New Plans for Old Prison
By Catherine Stortz Ripley, Constitution-Tribune
Tuesday, November 10, 2009

Image Provided by Gastinger Walker Harden Architects

CAPTION: Most of the existing structures on the former Chillicothe Correctional Center campus on the south side of Third Street will be rehabilitated into residential and office/retail space under plans proposed by Foutch Brothers, LLC, of Weatherby Lake, Mo. Chillicothe City Council members approved a development agreement with the Foutch Brothers during their regular meeting Monday night. Total project costs are estimated between $7 million and $10 million.

The city of Chillicothe moved forward on plans to have the former Chillicothe Correctional Center campus transformed into a residential and commercial complex. The council voted 3-1 Monday night to approve the agreement with Foutch Brothers, LLC, of Weatherby Lake, Mo., to rehabilitate many of the existing structures located on the 42-acre tract of land south of Third Street. Foutch Brothers plans to establish 95 residential units, plus 6,000 square-feet of office space and 8,000 square-feet of mixed use retail space.

Under the agreement, the city would pay the developer $1 million ($250,000 each year for four years) to be used for the installation of permanent infrastructure items, such as electrical lines, water and sewer lines, removal of hazardous materials (asbestos), athletic fields and parking lots.
Steve Foutch, representing the Foutch Brothers, was on hand during the council’s meeting to explain the proposed project and answer questions. Foutch Brothers has successfully converted mixed historic buildings into over 650 apartment units, representing $65 million of costs. One of the company’s projects is the conversion of the old Mead (Big Chief Tablet) building in St. Joseph into 258 residential units.

Total project costs are estimated between $7 million and $10 million. According to the agreement, if the developer fails to expend less than $7 million for the development, a portion of the city’s money would be returned to the city.

Foutch Brothers plans to utilize state and federal historic tax credits. The developer is also requesting that the project be approved for a Missouri Chapter 353 real estate tax abatement which would fully abate all real estate taxes for the first 10 years and then half of the real estate taxes for the following 15 years. The property would be fully taxable at the end of 25 years. The property has not been taxed in the past because it was owned by the state of Missouri.

Additionally, the developer is seeking reduced fees typically charged by the city such as permits inspections and review charges, licensing fees, and others. The proposal states that the developer would be able to convert the campus in as little as 18 months.

Due to the requirements of historic tax credits, the developer will retain ownership of the property for at least five years from the date the buildings are placed in service. At that point, the developer is allowed to either continue to rent the units or to sell them as individual condominium ownerships. The Foutch Brothers intend to sell as many units as possible due to market priceing and demand. The loft/condo rental rates would be around $625 a month average, with the range being from $500 to $700 typical.

The developer wants to expedite the process of getting the buildings and campus listed on the National Register of Historic Places to allow for the use of historic tax credits. Additionally, the developer would want to move quickly to get funding to remove the hazardous materials. Construction is projected to begin immediately after the pre-development work is completed.

With the council's approval Monday night, the next step will be to draft a contract for consideration by both the city and Foutch Brothers. City Adm Dean Brookshier said he hoped a contract would be ready within 30 days.

Fourth Ward Councilman Paul Howard made the motion to accept the Foutch Brothers' proposal and Councilman-at-Large Darrel Rinehart, Jr. seconded the motion. The matter was approved by Howard, Rinehart, 2nd Ward Councilman Maurice Zion. Third Ward Councilman Tom Douglas voted against the measure. In a telephone interview following the meeting, Douglas said he was against the idea of the city giving the developer $1 million. "I think these guys will do a good job, but I don't think we need to give them money to come in and do it," Douglas said. Based on an informal estimate, it was projected to cost around $1 million for demolition of the buildings, including the removal of hazardous materials. Douglas said that even if the city had to spent that money, the city would still have the ownership of the property.

Also it was revealed Monday night that another proposal for the old prison property was submitted to the city on Friday, well after the August 21 deadline. The proposal came from local developer Bill Mast. Details of the proposal were not discussed during the meeting, but it was stated that his proposal would result in a $900,000 savings to the city.

Prior articles on the old prison plans...

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City Acts on Railroad Right-of-Way Issue
Constitution-Tribune, Friday, Nov 13, 2009

Individuals owning property adjacent to the city-owned railroad tracks can be granted limited licenses to gain access to clean up the railroad’s right-of-way. The city has railroad rights-of-way and much of the ground around the railroad is, by nature, unmanicured and therefore a target for litter and trash. At times, these areas can accumulate waste faster than what the city can take care of it, according to City Attorney Adam Warren.

Warren addressed the issue during Monday night’s regular City Council meeting and said that neighboring property owners have complained about the lack of upkeep. Warren presented an ordinance to the council which, if approved, would allow persons owning property adjacent to the railroad rights-of-way to mow the area and keep it clean. These individuals, however, need to obtain a license from the city and may need to sign a waiver stating that they assume some risk in cleaning up the rights-of-way. The areas in question are mostly east and south of town, Warren said. After hearing discussion, council members voted 4-0 to approve the ordinance.

Also Monday, the council was introduced to Kevin Haney, who was recently hired as a full-time groundskeeper for the Parks and Recreation Department.

In other business Monday night, the council:

• Approved the closings of several roads for the Holiday Parade on Saturday, November 21.
• Heard a report from city engineer Ron Urton who provided an update on the Third Street project.
• Approved a conditional use permit to allow for a used parts and equipment business at 1481 Washington Street (Raymond Quinn for the former Cooke Sales and Service on the east side of Washington Street).
• Approved the payment of invoices.