Sandusky City Commission
Keller Building proposal knocked down
Dec 30, 2013 at 1:40 PM
Sandusky city commissioners collectively squashed a last-ditch effort from a private developer to salvage the Keller Building.
Steve Coon, president of an Ohio-based restoration company, recently begged officials during a recent public meeting to not tear down the West Shoreline Drive structure as planned.
Coon guaranteed he could obtain state historic tax credits to transform the blighted building into a 48-unit apartment complex — a project valued at $12 million to $14 million.
He also vowed to immediately fix any safety concerns the property poses today.
But the dream proposal came a tad too late.
In October, city commissioners signed a contract with an Independence-based excavating company to demolish the Keller Building.
The $448,500 binding deal includes workers removing asbestos so they can eventually tear down the building sometime in 2014.
At a glance
• Sandusky city commissioners rejected a proposal from a private developer to save the Keller Building and transform the structure into apartments.
• City officials already signed a contract to demolish the blighted building sometime in 2014.
• Officials feared a lawsuit or some other financial fallout would result from breaching the demolition contract.
Sandusky law director Don Icsman urged commissioners to not breach the demolition contract, fearing it would either create a lawsuit or some other financial fallout.
“We’re not in the eleventh hour,” Icsman said. “It’s about 3 o’clock, and we have a contract. We’re in the middle of a contract. What’s the financial consequences of stopping that contract?”
Commissioner-elect Dennis Murray Jr. appreciated Coon’s gesture to spur economic development in Sandusky but raised numerous concerns with his proposal.
Among the red flags: Coon wanted $400,000 in city funds plus ownership of the building. Sandusky owns the Keller Building property.
“This public is ready for this building to come down,” Murray said. “But I think the public would be supportive of giving you the shot that you asked for if and only if you make us whole”
Murray, a partner in the Sandusky-based Murray & Murray law firm, wanted Coon to:
• Pay for any extra costs Sandusky would incur if it breached the demolition contract.
• Tear down the building at his expense if the revitalization project fails.
• Ensure progress on the Keller Building — be it demolition or revitalization — occurs one year from now.
Coon couldn’t agree to those stipulations, so Murray didn’t agree to his deal.
“You will not sign the contract that I would require and the terms I agree,” Murray said. “It’s just too late at this point”
Commissioner-elect Naomi Twine echoed statements made by Murray and Icsman.
“The more Mr. Icsman talks, the more I get a pit in my stomach,” Twine said. “This is not right for the community. We already made a decision”
Commissioner Pervis Brown, serving his final city meeting because of term limits, insisted his fellow board members follow the demolition contract commissioners signed together.
“We as a commission made a decision, and we hired people in a contract we have,” Brown said. “We have to honor that or our name is mud. We can’t be a city that enters into something and then halfway into it change our minds”
Commissioner Julie Farrar liked Coon’s plan, but the gamble — when accounting for a possible lawsuit and other related costs — seems to risky right now.
“I keep hearing ‘cha-ching, cha-ching, cha-ching,’” Farrar said. “It’s too late right now. There are too many ‘what ifs.’ I can’t in good conscious move forward with this”
No official vote occurred on Dec. 23.
Rather, based on commissioners verbally scrutinizing Coon’s proposal, it’s likely the Keller Building will be brought down in 2014.
Coon seemed disheartened by his proposal getting slammed.
“These projects die seven or eight deaths before they come to light” said Coon, who’s done similar projects with blighted properties in numerous cities. “It would be a shame for that building to come down”
Funding the Keller Building’s demise
The Keller Building’s demolition cost and related environmental work is estimated at $550,000.
A bond would cover $400,000 with city funds covering the remaining $150,000. Earlier this year, city commissioners agreed to borrow up to $2.7 million in bonds to help pay for the Keller Building’s demolition.
In the past, city officials have leveraged those funds to make various improvements in the area, such as:
• Building a public walkway around the Chesapeake Lofts.
• Repairing the area’s emergency break wall.
• Establishing the Paper District Marina.
In the recent past, city officials have addressed some other Keller Building concerns.
They spent $19,000 in September 2012 to tear down the crumbling chimney and then another $26,000 in April for a preliminary demolition plan. This doesn’t includes tens of thousands of dollars in the past several years for various upkeep.
Pre-demolition work is occurring now.
The building should come down sometime in 2014. Commissioners finally decided to tear the building down this past fall based on its unstable nature.
Concerns about safety risks peaked in February 2012, when a brick feel from the building’s chimney and plummeted several stories onto West Shoreline Drive.