11/29/2006

Another deck plan surfaces

Developer wants a cut of brownfield money for second West Front project

By Vanessa McCray

vmccray@record-eagle.com

TRAVERSE CITY — A second West Front Street developer wants officials to consider public parking at his site.

Gerald Snowden plans a residential and office project at 305 W. Front St. that could include public parking. The plan was to be presented to the Grand Traverse County Brownfield Redevelopment Authority at 8:30 a.m. today.

Snowden said his project requires a minimum of 70 private spaces, but he could add public parking in a freestanding deck. He estimated a 450-space garage would cost $8 million.

Local brownfield officials said Snowden's parking ideas do not affect a funding request from developer Federated Properties. The state pledged $12.3 million in future state school property tax collections from redevelopment of a 19-property brownfield west of downtown. Those funds include $5.49 million tagged for public parking, which Federated wants to secure.

Brownfield authority chairman Peter Strom supports the allocation of the parking funds to Federated, despite Snowden's interest in public parking. Strom said he would back an effort by Snowden to get more dollars for his public parking.

"No one is trying to stop Mr. Snowden ... but we have to do (it) the way the state says we have to,” Strom said.

Not 'viable'

Brownfield director Jean Derenzy said splitting $5.49 million in parking funds between the two developers, or moving those funds from Federated's site to Snowden's, is not a "viable option.” Federated's

proposal is the "only one that fits” because the current plan designates the funds for that site, she said.

Derenzy said she was advised by Vern Taylor of the Michigan Economic Development Corp. that there was a risk the state could reduce funding if it is asked to amend the plan to switch funds from one site to another.

"He asked me why would you shift it, particularly if you are working with a developer now that is willing to build and implement the brownfield plan as proposed,” Derenzy said.

The plan has been amended several times, including a change to move parking dollars from the property now owned by Snowden to Federated's site.

Taylor could not be reached for comment.

Snowden expressed doubt over the threat of losing brownfield funds due to site changes.

"It's my understanding that the state will support, the best they can, whatever the local authority recommends regarding amendments or changes,” he said.

MEDC spokesman Michael Shore said he can't assess if funding could be lost based on a "hypothetical question.”

"An amendment petition doesn't necessary put this at risk, doesn't necessarily mean that anything would be approved, either,” he said.

Second effort

This is not Snowden's first inquiry about public parking. In January, he approached city officials with a plan to include public parking at his site. At the time, the city was working on a city bond proposal to finance a public deck with Federated. But Snowden said political pressure, including intervention by state Sen. Jason Allen, who received $20,000 in political contributions from Federated's CEO, forced the withdrawal of his possibly cheaper plan before city commissioners learned of it.

City voters in August rejected the Federated bond proposal, causing Federated to return to the brownfield authority with a revised plan.

The brownfield authority today will consider entering lease negotiations with Federated for public parking. Federated would pay up-front for the construction, and lease to the public 211 spots using the brownfield parking funds. Derenzy anticipates it will take 11 years to collect enough captured taxes on two Federated projects to pay off the lease. The city would own the parking spots at the end of the lease.

Federated's Michael Uzelac declined to comment.

'Cash cow' for developers

Some city residents who opposed the city-backed plan remain unhappy with Federated's new version. State officials said little contamination cleanup is necessary for the 145 West Front St. property. But, it still qualifies for a "brownfield” designation and funds.

City resident Geraldine Greene called it an "economic cash cow” for the developers.

"I think the taxpayers of this state should be irate,” she said. "We are not talking about private dollars going into this project.”

Derenzy said the lease plan depends on the city's cooperation.

Snowden, meanwhile, wants an additional $2.6 million in brownfield funds for his project, not including the cost for public parking there. The brownfield authority already allocated his project $1.67 million for work such as site preparation, foundations and engineering.

Snowden won't recommend where the brownfield authority finds the funds to pay for the increased cost of project work and the possible public parking.

"All we are going to (do is) go in and say what it is that we need and kind of leave it up to them to determine how it's best rearranged or amended,” Snowden said.

Derenzy said one solution is to ask the state to create a new, separate brownfield plan for Snowden's property.