Thompson Block owner Stewart Beal secures new investors
Thompson Block, pictured here on March 14, 2013, may soon be redeveloped. Owner Stewart Beal will present an update at the Thursday YDDA meeting.
Melanie Maxwell | AnnArbor.com
Thompson Block owner Stewart Beal has secured new investors for the project and will provide a public redevelopment update to the Ypsilanti Downtown Development Authority board this week, according to DDA Director Tim Colbeck.
"He showed me some basic stuff," Colbeck said. "He's saying he has some new investors and wants to redevelop the property. It's kind of an extension of what he's said before."
City officials declined to share additional details of Beal's plans, but expect more to be revealed at Thursday's public YDDA board meeting.
The presentation follows a February meeting Beal had with City Planner Teresa Gillotti, Mayor Paul Schreiber and City Manager Ralph Lange, in which he updated them on his redevelopment plans.
"He came in for an update on where he is on the project and I'm going to follow up with him to formalize things," Gillotti said. "He's looking to restart the project and we're trying to coordinate with him and see what a realistic time frame is."
Beal could not be reached for comment.
A large fire gutted the Thompson Block building on Sept. 23, 2009. Beal, whose company Historic Equities Fund 1 LLC owns the building, and the city ended up in court over a disagreement on how to proceed with the building’s renovation.
Thompson Block, pictured here on March 14,2013, sustained severe damage after a 2009 fire.
Melanie Maxwell | AnnArbor.com
Colbeck said he believes the property will be redeveloped "at some point."
"There's a lot of stuff that's going to have to be done," Colbeck said. " What I told Stewart is, if you're going to move forward we want to support you... We’ll get behind him."
Beal and the city reached a consent agreement in August 2010 that gave Beal three years to complete the exterior envelope of the building, including a roof, walls and all openings sealed with at least temporary doors and windows.
Beal has until the end of August to complete these renovations. The building's total assessed value for 2012 was $152,900. Beal purchased the property, at 400 N. River, for $346,186 in 2006 and previously estimated that a total renovation of the building would cost around $4 million.
Beal presented plans in the past that would have included commercial space on the first floor and entire northern segment of the 148-year-old Depot Town building. The second and third floors were to hold residential lofts.
That plan eventually was changed to making the entire building all-residential with 23 lofts ranging in size from 620 to 1,120 square feet.
"The plans have changed over the years," Schreiber said. "I know he's doing some successful redevelopment in Detroit, so it's not like he doesn't know what he's doing. ... What happens though is, what is the reality of the economy, the reality of financing? I would like to see what type of plans he has."
Colbeck said the DDA would like to see Thompson Block redeveloped because it will add value to Depot Town.
"Obviously from the DDA's perspective, we would love to see the property be redone," Colbeck said. "It would be an anchor for Depot Town."
Beal will present a redevelopment update at the next DDA meeting at 8 a.m. Thursday, April 18 at the SPARK East building at 215 W. Michigan Ave.
Katrease Stafford covers Ypsilanti for AnnArbor.com.Reach her at katreasestafford@annarbor.com or 734-623-2548 and follow her on twitter.
Comments
DonBee
Mon, Apr 15, 2013 : 3:35 p.m.
As Larry the Cable Guy would say: Get'ter Done!
ahi
Mon, Apr 15, 2013 : 3:19 p.m.
I am glad I am not one of the city staff that has to deal with this guy. I would have a hard enough time being civil let alone supportive.
ahi
Mon, Apr 15, 2013 : 3:18 p.m.
I love the "For Lease" sign on the brick facade.
Stupid Hick
Mon, Apr 15, 2013 : 2:08 p.m.
"Beal purchased the property, at 400 N. River, for $346,186 in 2006". Can annarbor.com please cite a source for this claim? My understanding has always been that Beal was awarded the building. After the former owner, David Kircher, refused to pay for repairs he did not consent to but that the city ordered. http://arborwiki.org/Thompson_Block "After an extended legal process between the City of Ypsilanti and the former owner, David Kircher, the Barnes & Barnes property management company was appointed by the court as a receivor for the property in order to address fire code issues. Barnes transferred its interest to Stewart Beal, of Beal Properties, who foreclosed on the receivorship costs and gained ownership of the property in 2006."
Stupid Hick
Tue, Apr 16, 2013 : 2:34 p.m.
jgold47's comment perfectly illustrates my point that annarbor.com's reporting on the Thompson Block is misleading.
jgold47
Tue, Apr 16, 2013 : 12:49 p.m.
so, he paid money and received something in return? Like the title to the property... So is that not a purchase?
Stupid Hick
Mon, Apr 15, 2013 : 5:51 p.m.
I submit that the word "purchase" is used in a way that may be technically accurate but misleads readers about how Beal acquired the Thompson Block. And that story is what makes everything that has happened since Beal took control so ironic. It wasn't a purchase in the sense of a mutual business agreement where Beal received the property in exchange for payment of $346k to Kircher. A court document that describes the "purchase": http://publicdocs.courts.mi.gov:81/Opinions/Final/COA/20111213_C300242_67_300242.OPN.PDF And an excerpt of an Eastern Echo article from 2009: http://www.easternecho.com/article/2009/09/developer_watches_depot_town_dream_go_up_in_flames "Stewart Beal has control of that property, and we show the title transfer for the Thompson Block occurred on May 16, 2006," said Ypsilanti city planner Richard Murphy in a phone interview earlier this year. "Transfer was made from Kircher to Beal because of the $346,000 unpaid city lean," Murphy said."
Katrease Stafford
Mon, Apr 15, 2013 : 2:27 p.m.
According to the city's assessor site, Beal's LLC, the Historic Equities Fund, purchased the property through a multi-parcel sale for $346, 186. City records show this happened May 11, 2006 Here's the link: http://bit.ly/115wxF7
UpperDecker
Mon, Apr 15, 2013 : 1:50 p.m.
I would like to see them have lofts up top and bars below as was originally intended before it became a blighted eyesore and inconvenience.
Think!
Mon, Apr 15, 2013 : 1:47 p.m.
If you want to see the Thompson Block redeveloped, it will need to be owned by someone else. It is ridiculous that the city lets commercial property owners get away with what a personal property owner cannot. This double standard must end. These commercial property owners must take responsibility for the blight they cause and/or purchase. The city must force them to take responsibility not coddle them for years on end. In Ypsilanti, let's start with Beal and the owner of the old Smith Furniture building. Shame on both of them. Shame on Ypsilanti for not passing ordinances that prohibit this behavior.
Stupid Hick
Mon, Apr 15, 2013 : 6:02 p.m.
Do you know that the city essentially used the courts to take the building away from its former owner, for failing to maintain it, and that's how it ended up in Beal's possession? Isn't that ironic?
Katrease Stafford
Mon, Apr 15, 2013 : 1:27 p.m.
I'm very interested to hear what the plans will be. Readers: What are you hoping for?
Y-TownMom
Tue, Apr 16, 2013 : 3:40 a.m.
After nearly four years of this, it seems like he should do what should've been done right after the fire: tear down what's there and build something new (or not), but get rid of that mess before somebody gets hurt.
Steven Taylor
Tue, Apr 16, 2013 : 1:14 a.m.
I would like to see the original design plan restate a commercial first floor to bring in added revenue. Housing will be rented quickly for income as we're in a relatively stable, but depressed economically college town. I'd like to see the building thrive that's simply not owned by the French's downtown. If they offer up small business space (only need a few hundred square feet for an office) I'd take a spot there for my own business, could walk to work
Stupid Hick
Mon, Apr 15, 2013 : 6:08 p.m.
I hope that whatever plans Beal claims are on the table, that annarbor.com will do in-depth reporting about the Thompson Block, and not just publicize his claims.
1982 Brew Crew
Mon, Apr 15, 2013 : 1:03 p.m.
I just don't get it. That isn't a building. That is a shell. And it is not even a architectually significant shell. I understand some folks are nostalgic about the building because of its age and connection to historical train travel etc. And I love great archictture. The only benefit to reconstructing the building is avoiding modern setback rules and parking requirements, etc. Right? What else? Please, City leaders, don't put any public money or give any economic incentives to encourage this madness. Instead, follow exiting codes and statutes to mandate compliance.
ahi
Mon, Apr 15, 2013 : 3:16 p.m.
I believe he received tax incentives as well, which he might lose if he has to start fresh. He seems to be highly leveraged so losing the incentives may not be an option.
Ross
Mon, Apr 15, 2013 : 12:37 p.m.
I hope he's serious. I also hope Ypsi city council doesn't offer up huge incentives without strict performance guarantees. It would be just terrific to see this building revived and this side of this corner of depot town brought back to life. But given Beal's track record so far, we have the right to be highly skeptical here. Also, the building is not actually a building anymore after the fire. It is simply a crumbling brick facade held up with some reinforcements that would likely not be compatible with actually renovating the building. I am curious how much money they will be willing to spend to keep that old original brick exterior intact while building something all new right behind it.
Jim H
Mon, Apr 15, 2013 : 2:42 p.m.
The only incentive should be to tear down that shell of fire-damaged 1800's brick. If it is a safe structure, Beal should have to live in it. Look at the "building" from the east on Cross then tell me you would walk down that sidewalk with your kids.
Craig Lounsbury
Mon, Apr 15, 2013 : 12:47 p.m.
i agree with your assessment. In my opinion there was never anything worth saving after the fire and it should have been torn down.
lefty48197
Mon, Apr 15, 2013 : 11:16 a.m.
I would love to see that building rehabilitated.