Thompson Block receives state tax credits, work begins to move beams out of River Street
Workers remove debris from the Thompson Block building on Friday.
Tom Perkins | AnnArbor.com
After months of inactivity, Thompson Block developer Stewart Beal says he's moving forward to get the beams out of River Street and has secured $1.8 million in tax credits to renovate the historic Depot Town structure.
The City of Ypsilanti issued Beal, whose Historic Equities Fund I LLC owns the structure, a building permit and right-of-way permit last week, and workers started making preparations to remove the shoring on Friday. Beal said he expects the beams propping up the west wall to be removed from River Street within two weeks.
The permits allow Beal's company to remain on the city’s right-of-way until April 25, 2011. Beal said there are no plans to immediately remove shoring from Cross Street.
Beal said he received notification last week from the State Historic Preservation Office that Historic Equities Fund I was approved for an additional enhanced tax credit, meaning the company now has roughly $1.8 million available in credits.
Beal estimated the 148-year-old structure’s renovation at $4 million. The credits are only good if the project is completed, meaning Beal must raise enough capital to finish the undertaking. The tax credits can then be sold to pay down debt.
Prior to the fire that gutted the building last September, Beal estimated renovations at $2 million.
Beal said the turnaround on his tax credit application, which was submitted in the spring, was quick. Its approval, coupled with city staff’s issuance of the permits, gave him greater confidence the structure will remain standing.
“It was a great week for the Thompson Block,” he said. “It gives us confidence that the people who need to support us are supporting us.”
In early April, the city sued Beal to force him to remove the shoring from the city’s right-of-way. Beal countersued in early May after an application for the building permit was rejected. Beal has maintained the city wouldn't allow him to work without the permits.
The two lawsuits were wrapped into one case, and a judge has since ordered both sides into facilitation.
Although Beal sued the city for the permits, city staff issued them without the court’s orders. Assistant City Attorney Karl Barr said Beal resubmitted an application.
The permit issued last week is the first portion of a phased permit, and only grants permission to stabilize the structure and remove the beams from the street.
Shoring will still block the sidewalk on River Street, which is in the city’s right-of-way, and will likely remain there at least until the permit expires. Beal said the beams will be pulled closer to the wall and will be doubled in number to provide adequate support.
Stewart Beal stands next to a wall an independent engineer's report said could send masonry into Cross Street if it collapsed. Beal says the wall will not fall.
Tom Perkins | For AnnArbor.com
On Friday, employees from Shankwiler Construction stabilized an interior wall adjacent to the exterior west wall so work can safely be performed near it. Workers have also begun removing debris from the interior.
Beal said shoring in Cross Street will remain for now because more work is necessary on the south wall. He said masonry repairs and installation of steel supports are likely needed, but there has been no planning to this point because of the lawsuit.
Beal added the time frame for stabilizing the south wall and removing shoring from Cross Street is roughly eight months, which is only two months longer than what he and Koryzno planned in an agreement the City Council rejected in April. He said if the work had started in April, the shoring would have been out of the street by Nov. 30.
Beal said no interior renovations will begin until the two sides can come to an agreement in facilitation.
“I think there’s a small percentage of people who want it torn down,” Beal said. “They forget that the reason we haven’t done anything is we’ve been forbid to do so, and I think they’ll see that when allowed to do something, we are good at getting things done.”
Beal said he doesn’t plan to add any bracing to a wall an independent engineer said could potentially send bricks into Cross Street if it toppled. He asserted the wall is stable, and pointed to employees who are working near it before standing underneath it himself.
Tom Perkins is a freelance writer for AnnArbor.com. Reach the news desk at news@annarbor.com or 734-623-2530.
Comments
Cash
Mon, Aug 23, 2010 : 10:12 a.m.
County Kate, No workers as of Monday, August 23rd.
CountyKate
Thu, Aug 19, 2010 : 3:25 p.m.
Has anyone seen any workers at this site since the day the pictures were taken?
Cash
Mon, Aug 16, 2010 : 6:59 p.m.
townie, Well of course it is physically possible. That's a given. It's physically possible to tear down the entire city and rebuild it too. What are the odds?
townie
Mon, Aug 16, 2010 : 6:05 p.m.
"I need the name of the person that gave the "tax credit" some of that is my money!" @jondhall: That would be Republican State Senator Jason Allen and Republican State Senator Cameron Brown. The "enhanced" tax credits are actually a combination of State (25%) and Federal (20%) income tax credits. @cash: None of the physical items on your list make the building any less salvageable. Again, I am not venturing an opinion on the financial aspects, but I rather doubt he'd have multiple workers in there doing hand clean-up if he at least wasn't somewhat confident that he could finance a reconstruction. (Otherwise an excavator could clean it all up in a few days time.) The buildings on the Northern Michigan Hospital grounds were vacant and vandalized, with roofs leaking for decades, but several of them now house condos, restaurants and offices. You can speculate all you want on the finances, motivations or will of the parties involved, but I have no doubt that it is physically possible to rebuild the Thompson Block if so desired.
Brian Bundesen
Mon, Aug 16, 2010 : 5:12 p.m.
I agree that the comment strings on this topic have made for very entertaining reading. My own two-cent opinion has gone back and forth. On the one hand, it is an annoying eyesore, and hard to imagine how it can be salvaged, given it's current condition. On the other hand, if Ypsi has a private developer with a strong vision, commitment and resources to see his vision through, the city ought to be bending over backwards to help make it happen.
jondhall
Mon, Aug 16, 2010 : 2:06 p.m.
This has to be a "Ponzi Scheme" who in their right mind would rebuild this building? I need the name of the person that gave the "tax credit" some of that is my money!
Cash
Mon, Aug 16, 2010 : 1:51 p.m.
townie, The building has been vacant for decades. The building remained vacant for the at least 10 years Beal owned it. The building was vacant and used by vagrants when the fire was set one year ago. The building was not insured. The rubble remains one year after the fire. Sherzer Hall was in full use before the fire. Sherzer Hall was insured for full replacement. Rebuilding Sherzer Hall began within a couple of months after the fire.
Carl Duncan
Mon, Aug 16, 2010 : 1:11 p.m.
When this building is rebuilt, I hope all parties take into consideration the vibration generated by a high-speed train flying through. Drunks beware the same planned train is only a few feet from the front door of Side Track Bar & Grill there in Depot Town.
townie
Mon, Aug 16, 2010 : 1:09 p.m.
Whether or not Mr. Beal will have the will or the finances to complete this challenging project, I cannot speculate. (Hopefully he had some insurance on the building that will help at least to get the walls back up and a roof on it.) On the question of whether or not it is physically possible I can give you a resounding "YES!" One need only travel a few blocks west to the EMU campus and have a look at Sherzer Hall (1903), which was resurrected from the ashes of a devasting fire in 1989. In that case, EMU had wisely insured the building for complete replacement and even though the building had 70% of the interior and 50% of the exterior destroyed, it was not only rebuilt, but also brought fully up to modern standards for fire safety, handicap access, and academic functionality. It continues to serve the EMU campus with classrooms, studios and an observatory, as well as making a beautiful historic centerpiece on a campus that has more than its share of non-descript architecture. www.emich.edu/walkingtour/sherzer.htm The University of Kentucky's Main Administration Building (1882) was also rebuilt after a devastating fire in 2001. There are dozens of other examples of similarly old and devastated buildings being restored to active use. The Ann Arbor region is also blessed to have restoration architects, engineers and all the skilled trades necessary to make this happen, should Mr. Beal be able to pull it off. I hope so. That corner is a highly visible element of Depot Town and could really serve to complete this vibrant, historic streetscape.
Mark
Mon, Aug 16, 2010 : 12:24 p.m.
It was an ugly, decrepit building before all this happened. Now, it's just an ugly brick veneer. I suggest that it's a boondoggle that will never bear fruition. I like historic preservation of structures that are truly significant or unique architectural gems. I don't see where this passes that test. It should have been knocked down after the fire.
no flamers!
Mon, Aug 16, 2010 : 11:36 a.m.
I love old building that are historically significant or have meaningful architectual value. But I remain confused by what motivates people to try to save this particular building. It never had meaningful architechtual features to begin with. It has been an eyesore for at least two generations. There is nothing to "save." And that was all true before the fire. The City needs to accelerate its timeline for forcing the developer off the City right-of-way and to fine the owner for blight ordinance violations every single day until he cleans up this wretched property.
Craig Lounsbury
Mon, Aug 16, 2010 : 11:24 a.m.
"the historic details that were preserved thanks to the hard work of the Ypsilanti Fire Department, Beal and his dedicated employees." I confess to not having looked at the building "up front and personal" since the fire. But looking at the picture gallery I'm curious what "historic details that were preserved" your referring to? The pictures remind me of WW II film footage I would see before the cartoon and movie I would watch at the Martha Washington Theater on the corner of Washington Pearl. I don't believe its a movie theater anymore, they seem to have switched to "live theater".
tdw
Mon, Aug 16, 2010 : 10:46 a.m.
For those who think that shell will be restored I have a snowball farm in Arizona for sale.
CobraII
Mon, Aug 16, 2010 : 10:45 a.m.
Enough already, waste another $1.8 million. Tear it down. The building has looked like crap since the first time I saw it in the early '70s.
Cash
Mon, Aug 16, 2010 : 10:36 a.m.
Loving Ypsi, "First, lets remember that the state of Michigan is having economic problems. It isnt that Beal is not going to be able to show up tomorrow with a $4 million dollar construction loan. No one could. " Exactly the point. No one could. So let's quit pretending. " This beautiful historic structure has dominated the corner of Cross and River for over one hundred years in various conditions." Beautiful? I've lived her over 60 years. And I do need glasses now, but I can see perfectly with them on. I've not seen beautiful in that time period. And now? There is no structure. " In a few years when we all walk past the restored Thompson Block building, eat and drink in a bar there, and shop at the stores it contains, we will be glad we did." I hope it's true that there will be a viable business there. But I'll guarantee it won't be in the rubble of this building. He's had that building for years. It has only deteriorated, finalized by becoming a home for vagrants, and an arson pit. There has been zero "development". It's become a laughing stock. I love Ypsi. Ypsi is my hometown and I'm proud of that. But this eyesore has got to go. We need to move forward. We cannot let one man's desire for a huge tax credit hold our residents hostage for another decade. Enough!
LovingYpsi
Mon, Aug 16, 2010 : 9:42 a.m.
These Thompson Block threads have made for entertaining reading all summer and Ive held off from commenting. But sometimes there are things that need to be said. First, lets remember that the state of Michigan is having economic problems. It isnt that Beal is not going to be able to show up tomorrow with a $4 million dollar construction loan. No one could. Where is your patience? I know you may have been patient in the past, but this isnt over. This beautiful historic structure has dominated the corner of Cross and River for over one hundred years in various conditions. Give the economy a little time to recover and give Stewart Beal, a conscientious developer and resident of Ypsilanti, the time he needs. Second, where is your vision? Your commitment to the City of Ypsilanti? This fire-ravaged building will be typically beautiful again. I have eaten many an excellent meal on the patio at Sidetrack envisioning what that corner will look like when there is retail space, a bar and lofts or apartments there contained in a historic structure. In the mean time I enjoy its atypical beauty, the historic details that were preserved thanks to the hard work of the Ypsilanti Fire Department, Beal and his dedicated employees. Third, Beal is dedicated to this project and we should be standing behind him on this project, not in his way and not at a distance. In a few years when we all walk past the restored Thompson Block building, eat and drink in a bar there, and shop at the stores it contains, we will be glad we did.
Speechless
Mon, Aug 16, 2010 : 9:33 a.m.
Those photos!   Berlin, 1946 "... 'I think there's a small percentage of people who want it torn down,' Beal said. 'They forget that the reason we haven't done anything is we've been forbid to do so....' " Um... is that also why nothing happened for a long time before the fire?
ShadowManager
Mon, Aug 16, 2010 : 9:11 a.m.
The project IS a debacle, and I'm sure after making a big show for the cameras and paying some day laborers for a few days, Beal will soon once again abandon the project for weeks on end and by this time next year, we'll still have a decrepit ruin sitting at the corner of Cross and River, and still have wood beams jutting out in Cross, diverting traffic and creating an eyesore.
Jay Allen
Mon, Aug 16, 2010 : 9:03 a.m.
This entire project is a debacle and it is a waste of tax payer money. Plus, what Craig Lounsbury said is perfect.
Cash
Mon, Aug 16, 2010 : 8:34 a.m.
Depot Town, "The building is safe. Mr. Beal wouldn't stand in front of that wall or let employees work there if it wasn't safe." Just like the Detroit Firefighters, one can be surprised. I wonder if they'd stand next to it. You know, the ones who can stand at all.
CountyKate
Mon, Aug 16, 2010 : 8:27 a.m.
@dading, there is nothing wrong with the sentence you reference. That isn't the letter I, but the Roman numeral one (1). The name of Beal's company is "Historic Equities Fund I, LLC." I've spent too many years hearing Beal's excuses to believe the Thompson Block is going to be restored now. I have trouble believing he's going to be able to come up with the $4 million to do that, even with the $1.8 in credits. Count me as skeptical.
Depot Town
Mon, Aug 16, 2010 : 8:13 a.m.
SEE?!?!? The building is safe. Mr. Beal wouldn't stand in front of that wall or let employees work there if it wasn't safe. The is a true victory for Mr. Beal, his family, and his employees. I hope he puts a bar in the renovated space that serves pizza and has pool tables. I'd like that alot.
Rasputin
Mon, Aug 16, 2010 : 7:56 a.m.
To be fair, I think this is definitely a step in the right direction, but please consider the fact that this is a tax credit and Mr. Beal will still need to raise the renovation money to start and complete the project in order to qualify for said tax credit. My honest concern is, will the building last another year in it's current condition or collapse and take a bunch a people with it?
tdw
Mon, Aug 16, 2010 : 7:56 a.m.
I got a $1000 that says it will still look the same if not worse this time next year
Elaine F. Owsley
Mon, Aug 16, 2010 : 7:18 a.m.
If it wasn't worth over one million to save during all those years it stood empty, why is it worth it now that it's a burned out wreck with only about half or less of the original building left? I will never understand the thinking of "historic preservationists" and if that's any of our tax money going into this mess, I think we should have a vote.
Craig Lounsbury
Mon, Aug 16, 2010 : 7:09 a.m.
"Beal estimated the 148-year-old structures renovation at $4 million." I suggest there is no longer a 148 year old building because.... "...fire... gutted the building last September..." I highlight the word "gutted". There is nothing left of that 148 year old building but a couple of exterior walls. At some point one is no longer preserving 148 years of history, just a decaying unstable brick wall.
glimmertwin
Mon, Aug 16, 2010 : 6:51 a.m.
Another obvious display of wasting taxpayer money. One person's "tax-credit" is another persons "tax-liability".
Cash
Mon, Aug 16, 2010 : 6:20 a.m.
"Beal estimated the 148-year-old structures renovation at $4 million. The credits are only good if the project is completed, meaning Beal must raise enough capital to finish the undertaking. The tax credits can then be sold to pay down debt." Depot Town Bound, I'm not loaning the money for this project. Are you? Until then, nothing changes. We've been fed this "rah rah" stuff for a year now. It is past time to be realistic. I'm a true 60+ year fan of Ypsilanti and I care what happens here. Being spoon fed empty promises doesn't cut it. I'll continue to express my opinion,and respect your right to do the same.
Depot Town Bound
Mon, Aug 16, 2010 : 6:11 a.m.
Cash, these are positive developments. Your constant negativity has no place here.
Cash
Mon, Aug 16, 2010 : 5:48 a.m.
I wonder... With the shoring removed, if the wall should fall on the sidewalk and into the street over Heritage Festival weekend, who is liable?
dading dont delete me bro
Mon, Aug 16, 2010 : 5:41 a.m.
"...Beal said he received notification last week from the State Historic Preservation Office that Historic Equities Fund I was approved for an additional enhanced tax credit, meaning the company now has roughly $1.8 million available in credits..." third person, "he", then first person, "i"?!? sounds like the two parties involved might be working together finally to put this puppy on some sort of resolve?
Cash
Mon, Aug 16, 2010 : 5:36 a.m.
Perhaps Beal should go to Detroit Receiving and visit the seriously injured firefighters (one paralyzed) before he places his workers digging around those walls. Those men stood next to a brick wall compromised by fire as well. Talk about arrogant.