Consultant needed for mill phases

ST. MARYS - Money must be spent on a consultant to design the next phases of the High Street reservoir mill renovation project before construction can start, city council members were told on Monday.

While reviewing the proposed city budget on Monday night, councilman Dan Uhlenhake inquired about a $150,000 line item for consulting services for the next phases of the project, which would focus on the inside of the structure.

Uhlenhake pointed out that council hasn't even established a source of funding to pay for the next phases of construction.

"Is it a requirement that we have this consultant first before we start, before we know where the money's going to come from?" Uhlenhake asked.

City public service and safety director Gregory J. Foxhoven replied that the city first needs a plan before it can move ahead with interior improvements.

Exterior renovations have been completed. The city received permission to use $1 million from a $1.4 million state revolving loan fund aimed at relieving slum and blight conditions for the project.

However, officials late last year learned they would not be able to sell the property but would instead need to lease it to any potential business owners.

"We own it (the mill). We can never sell it so we need to get the inside usable so if we do get someone that's interested in leasing it from us, it's workable," Foxhoven said.

Interest has been shown in leasing space but because the parties can't have an ownership stake in it, they would have no equity, causing an issue with lenders, Foxhoven pointed out.

"The banks were reluctant to loan them money for equipment and improvements on the inside so we feel it's necessary for us to get the mill phase two completed on the inside," he said. "In order to do that we need to have a consultant design it for us and give us a cost on it."

City officials don't know at this point where the money will come from to bankroll the next phases of construction, Foxhoven reiterated. Foxhoven at a previous meeting had estimated the next round of improvements to the old mill building at about $2 million.

"We just don't know and that's something that we need to talk about. But we want to be able to work with the consultant and this is the same consultant that did phase one," he said in regard to architectural firm Moody Nolan.

City officials need a completed design to attract occupants, he said.

"Look, this is potentially what it could look like, which includes the water wheel, the HVAC, the restrooms," he said.

One option is to go with minimal construction, basically utilities, with tenants responsible for the next level of improvements for whatever business they're engaged in.

"We think it's a great venue. We've just got to keep moving forward," Foxhoven said. "Now that we have it completed with phase one, we just don't want to leave it sit. We've just got to keep moving forward."

Assistant law director Kraig Noble suggested raising private monies to pay for the water wheel. He believes organizations and individuals would supply materials and that the wheel could be constructed in-house.

The first phase of the rehabilitation project focused on stripping away modifications and additions to restore and stabilize the original foundation and frame of the structure, originally built between 1846-1847. At times, the structure was so bare people could see straight through it.

The building - at least its exterior - has since been transformed. Where loose sheet metal siding and concrete additions were once tacked onto the building, a basic but brightened structure now stands. The interior is not finished, as the first phase focused largely on the exterior, but even that has been cleaned up some.