Former
Longworth Plating Site
Background
on Proposed Redevelopment and RFP DDA-#1-2015
July
11, 2015
Activity
Leading up to first RFP
Chelsea
DDA purchased the former Longworth Site in December 2008.
In
April 2009, the Chelsea DDA conducted a town hall meeting at which
the landscape architect they hired (Howard Deardorf) presented four
options for the site, and recommended one of the four options (Option
B). Option B called for demolition of the Livery and the Daniels
Addition and was the only proposal that did not call for the complete
demolition of all buildings. It was selected as the “preferred
choice”. However, attendees were not given the opportunity to vote
for retaining all buildings. The DDA assured the 50+ citizens in
attendance that there would be other opportunities for public input.
This meeting was recorded on DVD and is available for review.
At
their regularly scheduled 6-4-2009 meeting, the DDA voted to demolish
the car showroom (Daniels Addition) and the Livery. Demolition was to
take place between the 2009 Summerfest and the Chelsea Community
Fair.
In
July 2009, the public began to hear about the impending demolition
and a group of concerned citizens met and formed the Save the
Livery Coalition (STLC). Citizens approached the Chelsea City
Council on 7-28-2009 to say they did not want the Livery to be
demolished. Others offered advice on how to handle contamination
without putting the public at risk through demolition.
Upon
the recommendation of the Council, several members of the STLC
attended the 8-6-2009 DDA meeting and spoke to the same issues
addressed to the Council. The DDA granted the group two weeks to come
up with a firm proposal.
In
the summer of 2009, Mark Creswell contacted some members of the STLC
and the Chelsea Area Historical Society (CAHS) and proposed that the
Great Lakes Zoological Society (GLZS) buy the former Longworth
Property as a home for an educational, small animal conservatory.
STLC supported Mark’s proposal. Mark made a proposal to the DDA on
8-20-2009, and the DDA approved a 60 day stay of demolition. Shortly
thereafter, Mark withdrew his proposal due to negative feedback from
City Staff. (Note, the GLZS sought and eventually found a home for
the conservatory, which it opened in the fall of 2011 in the
Dexter-Ann Arbor area.)
The
STLC continued to advocate for saving the Livery. They drafted and
circulated a petition to halt demolition. The petitions were signed
by over 700 Chelsea area citizens and presented to Chelsea City
Council and the DDA.
As
a result of several meetings in December 2009/January 2010, several
members of the SLC, combined with several additional members of the
community to form the Preservation Chelsea - Chelsea Connection
Team (PC-CCT). This group’s primary focus was on developing a
viable adaptive reuse project for the former Longworth site that
would be an asset to the community. The group is essentially a
sub-committee of Preservation Chelsea (PC), although it is an open
group that includes members that are not members of PC.
RFP
DDA-001 and PC-CCT/ TCC Submittals
January
2010
In
January 2010, the Chelsea DDA/ Chelsea City Manager issued RFP-001,
which solicited proposals to purchase and develop the property.
February
2010
On
2-18-10, the PC-CCT submitted an “out of the box” Initial
Response (proposal) to redevelop the three buildings that
make up the Former Longworth Plating facility in response to DDA
RFP-001. The proposal included adaptive reuse of virtually all
portions of the buildings, except for the tank addition on the south
side of the Livery. The proposal called for the PC-CCT to renovate
and redevelop the buildings while the DDA would continue to own the
property. Funds would have come from the DDA, from grants applied for
by PC-CCT, and from fundraisers conducted by PC-CCT. Profit from the
completed project would have gone to the DDA. PC-CCT’s proposal was
the only proposal submitted in response to RFP DDA-001.
March
2010
On
3-18-10, at their March meeting, the Chelsea DDA discussed the
2-18-10 proposal and agreed to further discuss the proposal and to
take action at the April DDA meeting. It was obvious to PC-CCT
members in attendance that the proposal was not well received by the
DDA, and that a favorable vote was not likely. Key points of
contention by DDA members appeared to be (no formal action was
taken):
Ownership
of site.
Many members of the DDA made it clear that they wanted
to sell the property, and would not consider offers that would
involve DDA ownership any longer than necessary. Paraphrasing one
DDA member: “the DDA is not and should not be in the business of
developing and managing real estate”.
Financial
Plan/ DDA Investment.
Several members of the DDA did not want to
invest further in the property. Though the PC-CCT proposal included
some financial information, it did not include details about
where the money would come from (other than to suggest that the DDA
invest $900k+ additional into the property that many in the DDA
wished they had never purchased).
Parking.
Some DDA members felt the site must include additional parking for
the downtown area.
Daniels
Addition. Some DDA members felt the Daniels addition should be
demolished, either for aesthetic reasons, or to improve traffic, or
to add some green space.
To
garner serious consideration by the DDA, PC-CCT regrouped and took a
few key actions:
Preservation
Chelsea (PC) (a registered 501(c)(3) non-profit organization)
discussed and voted not to pursue purchase, because it was beyond
their core mission.
At
a PC-CCT meeting, several members agreed to form a new Limited
Liability Corporation, with the expressed purpose of purchasing and
redeveloping the former Longworth site through adaptive reuse of the
buildings. Paperwork was filed in Lansing under the name The
Chelsea Connection, LLC (TCC)
Members
of PC-CCT contacted Kincaid–Henry, a Lansing based adaptive reuse
focused contractor/ developer, in hopes of encouraging their
involvement in the project, either as a partner with TCC, LLC, or as
a separate entity. TCC gave K-H a wealth of background information
on the property.
April
2010
TCC
compiled supplemental information to amend the 2-18-10 Initial
Response proposal, in hopes of addressing the DDA’s concerns and
successfully negotiating sale of the property to TCC. The
Supplemental Response proposal was submitted from TCC to the
DDA/ City Manager at the 4-17-10 DDA meeting. The proposal included
sale of the property to TCC. The proposal also included additional
financial data, a revised development schedule and letters of intent
from The New Chelsea Market (a prospective tenant for 4000 SF on the
first floor of the Mack Building) and Chelsea State Bank. During
discussion, a motion was made to begin negotiations with TCC on the
sale of the property. As discussion continued, representatives from
Kincaid-Henry requested that the DDA extend the RFP response period
for 60 days to allow them to submit their own proposal. DDA members
discussed and agreed to add an additional 30 days (90 days total), so
that the DDA could decide what their vision was for the property. The
motion was withdrawn, and the DDA voted instead to extend the
response period to mid-July.
The
DDA conducted a special meeting on 4-27-2010, which appeared to have
two intended purposes:
Allow
the DDA to develop a clear vision for the site.
Numerous ideas
and issues were discussed, but the DDA did not appear to emerge with
a clear, written vision for the site.
Introduce
the Kincaid-Henry (K-H) team, and to share some of their initial
ideas.
K-H discussed the potential for developing the property as
an incubator for small businesses, with the DDA and/ or City
continuing to own the property, but also discussed potential to
purchase and develop the site through adaptive reuse of the
buildings.
The
DDA/ City Manager posted an extension to the RFP DDA-001 (due
7-14-10, 1pm), but did not otherwise amend the RFP.
May-June
2010
TCC
continued to meet every 2-3 weeks to “keep things moving slowly”
on their proposal, expecting that it would be a back-up plan to
Kincaid-Henry’s proposal.
Members
of PC-CCT/TCC attended tax credit seminars and the Michigan Historic
Preservation Network conference, to gain additional insight on
applying for tax credits and structuring non-profit/ for-profit
partnerships, such as would exist between PC and TCC.
July
2010
On
7-6-10, TCC was notified that Kincaid-Henry would not be submitting a
response to RFP DDA-001, due to other priorities and a lack of viable
tenants. They suggested that the buildings continue to be viable for
adaptive reuse.
TCC
confirmed continued intent by The New Chelsea Market to lease the
first floor of the Mack building, but with the stipulation that they
must be able to move in before the holidays 2010.
TCC
submitted an Updated Initial Response on 7-14-2010, prior to
the amended due date.
The
DDA took no action on the Updated Initial Response submitted by TCC
at the July DDA meeting, agreeing to vote on the proposal at the
August meeting.
August
2010
Members
of the Chelsea community organized the Jackson Street Jam, to raise
awareness and interest on the plight of the former Longworth
property. The event was held on 8-6-2010, and included live music and
speeches from local groups and Nancy Finegold of the Michigan
Historic Preservation Network.
TCC
issued a “Follow-Up to 7-14-10 Updated Initial Response” letter
to the DDA on 8-16-2010, highlighting last minute developments prior
to the August DDA meeting.
At
their regularly scheduled 8-19-2010, the DDA voted to reject the TCC
proposal and offer to purchase for $200,000. The DDA also voted to
move forward with the demolition of the Livery and Showroom.
Fall
2010
In
response to the DDA’s actions, many members of the community
expressed their concern about the decision through editorials, and
public comment at DDA and City Council meetings.
The
PC-CCT continued to meet, though with less regularity than when
PC-CCT/TCC proposals were being developed and reviewed.
DDA
president Mike Jackson resigned from the DDA in late 2010.
2011
Two
workshops relating to tax credits were held at the Chelsea District
Library during winter 2011 that were sponsored jointly by
Preservation Chelsea and the DDA. Deborah Stuart, Community
Assistance Specialist from the Michigan Economic Development
Corporation presented information on programs and services for
downtown revitalization. Robert McKay from the State Historic
Preservation Office and the Michigan State Housing Development
Authority presented information on the federal historic preservation
tax credits.
However,
activity on the former Longworth site was far less pronounced and
visible in 2011, due to the DDA refocusing its priorities on
developing and refining its Comprehensive Downtown Plan, which was
conducted by Howard Deardorf. Though it did not appear that proposed
projects had a final “ranking”, it appeared to the community that
other projects were a higher priority, including:
Implementing
streetscape improvements, including “bumpouts”, to quiet
vehicular traffic and improve pedestrian safety.
Providing
pedestrian access to the municipal parking lot near the Purple Rose
Theatre.
Leasing/
purchasing/ developing former Palmer Ford parking lot (south of the
Palmer Auto Service building and lot.
In-coming
DDA president Pete Flintoff spearheaded a Residential Equivalency
Unit (REU) credit program to be funded by the DDA. The program was
approved by the DDA and went into effect in July 2011. The program
was viewed to be a “game changer”, in that developers (including
restaurateur Jon Carlson who toured the site in August 2010) often
cited the high cost of REUs as being a key roadblock to development
downtown (not just in the former Longworth complex). No applications
have yet been submitted for the program, but all parties concur that
it will help foster development.
Historic
Downtown Chelsea was added to the National Register of Historic
Places in 2011. After many months of arduous work, a small group of
folks (especially 2011 Citizen of the Year, John Frank; then DDA
member Jim Myles; Chelsea Area Historical Society member Cary
Church), completed all documentation necessary for this prestigious
designation. The application was approved by the National Parks
Service in the spring of 2011. The presentation event held in June
2011 included speeches by local politicians and culminated with the
presentation of the plaque. The Daniels showroom, Mack Building and
Livery Buildings are all included as “contributing buildings” for
the register (unlike portions of downtown in which historic character
of the building was destroyed or where newer structures were added.
In so doing, the National Park Service, and Michigan State Historic
Preservation Office (SHPO) cited the former Longworth Complex (except
for small tanks addition in the back) as being historically
significant.
Sometime
in 2011 (possibly earlier?), City Manager John Hanifan secured grant
funding for abatement of asbestos, and possibly other contaminants in
the former Longworth buildings.
In
late August 2011, PC became aware of a window rehabilitation training
program offered through the Michigan Historic Preservation Network
(MHPN). The program trains under-employed contractors how to restore
historic wood windows and helps the host site by getting some windows
restored free of charge. The PC board approved Tom Girard to submit
an application on behalf of the PC for conducting the training in the
Longworth complex. The DDA rejected the idea at their August meeting,
due to inadequate information about the program. Days later, armed
with additional information, the Chelsea City Council unanimously
approved the application. The PC application was submitted to the
MHPN, and MHPN judges toured the site in September. Though Chelsea
was among the three finalists, Muskegon was ultimately selected to
host the workshop, which was held in November 2011.
At
an early fall meeting, it was stated that the Longworth Property
would be listed for sale in March.
An
entrepreneur looking for showroom and workspace was referred to PC by
MotorCities. In November 2011 Tom Girard began discussions with the
potential tenant that is targeting Chelsea or one other historic
downtown as the future site for a professional and teaching studio/
gallery for southeastern Michigan artists (web-based and
on-location)/ event and performance space that could occupy all of
the Daniels Addition, the Mack Building and possibly a portion of the
Livery. Discussions continue in 2012.
In
November 2011, PC discussed strategies for saving the former
Longworth buildings with staff from the Michigan Historic
Preservation Network, including fund-raising professionals. As a
result, PC is preparing to organize a community-wide fundraising
campaign to purchase and stabilize threatened historic buildings in
Chelsea. This represents a clear departure from the past PC stance
that PC should not purchase buildings. While this remains true, PC
recognizes that fund raising within the community can only be
supported by a non-profit entity, and that many grants are targeted
specifically to non-profits. PC remains firm on desire to get these
buildings back in the private sector as soon as practical.
In
December 2011, the PC board elected two new members: Cathy Bean and
Tom Girard, both of whom have been actively involved in advocating
for the adaptive use of the former Longworth complex.
State
of Michigan historic preservation tax credits expired December 31,
2011 under the direction of Governor Rick Snyder. However, the
federal tax credit program continues, which can account for as much
as 20% of the project cost for redevelopment on properties like the
former Longworth site.
Other
potential buyers have been rumored to have examined the property in
2011. No formal offers have been received.
2012
At
the January 12, 2012 work session, DDA members shared their opinions
about how to proceed with the former Longworth site, and City Manager
John Hanifan stated a brief summary of past history. No formal action
was taken. An article posted in the Chelsea Standard stated what many
in attendance thought – that the DDA had informally decided to move
forward with demolition of all but the Mack Building.
The
DDA has not issued a formal vision for the site, beyond what is
listed in the two year old RFP DDA-001. The DDA has not issued
another formal RFP or publicly listed the property for sale.
PC-CCT
and TCC received no official (written) response to, or feedback or
direction on the Initial Response (2-18-2010), the Supplemental
Response (4-17-2010) or the Updated Initial Response (7-14-2010).
January
2013
The
DDA announced the buildings were for sale for $1 and no tax
abatements but without the
$1 million commitment any reasonable offer was going to be consider.
An RFP was posted on the city webstie.
Preservation
Chelsea members contacted many companies from the list Michigan
Historic Preservation Network of redevelopment companies . Postcards
were sent, phone calls were made, networking was used to draw people
to this unique opportunity.
May
31, 2013
Two
proposals were presented to the DDA: Prochaskra/Zachard for housing
and retail and The Longworth Building Development Team headed by
Kadushin and Beal for mixed retail use and lofts. Both would use
state and historic tax credits and require time to secure these.
Pollock's
letter indicated the wish for the DDA to support the Longworth
Development Company's request for a tax abatement on the property.
The tax abatement would negate 100 percent of the taxes on the
property at first, but would gradually expect more taxes over a
maximum period of 12 years, as decided by the Chelsea City Council,
before putting the property entirely back on the tax rolls. The
negated taxes would total about $10,000 at most.
June
8, 2013
At
the DDA meeting, the following motion was made and seconded:
"Whereas,
the DDA's Request for Proposals (RFP) has solicited two proposals,
one by
Kadushin/Beal
development team and another by the Prochaska/Zachary development
team.
Neither
proposal has demonstrated the financial commitment as requested. Each
proposal
requests
tax abatements from the City which are beyond the authority of the
DDA to accept or
obtain.
The mixed use of the Kadushin/Beal proposal is the most viable.
Be
It Resolved, that the DDA invites the Kadushin/Beal team to submit
its draft agreement
to
the DDA on or before June 21, 2012, for acquisition and development
of the Longworth
property
on the conditions and requirements of the RFP with the following
modifications:
The
agreement must be accompanied by the irrevocable bank letter of
credit of $1M or
other
security acceptable to the DDA to secure improvements in the
property."
June
21, 2013
In
a June 19 letter to City Manager John Hanifan, architect Alexander
Pollock, who was a part of the development team, said the 110
Longworth Building Development Company was no longer interested in
the project.
In his letter, Pollock wrote that the developers
could not accept the additional condition set forth by the Downtown
Development Authority on June 7, which included a letter of credit
for $1 million from a bank by the end of a 90-day period.
"In
particular, the letter of credit, the short due diligence period, and
reverter are unrealistic and unreasonable and we will not undertake
the business risks to proceed under these conditions," Pollock
wrote.
The potential $3.7 million development would have
turned the buildings at the Longworth property into a mixed-use set
of buildings, which would have included a restaurant, lofts and a
pottery studio, as well as an outdoor plaza.
October
29, 2013
The
Daniels Showroom was demolished.
October
17, 2014
The
livery was demolished.
Summer
2015
Parking
was installed where the livery once stood. RFP DDA #1-2015 was
posted on the city website for the Mack Building . Preservation
Chelsea wrote a letter,to the DDA for the July 16 meeting,
distributed by Pete Flitolft and copied to the City Council,
requesting that the RFP proposal acceptance date be reset to November
1, 2015. PC expressed a desire to form a working partnership with
the DDA to redevelop the Mack Building.
