Building Hope
Owner of former city landmark says he’s ready to rehabilitate the site

Jason Miller
The News-Dispatch

MICHIGAN CITY - More than six months ago, Dan O'Brien told The News-Dispatch all it would take for him to rehabilitate the Warren Building, and the rest of the 700 block of Franklin Street, was traffic on the street becoming two-way.

"I saw the story on the front page (of The News-Dispatch) about the mayor changing the traffic and I said, 'Let's do it'," O'Brien, the owner of Whittaker Woods Golf Course and O'Brien's Restaurant in New Buffalo, Mich., said Tuesday. "I've got the contractors in there now."

O'Brien said Tuesday he plans to turn most of the west side of the 700 block - which he owns - into an artists' colony, including lofts and gallery space.

His Warren Building, which decades ago served as a premier hotel, also will be refurbished, with the top two floors serving as a senior living home and the remaining floors, O'Brien hopes, as a hotel.

City officials have had talks with O'Brien for more than a decade in trying to get him to refurbish or sell the unoccupied seven-story Warren Building as a means to begin Franklin Street's redevelopment.

The Chicago and New Buffalo businessman has told city officials he's planned to work on the block, according to Michigan City Planner John Pugh. But the myriad plans have never come to fruition.

"I think what's going on right now is just some repairs and clean-ups," Pugh said Tuesday. "I hope he's serious this time and really plans on making these changes. We'll see."

O'Brien said Tuesday he's entering into a partnership with Karen Conner, a local woman who owns the building at Franklin and Eighth streets, which houses three loft apartments and the store Bridal Reflections.

If O'Brien's plan comes to be, it will help fulfill a vision another local businessman has had for years. Arnold Besse owns Prince Galleries, which sits across the street from the Warren Building.

He's wanted to create an artists' colony on the block for years and currently has a couple of artists working in the building he owns in which Prince Galleries sits.

Conner said Tuesday she anticipates movement on the plans in "a very short period of time." She also said higher-end antique and boutique stores could be part of the plan as a "natural draw" to people shopping at nearby Lighthouse Place Premium Outlets.

"What he wants to do, it would just be perfect," Conner said. "I know there are already people interested in coming in. And this is a natural because we could capture that audience (from Lighthouse Place).

"This is just a hell of a thing," Conner said. "It's going to be a hell of a story."



Contact Jason Miller at jmiller@thenewsdispatch.com.

Warren Building
Structure About To Be Redeveloped

Editorial

Franklin Square is becoming a two-way street, in more ways than one. Dan O'Brien, owner of the Warren Building, said that if Michigan City turns the one-way street into two-way traffic, he would find it feasible to restore the building and put it back into use.

Now that Mayor Chuck Oberlie has embarked on plans to return two-way traffic to the five-block area from Fourth to Ninth streets, O'Brien has launched restoration of the long-vacant seven-story structure for use as a hotel and senior citizen housing.

That's welcome news for Michigan City. For many years, the Warren Building was considered the linchpin in efforts to redevelop the former retail center of the city. Closed, it overshadowed the area, which has seen redevelopment only here and there. Restored and back in use, it may trigger a full re-use of this long under-used area.

Even more exciting, O'Brien also foresees playing a role in making the 700 block of Franklin Street an artists' colony. It already has Prince Gallery and the Southern Shore Art Association Gallery across the street from the Warren Building.

And he is working with Karen Conner, who has plans for higher-end antique and boutique stores nearby.

These are the kind of shops and stores that can create a new identity for old Franklin Square and hopefully draw some of the millions of visitors who already come to the city to visit Lighthouse Place and Blue Chip Casino.

Michigan City could develop an image of having a new, trendy area with specialty shops and fun places to go.

Mix in the professional offices and second-floor apartments, and Franklin Square could soon be a thriving place again.

That seems to be the best hope for the redevelopment of the old downtown, since most major retailers are either in Lighthouse Place or on the south side.

After all these years of waiting, we are happy to hear O'Brien say he's moving forward. We applaud his decision and we are excited about the possibilities for the Franklin Square area.

Our Opinion
The Issue: Owner Dan O'Brien said he would reopen the building when Franklin Street is returned to two-way traffic.

Our Opinion: Now that the street will be two-way, the possibility of much redevelopment of Franklin Square is being touted. This could be an exciting time for Michigan City.

City targets Warren for artists’ colony

By Matt Field
Staff Writer
Published: Tuesday, April 12, 2011 10:40 PM CDT
MICHIGAN CITY — The Redevelopment Commission voted Monday to put one of the city’s tallest buildings on a list of properties to purchase.

By placing the seven-story Warren Building in the 700 block of Franklin Street on a property acquisitions list, the commission hopes to facilitate its development into an artists’ colony.

Commission President Ken Behrendt said the impact of turning the vacant building into artist housing would be “tremendous.”

“It starts the residential concentrations that we’ve been looking to bring back to the North End,” he said.

Tim Bietry, a Michigan City Preservation and Education Foundation board member, said he hopes the Minneapolis-based non-profit Artspace develops housing and workspace for artists here. The Warren Building could fit the bill, he said.

“I think it’s Michigan City’s preferred building for sure, but there are other options along Franklin Street,” he said.

Bietry said in a few years, the Warren Building or another structure could have about 30 units where artists can live and work.

The new residents will shop at surrounding stores, Behrendt predicted.

“They’ve got to buy their coffee and pizza and whatever else artists need to eat,” he said.

Bietry said Artspace will be the eventual owner of whatever building it occupies, even if the commission uses its funds to purchase it. Artspace can use tax credits to repay the city, he said.

“There are a lot of other funds that can be used for this, but it all depends upon getting the property under control,” he said.

The Warren Building, which decades ago served as a premier hotel, has been vacant for decades, Bietry said. It remains structurally sound, he said.

Behrendt said the commission would still need to approve any funding necessary to buy the building if the property owners agree to sell it.

Although the city’s Tax Increment Financing dollars, which the commission uses for development projects, are committed to various endeavors, some of those are years off and the commission can still fund the acquisition of the Warren Building, Behrendt said.

“I think it would be a good use of our money,” he said.

Now the fun part comes at what is this going to cost us. Plus I took pictures over there a couple of years ago, it is going to take some money to fix up.

I got to thinking that having this group come to Michigan City is a pretty darn good idea. Those artsie fartsie type folks are not only good when it comes to drawing, painting and sculpting but are pure creative geniuses when it comes to interior decorating and remodeling design, that's right up their alley and they also all dress up oh so really nice. They could even open up a hair salon (I'm looking for a new barber) and a tofu bar down on the first floor and an adjoining gym next door, as they are constantly working out all the time. I'll betcha that they'll turn that big 'ol ugly Warren Building into quite a just a little quaint touch of charm.

Found these on Flickr. Not sure how long ago they were taken. Personally I would like to see the building razed and turned into either a pocket park or a parking lot. Its an eyesore, and from the looks of it, anyone who buys this thing will have to spend tons of capital just to secure the interior, let alone make the exterior attractive. There are plenty of other buildings for sale along Franklin that could be converted into artist studios.

http://www.flickr.com/photos/xchriszx/2494338812/lightbox/

If this really happens it will be a huge boost for the downtown area. I wonder about the possibilities as a hotel... it seems like people enjoy staying near I-94, but maybe for people visiting the lakefront this could be do-able.

Anybody else used to go to Dr. Bob Glimore's office in the Warren Bldg? I did as a kid - my memory is of a huge, monolithic place.

I really hope this happens!

Found these on Flickr. Not sure how long ago they were taken. Personally I would like to see the building razed and turned into either a pocket park or a parking lot. Its an eyesore, and from the looks of it, anyone who buys this thing will have to spend tons of capital just to secure the interior, let alone make the exterior attractive. There are plenty of other buildings for sale along Franklin that could be converted into artist studios.

http://www.flickr.com/photos/xchriszx/2494338812/lightbox/

And FWIW, the date of the pictures was April 15, 2008, or three years ago. That means 3 more years of neglect have happened between then and now.

City inches closer to making artist colony a reality

By Tim Moran
Staff Writer
Published: Sunday, May 8, 2011 5:08 PM CDT
MICHIGAN CITY — The Redevelopment Commission will continue negotiating with the owner of the Warren Building, hoping to buy it and soon after transform it into an artist colony.

If purchased, the Redevelopment Commission will sell the building — one of the tallest in Michigan City — to Minneapolis-based Artspace, a non-profit group that develops housing and workplaces for artists.

First Ward Councilman Richard Murphy sees the project as a way to help revitalize the downtown area.

“Artspace has 25 years of history implementing projects that have caused revitalization,” he said.

He said the project’s concept is to “take an iconic, vacant structure on the Franklin Street corridor and concert it into a revitalization project.”

If the final proposal is approved, the building will have about 30 places for artists to live and work.

The preliminary resolution for the commission to continue talks with the owner passed 8-0 at Wednesday’s Common Council meeting, but will appear before the council again before the building can be purchased by the commission or city.

Redevelopment Commission Attorney Michael Bergeson said the commission is “providing a financial bridge to help purchase the building, and that the acquisition “could be a catalyst for further development in the area.”

Third Ward Councilman Ron Meer asked Wednesday if there were any assurances the city would have that Artspace will still want the building once it is bought.

Bergeson said by the time the proposal is sent to the council, the commission “would have an agreement in place.

“We anticipate getting the money back from the purchase,” he said.

Mayor Chuck Oberlie added at the meeting the official cost of the building is still unknown because the city has had “no preliminary talks” with the owner.

Residents, officials rally behind Artspace

By Tim Moran
Staff Writer
Published: Wednesday, June 8, 2011 5:09 PM CDT
MICHIGAN CITY — A number of people lavished praise on Artspace, the Minneapolis-based group that aims to house about 30 artists in the Warren Building by the year's end, during a public forum at Tuesday night's Common Council meeting.

"We are behind this 100 percent," said Doug Waters of the La Porte County Convention & Visitors Bureau. "The addition of Artspace would be a great boon for the community and bring a lot more jobs and people to Michigan City."

The public forum came minutes after the second reading of an ordinance introduced by First Ward Councilman Richard Murphy and Fourth Ward Councilwoman Patricia Boy. If approved June 21, the city would transfer $600,000 from the Boyd Development Fund to help purchase the Warren Building, one of the city's tallest structures. The building then would be turned over to Artspace, which would create a colony of about 30 artists living in the building.

Michigan City resident Donna Perdue is an artist, having recently moved to the area from Cleveland. Perdue said Michigan City "definitely won the jackpot with Artspace," noting the "entire west side of Cleveland" improved with a similar Artspace project while she lived there.

Linda Weber, a local business owner near the Warren Building on Franklin Street, said she is "really encouraged," and that Artspace would be a "welcome addition, and a positive thing for all businesses."

Lubeznik Center for the Arts Treasurer Rachel Saxon said the project would be "an excellent way for Michigan City to continue downtown development."

Dani Lane, also of the Lubeznik Center, as well as Dunes Summer Theatre, had high praise for the company.

"Artspace works," she said. "It's a wonderful idea for Michigan City and artists as well, a win-win."

Ken Behrendt, Michigan City Redevelopment Commission president, said Artspace could be a catalyst for all redevelopment projects, and that the "Redevelopment Commission is unanimously behind this."

Greg Handberg, Artspace senior vice president-properties, attended the meeting to give a presentation on the company itself.

"Artspace has never not been able to complete a project once funding has been appropriated," he said.

Murphy concluded council comments on the ordinance.

"We have a goal to revitalize downtown, and Artspace is who we want to work with," he said. "If we are really serious about doing something special downtown, capitalizing on all the energy tonight, as well as breeding life back into a vacant building, then I believe we need to come together as a community and support this project."

The council will have a third reading of the ordinance, as well as a vote for approval, at 6:30 p.m. June 21 at City Hall.

Council approves Artspace project

By Tim Moran
Staff Writer
Published: Wednesday, June 22, 2011 5:09 PM CDT
MICHIGAN CITY — Artspace in Michigan City is becoming a reality.

The Michigan City Common Council unanimously approved an ordinance to contribute $600,000 for expenses related to the next two phases of the development agreement with Artspace, a non-profit Minneapolis based group that hopes to create an artist colony in the Warren Building.

The artist colony would include about 30 places for artists to reside in the seven-story building in the 700 block of Franklin Street, one of the tallest buildings in Michigan City.

"It's about time we do something about this, we have talked about it for so long," said Fourth Ward Councilwoman Patricia Boy, who co-introduced the ordinance with First Ward Councilman Richard Murphy.

*
With approval of the $600,000 transfered from the Boyd Development Fund, the building will be purchased by the Redevelopment Commission, who then plans to sell it to Artspace.

"We have reached an agreement after negotiations with the owner of the Warren Building," said Ken Behrendt, president of the Redevelopment Commission.

The majority of the people voicing opinion during the public comments session of the meeting had high regard for Artspace.

"This would be a tremendous contribution to the downtown area and the North End," Michigan City resident Bob Bailey said.

Economic Development Corp. director John Regetz revealed the results of a study he did regarding other communities that entered into agreements with Artspace.

"It is a worthwhile project," he said.

"We saw an 11 percent increase in property values in the area, meaning a $12,000 to $13,000 increase per home in some places. Artspace improves the quality of life by attracting more visitors and jobs to the neighborhood.

Doug Waters, of the La Porte County Convention and Visitors Bureau, said council approval would "put Michigan City back where it was 20 to 30 years ago and bring more businesses back to Michigan City."

But Richard Komasinski, owner of the Ritz Klub Inc. Restaurant on Fourth Street, shared a few concerns.

"I don't think this is going to work,"' he said. "This is another piece of land you are going to take off the tax rolls ... I don't see this generating any funds for Michigan City. I see artists around, but not supporting businesses... And you do not even have to be an artist to live in the building."

Komasinski added that, "Artists are starving. Does anybody make millions of dollars on art and stay in Michigan City? I don't think so."

Behrendt and Third Ward Councilman Ron Meer each responded to the concerned citizen's assumptions.

"A person does need to prove that they make or produce art to live in the building," Behrendt said.

Meer said he did "quite a bit" of research over the last few weeks on how Artspace has impacted other cities.

"We have had numerous demonstrations at the last two meetings about information on Artspace. .. It is important for the public to know that it will be on the tax rolls and we are actually going to be getting more from that building than we have in the past."

"Many construction-related jobs will also be made available to local citizens during the renovations of the Warren Building," Meer added.

Commission reaches agreement to purchase Warren Building

By Tim Moran
Staff Writer
Published: Tuesday, July 12, 2011 3:35 PM CDT
MICHIGAN CITY — The Redevelopment Commission has reached an agreement with the O’Brien family, the current owners of the Warren Building, on its purchase, Commission Attorney Michael Bergerson said at the commission’s Monday night meeting.

Bergerson said the agreement with principal owner Peter O’Brien has been reached, and he is waiting for a written agreement from an attorney from Artspace.

“That would give us comfort in closing out the purchase, knowing that we will have a final sale to Artspace,” Bergerson said.

A contract between the Redevelopment Commission and Artspace is expected within a few days.

*
“That will include what was spent to acquire the Warren Building and also the potential carrying cost until the time Artspace takes over,” Bergerson said.

Last month, the Michigan City Common Council unanimously agreed to set aside $600,000 for the building to be purchased by the Commission.

Once the purchase agreement is made with Artspace, the Minneapolis-based non-profit organization will work on setting up 30 spaces for artists to live in the building located on Franklin Street in the current Uptown Arts District.

Also, the commission agreed to table discussion of a funding request for a kiosk to be placed in Franklin Square.

Commission member Hesham Khalil, who is also the president of the Michigan City Mainstreet Association, said more information would be available for discussion at the next meeting scheduled for Aug. 8.

The funding request is currently slated for $10,000.

Commission disclosed the purchase price

Published: Tuesday, August 30, 2011 5:08 PM CDT
This is to inform those listening to a program broadcast over the local airways Saturday morning that the assertion that the City Council passed the resolution approving the purchase of the Warren Building by the Redevelopment Commission without disclosing the purchase price is a total fabrication.

In his presentation of the resolution, Redevelopment Attorney Michael Bergerson explicitly stated that the price was $950,000 and that an agreement was in place for Art Space to repurchase it at a price of $970,000.

I encourage everyone that would like to be informed about this project to read the minutes of the Council and Redevelopment meeting at which it was discussed, view the recordings of these meetings and the public hearings, and/or talk to someone who was actually in attendance.

Ken Behrendt

*
President

Redevelopment Commission

Michigan City, IN

A slight setback: On its first try, Artspace fails to make the cut for tax credits

By Tim Moran
Staff Writer
Published: Friday, February 24, 2012 5:08 PM CST
INDIANAPOLIS — The Michigan City Artspace project will have to wait at least one more year to get under way after the project was not selected as one of 14 approved for tax credits by the Indiana Housing and Community Development Authority Thursday morning.

With the IHCDA listing the reason for denial being “market demand,” improvements on the city’s Warren Building will have to wait at least another year after an updated application is sent for consideration a second time.

“It was a highly competitive process,” said Emily Duncan, a spokeswoman for the IHCDA. “We are excited about the projects that are going through – (Thursday) we allocated $12 million for those projects.”

The Artspace project was one of 53 applications not approved for the tax credits that Michigan City Redevelopment Commission President Ken Behrendt previously stated was necessary before the commission turns the property over to the Minneapolis-based group that works on housing artists in similar communities nationwide.

*
“We knew it wasn’t a sure thing but we were trying to buck the trend,” said Behrendt, who was in Indianapolis alongside former Michigan City Mayor Chuck Oberlie when the credits were announced. “When they announced there were 67 applicants, I did prep myself for what was to come.”

Duncan said the 67 applications the IHCDA received had requested a total of $58 million in credits.

“We based it on a scoring blueprint, and the higher scores were accepted,” she said, noting that the Artspace project received a 130.5 tally, which was nearly 10 points fewer than the “Historic Rushton Apartments” project in South Bend that was accepted with a 139 score.

On the local level, reactions varied from extreme disappointment to optimism that next year’s Artspace application will be approved and the project will eventually take shape.

“We are disappointed,” said Carolyn Saxton, executive director for the Lubeznik Center for the Arts. “But we know this is not the end and that it is not unusual for these requests to be denied the first time.”

At-Large Councilman Tim Bietry echoed the thought.

“We were disappointed – but it isn’t anything we did not anticipate,” he said. “Artspace has done projects in 30 different states and many of them were rejected the first time as well. Generally when they file the next year, they are approved.”

But even though second-time approval is the norm, Bietry did say the city will work with Artspace “even harder” on next year’s application.

If the credits had been approved, many art galleries and businesses on Franklin Square (between Fourth and Ninth streets) would be looking forward to the Warren Building artists quickly being welcomed into what already is an artist haven – especially on the first Friday of every month.

Marilynne Besse, one of the owners of Prince Galleries, also was disappointed after hearing Thursday’s outcome.

“We were looking forward to them starting work this spring,” she said while looking across the street at the Warren Building – which will, at one point, house a colony of 30 or more artists in Artspace.

“It’s sad news,” she said.

Angela Samila, who owns Revive Consignments, a clothing store in the heart of the Uptown Arts District, said she was “hugely disappointed.”

“This area has been looking forward to it,” she said. “But we look forward to prospering anyway and hoping it happens soon.”

First Ward Councilman Richard Murphy, who introduced a council ordinance in 2011 in support of the idea championed by the Redevelopment Commission, said despite Thursday’s denial, Artspace in Michigan City is “no doubt the best project in the state when it comes to dollar for dollar economic growth.”

“We were prepared for either a celebration or getting right back to work and that’s what we’ll do,” he said.

Behrendt and Bietry said they both plan to meet with the Artspace developer and a member of the IHCDA to “decipher where we came up short.”

Bietry alluded to the possibility of a workshop between the city and Artspace this spring on how best to move forward.

“We hope many of the Franklin Street artists and members of the public are there,” he said.

Artspace should try again for tax credits

Published: Saturday, February 25, 2012 5:08 PM CST
The Michigan City Artspace project took a punch, but not a knockout blow Thursday with the announcement that it missed millions in tax credits by just about 10 points on a rating scale by state officials.

As those pursuing the project said, it was just the first try.

Carolyn Saxton, executive director for the Lubeznik Center for the Arts, said "we know this is not the end and that it is not unusual for these requests to be denied the first time."

The Artspace project was one of 53 applications seeking tax credits that are necessary before the Michigan City Redevelopment Commission turns the property over to Artspace, a Minneapolis-based group that works on housing groups of artists in similar communities nationwide.

Click here to find out more!
Organizers hope to house a colony of 30 or more artists in Artspace in the Warren Building, making it a centerpiece of the Uptown Art District.

We agree with First Ward Councilman Richard Murphy's comment that despite the setback on Thursday, Artspace in Michigan City is "no doubt the best project in the state when it comes to dollar for dollar economic growth.

Murphy said the city was prepared for a celebration or getting back to work to get the tax credits next year.

"And that's what we'll do," he said.

We hope organizers come up with a successful plan for next year so the Artspace plan will come to fruition in 2013.

Lets hope there is some sort of restitution owed to the city if Artspace backs out of the purchase agreement.

What purchase agreement? There is not one that I could find through the clerks office or the planning department today. The Artspace people can walk at anytime............

Art to be displayed outside Warren Building

Jacob Stachowski, a junior at the A.K. Smith Career Center, works with instructor Terry Hektoen preparing to cut lumber for the frames for the display cases. Photo by Julie McClure
By Deborah Sederberg
Staff Writer
Published: Thursday, May 17, 2012 5:07 PM CDT
MICHIGAN CITY — Soon, the brown painted plywood sheets boarding up the front of the Warren Building, 717 Franklin St., will be replaced with an art display site.

Working closely with Chris Grohs, owner of the Walnut Ink gallery and Terrawood Design Company, students in the building trades class at La Porte County Career and Technical Education Center at the A.K. Smith Center are making the transformation happen.

Grohs expects the space to be displaying art within a month.

Materials were provided by the Michigan City Redevelopment Commission and Marquiss Electric is providing lighting for the space, Grohs said.

Terry Hektoen, building trades teacher, said the art areas, which are built into former window spaces, will be framed in corrugated metal.

Altogether, some 15 students are working on the project. Elizabeth Privoznik, a senior at Michigan City High School who hopes to attend Purdue University North Central to study construction technology, said she enjoys working outside the classroom.

David Higginbotham, another MCHS senior and a member of the Michigan City Robotics Team, said he too enjoys working on this project. "It's nice to get out into the community," he added.

"This is great," said Megan Grzelak, a junior at South Central High School, in describing the Warren building project. Her other building experience was in building a storage shed with her dad at her home. "That was a good learning experience," she said of the stick-built project.

The Indiana Housing and Community Development Authority this year failed to approve tax credits which would help Artspace to renovate the old Warren Building into residence apartments for some 30 artists, but redevelopment authorities and others hope the project will be approved by the state next year.

New pictures from inside the Warren Building are here.

http://s27.photobucket.com/albums/c153/nov...ren%20Building/

A slight setback: On its first try, Artspace fails to make the cut for tax credits

By Tim Moran
Staff Writer
Published: Friday, February 24, 2012 5:08 PM CST
INDIANAPOLIS — The Michigan City Artspace project will have to wait at least one more year to get under way after the project was not selected as one of 14 approved for tax credits by the Indiana Housing and Community Development Authority Thursday morning.

With the IHCDA listing the reason for denial being “market demand,” improvements on the city’s Warren Building will have to wait at least another year after an updated application is sent for consideration a second time.

“It was a highly competitive process,” said Emily Duncan, a spokeswoman for the IHCDA. “We are excited about the projects that are going through – (Thursday) we allocated $12 million for those projects.”

The Artspace project was one of 53 applications not approved for the tax credits that Michigan City Redevelopment Commission President Ken Behrendt previously stated was necessary before the commission turns the property over to the Minneapolis-based group that works on housing artists in similar communities nationwide.

The board meets February 28 in Indianapolis.

Wonder how many more tries there will be before we are stuck with this lemon?

What can we do as citizens to get this grant approved and this project moving forward n 2014?

Is there a limit to how many times Michigan City can apply for this grant and be denied?

Why was this property acquired in the first place when there was no guarantee of funding in place for it's restoration?

By ALICE CULP aculp@sbtinfo.com
South Bend Tribune
11:31 a.m. EDT, August 17, 2013

MICHIGAN CITY - The moss on the floors of the six-story Warren Building in Michigan City is a testament to the decades it has stood vacant.

And yet there is a plan afoot to turn the tallest building on the city's "North End" into an affordable live/work facility for low-income artists, called the Uptown Artist Lofts project.

A similar proposal has been discussed for the Northwestern Mutual building in downtown South Bend.
If the Michigan City project becomes a reality, the former Warren Building will be the centerpiece of the city's New Uptown Arts District, a six-block stretch of Franklin Street, which lies between Blue Chip Casino and Lighthouse Place Premium Outlets.

"It will be a tremendous catalyst for development," said Tim Bietry, chairman of the board of directors of the Michigan City Preservation and Education Foundation, who expects coffee shops, art stores, restaurants and other retailers to follow.

It all began several years ago, when the Michigan City Area Chamber of Commerce identified six zones of the city that need to be developed, said Bietry, who was then president of the Chamber. One zone identified was the Franklin Street corridor.

"That area was a pretty bad place to be 20 to 30 years ago," said Tim Haas of the Michigan City Main Street Association, a group that is working with the Economic Development Corp. Michigan City to attract developers and investors to the city's downtown.

But, he said, Franklin Street has seen a resurgence of life in recent years, as artists have begun moving into the area. It went through some rebranding, becoming known as the Uptown Art District after the artists decided to support the Main Street Association's efforts to attract business.
"Our membership doubled overnight," he explained.

But, in spite of the renaissance in the area, he said, there is not enough living space to meet demand.
In 2009, Michigan City invited Artspace Projects Inc., a Minnesota-based nonprofit real estate developer, to the community to determine if the city could support a live/work space project. Artspace has completed more than 1,500 affordable live/work units for artists and their families in places like Chicago, New York City, Houston, Seattle and Washington, D.C.

Before the city sent the invitation, Bietry called other cities with Artspace projects to find whether the organization delivered on its promises and if the cities were happy with results. They were.
When Artspace enters a community it assesses sites, sustainability, the viability of funding and the willingness of local leaders to support a project, said Shannon Joern, senior director for national advancement at Artspace.

"In Michigan City there is a very clear desire to use the arts as a downtown revitalization strategy," she said in a phone interview. "We are very impressed in the community, city partners and local leaders and are convinced this project can be successful there."

During the feasibility study, a third-party conducted a survey of artists -- painters, weavers, performers, musicians, pottery makers, etc. -- from a 50-mile radius around Michigan City. Eighty-nine artists expressed interest in moving to a live/work space. Of those, 60 percent were not current Michigan City residents.

So, the nonprofit looked around town and chose the Warren Building, built in 1927, for the project. When its transformation is complete, the building will contain 44 units of space for low-income artists -- those making 60 percent less than the area median income -- and their families.

Artspace projects are a "creative way to give an old building with historical significance, new life," said Sarah White, director of property development for Artspace.

A lot of work will go into restoring the Warren Building's facade and interior, which has "really lovely terrazzo flooring and beautiful wrought-iron railings on the staircases," she said.

Artspace buildings usually have wider hallways, so residents can easily move their equipment into and out of their quarters, she said. "They have lots of windows for natural light, and we add an extra 150 square feet or so to each unit to make it a true live/work space."

Besides the apartments on the upper floors, the project will create a community arts and gallery space along Franklin Street, to be used by building residents as well as other community groups. Potential uses for the ground level spaces include community art classes, art exhibitions, small performances and gathering and event space for local organizations.

What has the econ dev. corp been doing? They cant seem to getmuch done if anyting! The redevelopment of the downtonw area is critical to the success of the city. Lets' do this thing, if commercial property owners are just going to hold on to proerty and allow it to disintegrate, the city specifically John Pugh should get a handle on this and resolve it, at some point these properties should be condemned. Why can't our hired and e
ected officials just get this done? Does the cityown the Warren bldg? I think it is privately owned, since when does MC give property owners money to fix up their own bldgs?