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Urban Resource Alliance delivers study for Holly Village offices

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Written by Amy Mayhew
Tuesday, August 10 2010

HOLLY, Michigan – On Aug. 9, members of the Holly Downtown Development Authority Board of Directors received all the facts and figures pertaining to a study performed on the village offices by Bloomfield Hills redevelopment services firm, The Urban Resource Alliance.


The original concept for the study was set in motion in October of 2009 by Suzanne Perreault, former director of the Holly DDA. After the village of Holly was awarded a $30,000 50/50 Michigan Economic Development Corporation grant, Perreault said the MDEC had agreed to pay the first $15,000 of the study, while Oakland County volunteered to throw in another $5,500. At the time, both the village and the DDA agreed split another $5,000 to go toward the study, leaving $4,500 to hopefully be paid by area banks and businesses. 



Without any support from local businesses or banks, village council members agreed in February to fund the remaining $4,500.


On Monday, David Schervish, project director for URA and colleague Tom Gerdom, a market and restaurant operations consultant with The Gerdom Management Group, presented a summary for the findings of the 83-page adaptive reuse study which details what it would take to renovate the village offices into a destination restaurant. 


Market Area and Demographics
Schervish said the market area for the project is generally viewed as the area within a 15- to 20-minute drive of the village of Holly, including the surrounding townships as well as Fenton, Grand Blanc and the Clarkston/Waterford areas. Beyond this area, which is considered home to “regular customers,” Schervish said the area would stretch out another 60 miles to provide a destination for day-trip shoppers and diners to augment and enhance the local base. 


Schervish said within the 48442 zip code, total population numbered 19,498 in 2008, with almost 59 percent of that population living in rural areas of the community. Additionally, Schervish said the average age is 32.7 years old compared to the state median which is currently 35.5. Almost 12 percent of the population is over the age of 65. 


The median household income for the village of Holly was estimated to be $58,133 - $9,500 higher than the Michigan median. However, he also noted, the village of Holly median is almost $8,200 lower than that of Holly Township. The report states that both medians are projected to grow approximately 1.5 percent annually to $64,184 and $75,523 respectively by 2011.


With a 2008 population of 35,041 and a median age of 37.3, Schervish said the median household income for Fenton is $65,775 or about $7,600 higher than Holly. Grand Blanc’s median household income, he said, is $66,337 or about $8,200 higher. 


Schervish noted that both Grand Blanc and Fenton offer big-box shopping opportunities, and that they believe Holly shoppers routinely travel the 15 to 20 mile distance for shopping and dining on a regular basis.
Further south on I-75, Schervish said that Springfield and Independence Townships take demographic profiles “up a notch,” potentially  adding more quality customers to the mix. 


“Springfield Township has a median household income of $71,977 or $5,640 higher than Grand Blanc while Independence Township’s median household income is $74,993 – another $3,000 higher.” 


In conclusion, Schervish said based on population size, age and income levels in the Holly area, it suggests the capability to support additional sit-down restaurant capacity, though the size is probably not sufficient for a major chain. “There is also a strong sense of 'family' in the community which should define the type and atmosphere of any restaurant being developed,” he said. 


Business Environment within the Historic District
While downtown Holly offers a mix of specialty shops and restaurants along with a number of antique stores, Schervish said the village offices building, due to its size, architectural elements and central location offers “an above average competitive position for mixed use retail specialty shops or a restaurant.”


The report details menus and pricing of other restaurants in the historic district, including Bittersweet Café, Broadstreet Station Pub and Grub, the Holly Hotel, Red Devil Restaurant, Sophie’s Pizza and Deli Delights, Zanie Janie’s and newcomers, Holly Mill and Company and the Black Thorn Pub. 


“Though there is a good assortment of attractively priced pizzas, hamburgers, sandwiches and ice cream, not to mention the normal array of fast food establishments in the township, there are noticeable gaps in the availability of some foods and types of offerings,” the report reads. While the report says that some food types may be lacking due to general ethnic make-up of the community such as Lebanese and Soul Food, there is no such excuse for the lack of seafood, barbeque, Asian, Mexican or French, and such specific items like broasted chicken, fish and chips, and ribs. 


“There are also shortcomings in the quantity and quality of beer and wine offerings,” the report states. “Excluding the (Holly) Hotel, there are limited imported beers available, no micro brews, nothing interesting on tap, and wine lists that are collectively ‘uninteresting.’” 


Schervish said pricing is another element to be considered, and in the case of the village offices building, could be a very positive factor. “The Holly Hotel has a $27 entrée minimum, and sets a standard that leaves a lot of room for a different type of destination restaurant to work,” he said. 


The report finds there to be a receptive market for two distinct types of restaurants, the first being a French Bistro, Italian, steakhouse or seafood establishment, offering entrees from $15 to lower $20 range, with lower priced sandwiches and pasta, quality beers and a fine wine list.


The second type of restaurant would be a family oriented sports bar with big screen TVs, barbeque, chicken, fish and Mexican fare on the menu, multiple American beers, Michigan brewed beer and an attractive wine list. “The feeling needs to be fun and welcoming and ‘of the community’ to distinguish it from other chains in Fenton and Grand Blanc,” Schervish said.


“With the current offering and the addition of the two other new restaurants already in the works (and the expansion of the Holly Mill and Company), these two concepts could easily exist side-by-side in the Village Hall and the Township Hall, completing an attractive restaurant district in the community for the foreseeable future,” the report reads. “Architecturally speaking, the destination restaurant seems to be best suited for the bank building, with the family restaurant in the old fire hall, if that building ever becomes available.” 


Recommended restaurant use



After inspecting the exterior and interior of the building and going through four different design concepts, members of the URA team developed a final concept of a main floor restaurant, an upstairs banquet/entertainment facility, and a basement bar to include a wine cellar, comfortable seating and piano bar. 


Main floor restaurant
With 6,075 square feet available, the main floor restaurant would consist of a bar, booth, table and chair seating, restrooms, private dining in the “vault” room, a full-service kitchen located where the warehouse currently resides, office, dry storage, freezer, and restrooms for the staff.


Gerdom said the main floor level could be occupied by up to 126 guests at a time.


Initially, Gerdom said efforts were made to centralize the kitchen, but were abandoned after considering using the warehouse instead. “This provides not only enough kitchen area to support the restaurant, but should also allow for service of simultaneous usage of the banquet facilities on the second floor, as well as the food requirements for the basement bar and upstairs entertainments,” he said. “It also eliminates a problem of relocating the mechanical equipment which is already in that location on the roof – necessary venting and fire suppression for the kitchen can more easily be added to the roof at that point.” 


Basement Bar
After reviewing the basement level of the building, Schervish said they were able to design an additional 3,135 square feet into the design.


“The exposed ceiling joists, the stone wall – all that give the basement a very cozy, comfortable feeling,” Schervish said. “Seating for 44 people would be at couches and comfortable chairs with coffee and end tables,” he said. 


“A cozy wine bar has literally been dug out of the existing space,” Gerdom added. “It’s partially filled with dirt now, but if the area was excavated at the east end, it could be made into an “L” shaped room with a piano bar.” 


A “dumb waiter” enables food to be provided from the kitchen above, and Gerdom envisions “small plates” or tapas, a selection of cheeses to complement the wines, trendy cocktails, artisan liquors, some traditional bar snacks and desserts for dinner. 


Quiet piano background music, interesting lighting effects, and a special “vibe” on the part of the bartender would give the basement bar a unique feel, Gerdom said. 


Upstairs Banquet/Entertainment
With 3,685 square feet on the second floor, Gerdom said all existing non-load bearing walls would be torn down , designing it to fill a need for banquet space in the community while also providing a new entertainment venue.


Gerdom said the second story would be accessible by both elevator and stairs, with the east end providing a tall ceiling, open area with windows, a bar lining the south wall with a service area and storage space for tables and chairs immediately accessible to that area. Restrooms, a kitchen prep area, and restaurant office rounds out the floor. The report states that the second floor is capable of handling groups of 100. 


Additionally, design of the second floor calls for a retractable or collapsible movie screen and an HD digital projector suspended from the ceiling, directly opposite the bar. A high-end home-theatre surround sound system, black out curtains and theatrical lighting would provide the restaurant with the capability of hosting anything from “movie night” to high energy corporate meetings to intimate dinners, Gerdom said. 


Outdoor Dining

Gerdom said the extended pavement at the corner and the sidewalk width space available on both the north and east sides of the building would allow the restaurant to accommodate at least 30 outdoor diners at the point where Battle Alley meets Saginaw Street, with additional seating available where the current drive-thru exists on the south side of the building.


“This creates not only a great place to eat, but a great place to be seen while contributing significantly to a vibrant look and feel to the downtown area,” he said.

Implementation Strategy

After completing the market research, studying existing conditions, developing a design concept, and recommending programming activity, Schervish said the estimated total cost of the project is $4.3 million, and estimates that it will take approximately two years to complete the project. 


Final Recommendations
In closing, Schervish made four major recommendations to the DDA Board of Directors. 


Schervish urged the DDA Board of Directors to adopt a development schedule as a primary “road map” for development, to develop a target list and interview potential developers/operators, to create an attractive package to market the project to a developer/operator, and to prepare applications for State and Federal Historic Registry and Brownfield Redevelopment Authority tax credit. 


“We’ve been involved in projects like this in places like Birmingham, Livonia and Plymouth,” Schervish said. “If this project is successful, it’s the beginning of a whole downtown revitalization for Holly – others will follow.” 


DDA board member and Village President Pete Clemens asked Schervish how much interest there currently is among developers for a project of this magnitude. 


“There is a pent-up demand,” Schervish said. “Because of the economy, developers have been inactive for awhile, but with everything we’re learning, it looks like the restaurant business is starting to pick up,” he added. “We think a project like this that has financing and tax credits available will look pretty enticing to a lot of developers.”

Comments  

 
-8 #1 Dayne Tuesday, August 10 2010 5:20pm
for anyone to invest in buying the building, renovating it and expect to draw enough foot traffic for the business to be profitable.is that a realistic scenario or wishful thinking?
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-7 #2 Dayne Tuesday, August 10 2010 5:38pm
cost to buy the the building $200,000 plus,renovations $200,00 plus more than likey, property taxes,taxes on real property, insurance cost, unemployment ins. workmans comp, payroll taxes, if its a food establishment cost for supplies.don't take this wrong but i just don't want to see a failed business create a downtown eyesore.did i mention water cost, electric and gas and garbage pickup.tax preparer and probably a lawyer too.
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0 #3 Peter Clemens Wednesday, August 11 2010 8:04am
Actually the proposed cost of the building was based on the last appraisal at closer to $400,000 dollars, and the total cost of renovations, fixtures, equipment, ect. at 4.5 million dollars. Applying available tax credits brings the total cost down to something in the neighborhood of 2.5 million dollars. The study was very thorough in covering all of the costs necessary to open the restaurants doors on day one, and projected sales over the first ten years of operation. The demographic studies estimate that the area can support a venture of this nature and estimate that a restaurant as proposed should be profitable in the first year, with profits growing as debt retires over succeeding years. The study is available for reading at Village hall and I encourage anyone interested to take advantage.
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-2 #4 Ryan Bladzik Wednesday, August 11 2010 8:52am
Thanks for the info, Pete!

Would it be possible to get the study posted as a PDF on the Village web site?
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-3 #5 Jesse Lambert Wednesday, August 11 2010 10:05am
Our community is beginning to plan on all fronts for what lay ahead. (Read Village minutes from 8/10/2010, Township Minutes from 7/21/2010)

It is always nice to see our local governments position themselves for success in the future.
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-7 #6 Peter Clemens Wednesday, August 11 2010 12:43pm
I'll see what we can do to put that up on the Village and or DDA websites.
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-4 #7 Jason M Hughes Wednesday, August 11 2010 1:54pm
I was skeptical about limiting ourselves to the idea of an upscale restaurant but with the research it sounds promising and sustainable. Hopefully we can find the right developer that understands our community and it's intended direction. This is exciting stuff for Holly!
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-5 #8 theoldhobo Wednesday, August 11 2010 3:47pm
At 2 1/2 Million over 10 years you would have to serve 34 meals per day at $20.00 ea, every single day for ten years. plus operating expenses and wages. I think the math is kinda fuzzy, these two guys remind me of the holly pines condo guy and the pulte developers and dont forget the Waltrip Sewage process we all fell for. Ask our great and famous local pizza guy how many he thinks would go there.
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-8 #9 Janet Leslie Wednesday, August 11 2010 10:10pm
The restaurant business is one of the riskiest out there. Anyone who is in the business knows it takes a huge investment to do it right, and good, trustworthy employees are crucial to success, as is an available market. But if those three criteria are satisfied, there is no reason in the world a restaurant couldn't sell 34 $20.00 meals a day. I would expect sales to be significantly higher than that.
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-2 #10 Jason M Hughes Thursday, August 12 2010 8:17am
34 meals a day is only 17 tables a day and this is only looking at $20 meals, not patrons who take advantage of other fair like drinks and appetizers or those who rent the banquet facility.

I know it is the Urban Resource Alliance's job to sell this, but their reputation also relies on the success of a business that utilizes this research.
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-1 #11 jirvin Thursday, August 12 2010 4:08pm
Call me crazy but wasn't an anaylsis similiar to this done when the MI Brew Co was looking at the building a few years ago. I might be wrong, but I am almost certain that there was talk of a brew pub/eatery coming to town.
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-1 #12 jirvin Thursday, August 12 2010 4:13pm
Not to long ago wasn't there a similar study done when the MI Brew Copmany wanted to come to town? If I recall after months of work etc. the would be business left with no recourse.
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-3 #13 Dayne Saturday, August 14 2010 4:22pm
wouldnt that type of resturant take away business from the holly hotel?
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-2 #14 Peter Clemens Saturday, August 14 2010 5:03pm
PCH holdings was negotiating with Holly Township to purchase the old fire hall, they were considering making an offer to the Village but withdrew before making their pitch. The Holly Hotel would still be more upscale than the restaurant proposed by this study.
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-5 #15 Janet Leslie Saturday, August 14 2010 5:45pm
That $15 to $20 per entree price range is lacking in Holly. Depending on the type of fare offered, they wouldn't be competing with anyone in our immediate community. It will be interesting to see when the results of the EDTF market research survey are presented on August 31st whether that type of dining experience is desirable to our primary market.
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-6 #16 Dayne Saturday, August 14 2010 9:17pm
i just do not see where a developer or resturant owner is gonna pay that kind of money for a building and lot, in a low traffic,low visibilty area. and i will mention it looks like a bank.i don't see anything about that building that sets it up as a must go to spot.i will donate $100. to pete clemens favorite charity, if a eatery ever opens its doors at that site.
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+1 #17 Peter Clemens Saturday, August 14 2010 10:40pm
Make the check out to the "Heart Too Heart Foundation", providing pacemakers to people in need. Or better yet get three friends together and play in my charity golf outing on September 25th at Bramblewood. Sorry about that shameless plug! Dayne, I'm not about to just throw up my hands and surrender. If The French Laundry and The Clarkston Union can be as successful as they are then why couldn't someone make a go of it in downtown Holly? The new owners of the Black Thorn Pub (Yosemite’s) are sure sinking a ton of money into that building in anticipation of creating a successful enterprise. I’m not exactly the rah-rah-ree cheerleader type who believes beyond all odds that we can simply will success to come to Holly. This Village has invested a great deal of money in infrastructure rehabilitation and amended a number of our ordinances to better situate ourselves toward success in the eventual economic recovery of our region. The Detroit Free Press sighted The Village of Holly as the only community in Northwest Oakland County that has prepared itself for that eventuality. And by the way, the building has already been toured by two interested investors, so who knows. What I do know for sure is that if we don’t try, then it will never happen.
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+8 #18 neighbor Sunday, August 15 2010 10:42am
I would love to see something like this come to Holly, they need a decent price point destination. Holly is not out of the way, we live in Springfield Twp and do enjoy visits regualry. However, the Holly Hotel does not appeal to us so we usually find ourselves headed to Grand Blanc or Fenton after an afternoon in Holly. To say it is out of the way, I feel is a little off base especially since it is going to be down town. French Laundry in Fenton does great and it is not really walkable to the down town store fronts.
This would be a great move for Holly, and there are so many possiblities that could be down with the bank theme in a resturant.
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+2 #19 Dayne Sunday, August 15 2010 1:09pm
i am interested in playing in your charity golf tourny.i just need to know the entry fee amount and tee time.
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-2 #20 Peter Clemens Sunday, August 15 2010 3:26pm
The Fourth Annual John B. Clemens Memorial Golf Classic, Check out our website at www.jbcgolfclassic.com and look for our sidebar ad here on the Holly Express on or about August 25th.
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-5 #21 Two50r22 Wednesday, January 19 2011 9:34pm
If the DDA was willing to chip in the first million, the ball would start rolling pretty quick on this.
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-1 #22 Janet Leslie Friday, January 21 2011 10:57am
The first million? Maybe that was a joke. Our Holly DDA has nowhere near a million dollars in its budget.
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+3 #23 Darrin Saturday, January 22 2011 11:43am
Let's put the price tag and budgets aside. The key question(s): What plan has been put together and/or what actions have been taken since these study results were shared? Can anyone provide any insight?

This question should also be extended to the EDTF survey results as well.
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+3 #24 TheDuke Sunday, January 23 2011 2:08pm
I have to agree with Darrin. We do a lot of talking, but it is actions that count. What has been done and what are the results of the actions of the DDA and EDFT? Do we have more businesses in the village and area, fewer, or netting out to the same number? Perhaps it is institutional changes that are needed and less talk.
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+1 #25 Janet Leslie Tuesday, January 25 2011 3:39pm
DDA Director Hope Ponsart has given the EDTF the go-ahead to draft letters encouraging potential investors to take a look at the Village Hall and other downtown spaces. We will discuss this at our next meeting. Also at our next meeting, we will discuss the village's deliberation of Sunday liquor sales, and whether or not we want to make a recommendation to them on this topic.

Our meetings are open to the public, and you are heartily encouraged to attend and participate. Our next meeting is Tuesday, February 1 at 7pm in the Township Hall. Contact me at to be added to our e-mail list.
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+2 #26 Janet Leslie Tuesday, January 25 2011 3:54pm
As for the EDTF market research survey, it is hard to know where the findings have been applied.

For example, have more local retailers established websites now that they know so many residents shop online? Has your favorite drinking establishment added more classic rock entertainment since finding that is the most preferred music genre in our area? Has Holly Foods added a few more specialty items to their shelves after learning that residents are yearning for quality and variety? Or have they chosen to emphasize quality in their advertising and displays? Have they weighed the pros and cons of converting to a specialty foods concept?

These are all things I might do in response to the survey findings, but the choice is up to the individual business owners. We won't know if they have responded to the survey results unless they report back to the community that they have made changes based on those findings.

The EDTF will try to identify outside businesses that may be a good fit for our community based on those survey findings, and we are starting by looking at potential restaurateurs who may find the Village Hall or the Township Hall interesting locations.

As an elected official, I personally use the data form the survey as a gauge of what my constituents may want from me.
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0 #27 Darrin Tuesday, January 25 2011 6:03pm
Janet, first, thanks for replying. Second, here's the issue I have. Roughly 168 days have passed since the results of the study were made available, but we are just "now" getting the go-ahead to draft letters encouraging potential investors to take a look at the Village Hall and other downtown spaces. Why is this?

Why is it always acceptable to move at a snail's pace seemingly without accountability? Where is the fire that burns inside our community leaders and managers to make things happen TODAY? Why must we always view progress in terms of years and decades vs. weeks and months, when there seems to be no real reason to do so?
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+1 #28 Janet Leslie Wednesday, January 26 2011 12:36am
Darrin, I certainly can't speak for everyone in the community, and I won't attempt to do so. If you are unhappy with the response a certain public body has had to the market research study, please inform that group of your displeasure.

As for the EDTF, we are all volunteers. The EDTF has no funding. Though any one of us would likely jump at the chance to tackle economic development issues full time, we all have families and jobs which must be attended to first. Though those of us who are elected or appointed to local boards and commissions do use our desire to foster economic development, as well as the information gathered by the market research study, in all public issues that are brought before us, there are not necessarily resources for accomplishing all of the projects we believe would benefit the community. If the EDTF had the membership which would allow for subcommittees to tackle specific projects, we might be able to move at a faster pace.

Again, I invite you to join our efforts.
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+3 #29 Ryan Bladzik Wednesday, January 26 2011 6:48am
For what it's worth, Suzanne Perrault, Holly's former DDA director, left in January 2010 and Marsha Powers was the acting director until September, when the Village Council terminated Marsha Power's employment. The same night, the council confirmed Hope Ponsart's hiring as the new DDA director.

As such, yes, it's been nearly 180 days since the various survey results have been released and available. But as far as the Village Council goes, they've been operating under an interim village manager, a brand new DDA director playing catch-up, and working on hiring a permanent village manager, police chief, *and* DPW director following an election cycle, during the holiday season.
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