Developer secures $2.4M from state for historic Bay City bank building

BAY CITY, MI -- The final piece of financial incentives were approved this week for the developer investing $12 million into the 125-year-old Crapo Building in downtown Bay City, allowing construction to begin in the coming weeks.

Officials with the Michigan Economic Development Corp.'s Michigan Strategic Fund on Tuesday, June 27, announced that developer Jenifer Acosta, who most recently redeveloped the former Bay City Times newspaper building at 311 Fifth St., secured a $1 million Michigan Community Revitalization Program performance-based grant and a $1.4 million performance-based loan, for a total of $2.4 million in incentives.

My Mentor | My Father

It's easier than ever to find great leaders and mentors in business today. But I've never had to look elsewhere for inspiration.

My father has always inspired me -- especially the way he’s redeveloped the building where he grew three companies. His building in Bay City is where my brothers and I played in the air handler and rode our bikes throughout while he worked on Saturday mornings.

In a way, he’s not only redeveloped the property but also himself. 

My dad put himself through college and graduate school. He helped my grandmother, a single mom, raise his younger brother and sisters. He founded his first hospice and homecare company before the age of thirty. He grew it, sold it, and became the CEO of the larger parent company for a number of years.

He retired from being a CEO in his early 50s and started another company. This one was more personal.

The new corporate culture he established was the opposite of the large corporate model he left behind. His focus was on building teams and giving team members the tools to succeed so they could provide the best patient care. Utilizing emotional intelligence to do the right thing and trust in your team is critical for a business as delicate as hospice care.

My father has always been a person of great integrity with a stellar reputation. He's traveled and put in the hard work for so many years that it's his nature … his normal.

So when I started my company nearly two years ago, I didn't expect my father to be selling his yet again. He was purchasing The Bay City Times building and I told him I founded a company one day as we walked an architect through the property.

A week later he told my brothers and I that he’d be selling his company. The following day he told me that he didn't want to back out of purchasing The Times, but we needed another use for it.

That's how I began working with my father in real estate. 

I love watching how he handles situations in meetings. The way he sits back and listens, watches the vibe and flow around the table. He makes building collaborative teams a priority.

When kicking off a development project, I spend a lot of time considering how the players interact. Things can be quite brutal if there isn't teamwork and collaboration. Historic buildings have a mind of their own and throw challenges your way. Teams who like to creatively collaborate will thrive on this. 

Dad’s newest redevelopment venture is City Market, an indoor market in that same Bay City building, featuring 30 vendors offering a variety of fresh produce, meats, fish, and specialty items.

Bringing this vision to life began only nine months ago. But in that time, my dad’s handled the hiring of a market manager, the redesign, plan review, health inspections, building inspections, construction, readjusting existing office tenants, and attracting 30 vendors to join in his vision.

It's nothing short of miraculous. 

He walks through and knows each vendor by name. In fact, he knows the names of their kids, spouses, and tons of fun facts about each and every one. He knows the names of the workmen who built it.

He’s always at the root of it, driving the passion and vision. He lets employees and business owners do what they do best, and inspires them to do more. He gives people a platform to succeed.

I'm constantly in awe of how he does it with conviction and integrity. I’m overjoyed that he’s making an impact in our hometown when he could be sharing his talents anywhere.

And I’m proud these 30 businesses will also have him as a mentor. 

One day I hope to be even half as incredible and accomplished as my father. He’s earned every bit of his success. I'll always be his biggest fan. 

Love you, Dad. Happy Father's Day!

-jen

What's next?

Our occupations affect the way we see the world. With the eye of a real estate developer, selecting your next project can be like finding a needle in a haystack -- or is sometimes right in front of you.

Whether I’m driving my kids to the pool or traveling to a distant city, I’m always visioning -- that’s the technical term for seeing a property’s potential development. Many folks love to play this imaginary, wouldn’t-it-be-cool-if-they-did-this-or-that game and brainstorm ideas for their downtowns or neighborhoods.

But I’m a developer, so visioning is a big part of my job. And if I find myself repeatedly musing about a property, I usually start digging around and running the numbers on its potential viability.

Realistically, very few of those probes ever pass my litmus test. In fact, my file cabinet right now holds about 30 development scenarios for buildings or properties throughout the Great Lakes Bay Region that will never see the light of day. These forays usually involve peeking at property records, zoning ordinances, the envisioned product, and potential profit long before the owners are ever approached. It's the thrill of the chase and an important practice.

But what moves the needle so these prospects make the leap to actual development?

1. Does this project match my values? Does it have the character and long-term (or short-term) potential for my portfolio? Is the neighborhood ready now, or will it take years to peak? Perhaps, the project has catalytic potential.

2. Does its timing cycle meet your needs? Real estate development projects can take years. Redeveloping large brownfield sites (tracts of land developed for industrial purposes and then abandoned) can take five to 10 years before building can even commence. On the other hand, infill projects (developing vacant or under-used parcels within existing urban areas) might be wrapped up in a year. So if you have other projects in motion, you need something that fits in harmony with the others.

Right now I’m finalizing the architecture and funding for The Legacy in downtown Bay City. That project will move into construction this summer. The Wenonah Park Pavilion project is part of a public-private partnership through The State Theatre and the Bay City Downtown Development Authority (DDA) and is in the midst of a committee-run design process. I'm also beginning another consulting project that should mesh well with these two projects as they move toward their next stages.

For me, the ideal cycle is having one project in pre-development or design, one in construction, and one at lease-up/close-out. Setbacks happen, of course. So it’s important to remember that whatever you bite off, you’ll have to chew.

3. How much time do I have for maintenance? Adaptive reuse projects such as The Legacy are high maintenance. The more gap financing that’s required to bring a project to life, the higher maintenance it is. Along with everything else, I'm also consulting on two other projects. For another development to enter into my current workload matrix, it would have to be relatively low maintenance -- something that can move along without my constant attention and weather a few setbacks if they crop up.

Some dream projects just aren't in the cards at the moment. And that’s OK with me.

I believe it's perfectly fine to take on less in order to successfully execute what's in front of you. Because it's the execution of each project that makes or breaks your reputation. And it's my job to make sure my community and I will still be proud of the work for years to come.

-jen

Michigan Change Makers: Ones to watch

In selecting 2017's Michigan Change Makers, we encountered promising leaders whose work has the potential to make tremendous change, transform places and take their organizations in exciting new directions. We're watching them to see what they'll do next.

Preserving neighborhoods’ context and character

I'm a preservationist. But what does that really mean?

Preservationism has a reputation as the movement that says no to change – people who only want to cast things in amber and freeze them in time. But this couldn’t be further from the truth today. 

If you go to the National Trust for Historic Preservation's website, you’ll find three main action categories for preservation: national treasures, historic sites, and reurbanism. 

I’m a proud reurbanist because I believe historic neighborhoods have great context and character. When traveling, I always make it a point to visit downtown areas and older neighborhoods to see how its buildings are being reborn. The architectural makeup is certainly a highlight.

But these areas have a “walkability” that encourage a sense of place. Each has its own unique density, scale and value. It’s easy to tell that many historic neighborhoods were built in the pre-automobile era because they’re geared toward people, not cars. They are designed and built to a scale that feels comfortable and inviting as you walk through down their streets. You can actually feel the impact on the community by having saved part of its historical fabric.

I’ve witnessed firsthand that impact when people who once worked in a building for decades of their lives return to it once its been repurposed and can see it in a whole new light. People genuinely appreciate you taking care of a piece of their town.

Preservationists can also make changes toward a more inviting urban experience. For example, when we transitioned the printing press addition at The Times Lofts, we took a barren brick wall and added large windows and landscaping which became a highlight for our private townhouses.

Being in a historic district helps protect your investment. That’s because these buildings are part of a community’s historic fabric and add value to it. There is empirical evidence that buildings in historic districts hold their value, making property investments there more sustainable.

Let’s face it: You can see the same collection of big box stores anywhere in the country. There’s nothing identifying or special about them.

I firmly believe that preservation helps a community hold on to its sense of place. And that’s important.

If you believe that, too, consider being part of the solution by joining….

Bay City Historic District Commission

Young Preservationists Great Lakes Bay

Michigan Historic Preservation Network

Michigan Young Preservation

National Trust for Historic Preservation

Preservation Action

You and your community will be glad you did.

-jen

Life and work are a balancing act

No matter how hard I try finding balance and “feng shui-ing” my life, eventually I get burned out. Don’t we all?

A friend recently re-posted an Inc. article  about finding life balance as entrepreneurs. The heart of the story came from a 2011 tweet by Randi Zuckerberg suggesting we have to choose between work, sleep, family, fitness or friends – but can only effectively pick three.

It made me take pause.

I envision life balance as a seesaw. But because I’m Type A, I take an almost scientific approach to leveling out my seesaw. I work constantly, but with flexibility. My calendar is time-blocked and micromanaged so I always know which days I’ll be in which place. I even schedule one day every weekend to just spend time with my family.

But recently I felt my burnout accelerating. The Legacy was in the midst of its Community Revitalization Program application process with the Michigan Economic Development Corporation. With my livelihood and a whole year’s work riding on the outcome, my stress was at an all-time high. I was also in physical therapy again for chronic back pain and was warned against going to spin class for a least a couple of weeks. Spinning, however, is my primary stress reliever and the best way I know to clear my head. Around this same time, our longtime nanny told us she’d soon be moving away. I was crushed; Danielle has been a part of our family for two years and she’s become a great friend.

I needed a break. My husband and I found a great travel deal and booked a last-minute family trip. We were lucky we had the luxury to shut down for a few days and get away. It’s not always an option, but we really needed it. I shut off for four days and I only focused on my family. It was amazing.

Then we came home. While I felt a lot better, I wasn’t ready to get back in the game. So I took it slow. My first day back, I took time to go to physical therapy and get an acupuncture treatment. I tackled the must-do items at work.

The next day, I had a meeting in Detroit and tuned into a podcast from the Urban Land Institute for the drive down. I listened to a woman in real estate who fought like hell to get the contract for The New York Times building development partnership. I found myself stunned by her balanced seesaw. She reminded her audience that developers are dragon slayers; we must vanquish problems that arise each and every day. But we also have to see the big picture and never lose sight of our overall vision. I started to feel a bit inspired again.

The following day, Momentum Midland hosted a session with the Incremental Development Alliance. This national organization looks at real estate development with a different model: Lower your risk profile. I’d been looking at their model for months, playing with development ideas, and talking to their leadership. This session was an amazing opportunity for me to learn from them in person – and only 10 minutes from my house! Thankfully, Incremental Development Alliance Executive Director Jim Kumon made time to visit my “farm” (the term used by small-scale developers to describe their collective projects). I wanted Jim’s advice on where to plant my next crop. 

Geeking out with a like-minded urbanist in mid-Michigan is a rare treat. I had an expert right in my backyard at a time when I was feeling crazy for taking on The Legacy. After seeing my work and the dynamics of my city firsthand, Jim reassured me that I’m doing the right thing. He also offered guidance from his organization to determine what’s next for my farm.

Now I feel ready to tackle my job again. Ready to slay another dragon. I needed to get out of the weeds and take a mile-high view again.

Burnout happens. When it does, my best advice is to shut down for a few days. Then dip your toes back in and rediscover your inspiration. Look to experts and loved ones for guidance.

And remember why you love what you do.

BAY CITY, MICHIGAN REDEVELOPER WINS HISTORIC PRESERVATION AWARD FOR HER FIRST PROJECT

A quest to bring this Romanesque lady back to life

You know how people think of ships and cars as female? That’s the way I think of buildings.

So my heart was broken a year ago when I first stepped out onto the catwalk suspended three stories above Washington Avenue between the former Chemical Bank’s “cheese grater” facade and the beautiful, 1890s architecture.

All I could think about was how her original beauty, no longer valued, had been covered up and hidden away. How she hadn’t felt the sunlight on her face for over 50 years.

I know the bank’s board of directors in 1959 had the best of intentions when they chose to cover the original masonry with a contemporary metal façade. They were trying to modernize her, make her current and efficient and updated.

When I was first asked to take a look at the building, I hoped for the worst. To be honest, other developers and professionals had tried for over a year with no luck to find a use and business plan that would work. In my mind, she was too far gone. Who was I to save her? 

But I just couldn't forget about her. 

By last April, I’d decided to move ahead with the redevelopment of the once-hidden treasure we now call The Legacy. When completed in 2018, the five-story building will house 26 residential apartments and three commercial spaces at the corner of Center and Washington in downtown Bay City – her home for nearly 130 years.

My apologies for her appearance

I know many of you are tired of looking at the hodgepodge of partially removed metal facade that’s graced this building for the last six months.

But because The Legacy is located in a historic district, more than 50 years old, but  not registered individually, we had to jump through some special hoops.

The National Park Service wanted to make sure the property would contribute to the historical district and needed to review her history and relation to other downtown buildings. It was up to the National Park Service to dictate which architectural facade contributed more to the downtown: the original masonry or the metal façade?

When I received notice we’d need to remove a portion of the white façade in order to send photos to the National Park Service, one of my first thoughts was “how long before we can remove the rest?”

But redeveloping old buildings and working through incentive programs such as historic preservation take quite some time. 

In December, our renovation plans were sent off to the State Historic Preservation Office and later the National Park Service. On March 13, we received word we could begin.

The big reveal is slated for May

And while she looks rather abandoned, we’ve been busy working inside.  

Our development team signed Quinn Evans Architects, which immediately began laying out spaces for her next life. Asbestos removal inside is nearly complete.  And Spence Brothers is mobilizing an army of local subcontractors to renovate it from top to bottom.

When the rest of the facade is removed in May, I hope you’ll believe in this beauty's potential as much as we do. She’s about to undergo a major facelift. Repairing exterior masonry will be a huge job. Then we’ll need to add masonry back to the lower levels. Finally, The Legacy will have proper historic windows.

It won't happen overnight. We have a lot of work to do. 

Often there were days – and still are days – when I doubt our ability to resurrect this icon.  But the team we've assembled and the plans we’ve created are stellar. My goal is to focus on executing it to the best of my ability. It's one of the most difficult projects imaginable, given the level of interior and exterior work required to bring her back. 

But in my heart I know that one day soon she won’t be lonely any longer. Dozens of people will call her home. Her main floor will be filled with thriving businesses.

And a busy downtown corner will be restored.

jen