Reply To: RESTAURANT COSTS

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Reply To: RESTAURANT COSTS

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#7486
Stephen Anderson
Participant

My understanding is that the restaurant is on its own gas meter.  Shawn Evans has also reported that he believes there are two water meters serving the area although they are not readily accessible.  The biggest issue is that the restaurant does not have its own electric meter. The cost to rewire that end of the building in order to put all of the circuits in the restaurant on a separate meter would most likely cost six figures.  The reason is that all original wiring would have to be upgraded to current City code standards.

Separate metering would be more critical if the Association were engaging in a lease arrangement with a vender.  Since the restaurant belongs to the Association, my belief is that with metering of the gas and water, management will be able to reasonably  estimate the electric cost based on looking at the past when a restaurant was running and also by looking at the present and then comparing it to when the restaurant starts operating.  From our estimations, the contract with WGH was written to provide the Association with the first $48,000 prior to revenue sharing when the restaurant moves beyond revenue neutral.