Business & Tech
Destination Restaurant Seen as Final Piece of $3 Million Milan Development
Construction could start as soon as summer.
The man behind the proposed $3 million redevelopment of the southeast quadrant of downtown is looking for the final piece to the puzzle.
David Snyder, owner of Main and Wabash LLC, is looking for an entrepreneur to fulfill his vision with a 5,500-square-foot destination restaurant.
“We’re most of the way there, moneywise. The most important thing we’re still missing is a restaurant. We’re looking for someone who wants the open the kind of restaurant that will be a magnet, not just for people in Milan, but for people all over the region,” said Snyder. “Once the tenant is in place then we can finalize the contract with the bank to do the project.”
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If the right partner is found, construction could begin as soon as this summer. The project, called East Main Redevelopment, would see the , owned and operated by Snyder’s nephew Jamey Snyder, increase to 5,000 square feet. There are also plans to renovate the second and third stories of the buildings to create 14 apartments, ranging from 750 to 1,500 square feet. All of the work would be completed, Snyder said, in accordance with the historic nature of downtown.
Snyder and his nephew purchased the bakery about three years ago. Wabash and Main LLC have a purchase agreement to buy the set of downtown buildings, foreclosed upon in 2009, from a bank. It was Jamey who suggested the possibility of purchasing the entire section of buildings. Snyder determined that the buildings, when completed, would likely be worth only half of what it would cost to renovate them.
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Buildings will be renovated to reflect downtown's historic flavor
“The goal is to renovate the buildings with a lot of historical integrity intact. Over the years, a lot of things have happened, like the faux brick façade and the black and white façade, that have made the buildings feel less historic,” Snyder said. “But any level of work is probably going to involve more expense than the value of the buildings at the end of the day. We certainly don’t want to see the buildings torn down, but we couldn’t build something in their place for $1.5 million, either.”
Snyder began speaking with city officials about ways to get the project done and soon found support.
“A central theme in our master land use plan is the redevelopment of our central business district. So when someone approaches with the plans to invest, it catches our attention,” said Milan City Administrator Ben Swayze. Snyder’s willingness to commit to the project helped get the city on board.
“I’ve probably had a dozen conversations with developers over the past few years. They’d ask us to do this, that and the other things, and then maybe they’d consider making an investment,” Swayze said. “Dave was the opposite. He’d already invested. And he wanted to know if there was a way the city could help the project along. We knew what kind of money this was going to cost, and we knew that it wasn’t feasible without grants and tax credits.”
As a result, city officials including Swazye, Mayor Kym Muckler and building official Bob Grostick have had put in many hours—more than 200, Swayze estimated—to help the project along.
Milan has applied for $800,000 in grants to facilitate the project
The city has applied for a $420,000 rental rehabilitation grant from the state to help renovate the apartments. The city has also applied to the Michigan Economic Development Corporation for a $375,000 “signature building” grant. Also in the works is a commercial rehabilitation district that would give property owners within the district a 10-year tax abatement on building improvements.
Snyder is also seeking a federal historic tax credit worth an estimated $400,000 and exploring ways to take advantage of a state historic tax credit.
The grant process has been difficult at times, said Swayze.
“For instance, you have to own the building in order to qualify for the rental rehabilitation grant. But to get the MEDC signature grant, you’re not supposed to own the building yet,” said Swayze. “Fortunately, the state agencies have been very supportive and eager to make this happen."
Swazye said city leaders hope that Snyder's project will encourage other property owners to invest.
Snyder said many positive things about the support he has received from government officials in Milan and Lansing.
“Throughout the process, I’ve found it very reassuring that we have great partners here in Milan, in Ben, Kym and Bob. We’ve also had a lot of support at the state level. They have been very good to work with,” he said.
Milan Bakery would see a major expansion
A key piece of the project is Milan Bakery. The Snyders say all records seem to indicate that a bakery has operated in the current space since the building was constructed in 1892. Milan Bakery does brisk business with the local crowd, serving doughnuts, pastries, soups, sandwiches and more. Recently, the business won a contract to serve the University of Michigan. The bakery expanded into the neighboring storefront. According to David Snyder, the plan is for the bakery to expand into yet another building. In all, it will be a 5,000-square-foot operation. Much of the expansion will be behind the scenes, but Snyder said the service and dining would be expanded.
Snyder seeks a destination restaurant to anchor downtown Milan
Snyder hopes to attract an experienced restaurateur to open a destination restaurant in downtown Milan.
“At 5,500 square feet, this is not a small restaurant. It’s substantial. I’m thinking of a restaurant that would be an anchor for Milan, like those we see in downtown Chelsea or Saline,” Snyder said.
Swayze said he thought it was a great opportunity for someone to design a restaurant from scratch. Another plus for the right owner, Swayze said, is that the city can apply for a redevelopment liquor license.
“The last business who purchased a liquor license in escrow paid $90,000. This license can be had for a fraction of the cost,” Swazye said.
Affordable apartments aimed at younger residents
The plans call for 14 apartments, ranging from 750 to 1,500 square feet. Snyder said the apartments would be aimed at younger people who want the ability to walk to their restaurants and businesses, or to the park and lake.
“They’re intended to be affordable spaces for people who will really enjoy the downtown lifestyle,” Snyder said. “We’re dressing them up and making them appealing places to live. They should be magnets for people looking for that lifestyle. People living downtown will spend money downtown. That benefits the local businesses, too.”
Though never a resident, Snyder considers Milan a "home base"
So who is David Snyder? Many around town know him simply as Jamey’s uncle. Snyder has never lived in Milan. He grew up in Ypsilanti and Ann Arbor. Snyder said his family attended church in Milan. After Snyder graduated from college, his parents moved to Milan.
“It’s been kind of a home base for family at a couple points in my life. And maybe a third to come,” he hinted.
Snyder was a public school teacher in Lapeer for 12 years before leaving the profession for a business he started. His business, Travel Adventures, planned school trips to places like Washington, D.C., New York and Chicago. The business, founded in his spare time from his bedroom, expanded to a staff of 35 full-time employees. After 21 years, he sold the business two years ago.
So why is he investing in Milan? As he said, he views it as a home base. But he said he also wants to ensure the success of Milan Bakery.
“I want to see the city succeed and to help create an environment where business can thrive. If you look at communities around us like Chelsea, Saline and Dundee, there are a lot of good things happening in those towns,” Snyder said. “Those good things got started somewhere with something. We don’t have a Cabela’s here, or a Jeff Daniels to build a theater. But the folks of Milan can create the sort of downtown environment they want. The people I’ve found here make me pretty confident that a lot of good things can happen here."
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