City considers leveling damaged buildings

Thursday, October 26, 2006
Miller and Nelson Block buildings

Despite three months of advertising the damaged Miller and Nelson Block buildings on the Internet and no developmental proposals to show for it, city officials have suggested the possibility of demolishing the structures.

City Manager Richard Nienstedt has advised city commissioners at previous meetings to begin thinking about tearing down what's left of the buildings, located at the corner of Main and Wall streets.

However, the buildings' fate has not been discussed or voted on by the commission.

The city is leaving the door open for a real estate developer to offer a proposal for future revitalization, but no proposals have been submitted since the advertising campaign started.

On May 14, the area was listed on www.mweservices.com, an Internet-based real estate advertising company used to attract developers and buyers for specific properties. It was deleted from the site on Aug. 14.

The site hooked two developers who expressed strong interest in the buildings. One developer from Atlanta, Ga., has been in contact with the city about exploring the possibility of revitalization, said Dave Rose, president of Mid West eServices, Inc. A local developer also expressed interest in the buildings through the Web site, Rose said. He declined to reveal the names of the developers.

Nienstedt said in an e-mail interview that talks with the developers have not stalled.

"I believe that they (developers) are as disappointed as we are that they have not been able to submit a proposed agreement as of yet," he said. "The city is still working to try and develop a package that will benefit the community but...we may have to seriously consider something different."

The real estate investor from Atlanta entertained an idea of demolishing the structures and not to use the facades of the buildings for future development, as officials initially hoped, Rose said. The city included that scenario in the Web site listing and would consider that option.

"I truly have no idea," Nienstedt said when asked what the hold-up is with getting a proposal. "If it is the same developer we have talked with, the ball is in their court."

Nienstedt has talked to two state agencies involved in giving approval if commissioners decide to level the buildings that sustained heavy damage during a wind-driven fire in March 2005. He said the issue will be on the agenda at a future commission meeting, at which time he will update commissioners on all discussions.

The asking price for the buildings started at $150,000 but by the end of the three months it wilted to $75,000, Rose said.

The page received 4,466 hits, and 39 people set the site to their "favorite" file, Rose said. He is continuing to work with the city to get a buyer.

Officials declared disappointment in not netting a proposal despite the Internet.

"I was hoping we'd get at least one solid proposal, though I didn't expect us to get one that involved the existing structures," Commissioner Nick Graham said. "The eBay posting and the mailing campaign sent to developers generated a surprisingly large amount of feedback, but it's a hard sell to get someone willing to invest 6 to 7 figures in the downtown when businesses seem to be heading to the south."

Nienstedt said he's disappointed but not surprised because when larger cities have a difficult time securing downtown development, "you can imagine the challenges for cities of lesser size." Nienstedt said he is "confident that it will happen through cooperation between the city, Fort Scott Area Chamber of Commerce, Bourbon County Economic Development Incorporated and the Downtown Planning group."

If the commission decides to demolish the structures, the city won't be out any money, since it used funds from a government Urgent Need Grant to stabilize the walls in April 2005. If the money was not available, it would be likely that the shells might have been torn down, Nienstedt said.

The chamber will present its position concerning the buildings at the next commission meeting Nov. 7. Until then, chamber President Gary Emry said, the chamber board instructed him not to disclose its position on the matter.