Tuesday, January 21, 2014

Swiss Bear's rehabilitation role for a major anchor building

The Belk Building: Adult entertainment center? Not in our downtown!

The Belk Building in pre-rehabilitation days.


The O.Marks building at 233 Middle St.
is shown in 1988 after its rehabilitation
was complete.
The O. Marks building at 233 Middle St. was originally two separate buildings. The three story portion, adjacent to the First Baptist Church, was constructed in 1915-16 for Oscar Marks & Son to house their expanded dry goods and shoe sales operations.
Following his death in 1921, business declined and the firm closed its doors in 1927. The building remained vacant for four years until it was used as a Chrysler dealership. In 1937, Belk purchased the building and replaced the original storefront with large tin panels to “modernize” the façade and replaced the windows with glass brinks in the 1940s and 1950s.
The two story section on the south side was built in 1927 for the Coplon Investment Company and occupied by Montgomery Ward until 1964 when it was leased by Belk to expand its department store. The same large metal blocks were added to that façade to unite the two buildings into one, creating a major anchor building in the central business district.
In 1979, Belk joined in the exodus to the suburbs and relocated in the new Twin Rivers Mall. The large 57,000 square foot monolithic building added to the growing number of vacant deteriorating buildings and downtown’s decline.
At the June 1980 Swiss Bear Board meeting, finding a tenant became a priority when Ella Bengal, board member and alderwoman, stated she felt Swiss Bear should seek a tenant for the vacant Belk Building.
During that year, Swiss Bear monitored investor activity of those interested in leasing or buying the building and were spurred into action in February 1981 when the Board learned a company from Jacksonville planned to purchase the building for use as an adult entertainment center.
At the February 1981 Board meeting, Charles Blythe’s motion to pursue purchasing the building, passed unanimously. Jay Smith, Doug Davis, David Henderson, Dell Ipock, Dabney Coddington, Bill Edwards and Newsom Williams were authorized to secure a 90 day loan from NCNB and Jay Smith agreed to underwrite the loan interest.
To acquire the $20,000 option on the building, Swiss Bear raised $15,000 and the New Bern Preservation Foundation joined the effort contributing $5,000. With the support of four local banks, BB&T, NC National Bank, Wachovia and First Citizens Bank, Swiss Bear acquired the property. Belk donated their half of the building and Swiss Bear purchased the adjacent portion from the Coplon family at a bargain sale for $150,000. The banks allowed Swiss Bear to pay on the loan, interest only, until the building was sold.
A recruitment team developed guidelines that clearly defined the use of the building with restrictions preventing an undesirable use of the building. The metal façade would have to be removed from both buildings and the exterior rehabbed according to the specifications of a façade study. The selling price was $175,000.
In November of 1982 a Low Interest Loan Pool was formed with the City, Swiss Bear and the four banks for the purpose of allowing merchants to borrow money for building improvements at 71 percent of the prime interest rate. A federal law stating banks did not need to pay tax on interest gained from loans made in specified redevelopment areas (four core blocks bounded by Tryon Palace Drive, Craven, Hancock and Broad Streets) made it possible for banks to lend at a lower interest rate. Each bank contributed $500,000 and the City’s final approval was needed for all loans. The creation of this loan pool was the deciding factor in the eventual sale of the Belk building.
By December 1983, Swiss Bear had $131,000 invested in the building. Although it had been shown a number of times, no real interest was generated until Swiss Bear took a new approach working with the banks with a syndication method of financing. The banks also increased the line of credit for Swiss Bear so an architectural survey, a financial analysis, feasibility and other studies could be undertaken.
In 1984, five local businessmen, Lonnie Pridgen, Jr., Tom Karam, Gordon Parrot, Chick Askew and Joe Alcoke created the O. Marks Partnership and purchased the building for $200,000.
The original goal was to develop the building into a first-floor retail mall and offices on the upper floors.
The major $2.2 million extensive renovation restored most of the original exterior and interior. O. Marks Mall opened in 1986 with eight specialty retail shops and offices on the upper floors.
Although downtown was gradually beginning to turn around, the lack of pedestrian traffic needed to support the shops led to all but one closing within several years. Recruiting businesses to lease the empty spaces was very challenging, however community support for the project led to leases with the New Bern Chamber of Commerce, Neuse River Council of Governments, Swiss Bear, Weyerhaeuser and other local businesses that relocated into the building.
When the U.S. Postal Service made the decision to move out of the Federal Building (corner of Middle and New Street) to their new facility on Glenburnie Road, the downtown business owners lobbied for a downtown post office branch which was opened in the O. Marks Building. Currently the mix of businesses on the first floor includes several retail shops, a sandwich shop, offices, the post office and offices on the upper floors with 94% occupancy.
The rehabilitation of this building by the O. Marks Partnership, who faced financial challenges for many years, was key to moving the revitalization effort forward. This significant structure, a downtown anchor building, is an example of how critical private investment was to downtown’s recovery.
We commend the men who formed the O. Marks Partnership for their commitment to this key project and downtown’s recovery.

Thursday, January 16, 2014

A piece of history on display

Historical shipbuilding winch placed at Lawson Creek Park.
Bryan Caton, left, assists Marty Williams in setting up a draw
winch for display at Lawson Creek Park Wednesday morning.
The display is expected to finished by Monday.
A bit of New Bern’s shipbuilding history will soon be on display at Lawson Creek Park.
A draw winch assembly of the type that the Barbour boat company used to haul boats into dry dock for repair is being placed on a concrete pedestal by the side of the first boat launch in the city park.
Williams Service Company — the same company that mounted the Blue Angels jet near the park entrance in 2012 — began installation of the display Thursday morning. Marty Williams, who is supervising the construction, said he expects the work to be completed by Monday.
Swiss Bear Downtown Development Corporation Director Susan Moffat-Thomas, who has overseen the overall project, said that a ceremony will be held in a few months, once a storyboard telling the winch’s story is completed.
The winch, which is about 8 feet in circumference and weighs in at three or four tons, had originally been purchased by the Barbour boat works, second hand, from another company, according to Robert Chiles of Robert M. Chiles Engineers and Consultants. Chiles, who in the 1960s, was also employed by Barbour.
The winch was part of a system used to pull boats into dry dock for repairs. He estimated that this winch could have pulled boats as large as 300 tons. The winch was built by the Crandall dry dock company, which built dry docks around the world, especially during World War II. While “Crandall started building these things all the way back in the year ‘one,” Chiles said, he estimated this particular winch was probably built around the 1930s.
While Barbour already had winches at its main location (where the N.C. History Center now stands), this winch was purchased with the plan to use it along the Neuse River at a second yard that is currently Maola Milk property.
The planned dry dock could not be built, however, because the channel was too close to shore, so the wheel remained lying on the property until it became overgrown with weeds and forgotten.
Moffat-Thomas said she first became aware of the gear when she was chairing New Bern’s 300 Committee in 2010.
“Tom McGraw, Harry Goodman and Dick Lore had found the artifact while they were out walking and wondered if I thought it would fit in with the theme,” she said. “I went out and looked at the machine and was very excited about it.”
Moffat-Thomas approached the Maola Company, which donated the winch to Swiss Bear.
“The city disassembled it and stored it behind some buildings at Glenburnie Park,” she said, while funds were sought to restore and display it.
For some time, the winch set idle, as the economy “tanked,” she said. But, “I never gave up on wanting that artifact restored because it is the only remnant or historic artifact that relates back to New Bern’s boat building industry.”
Barbour, founded by Herbert W. Barbour in 1933, built a wide variety of ships, including minesweepers and rescue ships during World War II and other military ships during the Vietnam era. It also constructed fishing vessels, barges, ferry boats and harbor tugs before it closed its doors in 2001.
Swiss Bear finally received $21,000 from Mary Ann Harrison. The money was used to sandblast and prepare the machine, as well as to cover the cost of a storyboard.
Moffat-Thomas obtained permission from the New Bern Board of Aldermen to have the winch set up in Lawson Creek Park and said ownership will be taken over by the city once it is complete.
“This has been on Swiss Bear’s radar for a long time,” she said. “I’m thrilled to death that this is coming to completion.”
Sun Journal article - January 11, 2014

Tuesday, January 7, 2014

Swiss Bear reminiscences...Mike's Jewelry

Bruce and Cindy Price opened the doors of Mike's Jewelry
Store on Dec.1, 1992
It wasn’t business as usual when Bruce and Cindy Price opened the doors of Mike’s Jewelry Store on Dec. 1, 1992. After 34 years, the family business established by Mike Crary was in a new and much larger location. Until they moved to the adjacent building, this small family business had grown and prospered over the years in a 50-inch by 50-foot space nestled between two buildings.
The relocation into the adjacent Windley Building at 222 Middle St. reflects the passage of a business to the next generation — a shop that prospered as business increased every year, even during the “doom and gloom” years in the ‘70s when the downtown reached its lowest point.
In my conversation with Crary, in the spring of 1993, he reflected on his long career. Here is Crary’s story:
I must have done something right. In addition to working hard, my philosophy has always been to treat people as I would like to be treated.
I’m just about a native. Although I grew up in Kinston, I had family in New Bern so I spent a lot of time here. I served in the Navy in WWII and have campaign ribbons from every theater from the North Atlantic to the South Pacific.
After the war, like everyone else, I needed a job. When I heard the Jewel Box had an opening I applied. Murray Fitterman owned the business and after the interview, the man put me to work. I went in on the GI bill since it paid for training on the job. We made a deal: If I would work on the floor as a salesman for a year he would train me in watch repair.
Fitterman was one of the toughest and fairest bosses I ever worked for. He was a man of his word. If he promised you something you could put it in the bank. I worked for Mr. Fitterman for seven years and learned the trade of watch repair, among other things. Jimmy Simpkins owned Stanley Jewelers … it was just down the street … he wooed me away from the Jewel Box. Unfortunately Mr. Simpkins’ interest in politics took its toll on the business. First he ran for Alderman and won hands down. Next he ran and was elected to the State Senate. When he ran for a seat in the U.S. Congress, he was defeated by David Henderson of Burgaw. It wasn’t long after that the IRS closed the store.
That left me without a job. As I was walking along Middle Street wondering what I was going to do, I saw a little recessed area … like a hole between two buildings. It was originally an alleyway between the old hotel and the Windley building. Years before Ellis Zaytoun had converted an area of the alley to house a newsstand. He was there for more than 50 years, in fact, he raised three kids and put them through college with that business. He had closed the newsstand several years before.
I knew right then that’s where I needed to set up my shop, even though it was in bad shape. Leo Brody owned the property and he said he would rent it to me but I would have to pay for all of the repairs and would rent me the space for $50 a month and would never raise the rent as long as I stayed there. Mr. Brody was a fine gentleman and a man of his word. Up until we moved, I was still only paying $50 a month.
I put on a new roof, fixed up the interior and hung out my shingle. The shop was small, 50-inches wide and 20-feet deep at that time. I didn’t need any more room since all I had was a watch workbench and my tools. They were the only things the IRS didn’t confiscate.
Since I had worked downtown for so many years, I was well known. Today, it is cheaper to buy a new watch than to get on fixed, but years ago it wasn’t that way. People had their watches repaired frequently. I had a lot of repeat customers … some who couldn’t read. So to let people know where I was, I would run ads with my picture … when people would see my face and that haircut they knew where to find me. I’ve had the same brush cut for 50 years.
I worked late into the night repairing watches and put every dollar I could into merchandise. I knew money wasn’t only to be made with my hands … a large inventory and different lines of merchandise were the answer and my business prospered. Even during downtown’s low point in the late 1979’s, his business increased. He attributed this to his store being a destination … one that provided a service and had many return customers or “friends.”
Crary retired when Bruce and Cindy Price opened the new store. His wife, Mabel worked in the new store until she passed away in 2006. Mike, now 95, resides at the Sterling House.
Current owners Bruce and Cindy’s biggest problem has been adjusting to and compensating for the growth of business.