ARMORY SQUARE Development Plan - Echopoint Design & Development, LLC Park Rapids, Minnesota
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REQUEST FOR ZONING AMENDMENT
ARMORY SQUARE
Development Plan
Echopoint Design & Development, LLC
Park Rapids, Minnesota
©Alan Zemek
Armory Square Development Plan
Index
Executive Summary Page 3
Narrative Summary Page 4
Business Model Page 8
Developer Profile Page 11
Development Concept: Photos, Maps, & Slides Page 13
Armory Square
Civic Center
Performing Arts
Exhibitions
Trade Shows
Cultural Events
Fairs & Festivals
Shops & Studios
2
Armory Square Development Plan
Executive Summary
Project Description
“Armory Square” is an adaptive reuse of a 24,000 square foot vacant armory building
located in downtown Park Rapids. The site is currently used as an unheated storage
warehouse, and has limited development potential due to several serious deficiencies.
These deficiencies include:
- A lack of off street parking,
- Inadequate ADA access to the building,
- The presence of asbestos, and other hazardous materials,
- There is no modern safety equipment, such as automatic fire sprinklers,
- The building is grossly energy inefficient and needs complete modernization.
Landmark Potential
The RDG Downtown Revitalization Plan recognized the Armory as “strongly
contributing” to the historic character of downtown Park Rapids. Although the Armory
building is one of the most prominent features of the downtown landscape, it makes no
economic contribution to employment, commerce, or housing development in its current
use. Redevelopment as a landmark attraction would have positive “spill-over” effects.
Park Rapids Downtown Arts & Heritage District
The four blocks of the Second Street Corridor, from Heartland Trail on the East to the old
city water tower on the West contain several of the most promising buildings for historic
preservation, including the old city fire station, the armory, the Carnegie Library, as well
as the old park Rapids School. All of these sites would benefit as part of a plan to
showcase the history of Park Rapids, and enhance the presence of the arts in downtown.
Enhancement of the Second Street Corridor would solve many of the most difficult
challenges in redevelopment of the Armory, including additional parking, access, and
would create a viable identity for the Armory as a prominent attraction and downtown
destination for arts, tourism, entertainment, employment, and commerce.
Financial Limitations
Redevelopment of the armory would probably cost around $2.6 million dollars. This
exceeds the commercial potential of the site, but in a coordinated effort with public and
private resources, a mixed use development consisting of a civic center, arts venue, and a
commercial anchor could potentially make the project viable.
3
Armory Square Development Plan
Narrative Summary
Background
The 24,000 square foot Armory building located at Park Avenue South and Second Street
West has been vacant for several years. A previous attempt at redevelopment a few years
ago ended when the City of Park Rapids foreclosed on the property, due to performance
issues related to the Development Agreement between the City and the developer. The
developer reportedly spent approximately $140,000 Dollars on the attempt, which failed.
This money was spent on fixing the roof, general clean-up, partial installation of a new
floor in the gymnasium space, and partial installation of a new natural gas heating
system. None of these projects were taken to completion.
After foreclosure, the city sold the Armory at auction to the current owner, for a price of
$26,000. The significant challenges associated with redevelopment of this site most likely
accounts for the low sale price. The current assessed value of the property is $126,000,
which consists of a value of $126,000 for the land and a value of zero for the building
itself, which accurately reflects the major limitations of this facility.
Adaptive Re-development or Demolition?
The armory building is a robust concrete and steel frame construction. The estimated cost
of demolition in a City Engineer’s report that is now several years old estimated the
demolition cost to be about $300,000, which is prohibitively expensive, if just for the
purpose of clearing the lot for re-development. Although the building structure itself
appears to be generally sound, the following limitations make the site unattractive for
commercial development:
Parking - Virtually no off-street parking is available to serve the armory.
ADA access - There is no grade-level entrance or egress to the armory.
Energy Consumption - The armory, practically speaking, can not be heated.
Hazardous Materials - Asbestos and other hazardous materials are present.
Fire Safety - There is no emergency lighting, or automatic fire sprinklers.
HVAC - There is no ventilation or air conditioning system.
Plumbing - The existing facilities are inadequate for a modern public use.
Incurably Obsolete
A professional appraisal would describe the armory building as “incurably obsolete.”
Even though the armory has a full size gymnasium, performance stage, class rooms, mess
hall, indoor shooting range, office space, and more, none of these facilities are functional.
Because of the substantial barriers to re-development and adaptive reuse noted above, the
armory building has essentially devolved into an unheated storage warehouse. About the
only positive commercial attraction the armory has going for it is its location in the heart
of downtown retail and entertainment district.
4
Historical Value
The present commercial value of the armory building is fully utilized in its current use as
an unheated storage warehouse. However, the armory has significant historic value.
The armory dates back to at least 1922. The recent downtown revitalization study done
by RDG recognized the Armory building as “strongly contributing” to the historical
character of downtown park Rapids and is, in fact, the largest landmark building in the
downtown area. There are other significant historical references in the immediate vicinity
along Second Street, including the Carnegie Library (1904), the City Fire Station (1930),
the Park Rapids School (1927), the Great Northern Railway (1891), now known as the
“Heartland Trail”, at the termination of Second Street East, and at Second Street West
and Main Street, the original Farm State Bank building (1918), the original City Water
Tower, along with several others.
Project Scale
A rehabilitation project to address the deficiencies of the structure and bring the building
into compliance with modern building codes, health and safety standards, and amenities
suitable for commercial and public occupancy would probably cost somewhere in the
range of $2.6 million Dollars. An adaptive redevelopment of this extent is not
commercially viable or economically sound if the context is simply rehabilitation of the
structure.
However, the Armory could serve as the anchor development in a broader economic
revitalization effort, with the potential to become a regional tourism and commercial
attraction, which would create positive “spill-over” effects into the adjacent
neighborhoods. This would improve the overall downtown business climate, and create
dramatic new opportunities for downtown housing and increased employment.
Arts & Heritage District - Second Street Corridor
Despite all its deficiencies, the Armory building has two major positive attributes. One is
its prominent central downtown location, and the other is its character and potential as a
historic landmark property. The Second Street Corridor, while only 3-4 blocks long, is
rich in historic, artistic, and cultural potential for the city of park Rapids. The East end of
the Second Street Corridor terminates at the old Great Northern Railway right-of-way,
which now connects into the Heartland Trail. The West end of this historic corridor
terminates at the old City Water Tower, another historic landmark. The armory sits
roughly mid-point between these two historic sites, roughly 2 blocks in either direction
from the armory. Located immediately adjacent to the Armory is the old City Fire
Station, and the original Carnegie library (1904). Across Park Avenue is the old Park
Rapids School, which has been converted to low cost apartments, but has upside potential
as owner-occupied studios and lofts, as a Co-op housing development in the downtown
Arts & Heritage District.
5
This relatively compact area has the potential to be developed as an Arts & Heritage
District, combining access to Parks, Arts, Recreation, Trails, and Services, as well as,
opportunities to develop downtown housing, employment, as well as increased tourism
and commercial activity for the shops and businesses throughout downtown.
Public - Private Partnership
The viability of the project will depend upon a successful collaboration of both public
and private interests. It will also require investment & commitment from noncommercial
constituencies, such as supporters and patrons of the various performing and fine arts
communities located throughout the region, if the project is to achieve its full potential.
By leveraging public and private efforts, and integrating broader community resources
into the project, that which is not possible for either the public sector or private sector
alone has significant development potential as a collaborative community project.
Community Center
The City of Park Rapids recently commissioned a market study of the potential for a
community center in park Rapids. The final report suggested a “basic plan” for a 55,000
square foot community center. At $200 per square foot, the projected cost of the project
was $11 million Dollars. Recent experience in Detroit Lakes and Bemidji with their
community centers, and locally, the financial troubles of the Hubbard County Law
Enforcement Center, as well as the Century School, strongly suggest a traditional
community center development would become controversial, divisive, and a financial
drain on community resources. Although the study demonstrated a high level of interest
for the development of a community center, the traditional development approach would
most likely fail badly.
Arts Communities
The Park Rapids region is a center for both visual and performing artists. There are
several organizations, North Country Art Museum, Northern Lights Opera Company, the
Park Rapids Lakes Area Arts Council, and others, dedicated to the development and
promotion of fine arts activities, as well as many individual artists and local studios
located throughout the area. There is, however, no critical mass, central core, theater, or
gallery space to showcase the talents of our regional artists, and identify Park Rapids as a
regional center for performance and visual arts, which it truly is.
Integrated Mixed Use Facility - Civic Center / Community Theater / Commercial Anchor
A successful redevelopment plan for the Armory block can be achieved by integrating
commercial use, civic use, and an arts venue to create a landmark destination location, as
a regional attraction and commercial draw, marketed as “Armory Square”- located in the
Arts & Heritage District, in beautiful downtown Park Rapids, Minnesota.
6
Phased Development
An attractive feature of this redevelopment plan is the ability to make incremental steps
along the path of redevelopment, depending upon the level of resources that are available.
Simple “Way Finding” signage and historical markers could begin the process of creating
the identity for the Arts & Heritage District at a very minimal cost. Rehabilitation of the
armory itself can be broken down into phases also, by isolating various areas of the
building, and working on the various challenges.
■ Parking - Off Street parking can be created by replacing worn out sidewalks and gutters
on Second Street, seal coating the street and re-striping for diagonal parking.
■ ADA access - Grade level access to the Armory can be achieved by acquiring the old
City Fire Station, (currently in use as the Senior Citizen’s Center) and using this building
as the new main entry point, creating a dramatic new marquee lobby entrance to the
Armory on Second Street.
■ After an initial phase of basic remediation, the interior spaces of the Armory could be
phased into use as the demand and resources allow.
Conclusion
The best chance to achieve a successful redevelopment plan of the Armory building will
depend upon the integration of public, private, and donated resources, in order to
overcome the significant challenges associated with the project.
The “Armory Square” project has the potential to create a viable Commercial / Civic Use
/& Arts venue that will have a dramatic positive impact on tourism, employment,
housing, and economic sustainability in downtown Park Rapids.
7
Armory Square Development Plan
Business Model
Business Model
Long term viability of the Armory Square development will depend upon two critical
elements of the development plan. The first factor will be to achieve a robust capital
structure that is adequate to support long term viability, and the second factor will be a
sustaining operations plan to generate positive cash flow over the long term. Because of
the scale of the project and the challenges to be overcome, both public and private
resources will be necessary to achieve a sustaining business model for this project.
Capital Structure
“Armory Square” will require a supportive/collaborative effort to integrate three major
users of the facility when it is completed and ready for public use. These components,
working together, can create the synergy necessary to support a viable project:
■ Civic Use
■ Performing & Visual Arts Venue
■ Commercial Anchor Tenant
TIF
The armory building is located in a designated TIF district, and should qualify for Tax
Increment Financing. Capitalizing this TIF component at the initial phase of the project
would provide substantial leverage by adding equity early in the development process,
which would make the project much more attractive to prospective lenders.
Rehabilitation Grants
Substantial remediation work in abatement of hazardous materials, investment in energy
efficiency, accessibility, as well as health, fire & safety codes, are a necessary component
to a viable capital structure. These are essential to attract a lender to the project.
Arts Endowment Grants
Public support must be demonstrated for a visual and performing arts component to
complement the civic and commercial uses as the third component in project equity.
8
Armory Square Development Plan
Business Model
Sustaining Operations
Once the Armory Square project has been adequately capitalized, a sound operations plan
must be in place to assure positive cash flow over the long term. Quite typically, projects
that require community funding are successful at raising capital, but fail to make
adequate provision for generating the sustaining cash flows that are necessary to keep the
project viable over the long run.
The Armory Square project will overcome this challenge by integrating commercial and
public uses, and creating several revenue streams to support ongoing cash requirements.
Ongoing operations must sustain three areas that consume cash resources:
Operating Expenses - Energy Management
A key element of the rehabilitation and modernization of the armory complex will be the
integration of energy management systems, weatherization, heating & cooling zoning,
peak load energy management, on site generation of renewable energy, and off peak
energy storage technology.
A comprehensive approach to energy management systems will serve both as a
technology demonstration project, will substantially reduce long run operating costs, and
should qualify the project for substantial grant assistance.
Administration & Programs Management - Personnel
A professional management structure will provide for administration and day-to-day
management of the facility, and will assist community user groups, such as clubs, arts
groups, associations, etc., with coordination of program development and direction. It is
assumed that these groups will provide volunteer staff for a substantial portion of their
operations. By leveraging accounting, financial and managerial resources, with the
participation of volunteer groups and club memberships, the facility will have a solid
foundation for ongoing financial management.
Debt Service - Occupancy Costs
Allocation of occupancy costs between the various uses of the facility must make an
adequate provision for amortization of debt, and payment of debt service. On going fund
raising by community user groups should be directed first towards debt payments,
funding a reserve capital account, and then program development, in this order of
priority. This will assure the long run sustainability of the facility for its intended
purposes as a civic center / arts venue / commercial anchor in downtown park Rapids.
9
Armory Square Development Plan
Business Model
Revenue Components - Summary
The sustaining business model will integrate revenue from commercial operations, as
well as non-commercial activities, with each component providing customer traffic and
revenue support to the other. This complementary business model will create a positive
synergy, which also will create beneficial “spill-over” effects, and stimulate increased
tourism and commerce for downtown Park Rapids.
Income from Commercial Operations
Liquor Store / Brewery /Micro-Distillery / Wine Cellar
Food Service
Gift Shop (retail concepts to be developed)
Galleries
Other
Income from Community Based Organizations
Civic Clubs
Performing Arts Events (membership dues & patron support)
Trade Fairs
Banquet / Catering Rentals
Conferences
KEY ELEMENT:
An essential component of the redevelopment plan will require re-zoning the building to
appropriately reflect its location in the general business district of downtown Park
Rapids, as well as the acquisition of a liquor license to provide for both on-sale and off
sale of beer, wine, and spirits, and a license to brew, distill, ferment, and bottle alcoholic
beverages on site. This element of the plan will provide the commercial anchor necessary
to drive the success of the other components, and create the strongest revenue base to
fund sustaining operation of the facility.
Specialty Retail - Brand Development
Even though the City of Park Rapids maintains an exclusive franchise for the off-sale of
beer, liquor, and wine, a complementary niche developed for the promotion and sale of
locally produced products would not compete directly with the municipal liquor store.
Community Services
This differentiation would effectively increase City revenues through use of a franchise
fee, or similar licensing fee, and help fund the non-commercial operations of the facility,
and help provide an ongoing source of funding for community services at the facility.
10Armory Square Development Plan
Developer Profile
Echopoint Design & Development, LLC is a privately held development company
specializing in property development, business development, and commercial real estate
development in Minnesota’s heartland communities.
Echopoint Design & Development, LLC is a licensed real estate broker in the state of
Minnesota.
OUR MISSION
We believe in supporting the growth of rural communities through developments that are:
RESPONSIBLE
We are committed to the responsible development of Minnesota’s heartland
communities; to protect the wetlands that support the environment and water quality that
we all enjoy, and to appropriately preserve wild life habitat and open spaces.
SUSTAINABLE
We believe in development that appropriately limits impact on the environment and its
natural capacity to sustain the impact of development over time without degradation to
the quality of air, water, or other natural resources.
DESIRABLE
We are committed to development that enhances the quality of life in rural communities;
that is attractive, appealing, and well designed with desirable amenities; and becomes a
source of pride for the local community.
ACCESSIBLE
We are committed to development that is accessible to all, without regard to physical
handicap, and to remove barriers to access where they exist, so that all may participate
in the life of the community.
“Excellence has an Echo”
Alan Zemek
Echopoint Design & Development, LLC
Park Rapids, Minnesota
Email: info@epdevelopment.com
11Armory Square Development Plan
Developer Profile
Previous Projects:
Park Rapids Business Center
Complete rehabilitation and renovation of a distressed commercial property into a class “A” multi-
tenant professional building. This project achieved 80% occupancy within 6 months of completion in a
depressed market for commercial tenancies. This property is now a landmark building, located at the
intersection of two major highways, 71 and 34, in the heart of downtown Park Rapids, Minnesota.
Riverpark Villas - Waterfront Town Homes
Designed and developed Riverpark Villas, a planned unit development, resort-lifestyle residential
community. Creative and adaptive redevelopment of an existing resort property, repositioned and
marketed as an innovative common interest community, located on the Fish Hook River within the City
limits of Park Rapids, Minnesota.
Heronrest Pointe
Designed and developed Heronrest Pointe, a 100+ acre recreational property development on 4000
feet of prime lakefront property on Boot Lake in Becker County, Minnesota. This project required
extensive engineering and creative design work to incorporate wetlands and habitat protection into the
plat design.
Alan J. Zemek, J.D.
-----------------------------------------------------------------------------------------------------------------------------------
Education / Certifications / Affiliations
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Juris Doctor,
Concord Law School
Los Angeles, California
Masters of International Management,
The American Graduate School of International Management
Glendale, Arizona
Bachelor of Arts, Economics & East Asian History
Macalester College
Saint Paul, Minnesota
California Bar Association (Admitted June 2009)
Licensed Real Estate Broker (Licensed in Minnesota)
Certified Property Appraiser
12Park Rapids Center of Community
The SUM is
Greater than the
PARTS:
PARKS ●ARTS● RECREATION● TRAILS● SERVICES
Park Rapids Arts & Heritage District
Development Plan
13ARMORY
SQUARE
Request For Zoning AmendmentAdaptive Redevelopment Plan
The Downtown Revitalization Study Area
Armory Square
The Park Rapids Armory Park Avenue South
The Park Rapids Armory & Senior Citizens Center
Second Street WestArmory Square Civic Center Performing Arts Exhibitions Trade Shows Cultural Events Fairs & Festivals Shops & Studios
Armory Square Redevelopment
Proposed Within Existing Structures
A
D
B C
A: Lobby Entrance, Public Spaces, Retail Business
B: Gallery Spaces, Civic Uses, Classrooms & Club Rooms
C: Exposition, Trade Show, & Performance Venue
D: Commercial Space, Retail, Food ServiceHistoric
Park Rapids
/////////////////////////////////////////////
ASecond Street Historic District Great Northern
Railway 1891
Armory
1922
From 2nd St
Looking North
City Fire Station
1930 City Beach
Carnegie Library 1920
1904
Park Rapids School 1927, 1938, 1956
City
Water Tower
1920?Economic Development in Park Rapids, Minnesota • The Downtown Revitalization Plan
Downtown Park Rapids RDG Concept Plan
Trails & Parks
Connectors
Civic Plaza
Commercial CenterPark Rapids Center
of Community
Park Rapids Arts & Heritage
District
Development PlanPark Rapids Center of Community
The sum is greater than the parts:
Parks
Arts
Recreation / Retail
Trails
ServicesAdaptive Redevelopment: ARMORY SQUARE
A
Depot Park“Way Finding”
East HWY 34 Trail
Extension
Heartland Trail
into
Crossing DowntownSecond Street East at Gilbert Avenue
Second Street West
Second Street West
New
Curb and Sidewalk
Storefront
Renovation
Second Street West
TodaySecond Street East
Second Street EastMake it Better Use What we Have
City of Park Rapids Trade Area Performance
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