When 18,000 SF complex is worth $2M in 3 years, that’s maybe $60k/year. Tack in utility tap fees of at least $100k, and DDA/ City in aggregate is “above water” in 3-4 years.
Note: additional out of pocket expense for DDA: $0
DDA Plan B:
DDA currently is invested for say $450k.
Livery and Mack Demolition: $70k + additional environmental professional fees, legal fees, soft cost for Hanifan’s time etc.: easily $100k total, could see this doubling with legal fees.
Daniels Green space and Mack face restoration: $50k minimum
Livery redevelopment (parking, retaining wall, entertainment venue, lighting, public restrooms etc.) $500k ballpark.
Mack Vanilla boxing (bear in mind they will not have the luxury of pro-bono/ in-kind etc.) : $700k ballpark, could be $1M if they’re not careful.
Sale when 7500 SF Mack is complete: $800k.
Net loss: $1M ballpark.
Tax revenue: maybe $25k/ year.
Maintenance/ operating cost for new public outdoor spaces: Not sure, maybe $5-10k? …but more than with Chelsea Connection Chelsea in any case.
Chelsea is not likely to ever get “above water” with this scenario.
- The DDA states that they cannot “afford” to reuse the livery and Daniels Showroom, because they don’t have enough money. Their plans do not call for just stabilizing and repairing the buildings, but for “white box renovations” which would make them move in ready. We don’t feel that this is necessary at the present time and may not be what a developer may want, as the industrial feel is very appealing in the present marketplace.
- All three buildings have been found to be eminently re-useable by qualifies professional architects and builders who have each looked at these buildings.
Historic Reasons
- Adaptive reuse of historic buildings is cited as a Planning Guideline in Chelsea City Documents for the future growth and vitality of Chelsea.
- The Central Business District Management Strategies Goals include:
- Preserve the historic, small town character of downtown Chelsea
- Ensure the renovations of historic buildings in the downtown area to retain the existing historical and architectural integrity
- Ensure new infill development is compatible with the downtown’s historic architecture…and character.
- The word historic occurs 29 times in Chelsea Comprehensive Plan as a stated value.
- Janet Greenstein Potter, author and nationally recognized expert on railroads and railroad buildings has written a book entitled “Great American Railroad Stations” which was commissioned by the National Trust for Historic Preservation. She has stated that the Train Depot, Livery and Chelsea House Hotel (presently the Farmers Supply) are
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