The Mission of Preservation Chelsea

It is our mission to preserve Chelsea as a village rich with history and charm, reflected by historic buildings, surrounding farmlands, and as found in our beautiful and vibrant village center. We aim to work through education, offering to ourselves and the community the history of Chelsea as well as the issues shaping our future. We intend actively to preserve historic landmarks and to have a voice in all issues that affect any possible de-centralization of our village. It is our intention to pursue this mission with full involvement and input from merchants and citizens of Chelsea and to act in ways that make sense for the preservation of Chelsea's charm and historic integrity while supporting a vibrant and successful downtown.

Federal Screw Works

Federal Screw Works
This property has been under threat of total demolition since 2008--there are historically signficant and architecturally interesting sections that should be preserved!

Jackson Street Panorama

Jackson Street Panorama
The DDA voted at the meeting on 9.20.12 to demolish the Daniels Addition Car Showroom despite the letter from the State Historic Preservation Office. (please read below)

Tuesday, August 31, 2010

Response to Cathy Bean's letter (see posting 9.25) double click to enlarge

response from John Hanifan, p 2

Minutes of DDA meeting August 19

CITY OF CHELSEA

DOWNTOWN DEVELOPMENT AUTHORITY

BOARD OF DIRECTORS MEETING

7:30 A.M., THURSDAY, AUGUST 19, 2010


DRAFT


Present:


Jackson, Cleary, Frisinger, Heydlauff, Holman, Lindauer, Morrel-Samuels, Myles Pierce, Schwarz, Winans, Hanifan

Absent:


Flintoft

Others Present:


Ann Feeney, Cheri Albertson, City Council; Bill Harmer, Chelsea District Library;Tom Girard, Tom Knox, Scott McElrath, Carey Church, Jane Cresswell, Mark Cresswell, Jim Drolett, Ric Detroyer, Diane Good, Elsie Swanberg


President Jackson opened the meeting at 7:30 a.m. and asked the Board and guests to pause for a moment to remember Jeff Flintoft who passed away last week.


1.

Motion by Bob Pierce, second by Jason Lindauer to approve the minutes of the July 1, 2010 Board of Directors meeting. Motion carried
2.

Longworth Project process – Jackson noted that the RFP for the property had been extended in February. There has been one response from Chelsea Connection. Comments by Mark Heydlauff: There were good points in the proposal, looking to outside investor for funding, but those who looked at it concluded that it was not financially possible. Heydlauff asked that the project be looked at as a whole and not just a building. Motion by Morrel-Samuels, second by Myles to accept the proposal put forth by Chelsea Connection LLC to restore and develop the Longworth property. In a roll call vote, 10 “No”, 1 “Yes” (Morrel-Samuels) absent Flintoft. Discussion continued: Heydlauff: “I did not want to accept a proposal which would be voted down because there is not financial support. Let's look at the whole downtown. I want to work together with Historical Society, Preservation Chelsea and Chelsea Connection and not have them fighting us. The DDA funds must be spent as budgeted.” Myles suggested that a committee recommendation could have shortened the process when it was evident the DDA Board was not in support. Motion by Winans, second by Frisinger to begin demolition of the west showroom addition & the east concrete building of the Longworth property, leaving the center two-story building. The remaining building to be structurally secured for further study. The site is to be fenced and graded. Discussion: Frisinger: Once it is down, it can be studied and get ready for work in the spring. Drolett: Get a demolition permit with a stability plan and how will deal with rain water. Morrel-Samuels: Noted the presence of pollution on the site. Hanifan: The original bid by the contractor included dealing with the environmental requirements. They are obliged to not exacerbate environmental issues. Roll call Vote: “Yes – 9; “No” - 2, Morrel-Samuels, Myles, absent Flintoft.
3.

Motion by Frisinger, second by Pierce to solicit a professional service proposal from architectural firms for historic design and redevelopment concepts of the remaining two story structure. Proposal will address historic facade design and temporary front sidewalk to be designed & completed in the fall of 2010. The scope of the proposal to be determined following a meeting between representatives from the DDA. There will be a time line of 30 days included in the proposal. Motion carried “Yes” - 11; “no”, 0. Flintoft absent.
4.

Motion Heydllauff, second by Pierce to proceed with a proposal for professional services to continue planning and design concepts for the development of the area in and around the Longworth property, depot, alley behind Main Street businesses and the Congregational Church. The proposal will include a 30 day time line. Motion carried unanimously.

Wednesday, August 25, 2010

Letter to Mayor Lindauer read & delivered at City Council meeting August 24 by Cathy Bean on behalf of many others

Jason Lindauer, Mayor August 24, 2010
City of Chelsea
305 South Main Street
Suite 100
Chelsea, Michigan 48118

Dear Mayor Lindauer,

I am writing this letter to you not only for myself as a resident of Chelsea, and a member of Preservation Chelsea, but as a voice for the over 700 citizens who signed our petition saying they wanted the Livery and Daniels Showroom buildings in Chelsea saved from demolition. As you are well aware, the Downtown Development Authority (DDA) voted last week to not accept the THIRD proposal submitted by The Chelsea Connection LLC that would have saved all these Nationally Significant Historic buildings from demolition. Forming an LLC was necessary after the first submission, in February 2010 for a collaborative effort by the DDA and Preservation Chelsea-Chelsea Connection Team (PC-CCT), was not well received. Clearly, there was no interest by the DDA for collaboration. At that time, PC-CCT was willing to work to seek funding and provide skilled assistance with the rehabilitation of the entire Longworth Complex.

Several members of the original PC-CCT including myself have grave concerns about the operation of the DDA which is under the direct supervision and control of the City of Chelsea Government. As directly quoted from State Act 197 of 1975 that allows for the formation of Downtown Development Authorities, “an authority shall be under the supervision and control of a board consisting of the chief executive officer of the municipality…”. We are assuming that you as the mayor of Chelsea would be considered the “chief executive officer” as mentioned in the act as well as your position as a voting city liaison member of the DDA. We believe that the DDA is operating outside the requirements of the State Act 197 of 1975 and the Chelsea City Ordinance, and have serious concerns about their unwillingness to work with the public and listen to what 700 + residents of Chelsea and the surrounding area have to say. They seem to be operating in a vacuum and are being allowed to make decisions that are detrimental to the rich historic legacy that makes Chelsea a place that people want to come to.
Several members of our group have received very different answers from City employees as well as City Council members about the relationship between the DDA and the City.
Because the City seems to clearly have some responsibility for the operation and existence of the DDA, we feel you, and not the DDA should respond to our concerns.

Therefore, we have the following questions about the operation of the DDA:

1) We need clarification, in writing about the relationship between the City of Chelsea and the Downtown Development Authority. Who specifically from the City of Chelsea (by name) is in charge and what power does the City have over the DDA and the decisions that they make?

Letter to Lindauer, p 2

2) Are there bylaws for the operation of the DDA and if not, why not? According to City of Chelsea Ordinance No. 97, § 2.006, 10-15-1985, Sec. 12-45 “The board of the authority shall develop and approve bylaws for its operation. The bylaws and any amendments thereto shall be filed with the city council and if the city council takes no action on said bylaws of amendments thereto within 30 days after filing the same, said bylaws or amendments thereto shall be deemed approved.”

3) According to Act 197, “The business which the board may perform shall be conducted at the a public meeting of the board held in compliance with the open meetings act, 1976 PA267 MCL 15.261 to 15.275…“The board shall adopt rules consistent with the open meetings act…”This seems to say that they are required to comply with the Open Meetings Act. We want confirmation from the City that this is true and that they are held to this requirement as we have witnessed what we believe to be violations of this Act during DDA meetings. We also have concerns that the DDA is not complying with the City Ordinance with regards to their meetings.

4) According to the Act, “Members shall be appointed by the chief executive officer of the municipality, subject to the approval of the governing body of the municipality.” What is the written process by which new members are appointed to the DDA? How does the City ensure that there is a fair process involved in choosing new members that allows all interested businesses an opportunity to serve on the DDA in order to bring fresh ideas to its operation?

5) According to the Act, “of the members first appointed, an equal number of the members, as near as is practicable, shall be appointed to 1 year, 2 years, 3 years, and 4 years…Thereafter, each member shall serve for a term of 4 years.” What are the written term limits for members of the DDA, are these limits enforced and by whom? If there are not term limits we feel that this is a very necessary addition and one required by the Act.

6) What is the written process by which potential new members qualifications are reviewed? How does the DDA and the City choose its new members? We have observed that there is very little turn over in the membership of the DDA and feel this is not appropriate and does not comply with the Act.

7) What is the written process by which the City ensures that the DDA has public accountability since they are using City tax dollars to act upon their decisions?
From our observations, there doesn’t seem to be any public accountability for their decisions and actions as they were able to ignore the over 700 signatures we collected from the public stating they did not want the Livery and Daniels Showroom buildings torn down.

8) Where is the site plan for Plan B (and any necessary amendments that have been made) for the Longworth Complex and when will it be made available to the public for review?

Letter to Lindauer, p 3

9) The DDA assured that they would work with other interested parties such as the Chelsea Historical Society to receive grant funding to help restore the one historic building of their present plan(which has been the same for more than a year and a half), but as of the present, no such contacts have been made. Will the DDA be following through on its promise to involve other interested parties?

10)During the public visioning session that the DDA did on April 29, 2009 the DDA stated that they would have more visioning sessions with the public where we could have input into the decision making process. As far as we know, these never occurred. If they did we would like to know when they occurred and what the written outcome of the meetings was. None of the members of our group were made aware of any such meetings.

11) Where is the “Due Care” plan required by the State Department of Natural Resources and Environment for the demolition of a site of contamination? If the DDA in fact tears down the Livery building, they are required to ensure that the contamination is not exposed to the public. They have proposed a gravel parking lot in place of the livery building, which is not acceptable in a State Due Care Plan. If a Due Care Plan is not developed and followed, the City will be liable for any contamination that is spread by any negligence by the DDA.

12) What is the written process by which the PC-CCT proposal for this site was reviewed? Who was on the subcommittee who reviewed the proposal? We want a copy of the written record of the review and decision making process used by the DDA to reject this proposal.

13) Since the enabling legislation for this and all DDAs includes the objective of preserving the historic character of downtown communities, and since all three of these buildings are a very significant part of Chelsea's and Michigan's history and contribute importantly to Chelsea's historic character, shouldn’t the DDA provide the public with alternatives to demolition that would include rehabilitation of all three buildings?"

14) How can the City Attorney sit as a voting member of the DDA without having a conflict of interest?

15) What was the written process and the decision making used to select a Landscape Architect instead of a Preservation Architect to draw up the proposed design for the Longworth Buildings. A Preservation Architect could have potentially presented a viable option to save all the buildings at a reasonable cost.

16) What are all the legal clearances permits, etc. that are required of the DDA before the demolition of the Livery and Daniels Showroom can move forward?

17) What is the written process for dissolving the DDA? Under what circumstances would this occur? In a City Council meeting on July 28, 2009, the City Attorney stated that the City could eliminate the DDA if so desired.

Letter to Lindauer, p 4

We request that these questions be answered in writing by August 27, 2010. Thank you for your time and attention to this matter. If you have any questions, please feel free to contact me at 734-475-4648.

Cathy Bean
204 Washington Street
Chelsea, Michigan 48118


cc: Congressman Mark Schauer
Senator Liz Brater
Representative Pam Byrnes
Commissioner Mark Ouimet
Daniel Lai, Editor, Chelsea Standard

Saturday, August 21, 2010

DDA decision on August 19

The DDA did not accept the proposal of The Chelsea Connection. They also voted to domolish the Daniels Addition that fronts Main Street and the livery on Jackson Street. If you wish to comment on these decisions, please take some action now!

Easy actions you MUST take to save the Longworth Complex
to Keep Our Past Present & Still Standing
It's not over until the buildings are in the dump.

Speak and Write Publicly, Contact Personally on Local, County and State levels.

To be silent now sends the message that you agree with the DDA's decision that erodes historic downtown.

LOCAL

Chelsea City Council — elected officials
Speak during the public comment section at the beginning of City Council, meeting on August 24 (next Tuesday), 7 pm, held in the Board Room of the Washtington Street Education Center. (southern-most building, west side through double doors. Again, public comment is at the beginning of the meeting. Introduce yourself, state your address.
Contact City Council members personally. Make an appointment during office hours:  Monday and Friday 3:30pm to 5:00pm.
Jason Lindauer, Mayor — email: jlindauer@city-chelsea.org — 475-1771
Cheri Albertson, Mayor Pro-Tem — email: cheriaa@umich.edu — 475-8313
Ann Feeney — email: annfeeney@aol.com — Home Phone: 475-1493 
Bill Holmberg -- email: holmbergwilliam@sbcglobal.net — 433-9733 
Rod Anderson — email: rod.anderson@sbcglobal.net — 475-5898
Kent Martinez-Kratz — email: kkratz@jpsmail.org
Frank Hammer — email: beemerguy@fastmail.fm — 475-1828 
John Hanifan, City Manager — email: jhanifan@city-chelsea.org — 475-1771 ext 201


Downtown Development Authority (DDA) — appointed officials
Attend the next DDA meeting on August 19 (Thursday) beginnning at 7:30 AM in the basement of City Hall. Speak during public comment at the end of the meeting.
Contact these DDA members by phone or at their place of business.
Jason Lindauer — mayor, City of Chelsea — City Hall, 305 South Main — 475-1771
Michael Jackson — owner of Vogel's and Foster's, 107 South Main — 475-1606
Mark Heydlauff — owner of Heydlauff's Inc, 113 North Main — 475-1221
Paul Frisinger — Realtor with Reinhart Realtor, 800 South Main — 433-2184
Robert Pierce — Dir. Chelsea Area Chamber of Commerce, 310 North Main — 475-1145
Jeff Holman — Property Manager, McKinley, Inc., 320 North Main — 734-769-8520, ext. 489
Pattie Schwarz — River Gallery, 120 North Main — 433-0826
Jim Myles — owner of Chelsea House Victorian Inn, 118 East Middle — 433-4663
Rob Winans — owner of Winans Jewelry, 108 South Main — 475-2622
Palmer Morrel-Samuels — EMPA, 111 South Main — 433-0344
Pat Cleary — owner of Cleary's Pub, 113 South — 475 1922
Peter C. Flintoft — attorney, Keusch, Flintoft,& Conlin, PC, 119 South Main —475-8671
John Hanifan — (Staff Liaison) City Manager — City Hall, 305 South Main — 475-1771 ext 201


The Chelsea Standard
Write a letter to editor to The Chelsea Standard stating your position. Send an electronic and hard copy to:

Daniel Lai – email: Dlai@heritage.com Editor, Chelsea Standard
Address: Heritage Newspapers, Chelsea Standard, 106 W Michigan Ave, Saline, MI 48176
Phone: 734 429 7380; FAX: 734 429 3621

You must include your address.

COUNTY

Contact Mark Ouimet, County Commissioner
Phone: 734 663 0927

Email: ouimetm@ewashtenaw.org
mco3502@aol.com

STATE

Contact Pam Byrnes, Michigan State Representative

Toll-Free
(800) 645-1581
Email
pambyrnes@house.mi.gov
pgbyrnes@gmail.com

Contact Senator Liz Brater, Michigan Senate
Phone: 517 373 2406
Email SenLBrater@senate.michigan.gov

Saturday, August 7, 2010






The Chelsea Connection, LLC
Updated Initial Response / Proposal
City of Chelsea, MI RFP DDA-001 (extended)
Former Longworth Plating Site
Submitted: 7-14-2010

Updated Response, p 1

Updated Initial Response
To RFP DDA-001
Former Longworth Plating Site
Submitted: 7-14-2010
The Chelsea Connection, LLC
Introduction:
This document supersedes two previous documents submitted by Preservation Chelsea - Chelsea Connection Team (PC-CCT) on 2-18-10 (dated 2-16-10) and by The Chelsea Connection, LLC (TCC) (dated 4-15-10). It includes supplemental and/or amended information as well as much of the original text from those documents.
Late Breaking (post-printing) Updates/ Errata:
• Chelsea Area Historic Society has submitted a Letter of Intent to lease 2000 SF within The Chelsea Connection complex. Letter has been added to the Appendix.
• Conceptual floor plans of first and second floor were added to the Appendix. Plans show general location of planned uses. Final plan will change significantly as concepts are further refined. If all leases are executed as proposed, The Chelsea Connection will be more than 50% occupied.
• The enclosed proposal erroneous states that only 15-20 parking spaces could be developed along Jackson Street, east of existing Depot parking. It appears 20-25 spaces could be added easily, and up to 34 could be added if additional trees are removed.

Updated Response, p 2

Updated Initial Response
To RFP DDA-001
Former Longworth Plating Site
Submitted: 7-14-2010
The Chelsea Connection, LLC
Contents:
Letter of Interest ..... 4
Project Overview ....... 7
Proposed Uses ...........7
Conceptual Size .........9
Economic Impact ....... 10
Management Plan for Purchase l1
Compensation for the City of Chelsea 12
Other Benefits for the Residents of the City of Chelsea 12
Financial Plan/ Capability 14
Proposer Information (Amended) 17
Firm Name and Contact Information 17
Ownership Organization/ Structure 17
Parent Company (if Applicable) 17
Officers and Principals ..... 17
Firm Size ................ 18
Authorized Representative 18
In-House Capabilities and Services 18
Percentage by Firm if Joint Venture 18
Relevant Development Experience: 18
Initial Response - Additional Information 20

Updated Response, p 3

Design and Proposed Use Considerations .......... 20
Parking: ........................................ 20
Demolition vs. Renovation of Daniels Showroom ... 21
Demolition vs. Renovation of Livery Building .... 22
Sustainable Design and Construction ............. 23
PC-CCT / TCC Organization: ...................... 24
Chelsea Connection Team Profiles................. 27
Schedule and Phasing ............................ 35
Core Values and Resulting Goals: ................ 37
Chelsea Connection – Prospective Tenant Profiles: 39
Supporting Information Appendix.................. 43
Letters ......................................... 43
Supplemental Information .........................43

Updated Response, p 4

Letter of Interest
To: John Hanifan, City Manager City of Chelsea 305 S. Main City of Chelsea MI, 48118
From: The Chelsea Connection, LLC
Date: July 14, 2010
Re: Former Longworth Plating Site – RFP DDA-001
Introduction
The Chelsea Connection, LLC (TCC) is pleased to submit our Updated Initial Response to RFP DDA-001.
We propose to purchase the site and buildings from the Chelsea DDA for $200,000, and to redevelop the property through the adaptive reuse of most of the existing structures, as detailed herein.
Immediate Action Requested
We respectfully request that the DDA take immediate action to approve the sale, and to expedite necessary transactions for several reasons, including:
• Barring a surprising new development, there does not appear to be another party interested in developing the property. Prior to Kincaid-Henry announcing their intention to submit a proposal at the April 2010 DDA meeting, the DDA had a proposal on the table to begin negotiations on a sale of the property to TCC.
• Lack of positive response (to our proposals) and action by the DDA has made securing tenants, venture capital and even grants extremely difficult. We and our potential partners need assurance that the DDA is serious about working with TCC to positively impact Chelsea through the adaptive reuse of these buildings.
• Roofs and other components of the building envelope throughout the complex continue to leak into the structures, further degrading their condition, increasing renovation costs, and risking spread of contaminants.
• Delays will risk that another construction season will be lost without any positive action being taken to redevelop the site and return it to the tax roles.
• One of our major prospective tenants, The New Chelsea Market intends to relocate as soon as possible and is committed to moving their business before the holidays 2010. If immediate

Updated Response, p 5

action is taken, TCC can move TNCM into their new home in time. If immediate action is not taken, TNCM will be forced to exercise one of their other relocation options, possibly pulling out of downtown Chelsea.
Recommended Action Plan:
• DDA leases the Former Longworth Complex to The Chelsea Connection LLC for a nominal monthly fee, with a modest security deposit of $1000. This will afford TCC to begin necessary stabilization, selective interior demolition, and design of renovations necessary to move the New Chelsea Market into the first floor of the Mack Building as outlined above. TCC will assume responsibility for utilities, maintenance and security of the facility, including insurance. Target: Complete short-term lease agreement by 7-23-10.
• DDA and TCC negotiate final terms on sale of property to TCC. Target: Complete sales agreement and execute sale by 9-1-10
• TCC will negotiate final terms and conditions with The New Chelsea Market, subject to successful closing by TCC. Target for completion: 8-1-10.
• TCC will develop their operating structure and terms for venture capital and in-kind investments. Target for completion: 8-1-10 draft, 8-15-10 final
• TCC will immediately mount a venture capital campaign and finalize commercial financing to raise the balance of funds necessary to complete the sale and phase 3 renovations. (See Phasing Plan) Target for completion: 9-1-10.
• TCC will develop and maintain a critical path project schedule to ensure timely move of The New Chelsea Market, and completion of the overall project.
Recommended Motions at 7-15-10 DDA Meeting:
• …that the Chelsea DDA negotiate terms and conditions to sell the Former Longworth Plating Site to the Chelsea Connection LLC for the sum of $200,000.
• … that the DDA lease the Former Longworth Plating Site to The Chelsea Connection, LLC, with terms and conditions to be negotiated by 7-23-10.
Summary
This Updated Initial Response is our third proposal to the RFP DDA-001. Hopefully, the third time will be the charm, and we (you, the DDA and The Chelsea Connection, LLC) can forge a productive relationship.

Updated Response, p 6

regarding the redevelopment of the Former Longworth Plating Site. To simplify review of the TCC proposal, we have compiled the information into a single document. See Recent Background on Proposed Redevelopment and RFP DDA-001 in the Appendix for additional discussion.
Although the attached proposal includes numerous refinements, our proposal has not changed substantially since our 4-15-10 submission. TCC, LLC continues to believe that our plan is in the best long-term interest of the City of Chelsea and its residents. Our goals are to:
• Connect Downtown and Clocktown
• Create a new downtown Chelsea destination
• Maximize fiscal responsibility for the City of Chelsea
See A Discussion on Mission, Values and Vision in the Appendix for more comprehensive discussion on shared values and goals.
Please let us know (see contact information on p. 17) if you need any additional information of have additional questions.
Sincerely,
Tom Girard – President, The Chelsea Connection LLC
Michelle McClellan – President, Preservation Chelsea
Jan Bernath – Director, Preservation Chelsea
Scott McElrath –TCC Design Team Co-Coordinator
Joe Merkel – member, PC-CCT
Attachments:
• Project Overview
• Proposer Information
• Updated Initial Response - Additional Information
• Updated Initial Response - Supporting Information (appendices)

Updated Response, p 7

Project Overview
Proposed Uses
Overview: Our general philosophy on proposed uses has not changed substantially. However, securing a major tenant for the Daniels Addition and first floor of Mack Building has allowed our vision to crystallize.
Prospective Tenant Profiles describe program (space, infrastructure) requirements of committed and potential tenants. See Additional Information. Proposed uses within specific building areas and other building modifications are described below.
Daniels Showroom (1940s Addition): First floor: The New Chelsea Market – retail grocer, with focus on organic, natural and specialty foods and local produce and other goods. Limited eye-catching retail display from local artisans. Small Chelsea Information Kiosk. Historic photos and other secured displays. Open flow to Mack Building. Rooftop: Rooftop patio garden housing a portion of the dining space for a Restaurant. Egress: New public stair with artistic flair. Elevator installation will be accounted for in the layout, but may be deferred, pending review of ADA variance request.
Mack Building: First Floor: Continuation of The New Chelsea Market - Indoor market, local produce, local artisans, small retail shopping, and eventually, a modest commercial kitchen. Second Floor: Portion of restaurant (overlapping from showroom rooftop patio), with performance space for live music or theatre. In the interim, second flood may be rented for special events.
Mack-Livery Connector: Egress passage for Mack and Livery Buildings. On-grade loading dock with air, fire and security locks for both buildings. Stair from floor level to back alley grade allows access to refuse (dumpsters/ recycling) in rear, and possibly public access from nearby Church to parking along railroad.
Livery Building: First floor: The New Craftsmen Workshop - working primarily on larger scale projects - in wood, metal, stone – furniture, furnishings, art, building components. Enclosed, secure parking for residents/ tenants – approximately 8 spaces. Secure, compartmentalized storage for building tenants - bike storage for residents, stock storage for retail shops, and chair and table storage for flexible use space. Public restrooms. Second floor: Approximately 8 studio apartments with an urban edge. High quality but clean, minimalist look. Second floor also includes 500 to 1000 SF of shared collaborative living space, laundry. Premium energy efficiency and sustainability are focal points of design and marketing for these units. Third floor: New community rooftop garden for tenants – approximately 500 SF enclosed, and 500 SF covered patio, surrounded by 4000 SF roof garden (green roof).

Updated Response, p 8

Livery Building Rear Addition: Demolished and replaced with impervious parking, a portion of which may be covered.
Consideration for an Outfitter: TCC recognizes RFP DDA-001 specifically listed: outfitter retail, housing, restaurant and parking. While our proposal addresses the last three, our preliminary investigation indicates an “outfitter” may not be an ideal fit for the site for the following reasons:
• While thousands of outdoor seekers travel through Chelsea to enjoy Waterloo and Pinckney Recreation Areas on summer weekends, Chelsea is home to Aberdeen Bike and Outdoors, Pamida, and even hardware stores that carry some outfitter-related items. PC-CCT/ TCC believes that it is in the best interest of the City to strengthen these existing businesses by encouraging them to carry additional items that might otherwise be sold at an Outfitter store, and helping them develop this new market accordingly.
• Parking at or near the site is not conducive to vehicles towing trailers – a frequent occurrence for prospective outfitter customers traveling through Chelsea.

Updated Response, p 9

Conceptual Size
This section has not changed since the Initial Response. Occupied Area impact on existing and proposed structures, all in approximate, gross square feet (SF):
Showroom/ Daniels Addition:
• First floor: no change, 760 SF
• Roof garden: new 760 SF of summer-occupied outdoor patio space
Mack Building:
• Basement/ Pit: existing gross area approximately 400 SF. Portion may be retained for mechanical space, pending further assessment of contaminants and water table. Otherwise, area will be filled/ sealed.
• First floor: no change in gross area, 3800 SF, split between two levels.
• Second floor: little or no change in gross area, 3800 SF. New open stair will reduce net area.
Mack-Livery Connector:
• First floor: no change in covered area, 730 SF. Gross enclosed area will be increased from 240 SF to 500 SF to accommodate 30 foot truck on-grade loading dock with new air lock.
Livery Building:
• First floor: no change in gross area, 5100 SF
• Tank Room Addition: Demolition of 1500 SF
• Second floor: no change in gross area, 5100 SF
• Third floor: new enclosed area, 500 SF, additional covered patio: 500 SF
Total Area
• Covered Footprint: Reduced from 11,900 SF to 10,400 SF
• Enclosed Floor Area: Reduced from 20,300 SF to 19,600 SF
Note: "Enclosed Floor Area" is floor space enclosed by walls and roof, but not necessarily conditioned space (eg. parking area in First floor of Livery is enclosed but not conditioned). "Covered footprint" is total roof area, or "bird's eye view" area.

Updated Response, p 10

Economic Impact
The proposed Chelsea Connection development will have significant, positive, short and long-term impact on the Chelsea area, as described in the Initial Response. While most of the discussion there remains relevant, by transferring ownership immediately to The Chelsea Connection LLC, the financial picture for the DDA/ City changes, but still remains very strong.
 Economic Impact on City of Chelsea and its Residents:
• The DDA will receive full purchase price at closing, offsetting much of the investment the DDA has made in the site.
• Sale will eliminate need for the DDA to invest additional money in the redevelopment of the site, and eliminate utility and insurance associated with the property.
• Property tax income: TCC, LLC’s ultimate goal for The Chelsea Connection development is to return it to the tax roles, at an appropriate value.
• By transferring ownership of the property to The Chelsea Connection LLC, the DDA/ City will reduce/ eliminate the liability of owning a vacant, unprotected property.
 Economic Impact on Chelsea Area Workforce and Prospective Business Occupants:
• Job Stability and Growth
o Over the next 3-5 years, the Chelsea Connection will offer short-term construction work to many area workers. With area construction activity in recession, these opportunities will make a big difference to workers in this struggling industry. The TCC will maximize the use of local labor and skilled trades.
o Unlike new construction in which much of the cost is for materials produced elsewhere, the labor-intensive nature of rehabilitation of historic buildings results in relatively more of the money expended for local labor, keeping salary dollars in the community longer. Dollars spent on imported materials circulate through a community only once, but dollars spent on local labor circulate through a community six times.
o The TCC projects that The Chelsea Connection will be host to the equivalent of approximately 20 long-term, full-time (40 hour/week) jobs, measured based on work performed on-site.
• Small business/ talent incubator. The New Craftsmen Workshop and portions of the Mack building offer potential to “soft-start” new businesses by offering low-cost terms that allow tenants to ramp up their costs as business grows. With the support of these low-cost start-up opportunities, tenants in these areas can focus on growing their business. Potentially these growing businesses may outgrow these spaces and move into higher value properties in the area that are currently underutilized (empty portions of Clocktower complex, former Bookcrafters, former Federal Screw Works, former UAW hall, former Post Office etc.). Mack second floor performance space offers budding area talent new opportunities to perform.

Updated Response, p 11

Management Plan for Purchase
While PC-CCT was not in financial position to purchase the subject property when our Initial Response was discussed at the 3-18-10 DDA meeting, we have retrenched, and have formed The Chelsea Connection, LLC (TCC) to purchase and develop the property. See Financial Plan and Scheduling and Phasing.
Within PC-CCT, we quickly identified approximately 15% of the venture capital necessary to purchase the property. Pending contingent approval to sell by the DDA, TCC, LLC will raise the remainder of the capital necessary to close, and complete renovation necessary to occupy the first floor of the Daniels and Mack buildings.
TCC has received a letter of interest from Chelsea State Bank (CSB) expressing interest in the project, and willingness to finance a portion of the project. CSB's level of commitment is contingent on execution of appropriate due diligence, and upon a firm commitment(s) to lease a portion of the site. TCC has acquired letters of intent from two tenants, including what we consider to be a cornerstone tenant (4000SF retail), and a 2000SF workshop and the first of eight apartments in the Livery Building. We also have a verbal/email commitment for the first of eight apartments in the Livery Building. See Prospective Tenant Profiles in Appendix.
PC-CCT/TCC, LLC will work actively to raise a large portion of the needed capital through grants and tax credits. So far PC-CCT is 1:2 on grant awards, having received a modest $1000 toward raising awareness and education about the role these buildings played in the evolving transportation industry. Our second grant proposal was submitted in late March 2010 and recently rejected. Based on information acquired since 2-18-10, we realize we have greatly understated these two funding sources, especially tax credits.
As a for-profit LLC, our ability to raise funding through community-wide campaigns will be somewhat limited compared to the 2-18-10 Initial Response. Fundraising will be targeted to completion of the green roof that surrounds the third floor sunroom and patio on the Livery Building.
TCC has had serious discussions with ASTI Environmental (see appendix), which has extensive experience in environmental work, and associated tax credits and grants.
Purchase Activities and Milestones
• DDA approves (by vote, hopefully at 7-15-10 meeting) to sell property to TCC, LLC, pending successful negotiation of terms and conditions.
• DDA/ City leases the complex to TCC, LLC to afford access for design and additional investigation especially in the Mack and Daniels Buildings; roof repairs, selective demolition, and clean-up to Mack and Daniels Buildings; and temporary protection and stabilization throughout the complex.

Updated Response, p 12

• TCC, LLC finalizes LLC Operating Agreement and Corporate Resolution.
• TCC, LLC acquires firm commitments for all funding necessary to complete Phases 1 through 4.
o TCC, LLC expands search for and secures necessary venture capital.
o TCC, LLC negotiates leases for tenants, contingent on closing.
o TCC, LLC negotiates commercial financing necessary to complete Phase 3 (occupancy of Daniels/ Mack First Floor)
• Completion of sale.
See Financial Plan for additional information.
Compensation for the City of Chelsea
The Chelsea Connection, LLC proposes to pay the DDA $200,000 for the entire property, in AS-IS condition, with no encumbrances.
We understand the DDA paid significantly more than that for the property. Based on discussion with realtors and developers, the property value (AS-IS) in today’s market may be closer to $100k.
While the TCC still believes the DDA and City can maximize return on their investment by partnering with us, as previously proposed in February 2010, there appears to be no appetite for such an arrangement.
Other Benefits for the Residents of the City of Chelsea
Key Benefits:
• Reduced liability to the DDA, the City of Chelsea and its taxpayers.
• The Chelsea Connection will be pay property tax, increasing Chelsea’s tax base, and reducing pressure on City of Chelsea budgets.
• The Chelsea Connection includes public restrooms (in the first floor of the Livery Building) accessible directly from outside, which will be available during regular business hours and special events.
• The adaptive reuse redevelop of the site offers positive, stabilizing contributions to the social and economic fabric of Chelsea as discussed below.
Chelsea is a unique and extremely attractive community. The human scale, historic downtown, charming neighborhoods, excellent schools, and other amenities are attracting new residents. When the economy recovers from the present recession, Chelsea will again attract new businesses as well.

Updated Response, p 13

It is vital that this growth be managed in a positive way that will allow development without disintegration of Chelsea’s sense of place. If left to developers who do not live in Chelsea and who do not have a strong passion for Chelsea’s history, this development could pose a threat to those qualities which have made Chelsea such a desirable community.
People seek exciting places to spend their time, and people are drawn to places occupied by other people. That is as true in Chelsea as in any other community, and the economic and civic center of gravity of Chelsea has been and in our opinion must remain its downtown.
The importance of a downtown goes beyond economics. A downtown holds together a mix of economic, civic, and social functions. It is the place where everyone can meet and interact, where monuments are located, where speeches are made, where parades are held and where crowds are entertained. More than anyplace else, a downtown gives a community its collective identity and thus its pride. It is the keystone that keeps the other pieces of the community in place. Downtown is the heart and soul of the city or village.
Much of the original historic fabric of Chelsea’s downtown has escaped the wrecking ball. But old functions are disappearing and new ones are needed to replace them. About twenty years ago Chelsea’s downtown reinvented itself by creative thinking and entrepreneurial leadership, under the auspices of the Downtown Development Authority. With changing economics, Chelsea must continue to evolve.
Today Chelsea has a mixed-use downtown — retail, residential, professional services, financial services, industrial, government, entertainment, and public services such as the library. Traffic from one of these uses generates traffic for another, helping all functions maintain viability.
A marketing committee currently is working to enhance Chelsea’s attraction as a Destination. Cultural heritage tourism, i.e., traveling to experience the places that authentically represent the stories and people of the past, is the fastest growing segment of tourism. A study currently underway at Michigan State University has found that when a place has preserved and promotes its historic character, it gets more visitors, they stay longer, and they spend more money.
The redevelopment of this Jackson Street corridor will help enhance Chelsea as a destination. With proper promotion, Chelsea can become one of the most sought after day-trip destinations in the state, a model for smaller Michigan cities trying to keep their small-town character in a changing economy. Chelsea can continue to demonstrate that towns with strong, distinctive identities are more likely to prosper than places without them.
The rehabilitation of these three structures must look to the future as well as the present. The choices that are made now must improve our community for the long term. The TCC proposal will help maintain and expand downtown’s mixed use, will preserve the historic character of this corridor, and will go a long way toward ensuring downtown Chelsea’s continued vitality.

Updated Response, p 14

Adaptive reuse of the Longworth Property is integral to creating a marketing niche that make downtown Chelsea a destination for historic tourism.
Financial Plan/ Capability
Funding for the project will come from eight sources as described below. See Phasing Summary of Timeline, Funding, Debt and Value in Supporting Information Appendix.
The Chelsea Connection, LLC partners will now invest directly in the project in two ways:
• Venture Capital Shares will be sold to TCC, LLC partners in increments of $10,000, raising a total of $350,000. The majority ($220k-$250k) will be secured before closing. To date, $30k is verbally committed, and can be made available immediately for initial stabilization and investigation work. This will be the source of funding for virtually all of Phase 2: Finalize Stabilize and Publicize (including purchase of the site). Note: TCC had hoped to launch a venture capital campaign following anticipated approval of the TCC plan at the April 2010 meeting. When the DDA extended the RFP response period to allow other proposals to come forward, the TCC venture capital campaign was postponed. TCC remains confident that the necessary venture capital can be raised from within the Chelsea community.
• Several partners in TCC will invest in the project through In-Kind Services Shares, including design and construction activities. Approved expenses will be converted to TCC, LLC shares. Time spent prior to finalizing LCC terms is considered “pro-bono” and will not be converted to TCC, LLC shares. This sector contributes 12-17% of the value for the primary construction phases (Phase 3 through 6). Note: To date, TCC has verbal commitments for most professional services (design, project management, property management etc.) as well as a portion of labor/skilled trades work (carpenters, electricians, masons, plumbers etc.). TCC will begin finalizing these agreements and seek additional in-kind investors as soon as the DDA votes to negotiate sale to TCC.
With property owned free and clear by TCC, LCC at the end of Phase 2, TCC leverages lease commitments, and some additional venture capital to secure Commercial Financing. TCC will limit use of commercial financing to Phase 3 ($350k, for First Floor Daniels/ Mack) and Phase 5 ($230k, for Livery Apartments, leveraged by some commitment for apartments, and lease revenue from Second Floor of Mack Building).
Members of the PC-CCT and TCC, LLC will donate countless hours of volunteer labor throughout the completion of the project. In addition, PC-CCT will continue to mobilize the community for volunteer labor, and donations, including limited fundraising, but at a reduced level compared to our 2-18-10

Updated Response, p 15

proposal. PC-CCT/TCC members recognize it will be more difficult to garner community support for a for-profit venture.
PC-CCT has reviewed dozens of Grants for the rehabilitation of the site, and has narrowed potential grant proposals to approximately 30 sources, primarily from preservation sources. PC-CCT/ TCC, LLC will further broaden the search in weeks to come to include environmental redevelopment, sustainable development, job growth, and arts and cultural development sources. Based on recent discussion with adaptive reuse experts, we feel we underestimated grant potential in our 2-18-10 submission. Furthermore, grant writing cannot move forward until the DDA has made a commitment to sell the complex to TCC. PC-CCT/TCC has engaged the services of several students in EMU’s preservation program, who are learning to write effective grant proposals. They are ready to ramp up their efforts as soon as a sales agreement is executed. Grant writing and the application process takes time. TCC therefore does not count heavily on grants during initial phases of renovation. In total, we feel grants can account for as much as 20% of construction related expenses.
PC-CCT has investigated Tax Credits (members attended previously referenced workshop and additional workshops at the Michigan Historic Preservation Network Conference) for rehabilitation and will leverage this resource toward the redevelopment as well. Based on information received to date, TCC, LLC includes substantial tax credits allowances to the funding for the project. While there is a possibility that tax credits could be as high as 40% for some portions of the project, we have used a maximum of 20% for construction phases.
PC-CCT and/or TCC, LLC will organize some Fundraisers during the course of the redevelopment, targeted specifically for the installation of the 4000 SF green roof that will surround the Livery Apartment patio. While the installation would be difficult to financially justify as part of the Apartment development, the design team continues to view this as a priority for the project, and will foster community support to make the vision a reality. The patio space will be fully functional, regardless of whether the green roof is installed.
Lease Income is a significant factor in the overall project value through the end of renovations and operations through the end of 2013. However, lease income is a relatively small percentage (8% maximum) until Phase 5 (Loose Ends and Green Roof), where it accounts for 36% of that phase’s value.
Proposed Project Value Funding Source Summary below demonstrates projected contribution split between the eight projected value contribution sources for the redevelopment of The Chelsea Connection, including operations through the end of 2013. Projections are based on project phase scope as described in Additional Information – Schedule and Phasing, and costs as summarized in Phasing Summary of Timeline, Funding, Debt and Value in Supporting Information Appendix.
Note, the funding model was developed anticipating 4-15-10 approval by the DDA, and that closing would occur before any construction would occur. Proposed interim lease agreement between the DDA

Updated Response, p 16

and TCC, which is necessary to ensure The New Chelsea Market can move in as planned, modifies the model slightly.
Donation/ Pro-bono, $120,000, 5%Deferred Payment, $286,000, 12%LCC Capital, $342,000, 14%Commer'lFinance(principal), $576,000, 24%Grants, $406,000, 17%Tax Credits, $395,000, 16%Fundraising, $10,000, 0%LeaseIncome, $280,375,
Project Value Funding Source Summary
Includes all funding required for complete renovation and operation through 2013.

Updated Response, p 17

Proposer Information (Amended)
Firm Name and Contact Information
Preservation Chelsea The Chelsea Connection, LLC PO Box 63 Chelsea MI, 48118
See additional contact information under Officers and Principals
Ownership Organization/ Structure
The Chelsea Connection, LLC is a for-profit limited liability corporation.
Preservation Chelsea is a 501 (c) (3) non-profit organization.
Property will be owned by The Chelsea Connection, LLC. Preservation Chelsea/ PC-CCT may be involved in promoting events at the development, but will remain completely separate from TCC, LLC financially.
Parent Company (if Applicable)
NA
Officers and Principals
The Chelsea Connection, LLC:
While The Chelsea Connection, LLC has been filed, organizational structure has not yet been completed. Principals will include some members of PC-CCT, but will include additional shareholders as well.
President: Tom Girard Home: 320 S. Main, Chelsea, MI 48118 Phone: Home: (734) 475-3632; Office: (734) 936-3613; Cell: (734) 260-2087 Email: tgirard@umich.edu
Preservation Chelsea Board:
President: Michelle McClellan Home: 232 Jefferson Street, Chelsea, MI 48118 Phone: Home: (734) 475-7565; Office: (734) 647-5408 Email: michelle.lee.mcclellan@gmail.com
Former

Updated Response, p 18

Vice President: Susan Morell-Samuels Home: 210 Park Street, Chelsea, MI 48118 Phone: Home: (734) 475-2955 Email: sumosa@umich.edu
Secretary/Treasurer: John Frank Home: 138 E. Middle St., Chelsea, MI 48118 Phone: Home: (734) 475-7396 E-mail: jackiefrank@msn.com
Board of Directors: Michelle McClellan, Susan Morell-Samuels, John Frank, Jan Bernath, Jim Myles
Chelsea Connection Team:
City Liaison: Joe Merkel Phone: Cell: (734) 320-9828 E-mail: joseph.merkel@gmail.com
Firm Size
Preservation Chelsea currently has approximately 20 members, but has had as many as 41 members in past years when specific project initiatives were underway. PC-CCT/ TCC also has approximately 20 participants involved in some way, some of whom are PC members, some of whom are not.
We anticipate that TCC, LLC will have approximately 30 partners, but will solicit pro-bono assistance from PC-CCT and the community at large.
Authorized Representative
The Chelsea Connection, LLC: Tom Girard – The Chelsea Connection, President . See Officers and Principals above.
In-House Capabilities and Services
PC-CCT and TCC, LLC members have extensive in-house experience in project management, design, construction supervision, fundraising, community organizing, and historic preservation as demonstrated in the attached PC-CCT/TCC Team Organization and accompanying Profiles. Through our extended, growing network of partners, we will have the ability to successfully design, manage and execute this redevelopment.
Percentage by Firm if Joint Venture
NA
Relevant Development Experience:

Updated Response, p 19

Members of the PC-CCT/TCC have been key members in the design, development and leasing of a broad range of applicable projects. A small sampling includes:
Public Sector projects: Dozens of projects for the University of Michigan ranging from $10k to $200M+ (>$4B total)…City of Chelsea Offices…
Public/ Private Joint Ventures: Chelsea City Hall/ Chelsea State Bank Renovation...Several projects at the University of Michigan where donors were involved in decision making process…
Mixed Use Projects: University of Michigan: Pierpont Commons Renovations, Michigan Unions Renovations…Ethyl Corporation World Head Quarters … Nissan Smyrna Assembly Plant …several $M in commercial real estate leases
Various Uses Proposed: Residential: Numerous custom homes…Renovations at virtually all University of Michigan Residence Halls…President’s Residence (private residence of U-M president)…Inglis House (meeting place for U-M Regents) Commercial Kitchen/ Dining: Renovations in several U-M residence hall kitchens … Award winning “Blue Apple Café” at Bursley Residence Hall. Indoor Parking: Numerous renovations/ expansions of U-M parking structures. Preservation/ Adaptive Reuse: Numerous U-M projects, including Student Publications Building, U-M Madison Building, U-M Yost Ice Area, to name a few …Edsel and Eleanor Ford Home Visitors Center …Personal Residential Renovations … Custom Home Building/Land Development…numerous downtown Chelsea business renovations Assembly/ Performance Space: U-M: Hill Auditorium Renovation, Rackham Building Renovations, East Quadrangle Auditorium Renovation, Walgreen Drama Center, Moore Building (School of Music) renovations, numerous new and renovated classrooms.
Anticipated new partners in TCC, LLC have a broad range of construction and construction supervision experience on project similar to this. Additional information will be made available on request.

Updated Response, p 20

Initial Response - Additional Information
TCC has included the following additional information to supplement previous sections. While much of this information was included in PC-CCT’s Initial Response and in TCC’s Supplemental Response, additions and modifications have been made in this Updated Initial Response as well.
Design and Proposed Use Considerations
Parking:
Existing site includes virtually no on-site parking. As such, parking is a key consideration for the development of the site. PC-CCT understands parking within the Downtown district is exempt from strict parking requirements. However, TCC strove to develop a proposal that would create activity and energy at The Chelsea Connection without overwhelming the available parking at and near the site.
Estimated parking demand for proposed uses:
Building/Floor/Space: Peak Parking Load
Showroom: 5
Mack – First 20 (reduced from previous 40)
Mack – Second and patio 50
Livery - First 10
Livery – Second 10
Note, demand for first and second floor parking is not likely to peak at the same time. Peak diversified load for the entire complex is estimated at about 60-70 vehicles.
New on-site parking:
Enclosed/ secure/ partially conditioned parking in First floor of Livery: approximately 8.
Open parking at rear of Livery: Several parking spots (approximately 10, possibly covered) will be added behind the Livery, for Livery occupants and Church patrons, replacing 2 gravel parking spots.
Nearby parking considerations:
General PC-CCT/TCC philosophy on downtown parking: While ample parking is desirable, an overabundance of parking can make downtown feel disjointed and deserted a large portion of the time. We feel that it may be better for users to park half a block away during peak times, than to have vast parking areas that impede connectivity of activity and remain empty most of the time. Most recently,

Updated Response, p 21

this is evident in the larger parking lot/ former showroom lot at Palmer Ford/Service, but is also evident at lots near Pamida, the new Post Office, and Country Market.
There are approximately 17 parking spaces along the railroad tracks, immediately across Jackson Street from the site, and an additional 20 spaces east of the Depot. TCC understands this parking is owned by the Chelsea Depot, maintained by the City, and available for public parking, Chelsea Depot rarely has demand higher than 2 or 3 spaces, except when they have an event, at which time demand can exceed their own available parking. TCC will attempt to coordinate high parking demand activities with the Depot, to maximize use of area parking without causing excessive stress on available parking.
TCC will investigate (in cooperation with the City, the Depot Association and other stakeholders) the feasibility of making Jackson Street one-way and adding parallel parking and/or pedestrian walkway along a portion of the Chelsea Connection. Jackson currently narrows to about 17 feet near the Depot, already making it inappropriate for 2-way traffic. The narrow width of the street, plus the height of the cornices of the Depot at 12’-6” has led to repeated damage to these cornices. Although traffic on Jackson Street is moderate, redevelopment of the site will increase vehicular traffic. Making this change (one-way, east bound) could further improve pedestrian safety, reduce vehicular bottlenecks and eliminate the hazard of trying to enter increasingly-busy M52. Alternatively, TCC and the City of Chelsea might consider making west-bound Jackson Street traffic “right turn only” onto Main Street. While this might not improve parking at the site, it would improve traffic flow.
TCC has investigated the potential for adding 15-20 additional parking spaces along Jackson Street, east of the existing Depot parking located east of the Depot (between East and McKinley). Though this property is beyond the Longworth site, PC-CCT/ TCC would be willing to pursue developing this parking (in conjunction with the City and railroad), if warranted.
Demolition vs. Renovation of Daniels Showroom
Opinions about the “right” thing to do with the Daniels Showroom addition have been varied and vocal within the community. Proponents of demolition have argued:
• Mid-century (modern) architecture of the showroom addition does not match turn of the century Mack building beyond.
• Showroom is too close to the sidewalk.
• There should be green space (park) at this location.
• Building blocks views, and therefore poses a traffic hazard.
PC-CCT proposes to retain the structure for the following reasons:
• Juxtaposition of architectural styles is consistent with other treatment elsewhere in Chelsea; it’s a part of the eclectic image of Chelsea. PC-CCT proposes adding an appropriate retractable

Updated Response, p 22

canopy similar to other downtown shops - in part to tie the complex visually to the rest of downtown; in part to reduce summer sun on this western exposure.
• Showroom front is aligned with the hardware store, Clocktower and most other downtown business. Therefore PC-CCT/TCC feels this setback/ alignment is appropriate, to maintain the “window shopping” experience of downtown foot traffic. On the other hand, the addition of a garden/ greenspace in front of the Mack Building would tend to maintain the divide between downtown and the Clocktower, not work to bridge the divide.
• Based on PC-CCT/TCC observation, the Showroom building does not pose a traffic hazard. A driver’s view to the north is obstructed by the cresting of the hill, and the view to the south is obstructed by parked vehicles. Neither of these views would be improved by removing the building. Attempting to improve the view to the south by eliminating on-street parking would not be appropriate for historic downtown Chelsea.
• Retaining store frontage facing Main Street at this location is critical to drawing pedestrians down the street.
• While the building could be demolished and replaced with a structure designed to “match” the Mack building, it would not have the historic feel of the existing structure.
• Replacement would be more expensive than refurbishing the existing structure. Retaining the structure is the most cost effective option.
• Retaining and restoring the original Showroom could allow tenant to tie rotating “car showroom” displays (possibly with 1940s vintage vehicle) into a historic display of the building’s history.
• Retaining the Daniels Showroom would complete the visible, historic timeline of transportation in Chelsea along the Jackson Street Corridor—from horses and buggies in the livery, to early auto storage, to manufacturing the first Welch Touring Car, to automobile repair garage, to the showroom for new Oldsmobilies and Buicks sold in the community.
Demolition vs. Renovation of Livery Building
PC-CCT/TCC is unified in argument that the Livery building should be retained, even if reasons for keeping the structure vary, including:
• The Livery is a key component of Chelsea’s history. Chelsea is one of very few cities that still have a downtown livery, and is perhaps the only city in the country that still has its livery, hotel (now the Sylvan Building) and Depot in their original locations. It’s not just a nice claim to fame; it’s a component of historic tourism that PC-CCT/TCC believes can aid in Chelsea’s economic recovery. See Letters in Supporting Information.

Updated Response, p 23

• Redevelopment of the Livery is the most cost effective option for the site. Apartments and other rental space will pay taxes to the City. Developing the site as a parking lot will increase the burden on the City to maintain this lot.
• Retention of the building helps maintain high activity and population density in the downtown area, a key component to downtown viability.
• Demolishing the Livery would expose the site to more extensive and expensive environmental clean-up requirements, and increase the likelihood of spreading contaminants.
• In the recent thinking of green development, adaptively reusing the complex is appropriate and keeps debris from the landfill.
Sustainable Design and Construction
A key recurring theme in TCC’s proposal is Sustainable Design and Construction. For readers not familiar with the term, here is a general definition:
Sustainable Design reduces the possible negative effects on the environment as far as possible and makes the most of social and economic benefits.
Moreover, sustainable design and construction:
• Reuses building sites and structures and minimizes waste during construction and operation.
• Minimizes energy consumption and carbon footprint.
• Emphasizes use of locally produced, durable, recyclable materials that are non-toxic and produced with minimal impact on the environment.
• Allows users to relate to the natural environment.
TCC reflects principals of sustainable design in many aspects of the proposed redevelopment of the Chelsea Connection. Some samples follow.
Site and Community:
• Adaptive reuse of nearly all structures minimizes landfill waste.
• Promotes community/ downtown living to minimize use of automobiles.
• Building uses were selected to build a sense of place and community with neighbors and downtown community.
Energy and Utilities:

Updated Response, p 24

Minimizes heat load/gain: Extensive wall and roof insulation. Energy efficient replacement/restored windows. Western exposure window canopies. Solar sympathetic roof garden addition on Livery: maximizes winter solar gain/ minimizes summer gain.
• Simple but efficient HVAC systems. Promote natural ventilation when possible. In-floor radiant heat for apartments.
• Green roofs on Livery and Showroom reduce cooling load and storm water runoff.
• Considering storm water collection and reuse from a portion of roof, reducing city water consumption and storm water runoff.
• Energy Star appliances. Energy efficient lighting.
• Clerestory windows on Livery apartments promote day lighting, natural ventilation.
Material Selection (proposed):
• Locally acquired, sustainably harvested lumber where possible – primarily hardwood trim.
• New concrete floors on Livery first and second floors, Mack first floor. Polished and/or stained for attractive, durable, finish. Although high in embodied energy, concrete is available locally, recyclable and very durable. Concrete doubles as fire barrier for apartments.
• Recycled materials in selective locations: reuse/ repurposing of Second floor Mack Building office cabinets and trim.
Relationship to Natural Environment:
• New shared rooftop garden on Livery.
• New rooftop patio above Showroom.
• Open air feel through use of garage doors in Mack first floor - in temperate weather.
LEED - Leadership in Energy and Environmental Design:
LEED is a sustainable design and construction certification program run by the US Green Building Council. PC-CCT/TCC recommends seeking LEED certification for the project, and is prepared to manage certification activity.
PC-CCT / TCC Organization:
The PC-CCT/ TCC is comprised of a talented pool of organizers, managers, designers, builders and workers who are dedicated to the successful completion of this project. We believe that broad

Updated Response, p 25

community support for a project like this starts with a strong lead team and a wide base of community involvement.
PC-CCT/ TCC currently includes approximately 20 individuals engaged in the development of this proposal. As TCC begins negotiations with the City of Chelsea and DDA, our team will be expanded to include qualified members of the community to fill all necessary tasks.
Recently, we’ve added few EMU preservation students to the PC-CCT as grant writers. They are poised to begin work on grants, as soon as the DDA votes to support our proposal. A University of Michigan class entitled History Goes Green is scheduled for this fall. The class is taught by a member of TCC, and will offer opportunities to work on this historic yet sustainably designed project.
TCC is committed to building a strong, multi-faceted, intergenerational team to make this development a success. PC-CCT/TCC structure is outlined below.
Coordination and Communication - Jan Bernath, Joe Merkel, Tom Girard, John Frank
Project Oversight … Liaison with City and DDA … Proposal Development … Schedule … PC-CCT Communication … Community Outreach … Media and Advertising … Event Planning
Design Group - Tom Girard, Scott McElrath, Diane Good, Larry Bean, Rob MacLeod
Conceptual and Master Planning … Building Use Planning … Sustainability / LEED Certification … Construction Cost Estimating … Technical Investigation and Analysis … Environmental Hazard Management…Detailed Construction Documents … Contractor Pre-Qualification … Bidding … Construction Inspection (non-code)
Construction Group – members TBA
Construction oversight … Direct Supervision of contractors and volunteers … Direct Labor … Commissioning … On-Site Safety Monitoring …
Real Estate Management - Joe Merkel, Mark Creswell, Jan Bernath, Tom Girard
Business and Tenant Development … Tenant Leasing … Property Management
Business and Financial Management - Joe Merkel, Tom Girard, John Frank, Michelle McClellan, Jan Bernath, Elsie Swanberg, Kathy Clark, Jane Creswell
Business Planning and Analysis … Financial Oversight … Accounting and Reporting … Contracts Oversight … Grant Proposal Writing … Fundraising … Commercial Finance … Private Finance
See Professional and Personal Profiles for additional information on some of the key members of the PC-CCT and TCC.

Updated Response, p 26

TCC has continued to add new members, and qualify additional members of the team for key roles.
Construction/ Project Management: TCC has discussed in-kind shares partnerships with several construction professionals, and expects to add additional members shortly after the DDA moves forward with negotiations with TCC.
TCC has contacted several attorneys with specialties in preservation work, grants and tax credits. We expect to finalize selection shortly after the DDA expresses serious interest in negotiating with TCC.
Discussions are ongoing with several sub-contractors that would be interested in exchanging services for a share in the project equity (in-kind services shares). One such firm is Koch Masonry, who has worked extensively throughout Chelsea, Dexter and Ann Arbor, including landmark structures like the McKune House and the Clocktower complex.

Updated Response, p 27

Chelsea Connection Team - Professional and Personal Profiles: (alphabetical)
Larry Bean Michigan Department of Natural Resources and Environment Waste and Hazardous Materials Division 301 East Louis Glick Hwy. Jackson, MI 49201-1556 517-780-7842 Home: 204 Washington, Chelsea, MI 48118 Phone: Home: (734) 475-4648 email: BEANL@michigan.gov
Project Related Professional and Personal Experience:
• Currently Environmental Manager for M-DNRE, Jackson-Lansing District. Supervise staff responsible for enforcement of state and federal laws to protect and preserve the environment.
• Extensive experience as geologist and in-field environmental hazard enforcement authority.
• Extensive training on environmental hazards.
• Actively involved in numerous related professional organizations.
• Complete Curriculum Vitae available on request.
Community Connections and Involvement:
• Chelsea Resident since 2004. Involved in various community groups:
o Chelsea Citizens Advisory Committee for Water and Waste Water
o Chelsea Area Historical Society
o Chelsea Historical Depot Association, 2004 to present, Board Member
o Preservation Chelsea
Anticipated Roles in the Chelsea Connection (Re)Development:
• Oversight of Environmental Hazard handling, disposal and containment, in conjunction with City/ DDA, understanding City/ DDA will retain liability for contaminants.
• Assist with environment-related grant proposal writing.
• PC-CCT pre-bono; TCC in-kind services partner
Motivation for Involvement in this Project (in priority order):
• Maintain and enhance viability of downtown Chelsea
• Interest in continuing to add to Chelsea's vitality as a tourist destination
• Interested in preserving the historical small town character of Chelsea

Updated Response, p 28

Chelsea Connection Team - Professional and Personal Profiles - (continued)
Jan Bernath, MA Home: 238 Harrison Street, Chelsea, MI 48118 Phone: Home: (734) 475-5753 Cell: (734) 272-8422 Email: janbernath@yahoo.com
Project Related Professional and Personal Experience:
• 30 years as educator in professional and organizational development managing school-level, district-wide and state-wide school improvement initiatives and plans.
• 15 years as volunteer educator internationally in professional and organizational development in economically-developing countries.
• Experience in developing strategic plans, training, project monitoring and outcome measurement.
Community Connections and Involvement:
• Born and raised in Chelsea; member of last class to graduate from the high school on Harrison Street. Returned to Chelsea in 2006. Involved in various community groups:
o Adult Learners Institute of Chelsea, liaison to Washtenaw Community College
o Chelsea Area Historic Society, Member
o Chelsea Chamber Players, BOD
o Preservation Chelsea, BOD
Anticipated Roles in the Chelsea Connection (Re)Development:
• Assist with grant writing through PC-CCT
• Coordinator of communications within the Chelsea Connection Team
• Coordinator of volunteers within PC-CCT
• PC-CCT pro-bono; TCC venture capital and in-kind services partner
Motivation for Involvement in this Project (in priority order):
• Maintain and enhance the viability of downtown Chelsea
• Continue to add to Chelsea's vitality as a tourist destination
• Tell the story of our history with preservation and adaptive reuse of our historic buildings
• Enliven our knowledge of Chelsea’s history by connecting people to places
• Encourage walkability in Chelsea
Former Longworth Plating Site - Redevelopment Proposal
Revised Initial Response – July 14, 2010
The Chelsea Connection, LLC Page 29
Chels

Updated Response, p 29

Chelsea Connection Team - Professional and Personal Profiles - (continued)
John Frank Home: 138 E. Middle St., Chelsea, MI 48118 Phone: Home: (734) 475-7396 Email: jackiefrank@msn.com
Project-Related Professional and Personal Experience 46 years professional work experience (1956 – 2001, retired 2001):
• 10 years experience as research physicist
• 25 years experience in engineering and R&D management, including as Vice President of Engineering and Research, for Fortune 500 corporations
• 11 years as Senior Partner in international management consultancy, working with major corporations in business process improvement and strategy formulation
Community Connection and Involvement
• Downtown Chelsea resident for 19 years with wife Jackie
• Chaired Chelsea Area Fire Authority study team, served on Wastewater study team and on Library Expansion task force
• Chaired Chelsea Historic District Commission
• Received training in historic preservation from National Trust for Historic Preservation and from Michigan Historic Preservation Office
• Performed near-museum-quality restoration on our Chelsea home, now listed on the National Register of Historic Places
• Secretary-Treasurer, Preservation Chelsea
• As former board member, Blue Grass Trust for Historic Preservation in Kentucky, negotiated contract for restoration of a mansion of international significance
Anticipated Role in the Chelsea Connection (Re)Development
• Community Outreach
• Historic Restoration Research
• PC-CCT member, pro-bono
Motivation for Involvement in this Project
• Maintain and improve downtown Chelsea’s financial viability
• Promote Chelsea as a Destination
• Preserve Chelsea’s charm and historic character
• Foster civic pride

Updated Response, p 30

Chelsea Connection Team - Professional and Personal Profiles - (continued)
Tom Girard, PE Home: 320 S. Main, Chelsea, MI 48118 Phone: Home: (734) 475-3632 Cell: (734) 260-2087 Email: tgirard@umich.edu
Project Related Professional and Personal Experience:
• 27 years experience in design, design management, estimating, project management and commissioning of residential, commercial, institutional and industrial construction projects.
• Employed by the University of Michigan since 1993, as Mechanical Manager since 2000 for the Architectural, Engineering and Construction Department.
• Editor of the University of Michigan Design Guidelines since 1994.
• Extensive hands-on construction and woodworking experience.
Community Connection and Involvement:
• Downtown Chelsea resident since 1995, with wife Liz Geisler.
• Boy Scout Leader, Merit Badge Counselor. Committee Chair 2004-2009.
• Coach (Soccer and other sports) with Chelsea Recreation and Chelsea Soccer Club 1993 to 2007.
• First Untied Methodist Church of Chelsea: music program, confirmation mentor, mission, Habitat for Humanity.
• Two sons graduated from CHS in 2006, 2009
• Promote local, sustainable harvesting and milling of “gleaned” trees in Western Washtenaw County
Anticipated Roles in the Chelsea Connection (Re)Development
• Co-Leader of Design Group. Design of mechanical systems. Coordination of other engineering. Limited construction oversight. Reduced rate/ deferred/ at-risk compensation.
• Driving force in team organization, consensus building, proposal development.
• Organizer of prospective tenant Chelsea Artisans Cooperative.
• PC-CCT pro-bono; TCC venture capital, in-kind services partner, President.
Motivation for Involvement in this Project (in priority order):
• Maintain and enhance viability of downtown Chelsea
• Interest in sustainable design, adaptive reuse, preservation
• Maintain fiscal health of the City of

Updated Response, p 31

Chelsea Connection Team - Professional and Personal Profiles - (continued)
Diane E. Good Home: 7225 Bush Rd, Chelsea, MI 48118 Phone: Home: (734) 475-0159 Email: addiane@provide.net
Project Related Professional and Personal Experience:
• 23 years as Office Manager and Bookkeeper for family business.
• Experience in Quality Control, Computer Tech Support, Software Development and Drafting
Community Connections and Involvement:
• Lyndon Township resident since 1991
• Member of Chelsea Area Historical Society, Preservation Chelsea, Washtenaw County Historical Society
• Treasurer of Huron Hills Lapidary and Mineral Society of Ann Arbor
• Treasurer of Michigan Gem and Mineral Society of Jackson
Anticipated Roles in the Chelsea Connection (Re)Development:
• Maintaining PC-CCT and TCC spreadsheets and databases for
o Design Group
o Business & Financial Management
o PC-CCT pro-bono; TCC in-kind services partner.
Motivation for Involvement in this Project (in priority order):
• Passion for preserving 'tangible' remainders/reminders of both the “horse and buggy” era and the “early auto” period
• Desire to create a community multi-purpose space with a truly comfortable atmosphere
o Guiding Belief: We can develop a variety of affordable, cooperative-friendly, modular and adaptable spaces that will attract people and yet be viable economically.

Updated Response, p 32

Chelsea Connection Team - Professional and Personal Profiles - (continued)
Michelle McClellan, Ph.D. Home: 232 Jefferson Street, Chelsea, MI 48118 Phone: Home: (734) 475-7565 Office: (734) 647-5408 Email: michelle.lee.mcclellan@gmail.com
Project Related Professional and Personal Experience:
• Ph.D. in American history (Stanford University), extensive experience in researching, writing, and presenting on historical topics
• 10 years experience in teaching American history at the college level
• Specialized training in historic preservation with the National Trust for Historic Preservation
• Conceptualized, supervised, and won grant funding for public history projects involving university-community partnerships (Waterloo, Detroit, and Chelsea)
Community Connection and Involvement:
• Downtown Chelsea resident since returning to Michigan in 2004
• President, Preservation Chelsea
• Education Committee Member, Michigan Historic Preservation Network
• Board Member, Washtenaw County Historical Society
• Former Board Member, Chelsea Children’s Cooperative Preschool
• Parent of two children in Chelsea public schools
• Member, Chelsea First Advisory Committee
Anticipated Roles in the Chelsea Connection (Re)Development
• Signature Authority for Preservation Chelsea
• Grant writing, especially those related to preservation, history, education, programming
• Develop educational programs
• Facilitate community-university partnerships to involve University of Michigan students in rehabilitation project
• Historic Restoration Research
• Community Outreach
• PC-CCT pro-bono; TCC in-kind services partner.
Motivation for Involvement in this Project (in priority order):
• Maintain and enhance viability of downtown Chelsea
• Promote Chelsea as a tourist destination
• Preserve Chelsea’s charm and historic character
• Use historic places to teach about the past (K-12 education, university, and adult audiences)
• Interest in sustainable design, adaptive reuse, preservation
Former

Updated Response, p 33

Chelsea Connection Team - Professional and Personal Profiles - (continued)
Scott McElrath Home: 313 Railroad, Chelsea, MI. 48118 Phone: Home: (734) 562-2418 Cell: (734) 818-7252 Office: (734) 475-3660 Email: dangerousarchitect@att.net
Project Related Professional and Personal Experience:
• 25 years experience designing, managing, and administrating architectural/engineering building projects, including historic, institutional, commercial, industrial and residential work.
• Owner of Dangerous Architects PC, a downtown business in Chelsea since 1994.
• Historic Architect, as certified by the State of Michigan; State Historic Preservation Office (SHPO)
• Restored/Rehabilitated other historic downtown commercial buildings including:
o River Gallery
o Garden Mill
o Potting Shed, and many others
Community Connection and Involvement:
• Downtown Chelsea Resident since 2009. Recently rehabilitated 1857 era personal home within sight of the Longworth property. Previous Chelsea resident from 1994-2000.
• Member of Chelsea Rotary Club since 1997.
• Board member of the Chelsea Church of the Nazarene since 2007
• One daughter in Chelsea Schools
Anticipated Roles in the Chelsea Connection (Re)Development
• Co-Leader of Design Group. Manage and administrate architectural/engineering team from design development through and including construction completion.
• PC-CCT pro-bono; TCC in-kind services partner.
Motivation for Involvement in this Project (in priority order):
• Enhance downtown vitality through adaptive re-use of historic structures
• Provision of restored space for additional downtown businesses
• Diversity of Main Street Architecture
• Interest in sustainable design, adaptive re-use, and support of local businesses through construction/renovation projects.
Former

Updated Response, p 34

Former Longworth Plating Site - Redevelopment Proposal
Revised Initial Response – July 14, 2010
The Chelsea Connection, LLC Page 34
Chelsea Connection Team - Professional and Personal Profiles - (continued)
Joe Merkel Home: 2800 Sylvan Road, Chelsea, MI 48118 Phone: Home: (734) 433-9904 Cell: (734) 320-9828 Email: joseph.merkel@gmail.com
Project Related Professional and Personal Experience:
• Leased several million $ in commercial real estate
Community Connection and Involvement:
• Born and raised in Chelsea.
• Fundraisers for many Chelsea area organizations.
• Parents are long-time owners of Chelsea restaurant.
Anticipated Roles in the Chelsea Connection (Re)Development
• Real Estate Leasing.
• PC-CCT pro-bono; TCC in-kind services partner.
Motivation for Involvement in this Project (in priority order):
• Maintain and enhance viability of downtown Chelsea.
• Interest in adaptive reuse, historic buildings
• Assist and promote downtown businesses.
• Maintain fiscal health of the City of Chelsea.

Updated Response, p 35

Schedule and Phasing
PC-CCT /TCC, LLC has assembled a preliminary order and timing plan on major phases. This section was substantially revised for 4-15-10 submission to account for securing a tenant for the first floor of the Daniels/ Mack Buildings. Refer to Phasing Summary of Timeline, Funding, Debt and Value for anticipated schedule and costs for each phase. Minor modifications were made in this 7-14-10 submission due to compressed and overlapping schedule for the first three phases, to accommodate prospective tenants schedule expectations. However, funding model was not updated to coincide with these changes. Changes are expected to slightly reduce cost required in first three phases.
Phase 1 – RFP Response/ Review/ Negotiation
• Develop Letter of Interest and Initial Response to RFP. (completed – three times)
• Develop conceptual floor plans, renderings, estimates and other information as requested and required by the City/ DDA in follow-up response to RFP.
• Broaden PC-CCT and TCC to include additional resources in publicity, fundraising, business analysis and development, project accounting, and contracts administration.
• Research opportunities and begin writing grant proposals for historic preservation and renovation, downtown development, economic stimulus, and brownfield site adaptive reuse. (in process, but stalled pending positive action by DDA)
• Refine cash flow model as required.
• File application for The Chelsea Connection, LLC (completed)
• TCC leases the complex from the DDA to allow Phase 2 work: additional investigation, design, selective demo and roof repair in Daniels and Mack buildings, clean-up and floor sealing in Mack building, stabilization and weather protection in Livery.
Phase 2 – Finalize, Stabilize and Publicize.
• Broaden TCC, LLC to include additional resources, in graphic arts and display, construction and construction supervision, and other areas. Finalize business relationships.
• In conjunction with City/ DDA, remove environmental hazards where possible (especially liquids). Develop remediation and containment plan for remaining hazards, and best work practices to prevent further spreading hazards or endangering workers.
• Provide temporary weather protection for roofs.
Former

Updated Response, p 36

• Develop detailed as-built underground utilities plan, including dye testing and camera inspection as required.
• Develop Schematic Design and Construction Document level plans and details as appropriate for current and upcoming phases of work.
• Implement publicity and Venture Capital campaign: The Chelsea Connection, LLC. (Summer 2010)
• Adjust phasing/ funding plan.
Phase 3 – Raising the Roof First Floor Daniels Showroom and Mack
• Confirm lease commitment.
• Prepare for tenant move-in on first floor ASAP.
• Develop temporary power and disconnect unsafe existing power.
• Restore showroom: storefront, roof, ceiling, power, and lighting.
• Replace roof of Mack Building, including insulation. (Due to compressed schedule, repair options will be considered as well).
• Underground utility repairs and upgrades: city water, sanitary, very selective concrete floor slab demo. Replace/ upgrade electrical feed, new power distribution panel.
• Develop first floor public restrooms. (Due to compressed schedule and redefined program expectations, TCC now expects to develop public restrooms in first floor of Livery, rather than first floor of Mack. At minimum, Daniels/ Mack tenant will have access to employee restroom prior to occupancy.)
• Develop Mack first floor for Market use including concrete first floor cap.
• Temporary shoring for Livery 2nd floor and Livery roof (south end). Detailed structural assessment. Additional structural scope as necessary.
• Tenant occupancy.
Phase 4 – Putting on the Glitz. Back to the Mack – Second Floor
• Develop remaining infrastructure in Mack: electrical, lighting, HVAC.
• Redevelop Mack Building second floor public space and “office” area: restrooms, open stairs, elevator (prep for future). Patio access and prep for tenant.
Former

Updated Response, p 37

• Insulation, windows, floor for open portion of 2nd floor of Mack – prep for tenant.
• Tenant occupancy. (TCC has no firm commitment for this space at this time, but will make the space available for event rental as soon as space is occupiable).
Phase 5 – Back to the Mack Livery Roof and Apartments
• Remove and replace Livery roof, including prep for roof garden, but excluding green roof.
• First floor cap for Livery. Separation walls, insulation and heat for The New Craftsman Workshop and other storage tenants.
• Develop Livery Apartments:
o Egress stairs, floor framing, concrete floor with radiant heat, windows, insulation, power, HVAC, walls, kitchens, baths.
o Complete and partially furnish common areas for marketing effectiveness.
o New stair to roof addition, new rooftop common area, patio, prep for greenroof.
o Lease apartments and additional indoor parking if not fully leased by tenants.
Phase 6 – Loose Ends and Green Roof
• Connector Dock well fill in. Dock doors, stairs to back alley.
• Livery First Floor – additional storage fit-out for tenants, Toilet room.
• Interior public space touch-ups and trim.
• Completion of green roof.
• Exterior repairs, trim, paint, polish.
• Advertise, sell, and close on overall, fully developed, fully leased property.
Core Values and Resulting Goals:
A Discussion on Mission, Values and Vision of all stakeholders, (including The Chelsea Connection, The Chelsea DDA and The City and Community of Chelsea) as it relates to the redevelopment of the Former Longworth Plating site is included in Supporting Information. This supercedes discussion previously included in the Letter of Intent or Additional Information.
Worth noting: Values and goals stated in PC-CCT/TCC responses are echoed in reports released in the Chelsea First initiative, far more so than the need for additional parking.