CALL TO ORDER.
The Jackson City Council met in special session in the City Council Chambers and was called to order by Mayor Jerry F. Ludwig at 6:30 p.m.
ROLL CALL.
Present: Mayor Jerry F. Ludwig and Councilmembers Carl L. Breeding, Robert B. Howe, Daniel P. Greer, Kenneth E. Gaiser, Andrew R. Frounfelker and John R. Polaczyk-7. Absent: none.
Also present: City Manager William R. Ross, Deputy City Attorney Susan G. Murphy and City Clerk Lynn Fessel.
ADOPTION OF THE AGENDA.
Motion was made by Councilmember Howe and seconded by Councilmember Polaczyk to adopt the agenda. The motion was adopted by the following vote. Yeas: Mayor Ludwig and Councilmembers Breeding, Howe, Greer, Gaiser, Frounfelker and Polaczyk-7. Nays: 0. Absent: 0.
PUBLIC HEARING TO RECEIVE CITIZEN COMMENTS REGARDING THE DEMOLITION OF THE ACME BUILDING, 600 N. MECHANIC STREET.
Mayor Ludwig opened the public hearing. The City Clerk noted that no correspondence was received. Margaret Riggle, 634 N. Mechanic Street, spoke in favor of and asked what is included in the demolition. Amy Torres, Director of Economic Development, The Enterprise Group, Inc., read and summarized the following public comment:
Project summary:
Since the discovery of contamination at the ACME Building, the original site envisioned for the first phase for Armory Arts Village, The Enterprise Group has pursued potential funding sources and developers for its development and/or demolition.
Recently, two sources of demolition funding have been identified through aggressive efforts by both the City of Jackson and Congressman Mark Schauer.
* Through the Neighborhood Stabilization Program Grant Application submitted by the City of Jackson, MSHDA awarded $1.7 Million in funding, $375,000 of which was awarded to the City, and is to be used for demolition of the ACME Building. These funds will be passed through the City to The Enterprise Group as building owner for demolition of the building.
* Congressman Schauer was able to earmark $332,500 in the Department of Housing and Urban Development Appropriations Act, 2009 (P.L. 111-89), signed by President Obama on March 11, 2009, which provided HUD Economic Development Initiative (EDI) funds for special projects. These funds are earmarked to The Enterprise Group of Jackson, Inc., for “demolition of a vacant structure on a blighted city block” (ACME Building).
Another funding partner to achieve demolition is the JCBRA, which approved funding for The Enterprise Group for Cleanup Planning. The funding is eligible under the EPA Assessment Grant, and provides the necessary environmental evaluation, storm water retention planning, preparation of bids and specifications, coordination with MSHDA and MDEQ, solicitation and selection oversight of contractors, etc. to demolish the building.
To capitalize on the use of these funding sources in an extremely expedited timeframe, a great deal of coordination and innovative thinking is required to meet the challenges of both documenting the demolition of buildings that had once been submitted for nomination to the National Register of Historic Places; and also protecting the public health and welfare while demolishing buildings identified as being located over significant levels of contamination.
Collaborative efforts by The EG, City of Jackson, County Brownfield Redevelopment Authority, Envirologic Technologies, MDEQ and MSHDA are in progress for completing the Environmental Reviews required for both demolition funding sources. Part of that Environmental Review process involved the 6/10/09 issuance of a Letter of Adverse Effect by SHPO, due to the documented historic record of the buildings and surrounding industrial area. The letter spelled out details for The City, as the designated “Agency” to resolve the adverse effect.
A response to the letter accompanied by a required Case Study (again a collaborative effort by the City of Jackson and The Enterprise Group) was hand-delivered on 6/25/09 by staff representatives from Representative Griffin's and Congressman Schauer's offices. In spite of much of the negative commentary in some of the local media, I wish to express my opinion of the unusually rapid response SHPO provided to the letter submitted by the City. Considering the Independence Day holiday, required furlough days, and the fact they are moving their offices, they were extremely responsive and willing to expedite this project, providing a letter accepting the need for demolition on July 8, 2009.
This public hearing is to further comply with the National Advisory Council on Historic Preservation requirement for public comment, before demolition can occur. A required Memorandum of Agreement between SHPO, The Enterprise Group, and the City of Jackson is being completed, and arrangements for additional historical documentation are being considered for compliance.
With respect to the demolition and associated environmental concerns, it has been determined by all parties that in order to meet the stringent time constraints for these funding sources, the immediate goal is to demolish the building, leaving the floors and foundations intact, so as not to exacerbate contamination located underground. If there were no time constraints on the funding, environmental and engineering solutions could be evaluated to remediate and cap the property, however, we are unable to consider those solutions at this time. Therefore, I WISH TO STATE FOR THE PUBLIC RECORD THAT THE IMMEDIATE RESULT OF THE DEMOLITION EFFORT WILL BE A SECURED FENCED AREA WITHOUT REMOVAL OF FLOORS AND FOUNDATIONS. We consider this demolition the first phase of redevelopment of this site, and must seek other funding sources for ultimate reuse of the site as a parking lot in compliance with the approved PUDD.
Comment regarding demolition of the ACME Building, 600-626 N. Mechanic Street:
The Enterprise Group of Jackson, Inc. owns the buildings through a LLC, and hereby supports demolition of the buildings, based on the following:
* The EG and the community must capitalize on funding while available.
* The buildings are located within an approved Armory Arts Village PUDD, calling for demolition of the buildings and reuse as a parking lot and open space.
* The City targeted the Acme Building demolition in their NSP Grant Application as critical for the successful redevelopment of the Armory Arts affordable housing community and Grand River ArtsWalk. The building is not only blighted, but has significant environmental conditions, rendering it useless.
* Other public fund involvement and privately leveraged funds involved with the Armory Arts Village complex include:
¨The Armory Arts Village (AAV) is a MSHDA-supported live-work residential complex in downtown Jackson with an investment of over $11 million.
¨The presence of vacant, blighted buildings and underutilized buildings in the immediate vicinity contribute to the downward spiral for this part of the city. The demolition of the ACME building will ultimately allow green space to provide significant parking, which is a vital portion of the development and critical to the success of the Armory Arts Village.
¨Directly to the north of the Zoerman Clark building is the Art 634 building, where a local developer has created affordable studio and retail space for artists. These developers and artists have invested in an area they expect to be revitalized through the approved plans for the area. This demolition project will compliment the overall artist's community under development.
¨Great Lakes Home Health and Hospice (GLHHH) is housed in a state-of-the-art building on the corner of Armory Court and Cooper Street, adjacent to the AAV project. In 2004, GLHHH committed to spur the AAV development by relocating within the City of Jackson. They invested over $5.5 million in their new building and relocated their 125 employees.
¨Jackson Orthopedic Specialists project - Dr. Doane invested $650,000 to construct a new facility just north of GLHHH, again, with the hopes that the PUDD and AAV projects will be carried out. His project was supported by a City Brownfield Redevelopment Authority Brownfield Plan.
¨The City is constructing a $2.1M Grand River ArtsWalk project (funded with MDOT, MDEQ, CDBG, EPA, City of Jackson PIF and Water funds). The ArtsWalk extends from downtown, directly in front of the Acme building, and through the center of the Armory housing project. The ArtsWalk is a shovel ready project slated for construction in Spring of 2010. Once the ArtsWalk is constructed, there would be significant additional cost for the repair of any damage to the ArtsWalk due to heavy equipment needed to demo the Acme building at a later date.
¨The Acme building borders the City's NSP Target Neighborhood. The building was identified as a key property in the City's application to stabilize the deterioration that is occurring in this neighborhood through the removal of blighted buildings. Moreover, there is a critical timeline requiring a demolition contract be signed prior to September 1, 2009. If there is any delay in the process of committing the funds for the demolition, the City will request authorization from MSHDA to reallocate those funds to other projects.
* Significant environmental investigation has revealed factors which support the difficulty for reuse of the property other than demolition, to include:
¨The property is classified as a “facility” as defined under Part 201 of the Natural Resources and Environmental Protection Act (NREPA) as a result of previous investigations including (but not limited to):
·Envirologic Technologies Phase II Site Assessment dated October,
1997;
·AKT Peerless' Subsurface Investigation dated January, 2003;
·AKT Peerless' Baseline Environmental Assessment dated February, 2003;
·AKT Peerless' Phase I Environmental Site Assessment Addendum dated September 30, 2003;
·AKT Peerless' Phase II Summary Letter dated June 28, 2004;
·AKT Peerless' Supplemental Subsurface Investigation dated December 3, 2004;
¨AKT Peerless' Supplemental Subsurface Investigation Volumes I and II, dated January 3, 2005;
·AKT Peerless' Building Demolition and Contaminated Soil Removal Specifications dated September 1, 2005;
·AKT Peerless' Asbestos, Lead Paint Debris and Hazardous Material Removal Specifications dated June 14, 2005;
·AKT Peerless' Project Closeout Report for Hazardous Material Abatement Activities dated June 15, 2006; Supplemental May 14, 2009;
·The location of the contamination, and its level above indoor air inhalation for residential, commercial or industrial use has made it unfit for development. Several banks The Enterprise Group was negotiating with regarding a conventional mortgage for the original core project indicated that the third party liability risk was too high for them to consider. MSHDA also encouraged The EG to seek an alternate location for the core project. There is a restrictive covenant on the property to keep groundwater from being used for drinking purposes because of the presence of vinyl chloride;
¨ Artspace, Inc, one of the developers for the Armory Arts Project at this original location (ACME Building) intended to seek National Historic Register designation for the property, but when contamination was discovered precluding development as intended, withdrew their request for listing on the National Register.
In conclusion, The Enterprise Group of Jackson, Inc. enters this information into the public record for consideration and documentation for the National Advisory Council on Historic Preservation and SHPO to support their decision that demolition is an acceptable option for this property.
Chris LaRock Gorton, tenant and small business owner at Art 634, encouraged the City Council to continue their vision for the City. City Manager William Ross spoke in favor of the demolition remarking that it is an opportunity for the building to serve another purpose. Judy Krasnow, 100 Armory Court, spoke in favor of the demolition, stating she believes the building is beyond development. Lou Cubille, tenant at Armory Arts, was involved with painting the murals on the side of the Acme Building and hopes they can be preserved. He is also in favor of the demolition.
Phil Wrzesinski, 400 N. Mechanic (The Toy House), spoke in favor of the demolition, noting that we have a “jewel” in the Armory Arts and the demolition means it can now be seen. Kim Lennox, tenant at Art 634, would like to see the graffiti garage and the murals preserved. Mayor Ludwig closed the public hearing.
ADJOURNMENT.
No further business being presented, Mayor Ludwig adjourned the meeting at 7:13 p.m.
Lynn Fessel
City Clerk
© City of Jackson, 2012
