Norwich developer asks for more time
Requested support for Reid & Hughes Building met with cool response
Norwich — The developer hoping to renovate the decaying Reid & Hughes Building on Main Street into housing and commercial space on Monday asked for more time from the city to secure grant funding or better, more direct support from the city, which still owns the building.
The Women’s Institute for Housing and Economic Development was chosen in August as the preferred developer for a $6 million renovation plan that included a $500,000 initial stage to stabilize the building and allow time for the agency to seek full financing of the project.
In November, the previous City Council agreed to give the Women’s Institute a 30-day extension of the initial 90-day period to secure financing for the stabilization work.
Betsy Crum, executive director of the Women’s Institute for Housing and Economic Development, said the former 19th century department store is “on the edge” of being able to be saved. While the institute has secured $50,000 in grant and $450,000 in loan financing for the stabilization project, her board of directors will not approve the loan, deeming it too risky.
Crum asked the City Council Monday for two or three months of additional time to try to secure additional grant money for the stabilization portion of the project, which would be a “cobbling” together of small grants from federal, state and private sources. But she and Christine Rogers, senior development manager for the Women’s Institute, admitted it’s difficult to secure grants for stabilization to prevent a building from collapsing while awaiting financing.
Stabilizing a decaying building prior to renovation work doesn’t fit in any usual category of grant programs, Rogers said.
Because of the risk, Crum asked the
“My patience has run the full level.” WILLIAM NASH, NORWICH CITY COUNCIL PRESIDENT PRO TEMPORE
City Council Monday to consider guaranteeing the stabilization loan to ease the risk to the agency. She said the guarantee would only be needed if during the work, it is determined that the building cannot be saved, and the project has to be abandoned.
As the owner of the building, the city would be responsible for demolition if the project fails. The council a year ago approved bonding up to $800,000 to demolish the building. But the city’s request to demolish the building was denied by the state Historic Preservation Council last December.
Crum’s request for support received a cool response from aldermen following the presentation Monday. Alderwoman Joanne Philbrick said she was “quite disturbed” that four months after the city approved the agreement with the Women’s Institute no progress has been made to stabilize the building. She said winter is now here, and the threat of heavy snow could further damage the building.
Philbrick also questioned whether guaranteeing the loan could mean the city could face the potential of paying some $200,000 for a failed stabilization loan — assuming the project would be abandoned half way through the work — and the $800,000 for demolition cost.
Council President Pro Tempore William Nash said he strongly opposes any partnership in the stabilization work. Nash said neighboring building owners have sustained damage from falling bricks from the Reid & Hughes, and it would be unfair to ask them to continue to be patient. Nash also expressed concern about having to pay for both the stabilization if it failed and ultimately the demolition cost.
“My patience has run the full level,” Nash said.