To the members of the Salisbury City Council;
The members of LORA would like to weigh in on the matter of the disposal of Fire Station 16 in downtown Salisbury.
As a group of locally-owned restaurants, we are concerned about the plans for this site. The city is planning to sell the station to a venture group. You were told that this group consists of Perdue Farms, Black Diamond Catering, the Hospitality Entrepreneurial division of the University of Maryland and two widely known real estate developers, Palmer and Bradley Gillis. We wonder if the city realizes their plan could easily create an environment that will cause hardship and loss of sales at our local restaurants?
The groups' plan, as stated in a letter to the council, is to create a location where events can be held to attract the public, such as shows, banquets, dinner theaters, etc. According to this letter sent to you by Brad Gillis, this venture group has been using a Regional Urban Design Assistance Team study which was completed in 1980, and a HyettPalma study which was completed in 2001. Much of this information is over 30 years old. How much bearing should these outdated studies have on the decisions the city is making in 2010?
The letter also says the UMES. hospitality students and Black Diamond Catering will host local causes and groups in this facility. Does this mean that students will be utilized in a capacity where they will be given class credits instead of working as paid labor? This is where an uneven playing field starts to come into play. Will there be charges associated with these events? If so, will the establishment be operating as a privately-owned business? How can a privately-owned business operate in conjunction with a University for credits, if in fact that is the case? Our organization does not have an issue with the property being sold at market value to an independent restaurant owner or entrepreneur, but if there actually is a UMES connection, the potential for causing unfair competition rises dramatically.
If the UMES students are allowed to work there in exchange for credits, the facility can operate at a much lower cost, as there is no wage structure to affect food pricing. The locally owned restaurants in our organization will not be able to compete with a location that can sell food at a greatly reduced cost due to free labor. City council members and LORA have not seen any information concerning exactly how this facility will operate. LORA does not mind competition when the playing field is level, and apples are compared to apples. But we feel we must object when it seems that the city is practically giving away a taxpayer-owned property which we feel is an asset to our community. This asset should be retained as part of the city's historic value and in trust for the future generations.
The question remains : Is the City of Salisbury selling Fire Station 16 to a private investment group at a highly discounted price so that it can be used as a commercial catering hall or a restaurant of some sort? We wonder why the city feels it has to sell the property to anyone at this juncture. Property values are currently in severe decline. Is there some sort of city fiscal emergency forcing the sale of this property? Salisbury's citizens would perhaps be better served by retaining this property until the markets stabilize and it can be sold for its true value. Additionally, we question the value of this property at $150,000. We believe the property was valued in the recent past at closer to $500,000, and possibly near $750,000 during the real estate boom. A selling price at the liquidation level of only $150,000 would be a great disservice to the citizens of Salisbury, who paid for that building with their tax dollars. So, our questions can be rephrased as, "Why so fast? Why so cheap?" LORA would like to see a current appraisal of the property before a decision is made. The taxpayers have a vested interest in that property. LORA would also like to know why the actual owners of the building, the taxpayers, have not been asked for their vote on the matter.
LORA would like to ask council what safeguards are in place for this building. What will happen in a few years if the concept is not supported by the community - if the crowds do not come, the attendance is minimal, the economic crisis continues? What will prevent the owners from declaring their idea a failure and turning the entire building into apartments, or worse yet, just let it stand empty? This is a historic property; perhaps without the cachet of Poplar Hill Mansion, but the building still has a story to tell. LORA would like to suggest the property remain in city control and be converted to a firehouse museum, city historical site, or in the future, perhaps a part of the Eastern Shore Regional Library. It is possible that federal funding is available to enhance such a project - has anyone investigated this option? Perdue Farms and the Gillis's could still jump on board with corporate community support for this type of project, which would enhance the downtown area and bring foot traffic. The convenient locations of the library and the parking garage, as well as the downtown plaza and the existing Regional Art Institute and Gallery, furthers the idea.
LORA would like the City Council to refrain from selling Fire Station 16 until further study is done on the current value of the property. Additionally, we recommend that a new R/UDAT be done to reflect current conditions, rather than engaging in a major decision by relying on 30-year-old information. The city has an obligation to make the best decisions possible for the future. Once this historic building is sold to a private owner, the city has lost its chance to make something truly magnificent happen. We are not recommending that Perdue Farms, Palmer and Brad Gillis and others be excluded from a project at the site. But the firehouse belongs to the people - they are the true owners.
LORA believes this proposal to be a wolf in sheep's clothing. It lacks true structure in referring to UMES, when UMES may not even be involved. The proposal does not outline the scope of Perdue's participation. It promotes a catering facility with community involvement, which all of us currently do and participate in on behalf of the community. The proposal makes a reference to a historical foundation but one with residental housing on the second floor, which does not seem in keeping with the idea of a historical building. The proposal mentions the movement of the property to a tax base for personal property taxes and amusement taxes. but the valuation after such a move would be at the level of a $150,000 purchase and not the facilitie's true value. Even at a $250,000 purchase price, the taxpayers of Wicomico County would see a minimum of $70,000 in potential tax losses in the next 15 years. Again, what is the motivation to liquidate this property at this time at such a cheap price? This is a disservice to the taxpayers of the city.
LORA is currently 20 members strong and we are growing every day. We have more than 1,500 employees plus their families that will to do what is necessary to see the firehouse stays within our community. We have an essential part to play in the life of this city and the surrounding county. We, like you, feel we have an obligation to the citizens of this area. We are requesting further study of the above mentioned points before the sale is completed and the city loses this building forever.
28 comments:
Hear! Hear! My thoughts exactly!
Taxpayer/ Owner
The council has on its blindes and ear plugs. They dont hear or see anything except what they want to hear or see.
We can all scream and hollar but money greases the wheel. Our government knows what is good for us...NO they dont. I see three corrupt council people who will NO longer be in office when election time comes...NOT soon enough.
If Black Diamond is interestd in teaching students for nothing (tax backed) he should teach them at his building in Fruitland...It has a kitchen and they can cater there all they want. We dont need to sell the firehouse and maybe make something else out of it...Leave it as a historic building with happenings to merit the building. Not a greasey spoon establishment.
Everybody looking for a hand out from the government !
What an excellent letter! When I read the Gillis et.al proposal, I thought of the existing restaurants downtown who are struggling and what impact this venture would have on them. Escape is trying so hard in a location that has seen so many other ventures fail; this proposed plan might sound Escape's death knell. The same can be said of Flavors and the Japanese restaurant on the plaza. The City Council needs to give this proposal more thought.
Wow - interesting, nonsensical letter.
Starts by saying the HyettPalma study of 2001 is over 30 years old - interesting math on that.
Says selling the property will give a consortium an opportunity to unfairly compete with LORA: most LORA members can't easily deal with routine large group meetings let alone handle large special events.
The letter bemoans transferring the property onto the tax books, generating City income now, at a price more than the going rate. Seems they would rather have an eyesore continue to deteriorate to the point where the most affordable option for disposing of it would be to raze it and sell the property.
Last paragraph threatens that their 20 members and 1,500 employees a going to fight to keep the firehouse in Salisbury: haven't heard of any proposal that would involve moving it.
LORA should concentrate on improving the quality of member establishments to attract business rather than mustering complaints and threats against different, innovative plans of action.
I don't think ANYTHING is going to prosper downtown as long as one must pay to park.
I hate going downtown. Even if I go to Eric's to get a haircut, I'm concerned about having enough time on the meter. And the principle of having to pay in the first place grates on me.
Find some other source of revenue and trash the meters.
Or better yet, make some cuts to offset the loss of revenue from them.
Start by firing the meter gestapo.
What Gillis wants, Gillis gets.
Just another way for Palmer Gillis to line his pockets at the tax payers.
R/UDAT study is 30 years old...
You think, ask about the bypass property bought up after someone left office and got inside information on it.
It will never change in Salisbury, cause GREED is more important than the right choice
The restaurants downtown are struggling and I can't see how adding another restaurant would benefit anyone especially selling the builidng at a ridiculously low price. Just a few weeks ago I went to to dinner at Escape with another couple and when we walked by the window we were like "wow, is this place open?" we went and and sure enough they were open but there were NO other customers and not a sole came in the entire time we were there. It's ashame that the businesses already there are obviously struggling and yet there is talk about adding an additional.
It's a firehouse and it needs to stay a firehouse.
An engine company and an ambulance would be perfect for that facility. It could even be used as the "museum" of the Salisbury Fire Department and office space as well. The Mayor and Council would be foolish to give that firehouse away.
I will guarantee you that I will work hard to make sure anyone that supports giving the firehouse away will not get re-elected. Keep giving us excuses like this and your political careers will be short lived!
While Comegys was out being treated for cancer the council was at a stand still. Louise would put nothing of substance on the agenda. Gary is back and now they are going to ram through every thing their buddies want because they know he and Louise are finished. Palmer Gillis will get this building and Lore Chambers and her buddy from UMES, Karl Binns will get the catering business they seek. Jim Ireton pushing it through isn't helping our one term mayor either.
Who said Flavors is struggling? That place is the lone success story down there.
Anonymous said...
Wow - interesting, nonsensical letter.
Starts by saying the HyettPalma study of 2001 is over 30 years old - interesting math on that.
[The HyettPalma study may have been PUBLISHED in 2001. The research itself may comprise a 30 year span of time. Therefore, the information contained within may or may not be relevant to the conversation.]
Says selling the property will give a consortium an opportunity to unfairly compete with LORA: most LORA members can't easily deal with routine large group meetings let alone handle large special events.
[That is not what is being said at all. LORA can deal with the large groups, what they are saying is that IF UMES is going to use it as a "training grounds" of sorts for its students, and it is being designed to turn a profit, there is going to be very little overhead, because this particular venture will not have the high costs of labor associated with it that other restaurant ventures have.]
The letter bemoans transferring the property onto the tax books, generating City income now, at a price more than the going rate. Seems they would rather have an eyesore continue to deteriorate to the point where the most affordable option for disposing of it would be to raze it and sell the property.
[Can't argue with you there. Maybe they want to see it sell for what it was appraised for in the past, but I agree with you. SOMETHING needs to be done with it before it becomes even more of an eyesore and potentially unsafe.]
Last paragraph threatens that their 20 members and 1,500 employees a going to fight to keep the firehouse in Salisbury: haven't heard of any proposal that would involve moving it.
[I think what they want is to keep it as either a firehouse or have someone open it as a PRIVATE enterprise without the "free labor" of the university.]
LORA should concentrate on improving the quality of member establishments to attract business rather than mustering complaints and threats against different, innovative plans of action.
[I think that they do a wonderful job in trying to attract and improve the quality of the establishments that they have, however, Salisbury and Maryland in general are not exactly business-friendly states. Until Salisbury becomes more business-friendly, LORA has a point in trying to make sure that the business playing field remains even, instead of Brad and Palmer lining their pockets at LORA's expense. I have no problems if Brad and Palmer want to open a restaurant. They just need to do it on the up-and-up, instead of trying to do it under the auspices of "helping the UMES students."]
4:59 PM
Comments in brackets are mine.
Kim
I work and eat downtown. Here's the reality.
Escape is stuggling because it has mediocre food and inexperienced management. It's not the location. Flavors and Market Street are doing quite well for themselves. Downtown can support as many *competent* dining facilites as want to be down here.
With respect to the LORA claims that a banquet facility will be a huge hit for them, consider the reality that very few LORA members have anything approaching what large users would consider adequate onsite banquet facilities for their groups. How many LORA members could honestly take in and serve 100-200 banquet diners at once without shutting their restaurants down to the public?
I've dined in virtually all the LORA members restaurants at one time or another. Many LORA members would be hard pressed to handle dining groups larger than 15 -25 people at once. It's a silly argument for a market cohort they don't even address.
I don't believe LORA is asking for the firehouse to become a banquet facility for them. In fact they are suggesting other options for the firehouse...firehouse museum, city historical site, or a part of the Eastern Shore Regional Library. I understand their concern with Perdue, or UMES students. Makes sense to me. Also, when LORA comes together as a whole, they can surely fill banquets in excess of 200. What was the last local LORA event you were at? Smart ideas LORA!!Keep up the good work.
But, wouldn't this BE a locally owned restaurant? Why not support it and invite into your organization, instead of fighting it?
SUBSIDIZED local restaurant. Unfair competition. BOOOOOO!
"We wonder why the city feels it has to sell the property to anyone at this juncture."
Because the same old people get to profit by it.
5:04-I may be wrong but isn't the first 2 hours in the lot by the library free? I am sorry but if you can't walk to ANYTHING in the DOWNTOWN from there then you might as well head to the mall for one stop shopping. My wife and I continue to support the downtown when we can and I go to Eric the Barber on a regular basis. If I desire to park closer and feed the meter .50 cents so be it. I honestly find paid parking to be the least of downtown's worries. SATURDAY AND AFTER 5 IS FREE FOLKS WHERE ARE YOU THEN?!
If nobody minds an objective eye from the outside, I have to tell you that unless you turn out in force at your city council's meeting, you can kiss your historic firehouse goodbye.
You still have a chance. If they see the place mobbed, it could make a difference. I have a dual history and business degree, so I feel for both sides.
But I recall this building only had 2 bidders, did it not? That is an indicator right there not to unload the building.
Your city would be better off economically and historically to hold on to it, at least for a few years. Two bids are a joke, no matter what the proposals are.
From what I've read, your city doesn't have much respect for its history. Places like this are a big deal in communities that love their history.
Before I let the history side of me wax poetic, I'll just say again, turn out in force. You have everything to gain and nothing to lose that you won't lose if you just type here and not show up.
The resolution moves forward! Irrational people making absurd arguments lose! Too bad, so sad.
This process re uses for the old firehouse has been ongoing for over a year now. Where have you lazy Rip Van Winkles been? Where were you at all the predicate meetings discussing this?
Did any of you heroes submit any plans per the City Council's specifications?
Oh that's right... you weren't there, and you submitted NOTHING, but you complain NOW.
It's no wonder Salisbury is such a toilet. Everytime anyone tries to do someting progressive and decent carping parasites crawl out of the woodwork to pull them down.
9:42 This is the reason Salisbury should come out in full force to support keeping OUR FIREHOUSE...
We, LORA, was at the other council work session and presented our concerns. As usual they took a deaf ear. We have written letters to all the councilpersons and spoke with them personally. We have not sit on our butts doing nothing. Its difficult to fight city hall.
The Mayor must be getting a kick back from local business... free drinks?
The price of $150,000 is extremely low for this property. I agree with alot that is posted here. Unfortunately, we just have a new generation of good old boys. I have a similar vision of a nice restaurant and club on that site, but I agree that it should not be given away. The more things change, the more they stay the same.
Looking at the comments here I can only sympathize with the Council. Dealing with Salisbury natives is like talking to a bunch of special needs kids.
1: For the 100th time. (this time get the wax out of your ears)
THE REASON THE PRICE IS WHERE IT IS IS THAT THE CITY COUNCIL HAS PUT A LARGE LIST OF REQUIREMENTS AND RESTRICTIONS ON WHAT CAN BE DONE WITH THE SPACE. MOST USERS AND INVESTORS ARE NOT WILLING TO LIVE WITHIN THE LIMITS OF THESE RESTRICTIONS AND HAVE NOT PUT PROJECTS FORWARD.
2: The space does not make sense as a firehouse utility wise or service wise given the current coverage patterns provided by other stations. People that keep demanding that it be returned use as fire station need to put their crack pipes down. PUT DOWN YOUR CRACK PIPES!
3: Re the people who really, honestly, truly think that Ralph Krum's appraisal was spot on and that the property is worth at least $ 800,000. or $500,000 or $450,000, and that low bidder Krum was not (as usual) pulling that initial number from his rear end to make the City happy with a big, fat number, please, I beg you, get another commercial appraisal firm! Have a certified M.A.I. commercial appraiser do a real arm's length appraisal on the property.
Certainly if Krum's numbers are real the City Council is absolutely boning the citizens to an extent which borders on malfeaseance. The real world value of the low to mid 200's which most commercial real estate professionals assign to the building can't be right! It's all a BIG CONSPIRACY! SOME CONCERNED CITIZENS NEED TO DO SOMETHING! MAYBE LORA IS WILLING TO SPRING FOR A COMMERCIAL MAI APPRAISAL?
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