout capability.
s :
Miultipurpose/Rental Space
900
12
Catering Setup, Washrooms
Multipurpose space for indoor events,
supplementing lobby space and
interconnecting to outdoor space for
larger events .
900 nsf @ 10 nsf/person reception format
= 90 person capacity
900 nsf @ 15 nsf/person lecture format =
60 person capacity
900 nsf @ 20 nsf/person dining format =
45 person capacity
Activity Room
900
12
Main Lobby/Orientation; Resource
Center
Can be subdivided into 2 areas able to
accommodate 1 class each @ 450 sf
each
Sturdy washable surfaces, pinnable
surfaces, low sinks, built-in storage.
•.
Backpack Storage
45
8
Main Lobby/ Orientation for easy
access on arrival, lunchtime and
departure
Lockable bin storage to accommodate
up to 60 school children's backpacks etc
in marked, lockable bins or rolling carts.
Rolling bins or other storage system for
children's coats, backpacks, lunches
CF
Cafe
900
12
Main Lobby. Visible on entry and
exiting
Easy access to kitchen essentia.
Accessible to Museum visitors and non -
visitors on site
Accessible both to
Museum Retail Store
Total Zone A
675
6,070
12
Main Lobby. Visible on entry and
exiting
Accessible from Main Lobby and to non-
visitors on site
Fixed sales points and display fixtures
TBD. See Zone D for D3.15 Retail
Stockro.m. , •
ZONE
B
B1.1
Public Collection Space
Freedom Theater
900
20
Main Lobby, Galleries.
New state-of-the-art Multimedia
lecture/film facility with small-scale
performance capability, with up to 60
seats. A programmed multimedia
presentation of 10 minute length would
be shown as a daily feature, with the
Theater being used for films, lectures
and events late aftemoon/evenings.
Fixed raked seating, fixed stage,
projection booth, large format screen,
surround sound, specialized presentation
technology TBD. Network connectivity.
B1.2 ''
Permanent Exhibitions
5,500
20
Main Lobby
Exhibit components include social
cultural, hands-on children's gallery,
Cove Storyzone, Discovery Box leaming
area, information mini-theater/video
Flexible black box gallery space with 18-
20 ft clear ceiling height. Network
connectivity.
B1.3
Hands-on Lab
300
12
Connected to Permanent
Exhibitions
Small natural history lab space for
supervised hand -son exploration
Network connectivity, lab benches and
stools, demo area, microscope &
magnifiers, storage for materials and
specimens.
131.4
Temporary Exhibition Gallery
2,500
16
Main Lobby, Permanent
Exhibitions
Flexible changing exhibition gallery
space that can potentially double as a
community gallery/event space.
Flexible black box gallery space with 14-
16 ft clear ceiling height. Environmental
controls to ASHRAE Class AA standards
for loan exhibitions. Network connectivity.
B1.5
Resource Center
900
12
Activity Room, Galleries
Information resource area with varied
information sources including books,
periodicals, on-line access, video
viewing, teacher resource area with
shelving for CD's, videos, hands-on kits,
curriculum materials.
Reference/help counter, printer/scanner
facilities, reading area, reference and
resources stacks, up to 6 on-line
computer stations. Network connectivity.
B1.6
Meeting Room and Oral History
Lab
Total Zone B ..:......
270
.._10 370
8
Resource Center
Meeting/interview room used for small
staff and community meetings as well as
for recording oral histories with
individuals or small groups (ie families,
Church groups, etc.)
Soft lounge seat grouping plus meeting
table and chairs for up to 8. Built-in wall
cabinets to hold recording equipment,
video monitor, white board, etc. Network
connectivity.
Lord Cultural Resources 25
ZONE
r✓
CIA
Non -Public Collection Space
Collection Storage, Objects
315
12
Part of one storage area of 855 sq
ft
General object storage. May be
compacted in future.
Climate control. Network connectivity.
Open shelving or cabinets for small items.
C1.2=''
Collection Storage, Paintings
180
12
Part of one storage area of 855 sq
ft
Framed oils, acrylics, watercolours, etc.
Climate control. Network connectivity.
Pull-out painting racks, preferably double -
loaded on each side of central access
area.
C1 3
Collection Storage, Textiles
180
12
Part of one storage area of 855 sq
ft
Costume and textile collection TBD -
clean storage can be used also for
archival collections
Climate control. Networkconnectivity.Rolls
for larger items, drawers for smaller, folded
items; padded hangers for costume
C1.4 --'
Archival Storage, Paper,
Photographs/Film
180
12
Part of one storage area of 855 sq
ft
Clean storage with limited refrigerator
storage for film
Climate control. Network connectivity.
Open shelving, print cabinets. Refrigerator
storage as needed for film, photo
materials.
C1.5 i
Collection Storage, Natural
History
180
12
Separate room adjacent to
Collections Workroom
Clean storage with limited refrigerator
storage for specimens
Climate control. Network connectivity.
Open shelving or specimen cabinets.
C1.6
._ • .'
Education Collection Storage
135
8
Education Prep
Clean storage with limited refrigerator
storage for specimens
Climate control. Network connectivity.
Open shelving or specimen cabinets.
C1.7
Registration/ Photo Files
135
8
Collection Storage, Collections
Workroom
Registration Record area for hard copy
and computerized collections record files
and file access.
Network connectivity.
C1.8 !
Collections Workroom/ Photo
Studio / Research
450
12
Collection Storage, Collection
Supplies, Clean Installation Shop
Space for collections processing,
including accessioning, condition
reporting, cataloguing, photography,
digitization, numbering, etc.
Climate control. Network connectivity.
C1.9
Collections Supplies
45
8
Collections Workroom, Collection
Storage, Transit Storage/Packing
Clean collections supplies storage.
C1.10 :
Clean Installation Shop
270
12
Collections Workroom, Collection
Storage, Transit Storage/Packing
Exhibit layout and staging with artifacts
present
Climate control. Network connectivity.
Sinks.
C1.11 +
Collections
Shipping/Receiving/Packing
400
12
Collections Loading Dock, Transit
Storage/Packing, Moving
Equipment, Security Booth
Receiving area forming buffer to outside
air, supervised by Security, may also be
used to pack and acclimatize shipments
Climate control, overhead doors.
C1.12
Transit Storage
360
12
Collections Shipping/Receiving,
Moving Equipment, Crate Storage
Storage for incoming/ outgoing exhibits (I
tractor -trailer load)
Climate control.
C1.13
Isolation/Fumigation
45
12
Collections Shipping/Receiving,
Transit Storage/ Packing
Small area for segregated storage and
inert gas treatment
Climate control.
C1.14
Crate Storage
300
3,175
12
Collections Shipping/Receiving,
Transit Storage/ Packing
Separate areas for VKBM and Lender's
crates
Climate control.
Lord Cultural Resources 26
ZONE. Non -Public Non -Collection
D Space
2RKE SS' A EF4S'i
Board/Exec. Director Pantry/
Storage
Staff First Aid Emergency
Staff Washrooms/
Changing/Lockers (Male &
Female)
Executive Offices, Boardroom
Workshops
Industrial first aid room to Code
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity.
Network connectivity, printers, scanners,
copiers, postage meter, work counters
with paper storage below.
Plumbing, stove and fridge, microwave,
etc.
Plumbing, eyewash station
135 Workshops, Shipping/Receiving Includes toilets, showers, lockers, Plumbing, access to Code, full-size
Volunteer Room/Day Lockers 50
area
Offices
changing area; 60 M, 75 F
lockers
Rest/prep area for site and museum Coat closet, token-retum lockers, mirror,
volunteers
etc.
Staff/Volunteer Lounge
180
Offices
Lunchroom for staff and volunteers
Comfortable lounge seating and table
Staff Kitchenette
45
Staff Lounge
Coffee/tea preparation, warming
facilities, refrigeration
Plumbing, stove and fridge, microwave,
etc.
Staff/Volunteer Washrooms
(Male & Female)
135 8 On each floor level with offices or Includes toilets, handwash, vanity; 75 F, Plumbing, access to Code
workspace
60 M
Lord Cultural Resources 27
General Storage
180
Maintenance areas
Storage for maintenance supplies and
equipment
Open floor area
Resource Center Book &
Periodicals Storage
45
8
Resource Center, Registration and
Collections Workroom
Resource Center support space
Standard library racking
Resource Center Workroom
125
8
Resource Center , Registration and
Collections Workroom
Resource Center support space
worktables, built-in counter, computer
workstation
Website/Digitizing Lab
125
8
Resource Center , Registration and
Collections Workroom
Resource Center support space
Digitizing workstation, multimedia suite
TBD
AV Storage
90
8
Projection Booth
Storage for AV carts, portable equipment
for events, etc.
Open floor area, limited racking
Dressing Room
135
8
Freedom Theater
Performers and speakers dressing room,
70 F, 65 M
Clothes racks, makeup bench, wall mirror,
folding wall
Projection/Audio Booth
70
8
Freedom Theater
Multimedia and 35 mm projection
support for the Freedom Theater
Network connectivity. Projection
requirements TBD
Special Event Fumiture Storage
150
8
Accessible to Lobby, Rental space
Storage for chairs, tables, podium, risers
etc.
Open floor area
Education Prep Room
135
8
Activity Classroom , access to
galleries
Prep area for education program
materials with built-in storage
Network connectivity. Utility sink.
Worktables, built-in storage.
Cafe Kitchen And Catering Set
up Area
500
8
Reception/Rental space
Set up and plating area for catered
events.
TBD Restaurant consultant.
Retail Stockroom
180
8
Museum Shop
Receiving, inventory, pricing, storage &
distribution for retail stock
Network connectivity.
Lighting/Electrical Workroom
45
10
Through access to Galleries
Storage and testing for lighting
components
Electrical testing board
Moving Equipment
50
12
Loading Dock
Parking for fork lift, dollies, hand trucks
Open floor area
Exhibit Case/Prop Storage
180
12
Through access to Galleries
Open floor area
Security Control Room, & Toilet
90
8
Secure, away from entrances;
adjacent Security Office
Main Control Room for security systems
Network connectivity. Secure phone line;
toilet within security perimeter.
Shipping/Receiving
125
12
Security
Receiving and temporary storage for
deliveries, garbage removal route
Overhead doors to Loading Dock
Facilities Maintenance Control
Room
45
8
Security Control Room
BMS computer system and Telecom
control room
Network connectivity.
Operations Maintenance/
Electrical Workshop
125
8
General Storage
Set up and maintenance workbench and
open area
Workbench with power outlets, utility
lighting
Janitorial - Central Storage
100
8
General Storage
Storage for floor washers, polishers, bulk
housekeeping supplies
Slop sinks, floor drains, utility racking.
Janitor's Closets
50
8
Washrooms
2 x 25 sf. Janitorial carts and supplies
for quick cleanup
Slop sinks, floor drains in each.
Lord Cultural Resources 28
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report
The following table summarizes the revised space list by zone and totals 24,400 netsq. ft. or
about 34,150 gross square feet. The gross figure adds circulation, mechanical and electrical
spaces as well as wall thicknesses.
TOTAL SPACESUM'MARY
Zone
Zone C
Total Gross Net Square Feet
Grossing Factor as a %
Total Gross Square Feet
Revised
Program
6,070
10,370
3,175
4,780
9,758
0.40
34153
It is assumed that the space plan for the new facility above will be implemented all at once
with no phasing.
Site
In addition to the visitor experience and facilities offered, attendance projections in Chapter 5
consider the strengths and weaknesses of Virginia Key Beach Park as the site for a museum.
The main points are as follows:
Strengths:
• Virginia Key offers the "real thing" as a site to present and interpret the civil rights history
of South Florida.
• Proximity to a beach on an island exposes people to the Museum who might not otherwise
be aware of it. However, combining a beach and a museum experience is not easy given
the practicalities of dress and measures needed to overcome it including the potential for
transitional spaces.
• Proximity to other attractions like Seaquarium and Jungle Island.
• Parking charges are relatively low compared to other beach sites in the region. The only
one that currently offers free parking is Dog Beach, and that may change in the future. The
parking charge at Historic Virginia Key Beach Park is $8.00 per vehicle on weekends and
$5,00 during the week, with increases expected in 2017. During events parking charges
increase to the $10.00 to $20.00 range. However, some people will resent paying for both
admission and parking. Consideration will also need to be given regarding the implications
of the increasing popularity of Uber and Lyft.
• The assumed implementation of the Beach Pavilion and additional recreational
opportunities will help to widen the market for the Museum.
Lord Cultural Resources ® 29
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report
Weaknesses:
• Access to the site requires paying a toll to on the Rickenbacker Bridge.
• Beaches tend to be used primarily on weekends and mainly from April through October for
residents, so that crossover opportunities are likely to be limited during the week. The
beach itself is not very good for swimming given the strength of the current, is not very
wide and has a lot of seagrass. Moreover, turtle nesting season from May through
November limits evening events because of prohibitions against lights at night. On the
other hand there are few mosquitos during the cooler weather months.
• The Virginia Key Beach historical story is not well-known among younger people. Museum
staff will need to dedicate significant resources to bringing attention to it.
L, 5 Governance and Staffing
• It is assumed that the HVKBP Museum will be an independent agency of the City of Miami
but will apply for grants from all potential funding sources. It will also seek to raise private
funds on an annual basis to support operations.
• A Board of from 10-15 persons from Miami and elsewhere in Miami -Dade County will
govern the Museum. The Board will hold fiduciary responsibility for the Museum and its
assets and will establish appropriate By -Laws outlining its role and responsibilities,
including the recruitment of Board members.
• To reflect a reduction in space and an objective to control the operating budget the staffing
levels have been reduced from what was previously assumed for the Museum and to take
into account existing staff who serve the Park. The updated staffing plan is as follows and
builds upon the existing Virginia Key Beach Park staff listed here:
o Executive Director
o Finance Coordinator
o Special Events and Media Liaison
o Special Projects Coordinator
o Education and Outreach Coordinator
o Receptionist/Administrative Assistant
o Park Supervisor
O 3 Cashiers
O 4 Park Attendants
Additional staff positions assumed in association with the Museum are as follows:
o Director of Collections and Interpretation
o Marketing and Media Director
o Development Director
o Assistant to the Executive Director
o Information Technology/ Media/ Projection Specialist
Lord Cultural Resources 0 30
1
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report.
o Exhibition Manager
O 2 Education Program Coordinators
O 2 Public Program Coordinators
o Bookings and Membership Clerk
o Visitor Services and Volunteer Coordinator
O 2 Special Events/Rentals Staff
o Retail/Business Manager
o Admissions/Retail and Evening/Weekend Allocation
.6 0
ieratio
isa
1[� MaKetinc
While the best form of marketing for any museum is the nature and quality of the visitor
experience and the attributes of the site, other factors that affect attendance include features
ranging from admission charges to parking to operating hours. These and other related issues
are addressed below through the following recommendations/ assumptions.
/
.61 I‘1,,SEUM ADMISSION C
A
AGES
• Miami is a charged admission marketplace and given the quality of the visitor experience
assumed and the need for earned income it is recommended and assumed that the
HVKBPM will charge admission.
• The admission price is assumed to be all-inclusive with no surcharges for temporary
exhibitions or for the Freedom Theatre.
• Unless the policy is changed, access to the Park is per vehicle, whereas access to the
Museum is per person.
• A parking validation system be introduced to provide free parking to those who have paid
for museum admission.
• Based on prevailing ticket prices in the area and among similar African American museums
across the country, the visitor experience and the location of the Museum, and feedback
from the interview process both in 2006 and now, the recommended admission charges
are as follows to be applicable to the opening three years of operation. The recommended
charges feature reduced rates from the adult rate for seniors, youth and children as well as
non -school groups, with (ideally sponsored) free admission for school groups and the
disadvantaged. In addition, it also assumed that those attending paid events in the Beach
Pavilion would have discounted or free access to the Museum.
Lord Cultural Resources • 31
L
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report.
Recommended Admission -Charges
Adult (25-61)
Charges
$10.00
Senior (62+)/Veterans/Youth (13-24)
$8.00
Child (3-12)
$5,00
School Group (per person) - the programming charge is extra
$0.00
Non -School Group (per person)
$7.00
Indirect Paid (members, rentals and programs visitors)/Other
Unpaid (infants, disabled, VIPs, researchers)
$0.00
6,2 (.),I.
� VENI UNIT
• Although parking charges will increase over time, no changes are assumed for parking
charges as a consequence of the introduction of the Museum, with the exception of the free
validated parking for paid museum visitors.
• The Museum will include a retail store integrated with admissions to enable staff to handle
both. The product line will reflect the mission and mandate of the institution and help to
tell the civil rights story in South Florida and elsewhere as well as items that reflect the
environmental importance of the site. The books and other items should appeal to a cross-
cultural audience, so Spanish -language books as well as Hispanic immigrant histories
should be included with African American and civil rights themes shown in the exhibitions.
The product line should also offer low cost items for children. Depending on market
demand, the retail shop will be visible and accessible even when the rest of the Museum is
closed.
• A small caff wiII be part of the Museum, to likely be operated by the company that
operates the assumed Beach Pavilion.
• Rentals will take place primarily in the Beach Pavilion but there will also be opportunities
within the Museum. The lobby and adjacent multi -purpose space and Freedom Theatre
will be the primary spaces used for evening and other small rentals. Rental rates for
museums are usually at the high end of the spectrum, reflecting the prestige attached to a
museum venue. However, in some cases the Museum will offer rental space free or a much
reduced rate to deserving groups, ideally sponsored by others. It must also be emphasized
that despite the opportunities, there is substantial and growing competition for rentals
business in Miami. The implementation and paving of the Flex Park on the site of the
Marine Stadium site will attract more people to Virginia Key but also increase competition
for events and other rentals at Historic Virginia Key Beach Park.
• It has been assumed that the HVKBPM will introduce a lower level and an upper level
membership program. Lower level memberships would focus very much on "value for
money" in unlimited free admission, discounts from retail sales, programs and rentals, and
other tangible benefits. The upper level membership program would be a way for
individuals, families, corporations and foundations to support the mission and mandate of
the Museum. Upper level members would receive tax benefits in return for sponsoring free
admission of school groups and the disadvantaged.
Lord Cultural Resources
. 32
Historic Virginia Key Beach Park Museum:
Business Plan Update - final Report
• It is assumed that the implementation of the Museum will help to enhance the market for
the various programs and events that have grown in the Park over the years. Within the
Museum, most public and educational programs will be included within the basic cost of
admission. Charged programs could include performance events and lectures in the 60-
seat auditorium, teacher training, outreach, registered programs, special events and other
programs developed by management of the Museum when operational.
• The train and carousel used to cost one dollar per ride and now are free. This is assumed to
continue but sponsorship will be sought to pay for the free admission for the train and
carousel.
• Given the challenge of raising private capital funds, no endowment is assumed to support
operating costs during the three years projected. However, development of an endowment
would be very helpful.
4,6,3 OPE
ATING SCH
0_LE
• It is assumed that the Museum will open daily from 10 a.m, to 5 p.m. and will experiment
with one evening opening per week. This will allow one hour set up time for evening rentals
and allow for exclusive school group use before 10 a.m. when booked in advance.
• No change is assumed to the hours of the Park as a consequence of implementation of the
Museum. However, evening event rentals associated with the Beach Pavilion and other
programs could affect operating hours.
�.6.
-NJING
A quality visitor experience is the most important marketing tool available. Ths helps to
generate the positive word-of-mouth reports that are essential for building both first-time and
repeat visitation and for ensuring that HVKBPM is top -of -mind for potential resident, school
and tourist visitors. Some of the opportunities are as follows:
• Emphasize the combined indoor/outdoor attractions of the site that provide a competitive
advantage over many other Miami attractions. The challenge will be to encourage
"recreational" users of the site to utilize other aspects such as the Museum. An
indoor/outdoor attraction can also meet the challenge of inclement weather or extreme
heat.
• The resident market will be very important and, in general, there should be a marketing
emphasis on the family nature of the site (through such events as family reunions, faith -
related meetings etc.). The demographics of the region indicate that this emphasis would
be of appeal to the Hispanic market that represents the largest ethnic group in the region.
Other ongoing special events such as film festivals, lecture series, etc. should be regularly
planned to attract the local market to the site.
• That HVKBP be positioned as a welcoming place for all cultures, which will be important
considering the demographics of the Region. Graphics should be in English, Spanish and
French and perhaps even Krdyol throughout the Park and Museum, and docents speaking
each language should be available.
Lord Cultural Resources e 33
Historic Virginia Key Beach Park Museum:
Business Ran Update - Final Report
• School groups will be an important market and HVKBPM should develop a printed
brochure for schools and curriculum supervisors that describes the Museum's programs,
including the targeted grade levels with clearly defined curriculum links to those grades,
and the emphasis on fun, interactive experiences.
• Flags and banners should be installed at the Museum's entrance and on the Rickenbacker
Causeway to announce the Museum's presence and provide a welcoming face to potential
visitors. If possible, billboards and signage along major highways in the Miami area
advertising the new site should be introduced. Also needed will be a brown State Historical
sign, including "Florida Heritage" near the park entrance, and a prominent entrance
marker;
• Develop a museum rack brochure to be displayed at regional attractions and hotels, and be
available for distribution by the local Convention and Visitors Bureau, at Turnpike service
centers, Welcome Centers and hotel lobbies. The brochure should be visually driven as
opposed to text -heavy: this will prevent the brochure from becoming a substitute for an
actual visit, which can happen with brochures that provide too much information regarding
a museum's content. Consistent with the family appeal of the site, it should show
members of a family (possibly three generations) enjoying themselves at the site and
include a discount coupon.
• Utilize an attractive interactive Web Site now to provide updates on the planning and
design process, gradually getting more concrete and detailed as opening day approaches,
then projecting exhibition and events schedules, membership applications, etc. It should
include a "sharing your story" link, As the first step in a private fundraising campaign it will
be necessary to encourage community leaders in churches, schools and community
organizations to promote the existence and importance of Virginia Key Beach first to the
African American community then to the wider community by means of an excellent web
site.
• Recognize the importance of social media by designating staff to monitor Trip Advisor and
other sites and to communicate with supporters.
.7 Other Assurr
)tions
• Capital funds for construction and exhibitry will be generated through a combination of
private and government sources. The project will be free of debt payable by the HVKBPM
and there would thus be no annual outlays for debt service in the operating budget.
• The Museum will not be responsible for payment of any property or business taxes.
Lord Cultural Resources ® 34
5. AJNDANCE, R
ROJECTIONS
=v
NJ
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report.
AND
J
INS_
This chapter sets out our updated projections of attendance, operating revenues and expenses
for the Historic Virginia Key Beach Park Museum (HVKBPM) based on the Contextual,
Comparables and Market Analyses in Chapters 2 and 3 and the approved Assumptions in
Chapter 4 as well as the judgment and experience of the consultants, The projections are for
the opening three years of the Museum, and assume that Year 3 is a stabilized year that will be
representative of the attendance and financial performance of the HVKBPM in subsequent
years of operation. Since the focus of this study is the Museum the projections are for the
addition to the Park of the Museum itself, and are not for the Beach Pavilion or additional
recreational opportunities that might be implemented. However, the projections do take into
account the assumed positive impact on Museum attendance and earned income of the
Beach Pavilion.
All projections are in 2017 constant dollars. However, some items such as staff costs tend to
increase at a faster pace than the prevailing rate of inflation and we have thus taken this into
account in some of the specific projections, The projections build upon a base level of 2017-18
budget figures for the Virginia Key Beach Park Trust to take into account that there is already a
fully operational Park to which the Museum will be added.
5.1 On -Site Mttenc
once Projections
In preparing attendance projections, it must first be noted that comparing attendance levels
with existing museums and related institutions is inherently risky since there are a variety of
definitions of what constitutes a visitor. For this plan a visitor to the HVKBPM is defined as
someone who attends the Museum on -site for the purposes of experiencing its exhibits and
programs, including persons attending various special events and rentals. This definition would
exclude those who enter the building to only use the gift shop. It also excludes staff and
volunteers, service and delivery people as well as visitors to the Beach Pavilion, the beach and
outdoor facilities on the site who do not enter the building for the exhibitions or programs.
While outreach and access through a Web site are important, on -site attendance projections
do not include outreach programs and Web site hits.
Lord Cultural Resources + 35
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report
It must also be noted that there is no simple computer formula that leads to credible
attendance projections. The process used here considers the experience of existing civil rights
museums, and the most relevant existing history -focused museums in Miami and help to
provide benchmarks for formulas that help to guide our judgment associated with important
qualitative factors. These include the appeal of the assumed visitor experience and spaces as
well as the impact of other key assumptions outlined in the previous chapter.
51] DARAMETERS
vR ON -SITE A_.
ENDANCE IPROJECTIO\S
A variety of data may be used to help establish parameters or benchmarks for the Museum
attendance projections. Although each benchmarking method has its weaknesses, all have
been considered but not necessarily used to establish parameters to help guide our judgment.
511,1 atlos Derived From Selected Civil and Human Museums
The HVKBPM is to be a largely civil and human rights museum and so it is civil and human
rights museums in the South that offer the most useful ratios. The six selected are in the table
below and include those far larger in size than the HVKBPM and those in much smaller market
areas. To help account for these disparities the data are for the mid -point between average
and median figures as applied to visitors per sq. ft. of exhibition gallery space, visitors per
thousand County population and visitors per thousand African American population in the
County:
• Visitors per Square Foot of Exhibition Space: The mid -point between the median and
average visitors per square foot is 3.8, which when applied to the assumed 8,000 sq. ft. of
exhibition space for the Museum leads to an attendance of 30,400 visitors.
• On -Site Visitors per Thousand County Population: The average ratio that emerges from
this method is 146.4. Applied to the population of Miami -Dade County the estimate is a
very unrealistically high 365,500 annual visitors relative to lower attendance figures for
much larger civil rights museums with a national focus. The data are skewed by the very
substantial size and population of Miami -Dade County relative to the other examples. The
mid -point County population of the six comparables selected are only about 23% of the
population of Miami -Dade County. Applying this 23% ratio suggests an attendance level
of about 84,100.
• Visitors per Thousand African American Population in County: The Museum is to
appeal to all ethnicities but there should be a particular appeal to African Americans. The
mid -point ratio that emerges from this method is 361.7. Applied to the African American
population in the County this leads to an attendance of about 170,700. Since the mid -point
population of African Americans is about half of the African American population of
Miami -Dade County, we have applied the 50% to lead to an estimate of 85,400.
• Mid -Point Attendance from the Six Selected Civil Rights Museums: At about 80,500
this figure appear to be closest to a realistic attendance estimate for the HVKBPM.
The average of the other two methods is 70,100 annual visitors to the Historic Virginia Key
Beach Park Museum in a stabilized year of operation.
Lord Cultural Resources ® 36
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report
=
Selected Civil or Human Rights Museums in the South
National CHI Ri•hts Museum, Mem•his
2015 Reported
On•Site
Attendance
200,000
Adult
Admission,
Charge
$15.00
Exhibition
Space (Sq.;
Ft) -
40,000
Visitors per
Sq. Ft.
,
Exhibition
Space
5.0
2010 County
-Population
928,808
Visitors per
1000 County
Population
215.3
2010 County
Black
Population
496,912
Visitors per 1000
County Black
Population
402.5
National Center for Civil and Human Rights, Atlanta
200,000
$16.00
30,000
6.7
962,060
207,9
424,268
471,4
International Civil RI•hts Center and Museum, Greensboro, NC
70,000
$10.00
30,000
2,3
489,657
143.0
159,139
439,9
Birmi 'ham Civil Ri•hts Institute, Alabama
60,000
$12.00
26,200
2.3
658,514
91,1
276,576
216,9
Ral•h Mark Gilbert Civil Ri•hts Museum, Savannah, GA
40,000
$8.00
6,000
6.7
266,019
150.4
106,674
375,0
Alban Civil Rights Institute, Alban , GA
6,500
$6.00
6,000
1.1
94,612
68,7
63,485
102,4
AveraIe
96,083
$11.17
23,033
4.0
566,612
146.1
254,509
334.7
Median
65,000
$11.00
28,100
3.7
574,086
146.7
217,857
388.7
....,':-
Mid -Point
80,542
$11.08
25,567
3,8
570,349
146.4
236,183
361.7
Assumptions for HVKBPM
$10.00
8,000_
2,496,535
471,826
Sources2016 Official Museum Directory US Census web pages
Noses The reported attendance for the Birmingham Cb 6 Rights Institute is 146,1166
The reported attendance for the National Center for Cml and Human Rights in Atlan
but that mcludes
a is an openingear
80 000 persons
figure and i
served on out
kely to decline
each programs
in subsequent years
5112 -ratios Derived From Existing Charted Admission
iistory-Focused Museums in Miami
Chapter 2 includes detailed available data regarding other existing museums and related
attractions in Miami. The two most relevant for attendance projections of the HVKBPM are
the following examples, which charge admission and are history -focused. They are History
Miami and the Jewish Museum of South Florida. The two methods used here are visitors per
square foot exhibition space and a ranking of the HVKBPM against their reported attendance
totals:
• Visitors per Sq. Ft. Exhibition Space: This method focuses on the space available to
visitors and leads to an 11.3 average ratio emerging from the two comparables in the table
below. Applying these figures to the assumed 8,000 sq. ft. of exhibition space at the
Museum provides a range of about 92,000 visitors.
• Ranking Relative to the Two Charged Admission History -Focused Museums: In our
judgment the HVKBPM will attract more visitors than the Jewish Museum but fewer than
History Museum. Using the 65,000 average appears appropriate.
The mid -point between the two estimates is 78,500.
Selected History Focused and Charged Admission Museums
in Miami
Histo Miami
Jewish Museum of South Florida
Ave ra • e
Assumptions for HVKBPM
Sources: 2016 Official Museum Directory, US Census, vieb
s
2015 Reported
On -Site
Attendance,
83,000
47,000
65,000
Adult
Admission
Charge
$10.00
$6.00
$8.00
$10.00
12,000
3,000
7,500
8,000
Visitors per
Sq. Ft.
Exhibition
Space
6.9
15.7
11.3
Lord Cultural Resources
• 37
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report
5.113 Summary of Figures Extrapolated from Ratios and
banking Method
Averaging these figures suggests a stabilized attendance figure in the range of 74,300 visitors
in the stabilized Year 3, as seen in the following Table.
Attendance rounded
Selected Ratios from Civil Rights Museums
70,100
Ratios from Selected History -Focused Miami Museums
78,500
Average (rounded)
74,300
5,1,2 J11DGME
V1 REGARDING I[irPACJ OF SITE, PRODUCT AN[) MAKE [ EACIO S
While the ratios above help to guide our judgment regarding potential attendance levels, and
suggest a stabilized attendance level of about 74,300 visitors per year, other factors discussed
in earlier chapters help to refine the analysis. Some factors suggest higher attendance while
others suggest that attendance levels will likely be lower. These factors are as follows, and help
to lead to our projected attendance levels for HVKBPM in its first three years of operation:
Positive Factors:
• Awareness of the Museum Boosted by Beach Pavilion, Beach and Recreational Visitors
to the Park: At the time of the original business plan in 2005-06 there was no track record
of Park use to help create a base level of on -site visitors. It is now known that there were
about 25,400 current annual vehicles to the Virginia Key Beach Park. These are people who
have largely paid to park on site to use the beach and attend events or other recreational
opportunities. Although they will be unlikely to go into a museum in beach attire, using the
beach and attending events will make people more aware of the existence of the Museum,
which is positive for attendance. Although the Beach Pavilion does not yet exist it is
assumed to be in place at the same time as the Museum, and will expose those attending
events and rentals to the Museum. In particular, the assumption that those attending paid
events at the Pavilion will have discounted or free access to the Museum should help to
increase attendance levels.
• Availability of Freedom Theatre and Other Spaces to Widen the Visitor Experience:
Although 8,000 sq. ft. exhibition space is relatively small the assumption of 2,500 sq, ft. of
temporary exhibition space and the availability of the Freedom Theatre, hands-on lab and
resource center will increase length of stay and therefore the likelihood of repeat visits.
• Parking Validation: An assumption is that a parking validation system will be in place that
will provide free parking for visitors who have paid for Museum admission. This is positive
for attendance but methods will need to be developed to prevent abuse of this offer.
• A Partial Focus on Environmental Issues Associated with the Site: Although the
primary focus will be on civil and human rights, and stories that convey Virginia Key Beach
was actually a place of joy for African Americans, the partial focus on the environmental
features of the site will help to increase attendance among school groups and some others.
Lord Cultural Resources 0 38
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report
• Large Resident and Tourist Market Base: The regional population is very substantial as is
the tourist market. Of particular importance will be African American residents and
tourists who should have a particular interest in the Museum.
• Admission Charges: The assumption of free admission to school groups and strategies to
widen access to persons who could not otherwise afford even a modest admission should
serve to boost attendance levels.
Negative Factors:
• Competition with Sun, Sand and Sea: Despite the very substantial resident and tourist
market, most museums and related attractions in Miami report lower attendance than
found in the northern cities where museum do not have to compete with the sun, sand and
sea. This is a negative factor for potential attendance.
• Competition from Other African American Museums: There are more existing and
planned African American focused attractions now than a decade ago.
• Limited Awareness of the Civil Rights Story Associated with Virginia Key Beach: It is
the objective of the HVKBPM to tell the story but the fact that relatively few African
Americans under the age of 50 are unaware of it or personally faced segregation indicates
the challenge faced by the Museum from an attendance perspective. This study has
recommended initiatives to increase awareness levels in advance of the opening, including
new community engagement and a grass -roots fundraising campaign, and a more
substantial marketing budget. This should help but the awareness issue must be
considered a negative from an attendance perspective.
• Cost for Causeway: The need to pay to use the Rickenbacker Causeway is a minor
negative for potential attendance.
On balance, the points above suggest slightly higher attendance levels for the Museum than
indicated by the various ratios set out earlier, We have therefore estimated on -site attendance
in the stabilized Year 3 at 75,000 visitors. Year 1 attendance is estimated to be 20% higher at
90,000 because of the common opening year curiosity factor, with Year 2 higher than Year 3
at about 80,000.
5,1.3 PROJECTED ON -SITE ATTENDANCE EVES
3Y SEGME
T
The Table that follows provides our estimates of total on -site attendance by visitors on
weekdays and weekends, helping to lead to design day projections and projected attendance
by main market segment and by admissions ticket category.
The projections are also based on the following estimates and assumptions.
• Attendance by Weekdays and Weekend Days: It is common for weekend days to
account for 45-50% of all visitors. The emphasis on marketing to schools and the
attraction of Miami to tourists should result in a higher percentage of weekday visits than
the 50% norm for most museums. We have estimated weekday attendance at 55% of the
total each year.
Lord Cultural Resources ® 39
Historic Virginia Key Beach Park Museum):
Business Plan Update - Final Report
• Design Day Calculation: The Design Day (not peak attendance) calculation is of a higher
than average weekend day in a higher than average attendance month. We estimate
attendance during such a weekend day at 10% higher than average given year-round
tourism in Miami. This figure is then applied to estimate how many people will be in the
building at one time. Based on the size of the exhibition/experience space, we have
estimated about 30% of daily visitors will be in the building at one time.
• Attendance by Main Market Segment: The assumed pattern is that on a percentage
basis resident attendance will be highest in the opening year then decline, with tourist
percentages increasing in Years 2 and 3 and school attendance in the same general range,
• Attendance by Ticket Category: The table that follows also provides estimates of
attendance by the admission ticket category. Persons in an Indirect Paid category include
members, program participants and rentals guests, both of the Museum and the Beach
Pavilion.
Projected Total Attendance
Attendance by Weekday/Weekend
90,000
80,000
75,000
Weekdays
55%
55%
55% 49,500
44,000
41,250
Weekend Days/Holiday Mondays
45%
45%
45% ' 40,500
36,000
33,750
Total
Design Day Calculation
90,000
80,000
75,000
Total Projected Attendance
90,000
80,000
75,000
Total Weekend Attendance
40,500
36,000
33,750
Average Weekend Day Attendance
389
346
325
Weekend Attendance in Higher Attendance
Month (10% above average)
428
381
357
Maximum Number of People in Building
at One Time (30% of daily total)
Attendance by Main Segment
129
114
107
Resident (Miami MSA)
50%
45%
40% ' , 45,000
36,000
30,000
School
20%
20%
20% 18,000
16,000
15,000
Tourist
30%
35%
40% 27,000
28,000
30,000
Total
Attendance by Ticket Category
100%
100%
100% ' 90,000
80,000
75,000
Adult
35%
35%
35% 31,500
28,000
26,250
Senior/Youth
15%
15%
15% 13,500
12,000
11,250
Child
10%
10%
10% 9,000
8,000
7,500
Non -School Groups
5%
5%
5% 4,500
4,000
3,750
School Groups
20%
20%
20% 18,000
16,000
15,000
Indirect Paid/ Other Unpaid
15%
15%
15% 13,500
12,000
11,250
Total
100%
100%
100% 90,000
80,000
75,000
Lord Cultural Resources • 4C)
5,2 Drojected jberatir
9
seventies
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report
The projections of operating revenues projected for the HVKBP Museum are set out in the
following categories, some of which reflect existing Park operations to which Museum
revenues would be incremental:
• Museum Admissions;
• Park Entry/Parking;
• Retail Sales;
• Cafe Concession;
• Membership;
• Rentals and Events;
• Public and Educational Programs;
• Fundraising Events (net);
• Other Earned Income;
• Existing Government Support.
The bottom line for the projections is the amount of projected expenses minus projected earned
income to indicate the amount required from private support and additional government grants
to break even on operations each year.
5,2,1 MUSEUM ADMISSIONS
The table that follows sets out the projected Museum attendance levels in Years 1, 2 and 3 by
ticket category as applied to the assumed admission charges. The projections also assume that
discounts offered to visitors in combination with other museums, attractions, hotels, etc.
would result in 5% lower income in Year 1 and 7% in Years 2 and 3 than if such discounts were
not in place. (There is less of a need for offering discounts in the opening year of operation.)
The admissions revenue projections are as follows:
Museum Admissions Revenue
Ticket Categories
Adult (25-61)
Senior (62+)/Youth (13-24)
Child (3-12)
Admission Base
Charges Level
(2017 dollars)
$10.00
$8.00
$5.00
31,500
1,3 500
i000
Year2 Year2 Year
mission Visitors Admission Visitors:
venue;: Revenue
.::$315,000'.
108,000.
45,000
28,000
12,000
8,000
$280,000
$96,000
$40,000
6250
,250'.
7,500
$262,600
0,000
Mal$814500.
Non -School Groups (avg.)
School Groups (but will be
programming charges)
Indirect Paid/Unpaid
$7.00
$0.00
$0.00
45.015
1,8 000;
13,500
$31,500
0,
4,000
16,000
12,000
$28,000
$0
$0
.3,750
5,000
11,250
,250;
$0'
Total (before discounts)
Total (after discounts)
Admissions Revenue
per Museum Visitor
$0
90,000
$499,500
0.$41452151
27;
80,000
$444,000
$412,920
$5.16
75,000
$416,250.
$387,1,1:3 =
6
Lord Cultural Resources • 41
5,2,2 PAR
ENTRY/PARKING
Historic Virginia Key Beach Park Museurn:
Business Plan Update - Final Report
Admission to the Historic Virginia Key Beach Park is on the basis of a charge for vehicle entry
and is therefore a parking charge. Most of the revenue for entry is generated on weekends and
holidays, at $236,000 with weekdays at $32,000, for a combined $268,000. It has been
assumed that a parking validation system will be in place to provide free parking to those who
have paid for Museum admission.
Since most Museum visitors will be additional to current Park visitors, we assume that the loss
of revenue for those who receive free parking at the Museum will be offset by the additional
revenue from those who enter the Park because of the increased awareness of the Park
attributable to the Museum and Beach Pavillion. The Park Entry/Parking revenues are thus
maintained at the $268,000 base level for each year projected.
5,2,3 RETAIL SAE
The existing Park site is budgeted to generate about $7,000 in sales from concession/paradise
shop, vending and ice cream sales. Such sales are assumed to be associated with the future
HVKBP Museum retail store. It is assumed to include 675 net square feet of public space,
retailing a wide variety of products related to the Museum's mission and programming. The
retail store will be integrated with admissions to allow the same staff to handle both during
slower attendance periods. The store will be accessible to the public from within the Museum
lobby and from the exterior of the building, allowing it to be open when the Museum might be
closed. The store will also have good visibility from the outside and its own signage to allow
the store to have its own identity.
Our estimates take museum industry averages into account and opportunities for sales to
other people on site. Sales per visitor and projected at S1.80 in Year 1 and growing by 2% per
year to take into account better product and market knowledge over time. Retail cost of goods
sold, staffing and other overhead costs are included with those expense projections later in this
chapter. These estimates lead to the following retail sales projections.
Retail Sales (675 net sq. ft)
Total Attendance
-Base Level
Year 1
90,000
Year 2 -
80,000
Year 3
75,000
Sales/Visitor
$1.80
$1.84
$1.87
Total Retail Sales
$7,000
$162,000
$146,880
$140,454
Sales per Square Foot
$240
$218
$208
5,2.4 CAFE. CO\CESSION
It has been assumed that in addition to dining opportunities in the Beach Pavilion there will be
a small 900 net sq. ft. restaurant plus 500 sq, ft, for kitchen and food storage facilities and
catering set up for a total of 1,400 net sq. ft. to be operated by the Beach Pavilion
concessionaire. Like retail, the cafe would have its own signage to allow it to develop its own
distinct identity. During good weather, tables and chairs could be placed on the outdoor
terrace to increase the appeal and the number of customers.
Lord Cultural Resources • 42
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report
The concessionaire will pay a negotiated rent to the Museum. This is likely to be based on a
minimum annual rent plus a percentage of gross revenues. For the purposes of these
projections, we are basing the estimate on an amount per sq. ft. for the total restaurant space,
including kitchen and storage facilities.
Given the strong location with wonderful vistas, our estimates are based on a projected rental
of about $20 per net square foot (2017 dollars) and that the financial arrangement would be
for the full three-year period projected. Assuming the total food service space is 1,400 sq. ft.
leads to the following projections.
Cafe Concession
Total Concessioned Space
Base Level Year 1 Year 2 Year 3
1,400
1,400
1,400
Rent per Sq. Ft.
$20.00
$20.00
$20.00
Total Revenue
$0
$28,000
$28,000
$28,000
52.5 MEf
3ERSH
It has been assumed that the Museum will include a lower level and an upper level
membership program. Lower level memberships would focus very much on "value for money"
with unlimited free admission, discounts from retail sales, programs and rentals, and other
tangible benefits. The upper level membership program would be a way for individuals,
families, corporations and foundations to support the mission and mandate of the Museum.
Upper level members would receive tangible benefits too. For example, they would be invited
to special events, receive behind the scenes tours, and other benefits in which the focus is on
exclusivity and recognition, as well as tax benefits.
As shown in Chapter 2, the median figure for a family membership charge in Miami is about
$75. Our projections are based on the following assumptions and estimates:
• VKBP Museum will offer a variety of lower level membership categories but most will be in
the Family category, charged at $60 per year, with lower prices for student and individual
and dual categories, Upper level categories would range from $100 to $1,000 plus.
• Taking into account upper level memberships, the average revenue per membership is
estimated at $70 in Year 1 with growth of 2% per year to reflect success in moving people
to upper categories over time.
• The total number of memberships would be 1,200 in Year 1, decline to 1,000 by Year 3 to
reflect projected attendance patterns. The main limitation on membership is the size of the
exhibition space, which will limit repeat visitation and hence the value of membership.
These estimates and assumptions lead to the following projections.
Membership Base Level Year 1 Year 2 Year3
Total Memberships
1,200
1,100
1,000
Average Revenue per Membership
$70
$71
$73
Total Revenue
$0
$84,000
$78,540
$72,828
Lord Cultural Resources • 43
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report
5,2:6 R=NTAES AN) EVENTS
Historic Virginia Key Beach Park is already available for pavilion rentals, weddings and
film/photo shoots as well as numerous large events. Combined income from these sources is
budgeted in the current year at 5329,500, which serves as a base level for the projections.
The main assumed spaces available for rental at Virginia Key Beach will be in the Beach
Pavilion. However, there will be opportunities to generate revenue from rentals within the
Museum, primarily in the 1,320 sq. ft. Lobby and a contiguous 900 sq. ft. in multi -purpose
space, a 450 sq. ft. Boardroom and the 60 seat Freedom Theater. It is assumed that receptions
for up to 150 people may be accommodated in a combination of these spaces for such events
as corporate meetings, wedding receptions, reunions and community meetings.
Although the number of rentals in the Museum may vary widely, we estimate in the range of
30 in Year 1 growing to 40 in Year 3 as seen in the following table. Average income per rental
may also vary, but based on rental rates for similar Miami facilities, is estimated to average
$1,500 per rental, with growth of 2% per year. We are assuming that the smaller venues (i.e.
Freedom Theater, conference room and classroom) would be rented out for on average $500
per rental in Year 1 and that 25 such rentals would take place in the first year increasing to 35
rentals by Year 3. The growth rate in the charge per rental is assumed at 2% per year as well.
The projections are thus as follows.
Rentals and :Events -
Major Rentals per Year
Base Level
Year 1
30
Year 2
Year 3
35
40
Average Income per Rental
$1,500
$1,530
$1,561
Total Major Rental Revenue
$45,000
$53,550
$62,424
Smaller Rentals per Year
25
30
35
Average Income per Rental
$500
$510
$520
Total Smaller Rental Revenue
$12,500
$15,300
$18,207
Base Rentals Income
$329,500
$329,500
$329,500
Total Rentals and Events Income
$329,500
$387,000
$398,350
$410,131
5,23
EIC A\[) EDUCATIONAL ROGRAMS
Existing programs offered by the Park include YMCA, Camp Guaikinima, Kee Vee Camp and
programs with the Biscayne Nature Centre and History Miami, as well as drive-in movies,
summer promotion and soccer,. These programs are budgeted at $52,300, which is the base
level for the projections.
Most public and educational programs offered by the Museum will be included within the
basic cost of admission. Charged programs could include performance events and lectures in
the 60 seat theatre, school programs, teacher training, outreach, and other programs
developed by the management of the Museum when operational.
The revenues that might be generated from Museum public and educational programs may
vary widely. For the purposes of these projections we are estimating relatively modest
revenues as follows.
Lord Cultural Resources 44
Public and Educational Programs
Base Level
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report.
Base Level Year 1 =Year 2 . Year 3
$52,300
$52,300
$52,300
New Program Revenue
$35,000
$40,000
$45,000
Total Revenue
$52,300
$87,300
$92,300
$97,300
5,2,8 FUNDRAISING
(VENTS
\[I)
Most museums and cultural attractions require fundraising events and galas to support
operating costs. The HVKBP has budgeted for $15,000 this year, which is the base level of the
projections. The amount that might be raised from these events that would contribute to
operating revenues may vary widely. For the purposes of this study we have estimated a
growth to $50,000 in Year 1 and increasing somewhat each year, as follows.
Fundraising Events (net) Base Level Year 1 Year 2 Year 3
Base Level
$15,000
$15,000
$15,000
Additional Fundraising Revenue
$35,000
$40,000
$45,000
Total Revenue
$15,000
$50,000
$55,000
$60,000
5,2,9 OTH
IA
_[) INGOIM
The Park reports income from cabins and from development staff, which combine to total
$45,000. This has been used as the base level. There may be other sources of self -generated
income to provide additional income associated with the Museum. These could range from
pay -for -photo opportunities to interactive donation boxes, and other entrepreneurial sources
to be developed by management at the time. Although these amounts may vary widely, our
projections are as follows:
Other Earned Income Base Level Year 1 Year 2 Year 3
Base Level
$45,000
$45,000
$45, 000
Additional Earned Income
$20,000
$23,000
$25,000
Total Revenue
$45,000
$65,000
$68,000
$70,000
5,2.10 EXISTING GOVERNMENT S[JPPOK
The Park estimates $300,000 from the City of Miami in 2017/18. This has been established as
the base level that is assumed to continue each year to allow the bottom line of the projections
to be the amount required from additional government support and private support to break
even on operations for each year projected.
Lord Cultural Resources
® 45
5,3 Jrojectec. Ex
Denses
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report
Starting with the current operating expense categories of the Historic Virginia Key Beach Park,
the expense categories used for the Museum are as follows:
• Salaries, Wages and Benefits;
• Occupancy Costs;
• Exhibitions;
• Educational and Public Programming;
• Collections Acquisition and Care;
• General and Administrative Costs;
• Marketing;
• Retail Store Cost of Goods Sold.
5.3,1 SALARIES, WAGES AI\
�) BHEFErs
The largest operating cost of any museum is staffing, generally accounting for 45-60% of the
total operating budget of institutions with a lower percentage for museums without collecting
responsibilities, such as the HVKBP Museum. Since the Museum will be an addition to the
Park it will benefit from Park staff, including the Executive Director and other senior positions,
who will add the Park to their responsibilities. The table that follows starts with the existing
staff positions for the Park and adds personnel associated with the operation of the Museum.
The recommended salary levels take into account existing salaries and wages and the salaries
and wages at other museums as well as the projected size of the new Museum. The benefits as
a percentage of salaries are assumed to remain at the current 23%. It is assumed that staffing
costs will exceed the rate of inflation by 0.5% per year during the period projected. Staff costs
have thus been increased by 2% to reflect the period of time between 2017 and 2021 when the
new Museum is assumed to open for the purposes of this study, These estimates and
assumptions lead to the following staffing costs.
Lord Cultural Resources • 46
Business Plan Update - Revised May 2019
Section 5.3.1 SALARIES, WAGES AND BENEFITS
Historic Virginia Key Beach Park Museum
VKBPT Existing Salaries, Wages & Benefits
$ 852,400
$ 895,000
$ 939,800
$ 986,800 $ 1,036,100 $ 1,087,900
Additional Positions starting 2023 for Museum
Development Director
Director of Collection & Exhibition
Education Coordinator
Visitor/Membership Service Coordinator
Retail/Business Manager
Sales Associate
Total Additional Museum Salaries & Wages
Benefits @23%
FT $ 65,000 $ 65,000 $ 67,600 $ 70,304
FT $ 65,000 $ 65,000 $ 67,600 $ 70,304
FT $ 45,000 $ 45,000 $ 46,800 $ 48,672
FT $ 45,000 $ 45,000 $ 46,800 $ 48,672
FT $ 45,000 $ 45,000 $ 46,800 $ 48,672
PT $ 30,000 $ 30,000 $ 31,200 $ 32,448
$ 295,000 $ 306,800 $ 319,072
$ 67,850 $ 70,564 $ 73,387
Total Additional Museum Salaries, Wages &
Benefits
362,850 $ 377,364 $ 392,459
Total Combined Salaries, Wages & Benefits
$ 852,400
$ 895,000
$ 939,800
$ 1,349,650 $ 1,413,464 $ 1,480,359
Historic Virginia Key Beach Park IV1useum:
Business Plan Update - Final Report
Position
Existing Salaries, Wages and Benefits
Base Level
$693,700
FTE
Salary
1 Year 1
$707,574
Year 2
$711,112
Year 3
$714,667
Additional Positions for Museum
Director of Collections and Interpretation
1.0
$70,000
$71,400
$71,757
$72,116
Development Director
1.0
$70,000
$71,400
$71,757
$72,116
Marketing and Media Director
1.0
$60,000
$61,200
$61,506
$61,814
Exhibition Manager
1.0
$60,000
$61,200
$61,506
$61,814
Education Program Coordinators
2.0
$45,000
$91,800
$92,259
$92,720
Public Program Coordinators
2.0
$45,000
$91,800
$92,259
$92,720
Visitor Services and Volunteer Coordinator
1.0
$45,000
$45,900
$46,130
$46,360
Assistant to Executive Director
1.0
$30,000
$30,600
$30,753
$30,907
Bookings and Membership Clerk
1.0
$30,000
$30,600
$30,753
$30,907
Retail/Business Manager
1.0
$60,000
$61,200
$61,506
$61,814
Retail/Admissions/Information Staff (part-time)
1.5
$20,000
$30,600
$30,753
$30,907
Total Additional Salaries and Wages
$647,700
$650,939
$654,193
Benefits @ 23%
$148,971
$149,716
$150,464
Total Additional Salaries, Wages and Benefits
$796,671
$800,654
$804,658
\
Total Combined Salaries, Wages and Benefits
$693,700
$1,504,245
$1,511,766
$1,519,325;
5,3,2. BUILDING OCC_
DANCY COSTS
Building occupancy costs are defined to include all costs, excluding salaries, associated with
maintenance and repairs, cleaning, utilities, security systems and building insurance, These costs
have historically ranged between $6.00 and $8.00 per gross sq. ft., with costs varying by the
extent of the environmental controls required, the weather conditions, the extent of public use,
and the condition of the building, with a new building requiring lower maintenance costs.
Foe the existing HVKBP operation, the City of Miami absorbs utilities costs. This is expected to
continue with the introduction of the Museum. Costs payable for repairs and maintenance
payable by the Park are budgeted at $30,500, which is the base level for these projections.
The building is assumed to be 34,153 gross sq. ft. in size. Based on assumed continued City
payment of utilities costs, we estimate the occupancy cost figures at $3.50 per sq. ft. in Year 2,
growing to $4.00 by Year 3. In Year 1 costs are lower because the building is covered by
warranties, and has been estimated at $3.00 per gross sq. ft. of building space. These estimates
lead to the following projections.
Occupancy -Costs
Base Level
Base .Level = Year 1
Year 2 =-Years-
$30,500 $30,500 $30,500
Gross Square Footage of Museum Building
34,153
34,153
34,153
Occupancy Costs per Sq. Ft.
$3.00
$3.50
$4.00
Museum Occupancy Costs
$102,459
$119,536
$136,612
Total Costs
$30,500
$132,959
$150,036
$167,112
Lord Cultural Resources
• 47
5.3,3 EXI-II
3ITIONS
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report
The exhibitions within the Museum will be its main attraction and are assumed to be of high
quality. Three operating categories associated with exhibition costs are as follows:
• Temporary Exhibitions: For the purpose of these projections it is assumed that there will
be one major exhibition per year from outside sources every year with other temporary
exhibitions during the rest of the year to be developed internally. A budget of $50,000
should be allocated to the major show and $50,000 for the other shows, for an annual
total of $100,000.
• Reserve for Replacement of Permanent (Long -Term) Exhibits: The exhibits installed for
opening will be new and designed specifically for the Museum, and would be part of the
initial capital costs. The long-term exhibits are expected to be in place from 5-10 years and
will require annual maintenance and upgrades as exhibit components become worn or
their effectiveness is re-evaluated. The requirement for the opening year will be nil or close
to it as the exhibits will be new and still under warranty, but increases in subsequent years
will be required to account for an anticipated growing need for repairs and maintenance.
We recommend there be a reserve established from the outset at $40,000 per year.
• Routine Exhibit Maintenance: These non -staff costs will increase over time and are
estimated at $5,000 in Year 1, $10,000 in Year 2 and $15,000 in Year 3.
These estimates lead to the following projections.
Exhibition Costs
Temporary Exhibitions
Base °.Level '-
Year 1
$100,000
Year 2
$100,000
Year 3
$100,000
Reserve for Exhibit Replacement
$40,000
$40,000
Routine Maintenance
$5,000
$10,000
$15,000
Total Costs
$0
$105,000
$150,000
$155,000
',3,4 EIDUGAIIO
AL A\ID
'IJ31_IC I'ROGRA
MING
These costs would exclude staffing but include all other costs associated with the
development and delivery of various educational and public programs for the Museum. Since
many programs are included with the cost of admission and to reflect mission -related
objectives, costs often exceed to the programming revenues by two to three times. For the
purposes of these projections, we have estimated programming costs at 2.5 times the
Museum programming revenues in Year 1 and 2 times the revenues in subsequent years.
Programming Costs'
Total Costs (2.5/2 times revenues)
Base Level Year 1 Year 2 Year3
$0 $87,500 $80,000 $90,000
5.3,5 COLL
GTIOi\S AGQJSITION AND CARE
It is assumed that there will be relatively few artefacts and that the Museum will essentially be
a non -collecting institution. However, there should be a modest annual acquisitions budget. In
addition, it will be necessary to allocate a budget to pay for conservation and other
professional services on a contract basis and some collections care supplies. For the purposes
Lord Cultural Resources e 40
Historic Virginia Key Beach Park 'Museum:
Business Plan Update - Final Report
of these projections we estimate an allocation of $5,000 in Year 1 and $10,000 in subsequent
years. These estimates lead to the following projections.
Collections Acquisition and Care
Acquisition
Base Level Year 1 Year 2 Year 3
$10,000 $15,000
$15,000
Care
$5,000
$10,000
$10,000
Total Costs
$0
$15,000
$25,000
$25,000
53.6 GENE:
A\D AD
UINIST�ATIVE:
General and administrative costs include operating, office and related supplies, equipment,
mailing, printing, telephone, travel, conferences, volunteer perquisites, professional services,
dues and subscriptions, credit card fees, entertainment, and other items that do not fit into the
other expense categories. In the case of the HVKB Park, these costs also include "other
contractual services" including janitorial, leading to a total operating budget in this category of
$307,600, which is the base level.
Regarding the Museum, we estimate that they will fall within a common 10-15% of staffing
costs. For the purposes of these projections, we estimate these costs at 12% of staffing costs in
Years 2 and 3, and 13% in Year 1 to reflect extraordinary start-up expenditures. These
estimates result in the following projections.
General & AdministrativeBase Level Year 1 Year 2 Year 3
Base Level
$307,600 $307,600 $307,600
Museum Costs (13/12% of museum staffing)
Total Costs
$307,600
$103,567
$411,167
$96, 079
$403,679
$96,559
$404,159
5,33 EMiRK SING
The Park has budgeted $35,000 for promotional expenses and advertising. These
expenditures will need to increase with the addition of a Museum seeking to maximize
attendance levels. These costs generally range from 1-5% or more of the total operating
budgets of museums while private sector attractions allocate 10% or more. Another way
marketing expenditures are calculated is on a per visitor basis to allow for potential sensitivity
analyses to Zink attendance to marketing expenditures. Our estimate is based on non -staff
marketing expenditures of $1.25 per visitor. This leads to the following projections.
Marketing Base Level Year 1 Year 2 Year 3 -
Base Level
$35,000 $35,000 $35,000
$1.25 per Museum visitor
$112,500
$100,000
$93,750
Total Costs
$35,000
$147,500
$135,000
$128,750
Lord Cultural Resources ® 49
53.8 RETAIL SF
0
COST OF COONS SOLE)
Historic Virginia Key Beach Park Museurn:
Business Plan Update - Final Report
Cost of goods sold generally range from 50-60% for museums. For the HVKBP Museum, we
have estimated costs of goods sold at 55% per year. This results in the following projections.
Retail Cost of Goods Sold
Retail Gross Sales
Base Level Year 1. —Year 2 - Year 3
$162,000 $146,880 $140,454
Cost of Goods Sold (55%)
$0
$85,860
$77,846
$74,441
5
Su' wary of Attencance and =inanc
a
Projections
The following Table summarizes our projections of attendance, operating revenue and
expenses for the Historic Virginia Key Beach Park Museum (HVKBPM) in its opening three
years of operation.
On -site attendance levels are estimated to be 90,000 in Year 1, 80,000 in Year 2 and 75,000
in Year 3.
We project that with the addition of the Museum the operating budget for the Park will
increase from about $1.6 million to the $2.5 to $2.6 million range during the three years
projected. Earned income levels are estimated to decline somewhat from the current 67%
range to 60-65% of the operating budget, which far exceeds museum averages for earned
income because of Park entry and other revenues not common for museums. Projected earned
income plus assumed continuation of income from the City of Miami minus projected
operating expenses are estimated to require $584,000 to $730,000 from a combination of
endowment, private and additional government support. Revenue from the Beach Pavilion may
be able to reduce this amount.
Lord Cultural Resources • C)
Business Plan Update - Revised May 2019
Historic Virginia Key Beach Park
Annual Attendance
Operating Revenues
Museum Admissions
$ 474,525
$ 412,920
$ 387,113
19,1%
16.3%
15.1%
Park Entry/Parking
$ 268,000
$ 268,000
$ 268,000
10.8%
10.6%
10.5%
Retail Store/Concession Stand/Paradise Shop
$ 162,000
$ 146,880
$ 140,454
6.5%
5.8%
5.5%
Cafe Concession
$ 28,000
$ 28,000
$ 28,000
1.1%
Membership
$ 84,000
$ 78,540
$ 72,828
3.4%
3,1%
2.8%
Rentals
$ 387,000
$ 398,000
$ 410,131
15.5%
15.7%
16.0%
Programs
$ 87,300
$ 92,300
$ 97,300
3.5%
3.6%
3.8^%
Fundraising (net)
$ 50,000
$ 55,000
$ 60,000
2.0%
2.2%
2.3%
Other Earned
$ 65,000
$ 68,000
$ 70,000
4.2%
2.6%
2.7%
Existing Government Support
$ 300,000
$ 300,000
$ 300,000
12.1%
11.8%
11.7%
Total Revenue Projected
$ 1,905,825
$ 1,847,640
$ 1,833,826
76.6%
72.9%
71.5%
Operating Expenses
Salaries, Wages & Benefits
$ 1,349,650
$ 1,413,464
$ 1,480,359
57.0%
58.0%
59.0%
Occupancy Cost
$ 132,959
$ 150,036
$ 167,112
5.3%
5.9%
6.5%
Exhibition
$ 105,000
$ 150,000
$ 155,000
4.2%
5.9%
6.0%
Programs
$ 87,500
$ 80,000
$ 90,000
3.5%
3.2%
3.5%
Collection & Acquisition & Care
General & Administrative
Marketing
$ 15,000
$ 411,167
$ 147,500
$ 25,000
$ 403,679
$ 135,000
$ 25,000
$ 404,159
$ 128,750
0.6%
1.0%
16.5%
5.9%
15.9%
5.3%
0.00%
15.8%
5.0%
Retail Cost of Goods Sold
85,860
$ 77,846
$ 74,441
3.4%
3.1%
2.9%
Total Expenses
$ 2,334,636
$ 2,435,025
$ 2,524,821
100%
100%
100%
Amount Required from Private, Endowment &
Additional Government Sources to Break Even
$ (428,811)
$ (587,035)
$ (690,995)
Historic Virginia Key Beach Park Museum:
Business Plan Update - Final Report
Summary of Projections for Museum
Annual Attendance
Operating Revenues
Base
Level
Year 1
90,000
Year 2
80,000
Year 3
75,000
Base
level
%
Year 1
%
Year 2
%
Year 3
0
/°
Museum Admissions
$0
$474,525
$412,920
$387,113
0.0%
19.1%
16.3%
15.1%
Park Entry/Parking
$268,000
$268,000
$268,000
$268,000
25.1%
10.8%
10.6%
10.5%
Retail Store/Concession Stand/Paradise Shop
$7,000
$162,000
$146,880
$140,454
0.7%
6.5%
5.8%
5.5%
Cafe Concession
$0
$28,000
$28,000
$28,000
0.0%
1.1%
1.1%
1.1%
Membership
$0
$84,000
$78,540
$72,828
0.0%
3.4%
3.1%
2.8%
Rentals
$329,500
$387,000
$398,350
$410,131
30.9%
15.5%
15.7%
16.0%
Programs
$52,300
$87,300
$92,300
$97,300
4.9%
3.5%
3.6%
3.8%
Fundraising (net)
$15,000
$50,000
$55,000
$60,000
1.4%
2.0%
2.2%
2.3%
Other Earned
$45,000
$65,000
$68,000
$70,000
4.2%
2.6%
2.7%
2.7%
Existing Government Support
$300,000
$300,000
$300,000
$300,000
28.1%
12.1%
11.8%
11.7%
Total Revenue Projected
Operating Expenses
$1,016,800
$1,905,825
$1,847,990
$1,833,826
95.3%
76.6%
72.9%
71.5%
Salaries, Wages, Benefits
$693,700
$1,504,245
$1,511,766
$1,519,325
65.0%
60.4%
59.7%
59.3%
Occupancy Costs
$30,500
$132,959
$150,036
$167,112
2.9%
5.3%
5.9%
6.5%
Exhibitions
$0
$105,000
$150,000
$155,000
0.0%
4.2%
5.9%
6.0%
Programs
$0
$87,500
$80,000
$90,000
0.0%
3.5%
3.2%
3.5%
Collections Acquisition & Care
$0
$15,000
$25,000
$25,000
0.0%
0.6%
1.0%
1.0%
General & Administrative
$307,600
$411,167
$403,679
$404,159
28.8%
16.5%
15.9%
15.8%
Marketing
$35,000
$147,500
$135,000
$128,750
3.3%
5.9%
5.3%
5.0%
Retail Cost of Goods Sold
$0
$85,860
$77,846
$74,441
0.0%
3.4%
3.1%
2.9%
Total Expenses
Amount Required to Break Even from
Private, Endowment and Additional
Government Sources
$1,066,800
($50,000)
$2,489,231
($583,406)
$2,533,327
($685,337)
$2,563,787
($729,961)
100.0%
-4.7%
100.0%
-23.4%
100.0%
-27.1%
100.0%
-28.5%
Earned Income
$716,800
$1,605,825
$1,547,990
$1,533,826
67.2%
64.5%
61.1%
59.8%
Lord Cultural Resources ® 51