William Murtagh. First Keeper of the National Register of Historic Places

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1 William Murtagh First Keeper of the National Register of Historic Places

2 Two Roads to Preservation

3 Rules and Assurances We will RESPECT that there may be differences of opinion, but we will HEAR what everyone has to say. PARTICIPATE in the discussion. Keep the focus on the issues and facts; NOT what s wrong with someone else s ideas. Once everyone has expressed their opinion, and a consensus is clear, join forces or step aside to allow the will of the people to be fulfilled by the B.O.C.

4 Regardless of position, we are ALL here to Foster pride and appreciation of our history and our historic environment. Contribute to our community s cultural and economic vitality. No matter the direction, revitalization will be a springboard for Economic Development; a catalyst for other positive action. Seek uses that are in the best interest of Cass County, and that serve the highest and best purpose for our community. Make decisions that are worthy of the historic impact they will have on the continuing history of the Cass County Historic Courthouse.

5 Recent History Over 13 years ago the Historic Courthouse was shuttered following the decision to move specific services to a new Law & Courts Building. Maintenance Director Dave Dickey worked to put the building into a protective stasis to prevent it from deteriorating. Through the years, several efforts were initiated to explore options to re-use the building; the most extensive of which was the Kingscott Study. In 2012, the Board of Commissioners raised the question of returning the Historic Courthouse to use, and pulled together interested members of the public to explore options. In 2014 a county-wide survey was conducted to ask the basic question Should we tear the building down? or Should it be preserved? Additional questions asked what use, if any, would be appropriate.

6 Recent History Of 428 Respondents 378 Residents / 50 Non-Residents 352 Property-Owners / 76 Non-Property-Owners 385 DO NOT Tear It Down / 42 Tear It Down / 1 No Response Respondents also identified ACCEPTABLE uses, including: County Offices / Private Offices Retail Shops Café / Restaurant / Destination Place (i.e. Micro-Brewery) Meeting Rooms / Banquet Facilities Educational Meeting Space / Remote Classroom Community Center / Youth Center Museum Condos / Apartments / Senior Housing Use ANNEX specifically for Post Office / UPS / FedEx facility

7 Recent History Once inspections revealed an essentially sound structure, the BOC dedicated $275,000 to address repair and maintenance issues to mitigate deterioration while a decision was made as to its use. The BOC assigned three Commissioners to spearhead efforts to preserve/re-use 26,000 square feet of available space in the Historic Courthouse AND 31,000 square feet available in the Annex. The Committee conducted periodic update meetings with the core team; as well as a series of county-based meetings at the Ontwa Township Hall, the Marcellus Public Library, the Vandalia Village Hall, Southwestern Michigan College, and the Cass County Road Commission to inform residents and gather input regarding the future of the Historic Courthouse.

8 Recent History At the final meeting in 2016, it was determined to explore options for re-use, rental or sale of space in the Historic Courthouse AND Annex; and new County Administrator Karen Folks was given direction to spearhead the effort by engaging: Economic Development SHPO and Historic Preservation Experts Realtors, and Investors to provide the information we need to make the decision to retain the historic courthouse or transfer ownership. And that s exactly what we ve done!

9 October COREY LEON NDC NATIONAL DEVELOPMENT COUNCIL Services: TECHNICAL ASSISTANCE (Training, Assist with Development and Financing, Find Equity Partners for Public/Private Partnerships) Services Support: TRANSFER OF OWNERSHIP Discussion Points: ONLY private entities are eligible for tax credits. Spoke about ownership, use, preservation as three different concepts. If County sells to a private entity, the County cannot lease space in the building for 5 years. *Introduced concept that THIS development fuels economic upsurge in surrounding area.

10 December JOE WHITSETT TWG DEVELOPMENT, LLC Services: DEVELOPMENT, MANAGEMENT, CONSTRUCTION Services Support: TRANSFER OF OWNERSHIP Discussion Points: MANY FUNDING SOURCES for each development project. EXPERIENCE in acquiring/coordinating funding sources. Courthouse is a good candidate for senior housing fulfilling a local need and satisfying one of the community-proposed uses from survey. Preservation of historic elements through development agreement/national registry designation and possible seat on Board, can help ensure County-interests are incorporated. Developer applies for federal historic registry designation, to qualify to receive historic tax credits.

11 January MIKE KIRK ARCHITECT BOARD MEMBER - PRESERVATION NETWORK Services: NON-PROFIT, ENGAGED IN EDUCATION, ADVOCACY AND CONNECTING ENTITIES WITH RESOURCES. Services Support: EITHER RETAINED OWNERSHIP or TRANSFER OF OWNERSHIP Discussion Points: Takes many funding sources: Federal and State Historic Tax Credits, Michigan Brownfield Tax Credit, Local TIFF Recapture, OPRA Tax Abatement, New Market Tax Credits, Rehabilitation Tax Credits, Loans (for Private Ownership). Historic Preservation Easement concept preserved through deed restrictions (Retained OR Transferred Ownership). Donation results in smaller burden for developer, and County receives lower tax revenues. But benefit is preservation of historic elements (i.e. the façade).

12 February - SADIE ERICSON INSITE CAPITAL Services: NON-PROFIT / FUNDING RESOURCE FOR EQUITY PARTNERSHIPS Services Support: TRANSFER OF OWNERSHIP Discussion Points: Insite Capital has experience with $3 to $25 million development projects; and has worked with numerous vetted developers. In-depth look at qualifying for historic tax credits. Performs syndication which brings together developers with investors for an equitypartnership.

13 April ROBBERT MCKAY MICHIGAN STATE HISTORIC PRESERVATION OFFICE No photo available, so Lewis Cass will have to do! Services: HISTORICAL ARCHITECT Services Support: EITHER RETAINED OWNERSHIP or TRANSFER OF OWNERSHIP Discussion Points: In-depth discussion on process for obtaining a federal register of historic places designation. National registry designation, however, provides no protection for the historic façade elements. PA 169 of 1970 allows for the local creation of an Historic District to provide real protection of historic elements through legally enforceable regulations. Zoning restrictions are part of the local ordinances developed that assist with preservation through a local historic district designation. In-depth presentation on Federal Rehabilitation Tax Credits and Federal Historic Preservation Tax Credits and how (private owners) can qualify. Retain OTHERS to achieve Historic District Designation Expertise is needed.

14 May CASS COUNTY TREASURER LINDA PRUETT CASS COUNTY CLERK/REGISTER MONICA KENNEDY Services: FUNDING by way of a County Millage/Bonding Services Support: NO POSITION ALLOWED BY LAW Discussion Points: Determining actual cost of project to be placed as a millage proposal requires professional input re: Architectural services, construction/engineering services, technology audit Professional fees would be paid out of General Fund and are NOT reimbursable as part of the millage. Bond Counsel coordinates legal aspects at a cost to be paid regardless of success of millage. If millage is successful it CAN be paid as part of the millage. County can hold an election with the ballot proposal on one of 3 dates May/August/November. If conducted by Special Election all costs are paid by County and are not reimbursable - $55K.

15 May (continued) CASS COUNTY TREASURER LINDA PRUETT CASS COUNTY CLERK/REGISTER MONICA KENNEDY Discussion Points: Example #1 - $9,000,000 bond with an interest rate of 4% for 1 year (5 mills). Property with a TAXABLE VALUE of $100,000 would pay $500. Property with a Taxable Value of $1,000,000 (i.e. Agricultural Land) would pay $5,000. Example #2 - $9,000,000 bond with an interest rate of 4% for 20 years (.33 mills per year) through Property with a TAXABLE VALUE of $100,000 would pay $32 per year for 20 years. Property with a Taxable Value of $1,000,000 (i.e. Agricultural Land) would pay $320 per year for 20 years. Example #3 - $9,000,000 bond with an interest rate of 4.5% for 25 years (.33 mills per year) through Property with a TAXABLE VALUE of $100,000 would pay $30 per year for 20 years. Property with a Taxable Value of $1,000,000 (i.e. Agricultural Land) would pay $300 per year for 20 years. WILL VOTERS SUPPORT ONE OF THESE OPTIONS?

16 HERE S WHAT OUR PRESERVATION PARTNERS CAN DO FOR US NDC NATIONAL DEVELOPMENT COUNCIL PARTNER with the County to define, design, execute development and finance strategies. Secure financing. TWG JOE WHITSETT DEVELOPER specializing in renovation and re-lease for use as senior housing. New construction, adaptive re-use, historic renovations. Not public housing. Not Section 8. Tenants pay affordable rent. PRESERVATION ARCHITECT MIKE KIRK, ARCHITECT PARTNER with the County to navigate Historic Easements and Historic Deed Restrictions. PARTNER with developer to navigate tax credits, incentives. INSITE CAPITAL SADIE ERICSON PARTNER with the Developer to locate investors for equitypartnerships. STATE HISTORIC PRES. REVIEW BD. ROBBERT MCKAY PARTNER with the County to acquire National Register Designation, State Markers, Historic District Protection, Preservation Planning. PARTNER with developer to support use of Federal/State Tax Incentives. CASS COUNTY MILLAGE COUNTY GENERATED exploration of millage/bonding.

17 HERE S WHAT THEY VE TOLD US Preservation of the Courthouse CAN happen whether the County retains ownership, or transfers ownership. Even the experts use experts to navigate specific processes. There are multiple funding mechanisms, but most are only available/useful to private entities (i.e. tax incentives). Subsequently, it s likely we will work with partners whether we retain or transfer ownership. Professional assistance is available and necessary to SUCCESSFULLY apply for/access funds, obtain historic designations and comply with legal (and other) requirements. REAL protection of historic elements is possible through the use of preservation tools AND WE CONTROL those tools.

18 A Word of Caution Assuming we will not need to implement the Historic Preservation Tools if we retain ownership of the Historic Courthouse, creates a FALSE SENSE OF SECURITY, and exposes future generations to the actions of officials who may, or MAY NOT share our vision and commitment to historic preservation!

19 A Word of Caution We MUST implement every control available to us, to protect our historic assets in perpetuity, regardless of whether we retain or transfer ownership.

20 OUR PRESERVATION TOOLS INCLUDE: DEVELOPMENT AGREEMENT A contract between a local jurisdiction (city/county) and a property owner (developer) that sets the standards and conditions that govern the development of the property. Sale of the property to the developer is contingent upon the terms of the agreement. HISTORIC PRESERVATION EASEMENT A voluntary legal agreement, typically in the form of a deed agreement, which permanently protects a significant historic property. Since it is a PERPETUAL EASEMENT, the property s historic character will be preserved regardless of ownership. DEED RESTRICTIONS Real estate deed restrictions are written into a property s deed and can take the form of legally enforceable conditions, covenants and restrictions. The property s present owner usually imposes deed restrictions to limit/control HOW a property can be used and WHAT can be built on it. Deed restrictions run with the land and anyone who buys the property in the future is bound by them.

21 OUR PRESERVATION TOOLS INCLUDE: FEDERAL HISTORIC REGISTRY DESIGNATION Although primarily an honor signifying that a property is worthy of preservation for its historical value, the listing gives a private owner access to a 20% federal investment tax credit that can be claimed against the cost of a certified rehabilitation of an income-producing historic building. LOCAL HISTORIC DISTRICT DESIGNATION An Historic District is a type of zoning that applies to entire neighborhoods or areas that generally include many historic properties. The zoning provides enforceable controls on the appearance of existing and proposed construction and buildings. This designation protects owners from inappropriate changes by other owners. ZONING RESTRICTIONS Local municipal regulations can provide substantial protection and viability to historic resources. They can: Augment state and federal protections while tailoring development to local objectives. Stem the loss by demolition or irrevocable alteration. Establish incentive provisions for adaptation/re-use of historical structures.

22 OUR PRESERVATION TOOLS INCLUDE: DEVELOPMENT BOARD MEMBERSHIP IF the type of development being proposed includes a Development Board, a stipulation may be included in the sale agreement requiring that a representative of local government be granted a position on the Board to oversee compliance with local requirements.

23 REGARDLESS of ownership, we share a vision to: Preserve the Courthouse Structure. Require Productive Use that Corresponds with Community Needs Preserve the Historic Facade Preserve the Courthouse History Require Work that Reflects the Highest Quality Work Collaboratively with the Community Toward Preservation Goals.

24 COUNTY OWNERSHIP YES County pays YES Hire Experts and Professionals YES Collaboration with Community YES Collaboration with Community YES Collaboration with Community YES YES YES HOW IS THE VISION ACCOMPLISHED? Preserve the Courthouse Structure Apply for National Historic Registry Designation Preserve the Historic Façade Facilitate a Use that Corresponds to Community Needs Work that Reflects the Highest Quality Establish an Historic District Establish Ordinances, including Zoning to Support Historic District Preserve Courthouse History TRANSFER OWNERSHIP (WITH PROVISIONS) YES Buyer pays YES Certain Funding Depends on It YES County RFP Process YES County RFP Process YES The ARE Experts and Professionals NO They Must Comply / County Maintains Control NO They Must Comply / County Maintains Control NO They Must Comply / County Maintains Control

25 COUNTY OWNERSHIP YES County pays YES If a millage is passed by YES the taxpayers, the County ensures historic YES preservation through the use of Preservation YES Tools Hire and Experts appropriate and Professionals enforcement, and the County pays. YES Collaboration with Community YES Collaboration with Community YES Collaboration with Community HOW IMPLEMENTING IS THE VISION THE VISION ACCOMPLISHED? MEANS Preserve the Courthouse Structure Apply for National Historic Registry Designation Preserve the Historic Façade Facilitate a Use that Corresponds to Community Needs Work that Reflects the Highest Quality Establish an Historic District Establish Ordinances, including Zoning to Support Historic District Preserve Courthouse History TRANSFER OWNERSHIP (WITH PROVISIONS) YES Buyer pays YES Certain Funding Depends on It YES If a millage County RFP does Process not pass OR through the YES RFP process, County RFP the Process County ensures historic preservation through YES the use The of ARE Preservation Experts and Professionals Tools and appropriate NO enforcement, They Must and Comply the / County Buyer pays. Maintains Control NO They Must Comply / County Maintains Control NO They Must Comply / County Maintains Control

26 We may develop: Offices Retail Café/Restaurant Meeting Rooms Classroom Community Center Museum Housing BOTH PATHS LEAD TO PRESERVATION AND PRESERVATION AND USE OF OUR USE OF OUR HISTORIC HISTORIC COURTHOUSE COURTHOUSE Offices Retail Café/Restaurant Meeting Rooms Classroom Community Center Museum Housing Buyer may develop: Offices Retail Café/Restaurant Meeting Rooms Classroom Community Center Museum Housing RETAIN OWNERSHIP TRANSFER OWNERSHIP

27 Thoughts to consider Our next step is not to tie ourselves to a final use of the building. We ve already done that by identifying acceptable uses. Declaring a use more specifically would only serve to limit options available to us, and to those who might otherwise see possibility in Cass County.

28 Thoughts to consider Whether we choose to retain or transfer ownership of the Historic Courthouse and Annex, our next steps should be to: Work with the Village of Cassopolis to establish an Historic District. Work with the Village of Cassopolis to generate appropriate Zoning and Ordinances. Hire a consultant to assist with development of an RFP. Solicit list of best developers from our new Partners. Select a Property Attorney.

29 Steve Maraboli Author, Behavioral Scientist

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