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)

Thursday, June 21, 2012

Jan Bernath's Comments 6.21.12

My name is Jan Bernath, and I am on the Preservation Chelsea Board of Directors.

Janet Kreger of the Michigan Historic Preservation Network has just spoken about the time constraints that were determined by the Kadushin/Beal Team and their legal counsel to be too tight to complete what needed to be done.  Additionally, however, I believe we also arrived at the point of the withdrawal of the Kadushin/Beal proposal due to misunderstanding.  Specifically, the resolution passed by the DDA at the meeting on June 7, 2012 placed new requirements on the developers beyond the goals and requirements of the request for proposals issued by the DDA and to which Kadushin/Beal responded.  One key misunderstanding stemmed from how the developers were to demonstrate their financial ability to do the project.    
Goal 2 of the RFP stated that the “offer to purchase must be accompanied by a firm commitment from a financial institution or equivalent source for a minimum of $1 million for investment in the property and improvements.” Accordingly, the Kadushin/Beal development team presented a financial package of $3.7 million in their proposal to redevelop the Longworth Property.  They presented their sources for their redevelopment dollars including private equity, incentive financing, debt financing, and the equity investment of one of the project partners who intended to take up residency in the building.  They presented these ‘equivalent sources’ – equaling well more than the $1 million minimum - knowing that a firm commitment from a financial institution would not be possible this early in their project.

However, the resolution of June 7 stated that “the agreement must be accompanied by the irrevocable bank letter of credit of $1 M or other security acceptable to the DDA to secure improvements in the property and to cover any cost or damages incurred by the DDA and the City for site restoration or removal of incomplete improvements if the project fails, after satisfaction of due diligence contingencies.”  Just as the “firm commitment from a financial institution” requested in the RFP was not possible, it was even less possible to secure an “irrevocable bank letter of credit of $1 M” in this short timeframe.  Unable to ask questions of Chelsea leadership about what further they could add about “equivalent sources,” the Kadushin/Beal attorney told them to back away from the project. 

As you can imagine this resolution caused misunderstanding between the DDA and the developers. Sadly, the Kadushin/Beal team withdrew their proposal based on this misunderstanding.

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