Big plans brewing

By Lisa M. Reed - lreed@dailypress.net
ESCANABA — When Matthew Sviland was first approached by the Downtown Development Authority (DDA) director to consider renovating the Delta Building, he wasn’t interested. But he changed his mind after walking through the building.

The Delta Building, 1609 Ludington St., is the entrance to Escanaba’s downtown, Sviland said in an interview this week.

“I saw the potential of this old building and the potential for loft-type space,” Sviland said.

Sviland, an Escanaba native, addressed the DDA Thursday about filing a letter of intent, allowing him to seek grants and funding for renovating the building into retail and apartment space.

Owner of Sviland Paint & Wall Coverings, Sviland said he researched what he could do with the Delta Building before purchasing it. The historical building, built in 1900, is quite impressive with its 12- to 18-foot ceilings, metal beams and two-foot wooden walls, he said.

Built as the Richter Brewery and then utilized as the Delta Brewery from 1933-40, the building has housed several businesses. Sviland said the first floor was once a beauty school, home to a veterinarian and a gymnastics center.

But the 20,000 square-foot, four-story building has not been completely occupied for four decades.

“It’s not safe right now as it is. There is lots of junk. It is leaking so there is ice on the floor, pigeon droppings, etc.,” Sviland said. “It’s just not safe.”

Sviland said light cleanup has started inside the building.

“This is an exciting project,” said DDA Executive Director Roger Good. “It is taking an historical building and looking for local, state and federal dollars.”

DDA board members Thursday approved asking the city to submit a Notice of Intent to the Michigan State Housing Development Authority (MSHDA) for $200,000 in grants from the 2008 Facade Initiative Program. Good said the DDA has permission to submit a notice of intent for this building rather than two or more usually required for this program.

The project, named “Lofts on Ludington,” is being developed by Swanee, Inc. Sviland is working with Hobnob Communications, a local public relations agency owned by Joanna Wilbee Anis, for an image and logo.

Sviland has also applied to get the Delta Building listed on the National Register of Historic Places.

“I want to do this because in 2007 I had completely remodeled Sviland Paint & Wall Coverings. It went well and business has doubled,” Sviland said. “Our plan is to renovate the building historically on the exterior and the interior with loft spaces on the upper floors and retail on the main floor.”

The building will have 16 or 17 rental units with two or three lofts on the top floor. An elevator will also be installed.

“When people come to Escanaba, they will see options of where to live. I’m sold on the idea myself,” said Sviland, who is also seeking a $20,000 DDA facade grant to renovate this historical building.

A requirement of the grant is retail space must be on the front side of the building. Also, because of the magnitude of this project, Sviland is seeking additional funds from the city’s downtown revolving loan fund. The loan limit is $35,000, however, the limit can be amended to $300,000.

Sviland was given support from the DDA for this loan limit amendment request, which must go to the loan administrative board and also city council for approval.

The DDA on Thursday also supported a loan limit amendment request from the city’s Downtown Revolving Loan Fund for this project. The loan monies will assist in the overall financing required for the project. These funds will be used for facade improvements as well as costs associated with developing bids and specifications for the project.

“The excitement is incredible. People get excited about it, even in the condition it is in,” Sviland said. “It’s unbelievable. It would be a liability to tear it down. It would cost hundreds of thousands of dollars. It’s an historic building and part of Escanaba’s history.”

Total cost estimate of the building improvements is $1.6 million.

“It has everything — urban location and it is historic. And it will have as much ‘green’ as it can,” Sviland said.

With cleanup and renovation, as much building material as possible will be recycled.

“Escanaba is eager for a different housing. This will pursue alternative ‘green’ living and sustainable energy in the products we would use in building,” Sviland said. “I feel the city of Escanaba is in need of some apartments like this.”

Sviland said there is a 800-foot artesian well on the property. Geothermal energy will also be used.

“The place did bottle water when prohibition came in,” he said.

DDA board member Paula Hughes-Jonsson asked if the rental units would be condominiums.

“I felt that it was not a condo location. I think it is a great opportunity for young executives coming to the area. Close the doors and everything is taken care of,” Sviland said.

All work must be stopped while the letter of intent is being processed. Because of that, Sviland said no work will be done during May, June and July.

“So we are doing something but it will be in phases,” Sviland said.

A letter of intent takes one month. The city council must approve filing the notice of intent.