Project Overview

Project Overview
Proposed Uses
Overview:
PC-CCT proposes adaptive reuse of all three buildings. (The rear tank building addition to the Livery Building would be demolished.) Uses described below are the basis of construction cost estimates, cashflow projections, and design loading. While they represent target uses, final use will evolve as negotiations with prospective lessees continue and as the PC-CCT further explores community needs with area residents in planning sessions to be held in the restored Showroom.
Prospective Tenant Profiles describe program (space, infrastructure) requirements of potential tenants. See Additional Information. Proposed uses within specific building areas and other building modifications are described below.
Based on proposed uses of the site and preliminary review of zoning requirements, PC-CCT believes rezoning of the site and zoning variances will not be required. PC-CCT will work to address all zoning related issues with City/DDA and all stakeholders.
Daniels Showroom (1940s Addition):
First floor: Restaurant with focus on natural foods. 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 or Microbrewery.
Egress: New public stair with artistic flair. New 3 stop limited use elevator will link Showroom first floor level and Mack Building first and second floors for ADA accessibility.
Mack Building:
First Floor: Public Restrooms. Indoor market, local produce, local artisans, bakery, and small retail shops. Second Floor: Portion of restaurant (overlapping from showroom rooftop patio), with performance space for live music or theatre.

Alternative: Pending additional analysis and final business model selected, first floor may include Shared User Market and Shared User Kitchen. See Additional Information – Prospective Tenant Profiles.
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: Chelsea Artisans Cooperative 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 or tenant-only 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).
Livery Building Rear Addition:
Demolished and replaced with impervious parking, a portion of which may be covered.
Consideration for an Outfitter:
PC-CCT 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 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.
Despite these reservations, PC-CCT will conduct additional research and attempt to attract an Outfitter if it proves to be the best fit for the community.
Conceptual Size
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.
Economic Impact
The proposed Chelsea Connection development will have significant, positive, short and long-term impact on the Chelsea area, including the following:
Economic Impact on Local Business:
Increase in foot traffic during a large portion of each day and week, due to the diversity of occupant uses. This foot traffic will increase the pool of potential customers for all downtown merchants.
Occupants/ tenants of the Chelsea Connection will have immediate and long-term need for many of the goods and services provided nearby. PC-CCT will purchase goods and services from local merchants for the construction and renovations, and will encourage tenants to follow suit. PC-CCT will work with tenants to identify needed goods or services and share this information with Chelsea Chamber of Commerce, DDA and individual merchants, so that they might expand their services to meet this need.
By hand selecting business tenants for the Chelsea Connection, and working with them on developing their business plan and market, PC-CCT can ensure that each is a “good fit” for downtown, rather than focusing exclusively on leasing to whatever will bring in the highest rent, potentially at the expense of existing businesses. For example, introduction of CVS Pharmacy in lower town Chelsea has cut into Chelsea Pharmacy’s once-strong market, threatening its long-term viability. Although CVS appears to be very successful, their success has come at the expense of Chelsea Pharmacy and other local retailers.
Economic Impact on City of Chelsea and its Residents:
Property tax and lease income: PC-CCT’s ultimate goal for The Chelsea Connection is to return it to the tax roles, at an appropriate value tied to its lease income. During the redevelopment, property will not be subjected to property tax since it will be owned by the City/DDA. However, leases will be structured to collect rent based on anticipated property tax. When property is eventually sold, leases will revert to triple net terms (except for residential component), at which time lessee will be directly responsible for property tax.
Property value appreciation: Improvements will result in significant increase in value and capital gain to the City/DDA when property is sold. PC-CCT understands Chelsea DDA has invested approximately $420k in the property since it was purchased in 2008. Due to recent corrections in local real estate values, PC-CCT believes it is in the best interest of the City/ DDA to retain the property while it is redeveloped, during which time it can be expected to increase in value and the real estate market to partially recover. With each improvement made by PC-CCT, property value will increase. If property is sold after property is fully developed as outlined in the proposal, PC-CCT projects the property will be worth approximately $1.6M in the current real estate market, but substantially more as the regional market continues to recover. Analysis is based on anticipated lease rates and excludes inflation and readjustment/ recovery in the real estate market that we expect will occur during this period of time.
Economic Impact on Chelsea Area Workforce and Prospective Business Occupants:
Job Stability and Growth
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 PC-CCT will maximize the use of local labor and skilled trades.
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.
The PC-CCT 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. Chelsea Artisans Cooperative and Mack first floor flexible use area 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.
Management Plan for Purchase
While PC-CCT is not in financial position to purchase the subject property and finance needed improvements for redevelopment, we are in position to manage the redevelopment, marketing, leasing and ultimately sale of the site on behalf of the City of Chelsea, at virtually no cost to the City. In addition, PC-CCT will work actively to raise a portion of the needed funding through community-wide campaigns and aggressive grant proposal writing. See Preliminary Financial Plan for additional information.
PC-CCT is confident that the proposed arrangement would be in the best interest of the DDA, the City and PC-CCT. However, PC-CCT is willing to discuss alternate arrangements that would result in the successful rehabilitation of the property. The opportunity for redevelopment of the entire property for adaptive reuse would showcase Chelsea as a place where residents and government work together for the common good of both the business community and the enjoyment of the community at large. In short, it would be a model for other communities to emulate.