HomeMy WebLinkAboutStory Mansion Exergy Proposal FinalJuly 18th, 2011
To: City of Bozeman, Montana
Re: Proposal to Receive Ownership of the Story Mansion
From: Exergy Development Group, LLC
Exergy Development Group (EDG) hereby proposes joining with Friends of the Story, Inc. to create a non-profit organization combining the resources, talent, experience, and commitment
of Exergy Development Group, LLC and Friends of the Story, Inc., in order to purchase the Story Mansion, an accessory detached Carriage House, and the grounds on which they are located
for $391,222. It does so with the understanding that the newly constituted non-profit organization (presently referred to as Exergy Friends of the Story - EFOS) shall preserve and restore
the Property within a five-year period of time and operate the first floor of the Mansion principally as a public community center in a manner substantially similar to its current use.
It is understood as well that the Property is subject to existing 50-year and five-year historic preservation easements, both with the State of Montana, and EFOS agrees to comply with
all requirements of these existing easements. Since the preservation and restoration of the Property and the public use and enjoyment of the first floor of the Mansion is the over-riding
concern of EFOS, it shall ensure that any subsequent purchaser of the Property, in the unanticipated event of sale, shall respect all of the requirements and conditions now in place,
although they are a matter of statute and law.
In order to mirror as completely as possible the Request for Proposals to Receive Ownership of the Story Mansion put out by the City of Bozeman, the requirements of the Request
are for the most part listed separately and addressed in turn. In the case of requirements 4, 5, and 7, there is a significant amount of overlap, and it was decided, in order to avoid
repetition and a consequent waste of Bozeman City Officials’ time, to combine responses to them in a single narrative.
A narrative describing the entity, its history and purpose, and its relationship to the City of Bozeman, along with a listing of the entity’s legal name, primary contact person, address,
telephone number, fax number, web-site, and e-mail address.
The Friends of the Story, Inc. (FOS), is a non-profit organization formed in 2008 and awarded 501(c)3 status in January, 2009, by the IRS. Its mission is to preserve the Story
Mansion property and to retain the Mansion for public use. It has a six-member Board of Directors and an Advisory Board of seven. The Friends is committed to the stewardship and development
of this historic landmark through its renovation and re-use, capitalizing on the economic vitality it will generate while protecting Bozeman’s heritage and unique identity. To these
ends and with the help of Bozeman’s Service Core of Retired Executives (SCORE), FOS prepared a “Strategic Business Plan” that includes projected uses of and rental
revenues from the first floor of the Mansion, a list of potential organized events on the Property, fund-raising and marketing plans, and architect’s estimates for the renovation of
the second and third floors of the Mansion. Friends of the Story Mansion has within two years organized and secured the efforts of numerous volunteers and supporters from all parts
of the local, regional, and national community who have contributed thousands of hours of their own time to providing a legacy for future generations.
In February, 2010, FOS invited Gordon Brittan, long-time Regents Professor at Montana State University and Director of New Product Development at Exergy Integrated Systems, a Division
of Exergy Development Group LLC, to one of its meetings to inform him of its plans and to ask whether Exergy might be interested in acquiring the Mansion and otherwise providing financial
support.
Exergy Development Group (EDG) is a major developer of renewable energy projects and technologies in different parts of the country. It has its main offices in Boise, Idaho, and
maintains its Montana corporate office in Helena, with divisions in Great Falls and Livingston. Its officers have deep Montana roots and have worked hard to promote the educational and
cultural as well as the economic life of its communities. Its philosophy, simply put, is to build projects that are socially beneficial, environmentally responsible, and enhance economic
vitality. Among its other cultural activities, EDG is interested in the preservation of historic architecture. Its company offices in Boise occupy the top three floors of the Hoff Building,
one of the most beautifully restored and historically significant Art Deco architectural works in the American West.
In February, 2011, when the City first clarified its intentions with respect to the disposition of the Story Mansion property, FOS and EDG began a series of discussions about how
to collaborate to ensure the future of the property as an educational and cultural center, to restore the second and third floors of the Mansion in an historically-sensitive way, and
to promote its use as a center of energizing and enriching community activities. These discussions occurred over the course of several months with the six-member FOS Board of Directors
and its seven-member group of Advisors to the Board, a diverse group of professionals and business people representing many segments of the community. Ultimately, it was decided by
this collaborative group that the best way in which to achieve the shared vision as described above was to re-name the Friends of the Story, Inc. 501(c)3 organization the “Exergy Friends
of the Story Mansion, Inc.,” to allow Exergy Development Group to nominate a majority of the Directors, and in general to follow the guidelines for future development set out in the
FOS “Strategic Business Plan.” Exergy Friends of the Story, Inc. shall be established by the time any sales agreement with the City of Bozeman is executed.
The Friends of the Story brings to this collaboration an intimate knowledge of both the Mansion and the Bozeman community, demonstrated public relations and marketing abilities,
a willingness to raise money for architectural and programmatic purposes when and as it is needed, and a great deal of creative thought concerning ways in which the property’s use by
the community might be extended. Exergy brings to the collaboration the financial resources necessary to preserve and restore buildings and grounds, a clear commitment to the purposes
for which the City bought the property in 2003, and the sustainable energy with which the company conducts its business.
There is no formal relationship to the City of Bozeman. However, representatives of Exergy Development Group and Friends of the Story, Inc., have worked closely with the City Manager,
members of the City Commission, and City Planners over the years on their shared vision of the future of the Mansion, and more especially in connection with the preparation of this proposal,
and will continue to do so.
Submitting Entity’s Legal Name, Primary Contact Person, and Contact Information
Exergy Development Group, LLC
Gordon Brittan
Box 1360 Livingston, Montana 59047
(406) 222-3656
Fax: (208) 336-9431
www.exergydevelopment.com
gbrittan@exergydevelopment.com
The submitting entity is, or will be at the time of sale, qualified as a non-profit organization under state and federal law.
The Friends of the Story, Inc. is a 501(c)3 non-profit organization under state and federal law. Its name will be changed to “Exergy Friends of the Story, Inc.,” (or similarly
appropriate name) as provided for in Article 1, Section 1.3, of the Friends of the Story by-laws, and donations to EFOS from Exergy Development Group shall be made as needed to first
acquire and then restore the Mansion property.
Whether the submitting entity proposes to purchase the Property or seek the Property as a gift from the City.
Exergy Development Group, LLC proposes that EFOS purchase the Property for $391,222. The cost (estimated at $10,000-$15,000) of certain modifications of the interior of the new
roof of the Carriage House designed to preserve the historic character of its second floor will be reimbursed to the City at the same time. [Please note that EDG and FOS also request
that the $1,000 recently donated to the City of Bozeman as a good faith gesture by FOS be credited toward the purchase price established above.]
A detailed plan for current and future use of the Carriage House, the Mansion, and the grounds within the confines of existing zoning requirements, and
A plan for how the first floor of the Mansion, including the Library, will be used primarily as a public community center in substantially similar manner to its current use, and
A statement indicating the manner in which the Carriage House and the second and third floors of the Mansion will be used for public-oriented educational, cultural, or community-type
functions.
Existing R-1 zoning statutes state that uses of the Mansion be restricted to educational, cultural, and community activities, and a 50-year conservation easement requires that
the public must be provided access to its first floor a minimum of 12 days a year. The uses of the first floor fall into two basic categories: informal meetings, workshops, presentations,
weddings, concerts, receptions, office parties, and other private and public functions, for which a rental fee is charged, and organized events, such as the annual and extremely popular
Story Under the Stars (solar-powered) film festival, and seasonal, if not also monthly, educational and cultural programs, many free and all open to the public. Over 9,000 people have
attended over 200 events at the Story.
To this point, the first floor of the Mansion, approximately 2,000 square feet and with a standing room capacity of 326 people, has been used largely, although not entirely, for
private and public functions, for which a rental fee has been charged. In its “Strategic Business Plan” of 2009, the FOS calculated usage and revenue projections consistent with those
of other historic mansions in the area. The total income projected for 2010, the first year of operation, was $35,000, roughly what was in fact received, more than enough to cover the
current “soft cost” expenses of heating and lighting the house, although not the administrative, insurance, and minimum staffing costs assumed by the City. As expected, the Mansion proved
to be a unique and highly marketable venue with a convenient location, beautifully restored public rooms, modern restrooms, and an on-site catering kitchen. In 2011, the second year
of operation, the City raised rental rates, and the number of users and consequent revenues dropped accordingly, to a point where they no longer covered the direct expenses associated
with the maintenance and operation of the property.
The question of rental rates remains a matter of conjecture. A proposal of this kind is neither the place to settle it nor to outline a particular fee structure. If Exergy Friends
of the Story, Inc., acquires the property, it will take into consideration the current competitive rates for the use of a building which is in many respects unique.
In addition to renting space for the types of traditional functions indicated, EFOS will continue to program and host community-based events as a way of bringing people together
to enjoy the Mansion and grounds and, at least on many occasions, to be educated and entertained in the process. In addition to programs already mentioned, a list of other possibilities
includes but is not limited to:
January – Solstice Celebration
February – Snow Sculpture on the Story Lawn
March – Old-time Fiddle Competition
April – Nelson Story Birthday Bash
May – Mother’s Day Tea
June – National Trails Day/Bozeman’s Heritage Trail Celebration
July – Independence Day and Watermelon Feed
August – Sweet Pea Weekend Historic Tours
September – Farm to School Agriculture Festival
October – Hallowe’en Witches Walk
November – Story Family Turkey Pardon
December – Tree Lighting Ceremony; Victorian Holiday Tea
With regard to all of these Mansion first floor activities, the needs of those living in the neighborhood shall be taken into consideration, particularly in connection with noise
and parking problems. We want those living in the area to participate in our planning and to have a sense of shared purpose and responsibility for this wonderful property in their midst.
We shall work out an appropriate set of guidelines, with agreed-upon limitations on the number and hour of large-scale events and the promotion of public transportation whenever possible.
Given its very central location, equidistant between the University and the center of town, walking to the Story is an option for a great number of Bozeman residents.
The second floor of the Mansion, with eight bedrooms, three bathrooms, and two gracious balconies, is ideally suited to function as office space for one or more small non-profit
organizations whose missions are consistent with R-1 zoning (educational, recreational, or cultural) requirements. A long-term anchor tenant, with a long experience in the community
and an inclusive outreach program, is sought. EFOS has already had extensive and encouraging discussions with members of the MSU Administration, with Michael Miles, Professor and Director
Emeritus of the MSU Honors Program, and with Jaynee Groseth, Director of the MSU Alumni Association, and is confident that one or another important and compatible University activities,
beginning with the Humanities Institute, whose director, Professor Robert Rydell, has been an active participant in all EFOS planning, will eventually find a home there. It is in a perfect
location for the University to reach out to the rest of the community, just as that same community will be able to take fuller advantage of the marvelous opportunities that the University
provides to out-of-school adults.
Because EFOS is concerned that the Mansion be properly cared for, it proposes creating an apartment on the second floor in the area used in the days of the Story Family as servants’
quarters, to be occupied by someone who is capable of attending to the well-being of the buildings and grounds, an indispensable priority of anyone who owns and thus has responsibility
for the property, and perhaps eventually to help organize events. Until an apartment is created on the second floor, EFOS shall arrange for adequate custodial care of the Mansion after
its purchase from the City. EFOS shall also plan to utilize a limited amount of space on the first floor to maintain a reception-type office, and space in the basement for file storage.
The third floor of the Mansion was originally used as a Ballroom. It can be used as a state-of-the-art presentation space for small conferences and meetings or as an intimate gallery
space. Discussions have begun concerning the possibility of a nationally well-known museum using it as a vehicle for promotion of the arts.
The Library is signaled for special mention in the City RFP. It has proved to be ideally suited for Board meetings of various groups, and it is the hope of EFOS that organizations
from across the state, particularly those that do not have their own conference rooms, will be encouraged to use it in this way.
No plan for the use of the Carriage House has yet been developed. The 4,680 square foot stand-alone building, itself the souvenir of a by-gone era and widely admired for its own
architectural style and sense of space, could one day function as a museum, an educational facility, offices for another anchor tenant (including a renowned charitable foundation that
has shown interest in the property over the years), or as a site for any future programming needs. Ideally, both the Ballroom and the Carriage House shall be fully equipped for audio-visual
presentations, video-conferencing, and technology supported learning.
A plan indicating how the Carriage House and the second and third floors of the Mansion will be preserved and restored and a time-line for restoration accompanied by a statement indicating
the submitting entity agrees to restore and preserve the Property subject to all federal, state, and local easements or restrictions for historic preservation and applicable building
codes.
Detailed plans for the restoration of the second and third floors of the Mansion have already been prepared by Comma Q, a well-known Bozeman architectural firm that undertook an
architectural assessment of the property in 2003, oversaw exterior stabilization work in 2005, oversaw the window replacement portion of the stabilization in 2007, and more recently
assisted the City in the completion of the basement and first floor renovations. (It should be noted here that these construction efforts only occurred through the collaborative support
of the City of Bozeman, Senator Baucus, and former Senator Burns. Additionally, Senator Tester has recently expressed support for the preservation and enhancement of the Story.) Representatives
of EFOS have talked with Comma Q’s principal, Ben Lloyd, about his Story Mansion assessment. Although the selection of the restoration architect is pending a decision on the part of
the City Commission regarding the sale of the property, Mr. Lloyd has assured them that his preliminary scope summary and statement of probable construction costs for a
historically-sensitive restoration of the second and third floors, $1,364,000-$1,503,600, is still valid. Other than the anticipated $10,000-$15,000 needed (over and above the insurance
coverage) to make sure that the new roof on the Carriage House preserves the character of its second floor loft, no estimates of Carriage House restoration have yet been made. The uses
to which the Carriage House will be put have yet to be decided, although they will be determined by the direction in which Mansion activities lead and an overall vision of the property.
The Friends of the Story “Strategic Business Plan” has a January 2013, target date for completion of the second and third floor renovation of the Mansion, and a January 2014, target
date for completion of the restoration of the Carriage House. Since it is in EFOS’s interests to carry out the renovations in a timely way, both to enhance existing asset values and
to receive tenant rental income, these are desirable dates. But in line with the five-to-seven-year time-line incorporated in subsequent Friends of the Story requests to the City to
complete funding and renovation, EFOS proposes a final, more flexible, deadline of January 2016, by which time all of the work necessary for the Mansion and the Carriage House to reclaim
their former greatness will have been completed. As soon as this proposal has been accepted by the City Commission and an architect been engaged, but before a sales agreement has been
signed, EFOS will provide a Gantt chart and a more detailed time-line. The major steps are clear: first new roofs for both of the buildings, then restoration of the second floor of the
Mansion together with the installation of an elevator that provides appropriate access to the second and third floors and respects existing fire codes, then restoration of the third
floor of the Mansion, and finally restoration of the Carriage House. It should be added that representatives of EFOS have met with Ryan Martin who has prepared designs for landscaping
the grounds and who will soon be asked for an estimate as to cost and time. As beautiful as the Mansion and Carriage House are, they deserve a more attractive landscape setting than
they have at present.
The submitting entity has sufficient funds and organizational capacity to obtain ownership of and preserve the Property, to operate the first floor as primarily a public community center,
and to preserve and restore the Carriage House and the second and third floors of the Mansion.
Exergy Development Group shall provide information to the City Commission in an appropriate way and prior to the execution of a sales agreement that it has sufficient funds to
donate to Exergy Friends of the Story, Inc., so that both the purchase of the Property and its restoration can be completed according to the schedule set out in the preceding paragraph,
and that it can subsequently be managed and maintained in such a way that its full potential as a community center can be realized . Friends of the Story, Inc. has amply demonstrated
its organizational capacity in connection with events held at the Mansion, a variety of outreach activities across the community, its website and other public relations efforts, its
recruitment of a large number of volunteers, and its fund-raising experience.
That it agrees to enter into good faith negotiations regarding a purchase and sale agreement that will include terms as identified herein and those established by the Bozeman City Commission.
Exergy Friends of the Story Mansion, Inc. agrees to enter into good faith negotiation regarding a purchase and sales agreement that will include terms as identified herein
and those established by the Bozeman City Commission.
When the City of Bozeman bought the Story Mansion in 2003, it not only saved the great house from destruction and preserved precious open space in the center of the town. It
also obtained certain rights on behalf of the public to use and enjoy both house and grounds. While very carefully respecting those rights, the time has now come to complete the restoration
of both Mansion and Carriage House, and in the process acknowledge our debts to the past and provide an example to the future of those values which moved members of our generation. This
is the grand vision that animates us to promote educational and cultural activities for Bozeman and the Gallatin valley centered in and on the property that are worthy of this historic
and beautiful place.
On behalf of Exergy Development Group, with the endorsement of Friends of the Story, Inc. (see attached FOS Resolution),
Gordon Brittan