November 07, 2009
What's Inside:
Developer eyes Corby Building
City Council supports loan of $500,000 to Foutch Brothers
City Council supports loan of $500,000 to Foutch Brothers
Photo by Todd Weddle / St. Joseph News-Press / Purchase this photo
The St. Joseph City Council voted Monday night to support redevelopment of the Corby Building, 424 Felix St., through a resolution of intent to loan Foutch Brothers LLC $500,000, contingent upon the company closing its deal to purchase St. Joseph’s tallest building.
VOTE!
Put away the packing tape, park the moving van, and don’t even think about hanging plywood on the windows.
The St. Joseph City Council agreed Monday night to support Foutch Brothers LLC in its efforts to purchase and redevelop the Corby Building in Downtown St. Joseph.
Sunrise Senior Living, which currently manages the building, told its 65 residents last month that it planned to close the facility by Oct. 16 due to high maintenance costs.
Monday’s council vote likely ensures that the residents will not have to move out and provides job security for the building’s employees. The council passed a resolution of intent to loan Foutch Brothers $500,000, contingent upon the company closing its deal to purchase St. Joseph’s tallest building.
The resolution does not officially give the developers the money, but it shows municipal support that will help them secure private financing, according to City Manager Vince Capell.
Representatives of Foutch Brothers did not attend the meeting, and Steve Foutch did not return a phone call seeking comment.
Mr. Capell said the company contacted him about three weeks ago to express an interest in the building. The city and Foutch Brothers already have notified building residents about the plans.
“What we’ve tried to do is let the folks who live in the building know that there is a serious buyer, and they don’t have to move out,” Mr. Capell said. “We heard of a few that moved, but we also heard of a couple that moved in, so I think the word is getting out.”
According to information provided to City Council members, Foutch Brothers will continue to operate the building as a market-rate limited-assistance living community.
The council unanimously passed the resolution without any discussion. As the council began to move on to other business, Shawn Henderson, spokesman for City Employees United, stepped to the podium and asked Mr. Capell where the money was coming from. City Employees United has asked the city to cut spending so it can focus more on paying employee salaries and benefits.
Mr. Capell said $300,000 would come from cellular phone tax revenue, with the CDBG funds covering the remaining $200,000. The city manager stressed that the money was a loan that would be repaid in five years, not a grant.
“We understand where you’re coming from, but we’re looking at this glass as half-full, not half-empty,” Mayor Ken Shearin added.
Mr. Capell said he expected Foutch Brothers to secure financing within the next month, at which point the council would vote on a series of ordinances — two to loan money from the cellular phone revenue and CDBG funds and possibly others related to deed issues.
Foutch Brothers is redeveloping Mitchell Park Plaza at the site of the former Mead factory and has completed other local projects, including renovations at the former Everett School and the Lofts at 415 on Third Street.
Clinton Thomas can be reached
at clintonthomas@npgco.com.
This story has 16 comments. Click here to join in on the discussion.
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Interesting the city can always seem to "find" the money for certain projects but "can't afford" to get the emergency workers (fire and police)up to a fair market wage. What happened to the tax voted in by the people to implement the city's step matrix? Are the people still paying that tax which is not being used to "fix" the pay system?
Ok Michael I see you at it again with your bashing. If you would read the story you would see that it clearly states where the money is coming from "Mr. Capell said $300,000 would come from cellular phone tax revenue, with the CDBG funds covering the remaining $200,000." The point is Capell can find money for anything he wants 180,000 to paint street signs whatever but he is taking money that was voted on by the people for paying our employees a fair wage and blowing it on everything else. All the while telling the city employees we dont have the money to do what we promised.
this is a win/win for protecting the past to insure the future. i would take the comment by the mayor and say...... "our cup runneth over" with enthusiasm for widening the tax base in joetown. foutch is a proven success, the elderly get to stay in their building, the folks who work there keep their jobs, and another downtown building remains viable and a tax paying entity.
this is a best case scenario.
pgrbb,
How is Michael "bashing"? He is just stating facts.
You should probably first check to see if any of the money used for the purposes you mention can even be used for salaries. A lot of the funds that the city has available can only be used for specific purposes.
Finally, it is quite unlikely that you will win much public support by going into attack mode. It is more likely that you will drive away the many supporters you already have. I believe that most residents support and appreciate city workers as evidenced by the tax that was passed.
Why don't the Foutch brothers invest in businesses (to give people jobs) as opposed to places of residences in St Joe? They stated there would be business opportunity on the first floor of the Mead Building... but that has yet to happen...
Anyone know why that is??
what about all the construction workers who worked on the mead? those aren't jobs?
last time i toured the facility at mead ( couple of months ago) the first floor was still being finished. the city has been very cooperative in allowing mr. foutch to occupy the building by floors, rather than requiring the building to be completed before allowing occupancy. perhaps the first floor is still a staging area for ongoing construction? there is a venue for weddings which was near completion at that time, and they are taking bookings.
if you have not been down to tour the building , i urge you to do so. the facility is something which this city can really be proud of! the management is happy to take "tire kickers" or the simply curious on a walk through the facility. i have not been able to visit the rooftop garden yet, but the pool, gym with indoor running track and apartments are truly first class.
towen...it's a loan.
I have been in the Mead Building several times..(since contruction started) - I have met Scott and Steve on many occasions, If I sounded harsh I apologize, but I was talking more permanent jobs, when the construction is done... The workers will move on....
Scott had mentioned once that there would be many businesses downstairs, but I havent heard (or seen) any as of yet... Hopefully there are plans for a business or two in the Corby Building as well :)
The Foutch brothers probably don't invest in businesses because that's not their forte. They're investors who tackle renovation projects - it's their choice what type of business they operate, and my guess is they enjoy turning delapidated buildings into masterpieces. In my opinion, with business, you should stick to what you enjoy and what you are good at.
sorry to have been so knee jerk ( accent on the jerk) in regard to your comment min88. hopefully one of the Bros. will come here and comment once the deal is finalized. i am admittedly defensive about downtown as i am a huge supporter of her re-vitalization.
i agree that it would be very nice to see the city attempt to "seed" people with successful business records and good project plans in the currently available vacant buildings.
totally off subject, but does anyone know what is going on at sixth and edmund?
I was hoping this was going to be another apartment project by the Foutch Bros. I would love to live there. Too bad i'll have to wait til i'm retired.
min808 - that is the business that Foutch is in, residential development, that is where their expertise lies. You wouldn't expect a chef to install your furnace now would you?
New business will come to the Mead Bldg, Downtown, and East Hills as the economy improves.
weese, you can live there at age 55 or is it 50? The food is good or you can cook or go out. It's a great place. I am glad for the seniors who live there and for the city that someone is picking up the building and committing to repair the rotted roof.
Its ok heritage... Like I said.. I didnt mean to come off harsh...
(and 'OfCourseWeCan' I never mentioned the Foutches opening their OWN business. I am aware of what their expertise is. I said business opportunity (as in for others to open businesses) Im not asking how the 'chef will install the furnace'.... Im asking about business opportunities.