A bold new vision - Developer looks to repopulate the Badgerow
By Dave Dreeszen / Journal Business Editor | Posted: Monday, March 31, 2008
Work continues inside the Badgerow Building on Dec. 12, as plans for some if its usage is still under discussion. (Staff photo by Jerry Mennenga)
SIOUX CITY - Bruce DeBolt envisions a high tech future for a historic downtown Sioux City building.
DeBolt is managing partner of Vista, Calif.-based Mako One Corp., which late last year unveiled a multi-million dollar redevelopment plan for the Badegrow Building.
The 1933 building at Fourth and Jackson streets, listed on the National Register of Historic Places, has been vacant for more than three years.
Since acquiring the 12-story building for $450,000 last summer, Mako has been stabilizing the long-neglected structure, and refinishing the space for a mix of prospective tenants that include data processing centers.
DeBolt, who has nearly 20 years of experience in the computer industry, said Sioux City is ripe for attracting data-processing centers and other tenants due to competitive utility rates, The Badgerow's concrete structure also is strong enough to support the weight of today's heavy computer equipment.
According to industry surveys, more than half of existing data centers nationwide will become obsolete in the next 12 to 18 months due to heavier, more energy intensive computer hardware designs, he noted.
"Data center demand is up and is expected to continue to be up for some time to come," DeBolt said in an interview last year. "There is tremendous pressure on IT managers to manage their costs. Places with competitive power rates have a distinct advantage. The Midwest has some of the most competitive power rates in the country."
The Badgerow, with its solid concrete construction, would easily support the high floor loading of today's computer hardware, he said.
DeBolt also said he would look for companies in Europe and Asia who are looking to expand in the United States given the low status of the dollar in foreign markets.
"You go fishing where the fish are," he told the City Council last year. "Right now, the fish are overseas.
Based on the improvements Mako already has done in the Badgerow, city inspectors earlier this year lifted the red tag from the building. By a 3-1 vote, the City Council also approved a development agreement that infuses $800,000 of city funds into the project .
DeBolt reported the Badgerow, in its current condition, generates only $19,000 a year in property taxes. Once it opens in the first phase, it should produce $160,000 in taxes. He said he has spent $1 million on renovations, but needs additional city investment to pay contractors to continue making repairs.
Dale McKinney of M-Plus Architects, who is working with DeBolt on the project, predicted the redevelopment of the Badgerow Building will "serve as a catalyst to bring higher-paying jobs to Sioux City."
Ritch LeGrand, a commercial real estate broker who convinced DeBolt to buy the building, said, he spent almost nine months working with the city, refining the proposals. "It's our best effort while also being sensitive to the interest of the taxpayers," LeGrand told the council.
DeBolt said metro Sioux City's growing economy attracted Mako to the Badgerow, the city's tallest structure. In particular, he cited BPI's expansion in South Sioux City, Hyperion Energy's proposed oil refinery in Union County, S.D., and Northwest Airlines' new 300-employee reservations center in the former JCPenney building, which is just across the street from the Badgerow.
Mako's Badgerow plan calls for data centers on the building's fifth, sixth and seventh floors. The top five floors, which offer the most scenic views, would be set aside for general offices and IT personnel support.
The third and fourth floors are envisioned as a business incubator center. Ideas for the second floor range from a child care center to a white-tablecloth dinner club.
The first floor, which was most recently home to a sushi restaurant, would be marketed as a deli or sandwich shop, catering to downtown workers.
DeBolt is managing partner of Vista, Calif.-based Mako One Corp., which late last year unveiled a multi-million dollar redevelopment plan for the Badegrow Building.
The 1933 building at Fourth and Jackson streets, listed on the National Register of Historic Places, has been vacant for more than three years.
Since acquiring the 12-story building for $450,000 last summer, Mako has been stabilizing the long-neglected structure, and refinishing the space for a mix of prospective tenants that include data processing centers.
DeBolt, who has nearly 20 years of experience in the computer industry, said Sioux City is ripe for attracting data-processing centers and other tenants due to competitive utility rates, The Badgerow's concrete structure also is strong enough to support the weight of today's heavy computer equipment.
According to industry surveys, more than half of existing data centers nationwide will become obsolete in the next 12 to 18 months due to heavier, more energy intensive computer hardware designs, he noted.
"Data center demand is up and is expected to continue to be up for some time to come," DeBolt said in an interview last year. "There is tremendous pressure on IT managers to manage their costs. Places with competitive power rates have a distinct advantage. The Midwest has some of the most competitive power rates in the country."
The Badgerow, with its solid concrete construction, would easily support the high floor loading of today's computer hardware, he said.
DeBolt also said he would look for companies in Europe and Asia who are looking to expand in the United States given the low status of the dollar in foreign markets.
"You go fishing where the fish are," he told the City Council last year. "Right now, the fish are overseas.
Based on the improvements Mako already has done in the Badgerow, city inspectors earlier this year lifted the red tag from the building. By a 3-1 vote, the City Council also approved a development agreement that infuses $800,000 of city funds into the project .
DeBolt reported the Badgerow, in its current condition, generates only $19,000 a year in property taxes. Once it opens in the first phase, it should produce $160,000 in taxes. He said he has spent $1 million on renovations, but needs additional city investment to pay contractors to continue making repairs.
Dale McKinney of M-Plus Architects, who is working with DeBolt on the project, predicted the redevelopment of the Badgerow Building will "serve as a catalyst to bring higher-paying jobs to Sioux City."
Ritch LeGrand, a commercial real estate broker who convinced DeBolt to buy the building, said, he spent almost nine months working with the city, refining the proposals. "It's our best effort while also being sensitive to the interest of the taxpayers," LeGrand told the council.
DeBolt said metro Sioux City's growing economy attracted Mako to the Badgerow, the city's tallest structure. In particular, he cited BPI's expansion in South Sioux City, Hyperion Energy's proposed oil refinery in Union County, S.D., and Northwest Airlines' new 300-employee reservations center in the former JCPenney building, which is just across the street from the Badgerow.
Mako's Badgerow plan calls for data centers on the building's fifth, sixth and seventh floors. The top five floors, which offer the most scenic views, would be set aside for general offices and IT personnel support.
The third and fourth floors are envisioned as a business incubator center. Ideas for the second floor range from a child care center to a white-tablecloth dinner club.
The first floor, which was most recently home to a sushi restaurant, would be marketed as a deli or sandwich shop, catering to downtown workers.
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