Memo- Depot Financial Outlook
I Administration Department I
Memorandum
To:
Mayor Chuck Redepenning and City Council
City Manager Steve Mielke
Jim Parsons
Kathleen Taber. Lori Yager
AugustS, 1999
Depot Financial Outlook
From:
Copy:
Date:
Subject:
It is appropriate at this time for the City Council to discuss the financial outlook for the
Depot Coffee House. The teen center side of the Depot is funded through June of next
year by the grant from the State of Minnesota. On the coffee house side, however, the-
Depot has yet to break even. Since the start of the year, the Depot has lost $18,383
through the operation of its coffee house business, or approximately $2,600 per month.
The Depot's fund balance is low, at approximately $4,000.
The Depot has seen some increase in sales and decline in expenses since mid-June
when Kathleen Taber began as operations manager. The Depot has become popular
among teens as a place to go for live music, but the Depot is not a popular teen hang
out during other times, such as after school or on summer weekdays. New Depot Teen
Center Coordinator Anthony Hall will work to change that. However, it is likely that the
Depot will spend its remaining fund balance and post an operating loss for the last five
months of this year. This is likely even if for one or more of those months the Depot
breaks even or posts a profit.
The Council may wish to discuss several options for future City involvement in the
Depot. Specifically. the Council may seek ways to enhance the teen center to make
the Depot more attractive to high school students. The Council may also look at the _
coffee house side of the Depot, seeking options that cut costs. Involvement by the
partner organizations in the Depot in meeting 1999 shortfalls is 'also possible.
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