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By Carl E. Feather, Star Beacon, Ashtabula, OhioMcClatchy-Tribune Regional News Sept. 03--JEFFERSON -- Ashtabula County commissioners got their first look at the proposed 2011 budget and capital spending
plan for the Lodge and Conference Center at Geneva-on-the-Lake Wednesday. Lodge General Manager Jeannette Petrolia and three other lodge executives came to the table with commissioners and two members of the citizens budget-review committee to review the draft plan. The final plan won't be presented until November, and commissioners, per their agreement with Delaware North Cos. will have 30 days to approve it. DNC manages the county owned lodge under a 10-year contract. One of the provisions of that contract calls for 6 percent of gross revenues to be set aside for improvements in a capital renewals reserve fund. The anticipated end-of-2010 balance in that account is $270,013, with $311,285 projected for 2011 revenue. The three-year capital-spending plan calls for a continuation of the $60,000 per-year spending on room refurbishing. All of the lodge's guest rooms eventually will be refurbished over 10 years. In 2011, the plan also calls for $50,000 in emergency repair spending, $40,000 on information technology investments, $10,000 on lobby furnishings and carpet, and $100,000 on restaurant renovations. The elevated area in the restaurant has been an issue since the facility opened. "It inhibits being able to restructure the room for groups, and it's not handicapped-accessible," Petrolia said of the elevated area. The general manager said her financial forecast for the lodge conservatively projects a net operating profit of about $100,000 for 2011, which is about half of what the lodge is on track to deliver to the county at the end of 2010. The operating profit does not take into account the county's debt payments on the two loans that financed the $21.5 million project. Petrolia is projecting a modest 2 percent increase in occupancy in 2011, which is more optimistic than the Smith Travel Report's industry forecast of 1.4 percent. The lodge has outperformed STR numbers consistently. The growth will need to come from the leisure business. Petrolia said the strong group bookings that the lodge has enjoyed this year will be hard to improve upon. Also on the revenue side, the draft plan calls for increases in retail, food and beverage, and recreation/ spa income, for a total gross revenue increase of 2.7 percent. On the expenditure side, Petrolia submitted a 7 percent increase in wage expenses because of additional staff needed for the increased business, plus a 2.5 percent wage increase for employees. She projects a 2.8 percent increase in the cost of controllable expenses. The county's payment to Delaware North will increase to $242,944 in 2011, per the management contract. This year's management fee is projected at $232,608. The lodge has set numerous performance records this year, despite the weak economy. Petrolia said visitors consistently rank the facility as a good value, largely because of its resort-like atmosphere and state park grounds, which includes a bike trail along Lake Erie. ----- To see more of the Star Beacon or to subscribe to the newspaper, go to http://www.starbeacon.com/. Copyright (c) 2010, Star Beacon, Ashtabula, Ohio Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail
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