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Serving Northern St. Louis County, Minnesota

Apartments proposed for Community Center in Ely

Keith Vandervort
Posted 9/11/14

ELY – In light of the City Council’s recent decision to seek more proposals for the future use of the Community Center, one option bears a closer look – residential units for seniors.

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Apartments proposed for Community Center in Ely

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ELY – In light of the City Council’s recent decision to seek more proposals for the future use of the Community Center, one option bears a closer look – residential units for seniors.

First presented by Gerry Snyder this past summer, his idea is one of many the council would like to be able to consider as negotiations begin with the Ely Community Center Foundation to take over operations, management and even ownership of the landmark sometime within the next three years, after which the city will turn off the lights and lock the doors.

“We need to let people know that if they have a good idea and if they want to investigate it further, now is the time to do it before we get into some form of long-term commitment on the use of this building,” said Mayor Ross Petersen in asking for a motion authorizing the advertising for proposals. The measure passed on a 5-2 vote. Proposals will accepted until Sept. 15 at 4 p.m.

“The highest and best use (for the CC) is to revitalize it with rental apartments or condominiums,” Snyder said about his recommendation. “It is in a superb location that offers easy access to a multitude of amenities. By preserving the historical character of the building, private financing, combined with tax benefits and preservation grants, can create an attractive reality and translate into widely affordable residential units.”

Snyder’s sample study presents one option for a 12-unit layout, each unit ranging in size from 913 to 1,594 square feet. “Several of the units on the high-ceiling second floor could be constructed with an interior stairway to an additional bedroom/bathroom loft,” he said. The total number of residential units could be expanded to 19 or 20 with the construction of a third floor for additional units instead of having second floor units with lofts, he added.

Some of the main floor units could have access to an individualized ground level patio with landscaping, furniture, table, grills, etc., he suggested.

Historical integrity

“The building lends itself to a variety of attractive alternatives, some of which woud be predicated on the use of natural light windows through sidewalls, back wall and perhaps skylights,” Snyder said. “The main focus of any revitalization should be to maintain the historical integrity of the Art Moderne Style.”

The federal Public Works Administration (WPA) built the CC in 1938 in this artistic style symbolizing American democracy emerging from the aftermath of World War I. The style depicted the industrious American workers production achievements in mining, logging and fur trading. “Six-thousand people were in attendance at the building’s dedication,” Snyder said.

“The salient features of the Community Center should remain as witness to its historic origins,” he said. “This certainly includes retention of the exquisite black terrazzo marble on the lobby floor with its wide brass dividing strips, rare gold leaf ceiling, Art Moderne lighting features and the Kasota stone fireplace.”

The exterior facade’s relief sculptures are a distinctive and enduring symbol of Ely’s history. “The square glass block windows are a prominent feature of the building and the character of these windows should be represented in any preservation effort,” he said.

Financing rehabilitation

The alternatives, number of units, size and costs for transforming the CC into rental units for condominiums would be determined to a large extent by financial arrangements, Snyder explained. A number of grant programs and tax incentives are available for preservation of historic buildings and a marketing study would indicate the best configuration and pricing.

One of several grant programs offered by the State of Minnesota, according to Snyder, offers a historic Rehabilitation State tax credit program equal to 20 percent of restoration costs for apartment buildings.

In addition, the federal government also offers a similar 20 percent tax credit incentive. “A successful award of these two grants, totaling 40 percent, would make the revitalization of the Community Center readily attainable for residential units,” he said.

According to his proposal, the governmental rationale for these credits is to generate jobs, Generally, more than 70 percent of the cost of restoration projects is for labor while labor costs for new construction are normally about 30 percent.

“Depending on how the ownership of the building is configured, the present value of its depreciation for tax purposes is a potential source of additional equity funding,” he said. “Moreover, because of the solid, structural durability of the Community Center, its useful life is likely to extend well beyond the (Internal Revenue Service) depreciation schedule, and hence will have an attractive residual value.”

Snyder continued, “The securing of various available grants and tax incentives would contribute to lower affordable costs. To accomplish this goal, it is necessary to contract with a knowledgeable, experienced and capable developer.”

Finding such a developer in Ely seems much more plausible since John Ott acquired the old State Theater building and adjacent Salerno Building as well as the former Tanner Building, the old hospital, to be historically renovated instead of torn down.

Enhancements and amenities

“There is a delicate balance between historic preservation and modern-day requirements,” Snyder said. “The American With Disabilities Act (ADA), and fire and building codes dictate the outcome in many instances.”

The major modernization feature for the Community Center is an elevator that has easy access from street level and to every floor from the garage basement to an dincluding the rooftop.

In Snyder’s proposal, the elevator also would access the proposed year-round landscaped solarium located on the lower roof west side facade. A landscaped summer terrace would be located on the top roof. “Both the solarium and terrace would benefit from an opportunity to view evening sunsets. The rooftop elevator also would provide access to raised garden beds for the use of green-thumbed residents,” he said.

“The basement could function as a garage, private storage space for residents, and a general maintenance and mechanical room. The operating costs of the building might benefit from closet-sized heating and air conditioning units in each apartment controlled independently by the resident,” he said.

Solar energy

Recent technological improvements in solar energy have reduced costs, increased efficiency and shortened payback periods. “An appropriate solar roof top system for the Community Center could supplement traditional hot water heating systems and reduce operating expenses for all apartment units,” Snyder said.

He explained that solar hot water collectors use the full spectrum of the sun and consequently they efficiently absorb the diffused solar radiation present on cloudy days. “The collectors do not need direct sunlight to operate and are not impacted by shading issues like solar electric modules are,” he said.

In addition to reduced operating costs, according to Snyder’s proposal, there is a capital cost saving of 30 percent federal tax credit available through the end of 2016. The installation of the system can also benefit from a five-year Modified Accelerated Cost Recovery System in the federal tax regulations.

It has been estimated that a commercial solar system can reduce water heating costs by up to 70 percent. “Since there are no shadow obstructions on the high Community Center roof, it appears to be an optimum opportunity to save operating costs with a solar hot water system,” he said.

Rova report

The Ely Community Center Re-Use Study project by architect John Rova was completed this past summer and financed in part through funds provided by the State of Minnesota from the Arts and Cultural Heritage Fund through the state Historical Society.

Recommendations from the study included: the city of Ely continue with their agreed-to plan to maintain the building for the next three years; a group of people develop the legal structure to form a foundation and create a formal business plan to manage the building; the city work with such a foundation to keep the building active and to support funding efforts for upgrades; and the Heritage Preservation Commission nominate the building for a place on the National Register of Historic Places to provide additional funding opportunities.

The Rova report recommended many uses for the Community Center, including gymnas-ium/sports area, conference center, additional office/learning/museum space, agricultural production and public kitchen space for profit and non-profit ventures.

In his response to the study, Snyder said some of the facilities recommended already exist in Ely and would compete with Ely individuals trying to make a living from similar businesses. “Instead of trying to put a square peg in a round hole, the City Council should broaden its consideration and not view the disposition of the Community Center as a single, isolated decision, but rather as a component of the long term interlocking framework for Ely’s future,” he said.