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March 21, 2002Minervini to be new Building 50 owner- Project Back to Eden has expessed interest in purchasing nearby barns, Subarea 3 for volunteer training centerBy BILL O'BRIENRecord-Eagle staff writer TRAVERSE CITY - Traverse City developer Ray Minervini will become the owner of historic Building 50 at the Grand Traverse Commons, the first developer to take ownership of the century-old structure after a decade of failed renovation plans. Minervini has informed the Grand Traverse Commons Redevelopment Corp. board that his company, The Minervini Group, will exercise a purchase option for the massive former administration building of the Traverse City State Hospital. The deal was expected; Minervini had reached a redevelopment agreement for Building 50 with the Commons board last year. Under the agreement Minervini had up to one year to inspect the building and decide whether to buy it. The agreement includes rights to about 30 acres of Commons property known as Subarea 2 where Building 50 sets. Minervini's immediate plan is to re-roof the building to prevent further deterioration and later redevelop it in stages for various commercial and residential uses. "We need to get moving with this project so we can put shingles on the roof this year," Minervini said. The Minervini Group also is looking into buying a 27.4-acre site west of Building 50 called Subarea 3. He says use of the land will be critical to the redevelopment plans for Building 50. The site also has garnered attention from others. Munson Medical Center nearby has expressed an interest and, more recently, so too has a southeast Michigan religious organization known as Project Back to Eden. Project Back to Eden last spring expressed interest in buying Building 50, but the Commons board already was in negotiations with Minervini. In its most-recent proposal presented to the Commons board this week, Project Back to Eden has proposed using both Subarea 3 and the barns property at the south end of the campus to create a volunteer training center for the organization. The group, run by Capac businessman Douglas T. Nanney, envisions creating an "institute" at the Commons to train volunteers in areas such as agriculture, building trades, food preparation and other areas. Those volunteers would then assist developing communities in other parts of the country and the world. Nanney says the group needs around $2.75 million to stabilize the aging buildings at the Commons that would be used by the organization. He also said the group would put $4 million upfront for the work and could raise upward of $20 million if needed. The Commons board has agreed temporarily not to actively market the Subarea 3 property to other potential buyers while negotiations on a possible deal with Minervini are continuing. However, the board this week referred the proposal from Project Back to Eden to the Commons development committee for further evaluation. The Minervini Group's option for Building 50 and Subarea 2 requires the company to invest up to $1.5 million into a new roof for much of Building 50. The developers have agreed to re-roof the "original footprint" of Building 50, which was built around 1885, but that does not include two wings of the structure that were added after 1900. Minervini said the group has not yet decided whether those areas will be demolished or included in the planned renovations. Developers also have committed to developing a 20,000- to 30,000-square-foot pod of Building 50, with the Commons organization providing an equal match of redevelopment funding from proceeds from the sale of other properties at the campus. The plan for the property is for mixed-use development including retail businesses, professional offices and residential apartments and condominiums. Both Commons officials and Minervini's development team said they were glad to see the purchase option formally agreed to after what they termed a "long and arduous" process over two years. Commons officials have reviewed several proposals for massive Building 50 over the past decade - with ideas ranging from senior citizen housing to razing the structure - although Minervini is the first developer to exercise a purchase option for the building. "I'm excited you've decided to make the commitment," Commons board vice chairwoman Beth Knol told Minervini. |
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