FSW Saga--excluding hearsay!

Known Facts about FSW Property as of 12.27.07

2000 Comprehensive Plan designates FSW property to be zoned from Industrial to Residential when FSW no longer viable.

Several years ago , the owner of the house at 516 South Main Street, immediately south of the FSW property, was denied rezoning to Commercial to remain in compliance with 2000 Comprehensive Plan.

2007 DRAFT Comprehensive Plan designates FSW property mixed use. Plan not yet adopted.

On October 9, 2007, Magellan Properties registered the deed of the site previously owned by FSW property with the county. The deed indicates a restriction against residential use and residential development.

On November 20, 2007 The Planning Commission held a public hearing at which Magellan Properties presented a concept plan and requested a rezoning to C-2 of the FSW site, plus the house immediately to the north at 416 South Main Street. The response of Carl Schmult, planning consultant to the Planning Commission, is taken from the official minutes of the meeting and follows:

“Carl Schmult read his report regarding the proposal. The request for C-2 zoning does not support what is in the current Comprehensive Plan nor is it consistent with the Comprehensive Plan that is about to be adopted, His opinion is that while the site it not viable any longer for Industrial and probably should be rezoned, it should stay consistent with your Master Plan. You either need to deny that request or change your Master Plan. In addition, based on the current Master Plan, and the one ready to be adopted, the rezoning should not include the residential parcel to the north. The Future Land Use map in both versions leaves that parcel residential. The applicant could apply for PUD zoning which would assure mixed use, have a specific layout, establish architectural features, and enhance the character and treatment of the edges of the site which abuts surrounding residences. If you allow C-2 zoning it does not necessarily mean you will get what is shown tonight. Anything under C-2 would be allowed. A decision will have to be made on what the Planning Commission and City Council want to do with the rezoning of both the residential property to the north, and the Federal Screw property. This should be done before the Comprehensive Plan is adopted. It is suggested that this be discussed at the Joint Meeting with City Council. There is a deed restriction between the old owners of Federal Screw and the purchaser Rene Papo which states that because of contamination no residential development can take place on site. Mr. Schmult said that the City’s stand on this issue should not be based on a deal between two people. Yes there is contamination, but the possibility does exist that it could be cleaned up and used as residential.”

• Many neighborhood residents urged the Planning Commission not to grant C-2 rezoning, citing increased traffic congestion as a concern, lighting spillage, interruption of the neighborhood, in general.

• Many other Chelsea citizens presented reasons that the entire site should not be leveled as proposed by the Magellan Properties concept plan. The site has been a factory complex since 1916 until the Chelsea Division of FSW went out of business in 2005--receiving awards from the Army and Navy for quality production during World War 2 and playing an important part in the history of Chelsea. In particular, reasons for rehabbing and reuse of the two corner office buildings were given: architectural uniqueness that serves as points of interest that would be examples of preserving historic places as frequently cited in the 2007 draft Comprehensive Plan for the purpose of Chelsea as a destination.

The draft Comprehensive Plan and rezoning request were tabled.

On November 29, 2007, The Chelsea Standard published an extensive piece written by Kathy Clark on page 4-A: An Industrial Landmark: Federal Screw Works employed hundreds in heyday.

On December 4, 2007, a work session to review the 2007 draft Comprehensive Plan was held between the Planning Commission and City Council. No changes to the proposed mixed use zoning for the FSW site were suggested.

On December 28, 2007, the Planning Commission held a second public hearing to consider the 2007 draft Comprehensive Plan and rezoning request by Magellan Properties.

Citizens individually addressed the proposed rezoning of the FSW property for multiple reasons:

• Historic significance of the factory to Chelsea
• Architectural significance of the two office buildings to Chelsea’s unique and historic building inventory
• Neighbors object to C-2 zoning in general
• Brownfield money is available to mitigate contaminants that are cited in 11/8/07
• Base line environmental assessment submitted to DEQ-this could be accomplished to allow residential development
• Other monies are available for the purpose of rehabbing and reuse the two offices;
• knowledgeable people are willing to assist with this process IF Magellan Properties indicates motivation to pursue these options
• Washtenaw County is a certified local government and can write a proposal for a

project, pledge matching dollars for the project, and submit their proposal to the Michigan State Historic Preservation Office as part of the competitive pool for that federal money. The projects can be bricks and mortar or planning projects.

• The federal tax credits are available to developers who are rehabilitating a building that is listed on the National Register of Historic Places and who will be using it commercially. The federal tax credits are only available for commercial use--stores, etc. However, rentals are considered commercial use--it is a building that is depreciable. So what many developers do is develop a project, rent out the residential portion for 5 years (the tax credit recapture period lasts 5 years), and then they convert their residential units to condos after that

• The concept of “Chelsea as a destination” was expressed by business owner, Tom Diab-

“As the owner of the Gourmet Chocolate Cafe located in the Clocktower

Complex, I know from experience that people who come to Chelsea

are drawn to the unique charm of the old buildings. Eight out of ten

people come into the Gourmet Chocolate Cafe as they are walking

around town in the summer. Chelsea businesses benefit from architecture

that is distinctive with historical meaning.

The Comprehensive Plan and zoning can determine what happens

on the FSW site. Historic ambience is a quality that can be used

in marketing Chelsea as a destination.”

• Two organizational letters of support for rehabbing and reusing the two offices

buildings were read and submitted-

Chelsea Area Historical Society and Chelsea Depot Association

A work session between the Planning Commission and Magellan Properties was requested by the developer. TBA This can be observed by interested parties with no public comment.