Badgerow proposal deserves council’s support
Posted: Sunday, January 27, 2008
Built in 1933, the downtown Badgerow Building was hailed as the “Monarch of the City.” It was certainly an impressive edifice.
First imagined by an early group of Sioux City stalwarts (Herman Galinsky, A.R. Strong, I. Miller, Albert M. Seff and E.M. Badgerow), the 12-story building borrowed from several architectural styles and movements. In addition to a Corinthian column and a row of American Indian silhouettes along the rooftop, the building is considered the city’s premiere example of art deco.
Builders required some 135,000 cubic feet of concrete, 900,000 bricks, 360 tons of terra cotta, 60,000 square yards of plastering, 700 pilings, 12 cars of marble, four cars of mahogany trim and great volumes of steel, glass and other hardware. It was fueled by six miles of heating and plumbing pipes.
The building’s recent history has been much less grandiose. Since being added to the National Register of Historic Places, it has changed hands more than once. The building was red-tagged as unfit for occupancy on Dec. 31, 2003, due to a lack of heat and working elevators. It has been vacant since January 2004.
Now is the time to ensure that the Badgerow Building retains its place among the elite structures in this city. In the process, the City Council can take a low-risk gamble that may reap significant rewards.
On Monday, the council will consider a development agreement that would convert the 12-story Badgerow Building into a primarily high-tech center. Under the proposed agreement, which has been revised, the city would provide up to $2 million in forgivable loans to help renovate the building. In return, the Vista, Calif.-based investment group Mako One would agree to reach occupancy levels of 40 percent and a minimum property tax assessment of $10 million by Jan. 1, 2011.
In the first phase, the city would provide Mako One $800,000 in forgivable loans, with half paid in 2009 and the other half in 2010. Mako One would agree to a $3.5 million property tax assessment. The second phase, which would call for an additional $1.2 million city investment and an additional $6.5 million property tax assessment guarantee, is optional and would be negotiated after the first phase.
Bruce DeBolt, the group’s managing partner, said Mako One has already spent at least $1 million of its own money on repairs, including restoring water, electrical and gas services as well as removing trash and standing water in the elevator. Because of those improvements, city inspectors removed the red-tag designation and declared the building fit for occupancy.
If approved, the deal would allow DeBolt and his group to continue pursuing high-tech data centers and other potential tenants. The group is working on a similar project in Waterloo.
DeBolt, who has spent more than 20 years working in high-tech, said Iowa’s low power rates make it attractive to the approximate 1,600 data centers located on each coast that will soon be looking to relocate. Those centers must move as power rates continue to rise in those locations and other expenses and industry developments apply additional pressure.
An example, DeBolt says, is Google’s recent decision to build a $450 million data center in Council Bluffs, Iowa. Without projects like the Badgerow redevelopment, Sioux City won’t be positioned well to compete with cities like Council Bluffs.
Still, there are no guarantees. But here’s what we do know:
Without this project, the Badgerow Building will continue its slow decline. If something isn’t done with the building soon, we may have to imagine a skyline without the historic structure. Additionally, the city would be looking at a multi-million dollar demolition project. We don’t need another KD Station.
Google didn’t choose Sioux City. Some think we can afford to sit idle while high-tech corporations bypass us. We believe it is in our best interest to be an active player. That means taking calculated risks.
Even if a Google or similar high-tech firm doesn’t relocate to the building, the city is guaranteed at least $3.5 million in assessed value -- $10 million if it agrees to the second phase. Right now, the assessed value of the building is $450,000, generating a mere $19,000 in taxes n and those taxes had gone unpaid until Mako One bought the building.
We realize some on the council are reluctant to spend taxpayer dollars. That reluctance is generally a virtue. It becomes a vice if, paralyzed by that predisposition, the council fails to take any chances.
There is risk involved here. But we can’t afford to sit this one out. The council can preserve a beautiful piece of our city’s history while also moving us toward the promise of a more prosperous future. That’s a risk worth taking.
First imagined by an early group of Sioux City stalwarts (Herman Galinsky, A.R. Strong, I. Miller, Albert M. Seff and E.M. Badgerow), the 12-story building borrowed from several architectural styles and movements. In addition to a Corinthian column and a row of American Indian silhouettes along the rooftop, the building is considered the city’s premiere example of art deco.
Builders required some 135,000 cubic feet of concrete, 900,000 bricks, 360 tons of terra cotta, 60,000 square yards of plastering, 700 pilings, 12 cars of marble, four cars of mahogany trim and great volumes of steel, glass and other hardware. It was fueled by six miles of heating and plumbing pipes.
The building’s recent history has been much less grandiose. Since being added to the National Register of Historic Places, it has changed hands more than once. The building was red-tagged as unfit for occupancy on Dec. 31, 2003, due to a lack of heat and working elevators. It has been vacant since January 2004.
Now is the time to ensure that the Badgerow Building retains its place among the elite structures in this city. In the process, the City Council can take a low-risk gamble that may reap significant rewards.
On Monday, the council will consider a development agreement that would convert the 12-story Badgerow Building into a primarily high-tech center. Under the proposed agreement, which has been revised, the city would provide up to $2 million in forgivable loans to help renovate the building. In return, the Vista, Calif.-based investment group Mako One would agree to reach occupancy levels of 40 percent and a minimum property tax assessment of $10 million by Jan. 1, 2011.
In the first phase, the city would provide Mako One $800,000 in forgivable loans, with half paid in 2009 and the other half in 2010. Mako One would agree to a $3.5 million property tax assessment. The second phase, which would call for an additional $1.2 million city investment and an additional $6.5 million property tax assessment guarantee, is optional and would be negotiated after the first phase.
Bruce DeBolt, the group’s managing partner, said Mako One has already spent at least $1 million of its own money on repairs, including restoring water, electrical and gas services as well as removing trash and standing water in the elevator. Because of those improvements, city inspectors removed the red-tag designation and declared the building fit for occupancy.
If approved, the deal would allow DeBolt and his group to continue pursuing high-tech data centers and other potential tenants. The group is working on a similar project in Waterloo.
DeBolt, who has spent more than 20 years working in high-tech, said Iowa’s low power rates make it attractive to the approximate 1,600 data centers located on each coast that will soon be looking to relocate. Those centers must move as power rates continue to rise in those locations and other expenses and industry developments apply additional pressure.
An example, DeBolt says, is Google’s recent decision to build a $450 million data center in Council Bluffs, Iowa. Without projects like the Badgerow redevelopment, Sioux City won’t be positioned well to compete with cities like Council Bluffs.
Still, there are no guarantees. But here’s what we do know:
Without this project, the Badgerow Building will continue its slow decline. If something isn’t done with the building soon, we may have to imagine a skyline without the historic structure. Additionally, the city would be looking at a multi-million dollar demolition project. We don’t need another KD Station.
Google didn’t choose Sioux City. Some think we can afford to sit idle while high-tech corporations bypass us. We believe it is in our best interest to be an active player. That means taking calculated risks.
Even if a Google or similar high-tech firm doesn’t relocate to the building, the city is guaranteed at least $3.5 million in assessed value -- $10 million if it agrees to the second phase. Right now, the assessed value of the building is $450,000, generating a mere $19,000 in taxes n and those taxes had gone unpaid until Mako One bought the building.
We realize some on the council are reluctant to spend taxpayer dollars. That reluctance is generally a virtue. It becomes a vice if, paralyzed by that predisposition, the council fails to take any chances.
There is risk involved here. But we can’t afford to sit this one out. The council can preserve a beautiful piece of our city’s history while also moving us toward the promise of a more prosperous future. That’s a risk worth taking.
Story Comments
Read More and Post Comments 5 comment(s)
Please note: The following are comments from readers. In no way do they represent the views of The Sioux City Journal or Lee Enterprises. We will not edit or alter your comments, but we do reserve the right to not post or to remove comments that violate our code of conduct. No comment may contain potentially libelous statements; obscene, explicit or racist language; personal attacks, insults or threats. Terms of Service
Tech Head wrote on Jan 30, 2008 11:16 AM:
James Lynch wrote on Jan 30, 2008 11:07 AM:
trevorj wrote on Jan 28, 2008 11:52 PM:
Our neighbors to the north do not even charge income tax.
Sioux City must step up. "
dkg wrote on Jan 28, 2008 8:21 AM:
geo... wrote on Jan 27, 2008 4:04 PM: