Arcade Building

History

The location that the Arcade would later occupy was a factory for the Whiteley, Fassler and Kelly manufacturing company, later known as the Champion Reaper Company. Designed as s a four-story brick Italianate with heavy bracketed cornices facing the esplanade, the site was built in the mid-1860s.(5)(36)

A visionary, O.S. Kelly recognized the need for a common open area where people could shop under one roof.(5)(35)(36) In 1882, Kelly spent $250,000 constructing the building and furnishing it. The arcade was built in two phases, the eastern segment was completed with wooden storefronts, while the western segment was completed with iron storefronts. Large potted plants hung from poles bowed across each side, and there was a large fountain. The 115 room hotel was lavish, with an ornate lobby fitted with brass railings, marble bathroom stalls, glittering chandeliers and brick fireplaces.

An April 1886 issue of Chicago’s Farm Implement News noted that the arcade was “the pride of Springfield.” The arcade “sweeps through it from High to Washington Street, which is probably unequaled in point of arrangement and beauty by any in he United States.”(5)

On February 21, 1956, the Arcade fountain was removed.(6) The building manager cited the upkeep cost and that the center statue had begun to crystalize.

Preservation

On September 25, 1971,(35) the Warder Library purchased the Arcade for $200,000, utilizing some of the space for library offices and maintaining the remainder for retail.(5)(10)(16) The Warder Library board had hoped to demolish the Arcade initially for a new library structure, but later believed that by holding onto the property and allowing it to appreciate in value – if other downtown renovation projects were to commence, could prove fruitful in building a new structure.(13) The Arcade could be sold at an appreciable profit. In mid-March 1973, interior was repainted in pale yellow, with doors painted in slate with red trim that accented the rows of lights that ran the length of the center.(7) The entry doors on High Street and Washington Street were painted bright red.

But controversy ensued in late March over tenant harassment, when several lessees were suddenly evicted without notice, with the library board citing “business.”(8)(9) City commissioners had balked and opposed what they saw as counter-culture establishments setting up shop in the Arcade, such as a “youth-oriented” coffeehouse and a clothing shop that served the needs of the handicapped. Mrs. Florence Huebner, a city commissioner, stated that she wouldn’t “waste my mind,” and that she was “against it,” noting that there were “five or six people, [..] all hippies.” Huebner stated that she wanted to maintain “decorum downtown,” but a library official admitted that the “decorum” was questionable, considering that one of the Arcade’s tenants was the Capri Club, a bar which featured loud music and advertised “Go-Go Girls Daily.”(9) Huebner also stated that there were other tenants ready to move in, but did not disclose any details.

On October 16, 1974, the Arcade Building was added to the National Register of Historic Places.(1)(17) The designation was announced by the Ohio Historical Society, and applied by the Clark County Historical Society. On June 16, 1975, Fred Berger, who described himself as a specialist that restored historic structures, requested a six-month option to purchase the building to give him time to conduct a study on the feasibility of restoring the Arcade.(10)(24) Berger, who had offered $225,000, planned to restore the first floor into small speciality shops, with luxury apartments on the upper two levels. Current plans by the Warder Library included demolition of the Arcade and constructing a new library on the site.

A renovation was proposed on January 18, 1977 to the library board by the Core Renewal Corp, the city’s acting agent for the redevelopment of the building.(5) The deal would include purchasing the building for $275,000 and renovate the Arcade for an estimated $2 million.

Revised engineering figures noted that it would cost $1 million to renovate the Arcade, an increase of $400,000 over preliminary estimates made three years prior.(2) The city Housing and Community Development recommended that City Commissioners spend an additional $400,000 in federal Community Development Block Grant (CDBG) funds for the project. The city had already allocated $750,000 in  CDBG funding towards the project. It was purchased last year for $350,000 and $600,000 had been set aside to renovate the Arcade.

Renovations planned included repairing the roof, improving the skylight, installing a new heating system and cleaning the facade.(2) New estimates showed that the $600,000 allocated so far would have not been enough to replace the skylight and heating system. Reasons for the increase included a lack of detail in the initial estimate, inflation, the listing of the property on the National Register of Historic Places.

On March 24, the Core Renewal Corp. broke off negotiations, stating that the board’s asking price of $695,000 was unreasonable.(11) In a letter to the board, Core’s Treasurer Thomas P. Loftis noted that $275,000 was the first, best and last offer for the Arcade, and that the board did not understand the financial realities in renovating the building. Loftis pointed out that two consulting firms, one from Columbus and the other from Springfield, concluded that it would require at least $2 million to renovate the structure.

The board in reply extended its offer until July 1, and heard another proposal for the renovation.(12) The library also offered to trade the Arcade for the southeast quarter of the downtown core block, which was owned by the city.

A turn-of-the-century gala was held in the Arcade on May 14 and 15, 1977, sponsored by the Springfield Arts Council.(14) The event coincided with National Historic Preservation Week.

On January 17, 1978, a tentative purchase agreement, for $400,000, was reached between city officials and the library board.(15)(16)(23) The plan was decided upon after the city was awarded an unexpected $1.1 million in additional federal Community Development grants. The library had spent $88,000 in improvements to the Arcade since its purchase seven years prior, and under the purchase, an additional $600,000 in federal money would be used to restore the exterior, with the remaining $100,000 to be placed into a contingency fund.

The city planned to seek bids from developers for lease of the Arcade, with a requirement that they invest $1.5 million for interior improvements.(15)(16)(23) Springfield would retain ownership.

On February 27, 1979, the city again offered to purchase the Arcade from the library board for $385,000.(17) The building would be purchased with federal Community Development funds. The negotiations hung, however, on obligations to current tenants. The city had agreed to the sale only if the board would assume responsibility for paying tenants forced to leave before their leases expired.(18) On April 24, city commissioners accepted an offer from the library board for $350,000, with the stipulation that the city would handle the relocations.(18)

The library board responded, stating that it was “not unhappy” but submitted a counter proposal.(19) The offer was not disclosed.

On April 14, 1981, the city commission approved of an option to lease (21) that made the city partners with American Redevelopers Inc. in the renovation of the Arcade.(20)(22)(25) The company disclosed that it would spend $1.8 million and the city $875,000 to renovate the building. Under the lease agreement, the company would need to show the city that it could lease at least half of the building’s 60,000 square feet of retail space, that it could demonstrate financial commitments necessary for its share, and that it could get approval of its plans for restoring the building to state and federal historic guidelines.

After the obligations are met, the city would then pay for title insurance for the development, conduct a boundary survey of the property, and give American Redevelopers a legal opinion that noted the city has met its obligations under the option to lease.(20)(25)

The lease would be in effect for 30 years, with the company having the option of four additional 10-year options.(20)(25) The city would charge the company $1 annual rent for the first five years, increasing to $30,000 annually for the following ten years. During that time, the city would also receive $1 per square foot for all space over 30,000 square feet that the company sub-leases. For the 15th through the 30th years of the lease, the rent would increase to $45,000 annually, in addition to $1.50 per square foot over 30,000 square feet that the company sub-leases. The agreement also called for the city to give the developer 10 years of tax abatement for the increased value of the property.

The idea for leasing public property to a developer was not new, but the notion that American Redevelopers Inc. did not have an option to buy the Arcade was.(25)

On March 30, 1983, the city was awarded an $1.65 million federal grant by the U.S. Department of Housing and Urban Development (HUD) for redevelopment of the Arcade and City Market Building into a factory outlet mall.(26)(27)(28) A consortium of seven local lenders would provide $900,000 to CDP-Ohio, and a short term loan from city block grants for construction funding. Another $311,000 in city block grants would be steered to The Bernstein Group for a 15-year construction loan for the City Market Building.

Proposed work was to begin on the Arcade in May and be complete in November, which included exterior improvements.(27)(28) The City Market Building work, all exterior, would begin in June and be finished by January.

The developer, CDO-Ohio, noted that it already had 60% to 65% of the Arcade pre-leased and had hoped to be open for business by November 1.(26)(28) The first level had been completely leased out, with outlets being signed up for the second level. A restaurant, similar to a TGI Friday’s, was also planned.

Construction of the Esplanada Park between the Arcade and City Market was also planned for mid-1984, funded through a private fund drive, along with some tax increment financing generated by the construction of the Credit Life Building on the Core Block.(26) Other improvements also planned near the Arcade included a new transit center on North Market Street next to the Market Building, more parking areas, the removal of Conrail railroad tracks on Washington Street, and streetscaping.

Unfortunately, CDO-Ohio was too optimistic about the timeline of development, with work beginning on the Arcade in July.(28) There was another delay, partially because of President Reagan’s administration imposing restrictions on imported textile products.(29) Construction was scheduled to begin in October.

During the renovation, the skylight was replaced at a cost of $196,440.(4)

Demolition

In 1984, the Bernstein Group became the lead developer of the Arcade renovation project, and proposed a $6.5 million deal that called for a shopping center, food shops and artists’ lofts.(30) The idea did not generate enough traction, and on September 13, 1985, the city announced that the Arcade would be demolished. Citing that it had spent $1.2 million on renovation work on the Arcade, city leaders noted that it did not need a “white elephant” and that there could be a new retail structure on the site which would be more cost effective.

In March 1987, city officials gave the Clark County Historical Society the oaky to take inventory and remove any significant architectural remains from the Arcade.(31)

On February 16, 1988, members of the Citizens Arcade Alliance requested to Common Pleas Court Judge John W. Henderson to grant a temporary restraining order to halt demolition of the Arcade.(34) The Judge did not grant an immediate order, and set a hearing for February 22 instead.

On February 18, the city hired local contractor A.G. Samuelson to begin demolition.(34) Hours after demolition began, the Alliance’s attorney obtained a 10-day federal restraining order from the U.S. District Court of Dayton.(3)(32)(34) Four days later, the Alliance withdrew its case from the Common Pleas Court to pursue the issue at the federal level.(34)

On February 20, a hearing began before U.S. District Court Judge Walter H. Rice, with the Alliance charging that the city acted “arbitrarily and capriciously” in regard to state and federal preservation laws.(34) The Alliance stated that the city amended its own laws to remove the Arcade from the oversight of the Springfield Historic Landmarks Commission, a city-appointed body, noted that an environmental study was not completed, and that the city failed to comply with federal preservation laws.(33)

On March 9, the city’s attorney asked Rice to dismiss the case, but this motion was denied the following day.(34) A tour was held by Rice four days later of the Arcade, and of the nearby Marketplace among other historic structures.

On March 17, Rice ruled against the Alliance, but extended the restraining order until March 22 to give the Alliance time to determine its next move, finding that the city did not violate any laws in regards to demolition of the Arcade.(34)  Four days later, the Alliance announced that it was not going to appeal Rice’s decision, stating that the “sacrifice of one of Springfield’s most important buildings must not be made in vein,” and that the demolition of the Arcade could lead to wholesale tear downs of other historic downtown structures.

As expected, demolition promptly began in the early morning hours of March 23.(4)(32)(34) A local contractor was hastily called in, and any delay could have prompted the Citizens Arcade Alliance to file for a restraining order delaying demolition.