City May Give OK for Scrap Sale of Historic Industrial BrownHoist Buildings

Staff to Recommend $11,528 Salvage Deal, $295,000 Marketing Effort

September 20, 2009
By: Dave Rogers

After 135 years, icons of the industrial age may soon disappear from Bay City.

And, the city is considering tossing another $295,000 in the pot to market the site where they are now located and to obtain federal funds for other city projects.

After some initial interest, developers have declined to consider rehabilitation or reuse of the historic Industrial BrownHoist buildings at the city's Uptown at RiversEdge property on the Saginaw River.

"Developers have consistently stated that they were not interested in paying a premium to rehabilitate these buildings and, in fact, preferred that the city completely clear the site of all structures," said City Manager Robert V. Belleman.

However, the city is not including the red brick power plant and the octagon-shaped guard house at the 11th Street entrance in the demolition plan and will remain, according to the manager.

The city has actively marketed the reuse of the former IB property, including the adaptive reuse of the remaining large manufacturing structures, referred to as the Kahn, the Corner and the Foundry buildings, the manager said.

Windows, roof and large wall sections in the buildings have deteriorated and collapsed in some areas, he said. Rowe Engineering prepared a "buy job" bid package, used where the salvage value of the structure is greater than the demolition costs.

On Monday, Sept. 28, the city commission will consider the manager's recommendation to award a contract to the lone bidder, Bierlein Companies, Inc., of Midland, for the removal of the three buildings in question.

At the same meeting, the commission will hear a proposal from Steven Black, deputy city manager of community development, for a budget amendment to appropriate $100,000 from the Economic Opportunities Fund for the RiversEdge Development Corporation (RDC).

RDC is a non-profit public/private partnership, 501c4 corporation, that needs the funds for marketing the Uptown site, according to the manager.

"More aggressive marketing" of the site will include continuing work with Mike Hayes of Main Street Consulting, enhanced advertising, targeted outreach to developers working with consultants and other costs, the manager says.

RDC has raised funds from area foundations, secured a small loan from the Bay County Growth Alliance, obtained contributions from RDC board members and has applied for a $250,000 line of credit.

The city manager said the RDC board "is functioning remarkably well," noting that private sector members have provided free services and even traveled out of state to investigate opportunities.

Meanwhile, the city is also considering a $195,000 contract with the Ferguson Group (TFG) to assist the city in obtaining federal funds and resources, with the manager citing "an era of unprecedented federal spending."

TFG is the largest lobbying organization representing local governments in Washington, D.C.

The manager said TFG appears to be uniquely positioned to aid efforts at redeveloping the Uptown site, especially in needed public infrastructure. ###