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Q&A from Nov 7, 2024 BIPAC Special Session

Q&A from Nov 7, 2024 BIPAC Special Session

The following set of questions were received at the Nov. 7, 2024 Belle Isle Park Advisory Committee special meeting session. The developer Stuart-Pitman Inc., DNR and Belle Isle Conservancy have provided answers.

All question were typed directly as they appeared on comment cards with the exception of some spelling corrections.
Question by theme Answered in Nov. 7, 2024 BIPAC meeting (even if answered in full proposal)? Y/N Lead on answer Stuart-Pitman Response: Michigan Department of Natural Resources response: Belle Isle Conservancy response:
Facility Construction Questions:
What is going to be done to stabilize the deteriorated wood pile foundations and what is the budget for that? No Stuart-Pitman The foundations were inspected in 2016 and found to be in good condition but further analysis will be required to answer this question fully. The issue is known to us and has been addressed in our early budget process. Our team has experienced similar pilings on other projects and is familiar with our options.
Are there low cost steps that DNR could take now to prevent further deterioration now that would be important? No DNR The DNR has committed funds from operations to keep the boiler functioning. Keeping the space heated will do a great deal for preventing further decay. Unfortunately, we do not have funding to seal and/or repair the roof. That is probably the most needed prevention at this point.
For a building with this level of repair, it would be a missed opportunity to not pursue zero carbon and zero energy. It may seem more expensive, but not necessarily when looking at long-term operational costs and funding available for building decarbonization projects. A recent example of a project I toured was the abandoned historic 1917 Steams and Foster building just outside of Cincinnati. Pepper construction renovated it to zero energy for their headquarters. Is this being considered? Yes Stuart-Pitman We will take every opportunity to explore sustainability for this project throughout the design process. Beginning with the preservation of the structure itself we will then create an infrastructure which supports the buildings programming, be easy to maintain for the long term.
How will you address the flooding and foundation issues? No Stuart-Pitman Our plan is to use materials and construction techniques which are flood resistant on the ground level and at grade. This will help to minimize disruption following significant flood events.
What modern facilities and space is needed for the boat club and sailing club?Will it be a new building on the site or the historic boat house? No With the uncertainty of the fate of the clubhouse over the past year, both the rowers and sailors have explored potential options for their continued growth. Give the plan under consideration their footprint could grow to a mix of new and existing spaces.
How is it the inside is "near pristine" condition since only the rowers occupied it? Volunteers? Donations? No For more than a decade, FODR has done a great job of keeping an eye on the building and making improvements (1M+/-) to it's mechanical systems and general maintenance. Pristine was a term used in relation to conditions of buildings previously renovated.
Will a new marina be built? Yes
Has the depth of the water been considered? Slot middle ground is extremely shallow and the navigable channel to the boathouse for a vessel with greater depth than 2 ft is very narrow. No Stuart-Pitman Studies with regards to water depth around the boathouse and the potential need for dredging will be undertaken in the early phases.
Will there be any efforts to make this building green while using sustainable building materials? No Stuart-Pitman Every effort will be made to use green materials. In particular the use of NHL stucco systems which are far more sustainable and green than typical portland cement based stucco systems.
Are there any site improvements needed on site that some of the $2 million ARPA funds that were allocated to demo can be used to address? Yes The ARPA funds are required to have been obligated by now. Because of this, the $2 Million dollars mentioned are already obligated to other projects. This had to happen, as to be obligated a plan and a contract had to have been in place already.
Public Access and Workforce Questions
Will the boat house and rowing teams still be housed there? Will a new marina be built? Yes
Are there any thoughts to using the third floor? No Stuart-Pitman The space on the third level includes the landing which holds 2 display cases, a conference room and the original "Presidents Bar". Each of those will contonue to be utilizied. Additional spaces to the east of those will be programmed down the road.
Does the plan include space for a welcome center? No Stuart-Pitman While the entirety of the boathouse will create a welcoming space for visitors to the island, the lower level will be home to a DNR managed "welcome center". As mentioned the lower level will also offer modern public restrooms and a workout space for the rowers/sailors.
Will there be an indoor informal lunch room/ diner available all year since food trucks close in the winter? Yes Stuart-Pitman We plan to utilize the former club "grill" on the lower level as an informal year-round dining outlet.
Will there be spaces available for non-profit or small private groups or clubs to rent for meetings or events? No Stuart-Pitman In addition to the existing ballroom (capacity 120) we are creating a conference space on the 3rd floor in honor of Dr. Peter Strong, the clubs first African American member and Commodore. Both those and the additional bar on 3 will be available for rentals.
Hopefully there will be community spaces. But what about the opportunity for career opportunities for folks, especially underserved youth and young adults? No Stuart-Pitman See 25D
Will this be a totally public facility? Or will there be some sort of membership program? No Stuart-Pitman The Gateway project creates and entirely public accessible space on the island.
Will there be opportunities for local architects and contractors to be involved in design and construction from Detroit? Yes Stuart-Pitman While we are utilizing a Wisconsin-based architectural firm, ICA will be opening a Detroit office at the commencement of this project. As in our previous development projects, the Gateway will provide countless job openings for locals both during construction and beyond.
Are the new jobs in restaurants have a chance for great wages that are competitive? Yes Stuart-Pitman In an effort to attract and maintain a strong labor force and provide the best experience to guests, competitive wages are planned at each of the outlets.
Given the amount of money that will go into the boat house, what percentage of minority and women-owned businesses will be a part of the renovation process? Yes Stuart-Pitman This project plans to utilize those underserved in the local community and we have already been in contact with the National Trust for Historic Preservation (NTHP) with regards to their Hope Crew program and supporting similar trade programs.
This is called the Belle Isle Gateway. For people arriving in cars will there be a shortcut to get to the boathouse? No DNR This has not been determined at this time. Part of the Mobility study conducted examined paths entering the park. However, the implementation of a two-way outer loop was not well accepted by the public. This would have been the most likely “short-cut”. Vehicle traffic will most likely need to use Central Avenue, though depending on the parking amenities upon design and completion, a clearer route may be determined in the future.
You've mentioned water taxis or ferries to the island. Has there been any discussion bout reducing car traffic on the island, perhaps by providing free shuttles, reducing lanes, and/or no car days? No DNR Part of the proposal mentioned free shuttles. The mobility study has already resulted in some short-term improvements, such as lane reductions. We do not envision “car-free” days on the island, as our goal is to give all equal opportunity and access to the island.
Timing
What would be the timing from signing to open? Yes Stuart-Pitman Approximately 30-36 months
Tentative start date of the project and length of time to complete? Yes Stuart-Pitman Ideally mid 2025
How much would it cost to complete your first phase of due diligence before moving ahead with the project? Yes Stuart-Pitman 2.5 - 3 M to prepare the site and stabilize the structure.
How does the team envision phasing the project? No Stuart-Pitman The exterior shell of the project will be the most important step to seeing there is no more deterioration of the boathouse. Additional work can happen simultaneously on any necessary remediation and interior prep for finishes. Studies along the waterfront will see the eventual needs to develop a marina
Fundraising and prioritization
What other important priorities at the park are we saying "no" to if we say "yes" to this? Yes DNR The DNR was unable to fund this project, as other improvements held priority. As such, no State funding will be moved from a project to the boathouse at this time.
How does the Boathouse Gateway fit into priorities of Belle Isle Park overall? Yes DNR Though it is a high-profile project, and the first thing you see upon entering the park, it did not hold priority over things like the Aquarium, Fountain or Visitor Safety improvements.
How do we know this is the top priority for park users, particularly if philanthropic dollars are part of the funding strategy? No DNR We do not. Overwhelming public support has been communicated for the rehabilitation of this structure. However, investments are yet to be determined.
What is the pathway to submit concepts for OTHER non-motorized water sports beyond sailing and rowing? No DNR The DNR receives suggestions and improvements to the park on a case-by-case basis. For example, we have a current kayak vendor on the island. We have had a jet-ski vendor. Concession ideas should be sent to Tom Bissett.
Will you determine general park user desire for this project? No DNR In general, we have received very little comment opposed to these improvements, beyond the desire for it to be funded privately. We outlined the process we took regarding the boathouse here: https://www.michigan.gov/dnr/managing-resources/prd/boathouse In December 2023, visitors, community members, stakeholders and others were invited to share feedback and questions via an online comment form. A summary of public comments and answers to common questions is available at the above link.
Has this been identified as a priority for Belle Isle? How does it affect fundraising for other needs at the park? No DNR/ BIC The DNR has sought outside investment for the Boathouse, because it was not a priority over critical and significant investment needs for publicly used structures throughout the park. Now that there is private interest in providing outside investment, I would expect that this not would trigger reprioritization over other publicly used assets, as the investment was intended to allow the state to make those critical investments to start with. The other iconic structures around the park including assets such as the BIA/ASWC/Scott Fountain, etc. Realistically, any initiative of this scope and scale will impact other private fundraising priorities for the island. As an organization, we work to show the vision for all the areas of the island and where the needs are still unmet for funding for this beloved public space. If the public prioritizes this project over others, we will support the fundraising of private dollars to make it happen in a collaborative manner. This means alignment behind a strategy for sources and uses, not an approach that prioritizes any and all private or grant funding solely for the boathouse in place of other projects on the island.
What are the phases of opening to full capacity? What info supports the sustainability of this business model that you are assuming? No Stuart-Pitman First money in will go towards preserving and renovating the structure. Most of the initial funds raised (if not all) will come in the form of 501c3 charitable donations. Once all the donations are secured, we will raise capital from investors to buildout the food and beverage and event spaces. there will be debt on both the construction and purchase of kitchen equipment. Investors will receive a return on their investment through a waterfall payout structure that we will include in our model. Our current pro forma is based on actual numbers from Detroit restauranters that we are consulting with. The projected numbers allow us to cover all payroll, operating expenses, service debt, and have some leftover reserves to maintain the property. The Marina will likely be phased out with casual day slips going in first and scaling to a full marina when the property is cashflowing. All marina numbers are confirmed by our marina partner.
Your proposal to finance the boat house includes $6-7 million for private investments. Would that be the marina and restaurants? No Stuart-Pitman Yes, those numbers include building out the restaurants and event space as well as the day boat slips. The cost of the full marina is not included in that price and will likely be completed in phases.
You list $16-18 million as a bank loan. How would that be paid back and over how many years? No Stuart-Pitman The exact terms of the loan are still TBD. Based on possible outcomes and rough quotes, we feel comfortable that the operations will generate enough revenue to service the debt with room leftover for reserves that will help sustain the building in the event there are unexpected capital expenditures.
Who gets the funds generated by the proposed businesses? The park? No Stuart-Pitman Once a lease is negotiated, the funds generated by the for-profit entities at the boathouse will be used to satisfy both lenders and investors who will have supported the restoration in it's early stages. Additionally profits will go to the long-term upkeep of the site.
Will the money raised to fund the project take away from the other needed work on the island? Yes Stuart-Pitman/ BIC Potentially yes. We also hope to see that the restoration of the boathouse will draw more eyes and support for the island as a whole. See comment in 41F
How will you raise the money? No Stuart-Pitman Funding for the project will come from many different sources including donors, investors, public grants and the use of Historic Tax credits.
Governance
There was mention of boats docking the enjoy amenities- how will a rec passport apply to them? No DNR The Recreation Passport applies to motor vehicles. It does not apply to boats. A portion of boat registrations and a portion of gas taxes fund improvements in the boating program.
Please explain references to a lease. Liscensure for the renovation or continued use? No Stuart-Pitman/ DNR In response to lenders concerns, Stuart-Pitman is pursuing a longer term lease of 99 years which is similar to the prior lease by the boat club and the current lease held by the DYC. The lease between the City of Detroit and the State of Michigan is 30 years with an option for 2 15-year renewals. We are now 11 years into that first lease. The developer must decide if they can recoup costs in that time frame, and if not, an adjustment of the lease may be needed for the boathouse facility. That will be determined by the city & the state. However, the developer must have assurances to secure funding.
Why create a new non-profit instead of partnering with the Belle Isle Conservancy? No Stuart-Pitman/ BIC Stuart-Pitman is currently in talks with the B.I. Conservancy with regards to potential teaming for the best use of funds donated and the general well-being of the island. The Belle Isle Conservancy (BIC) is open to exploring a few different models for cooperative engagement with this process in partnership with the developer team.
Other
One programming opportunity to consider is bringing back the international dragon boat festival. It was a great event at Belle Isle that was connected to the rowing at the boathouse but includes many other groups No
Thank you BIPAC for this meeting. I am excited and encouraged. No
I come from the U.K. where we carefully protect and preserve our historic buildings. We have a duty to restore the boathouse and responsibility to preserve history for future generations. There are so many stories that have been created in this building and so many lives changed for the better here, including my daughter's through rowing. Save this building. No
I rowed in middle school, high school, as well as coaching the high school team as well. I also got married at the boathouse in 2018. It means so much to me and I just wanted to say thank you to everyone for trying to save this beautiful, historical gem. I would love to volunteer my time to assist with the restoration in any way I can. Thank you again for caring so much about the boat club. No
While we appreciate the interest in increasing the energy efficiency of the building and reducing its overall operational carbon footprint, because of the way the building was constructed and the remaining quality and integrity of the building’s interior finishes and features, achieving net zero is likely not practical. In the end this is largely on the project team to address, it is important to start with realistic expectations.