Download Valley House LLC (Healing History) (Draft Business Plan

VALLEY HOUSE LLC
(HEALING HISTORY)
(Draft Business Plan)
June 20, 2017
Oil Painting, circa 1936 by JP Hoot
Background/Summary:
The Valley House is a circa 1844 stone structure located on a greenway along
Darby Creek in Upper Darby Township, Delaware County, Pennsylvania
(Township). Owned by the municipality, the building is compromised with a
long term leak in the rear left quadrant and demolition was recommended.
However, because of the cost of demolition, the Township indicated willingness
to sell the building for a nominal amount with an agreed to timetable for
restoration. It is proposed the property be acquired by an LLC (Limited
Liability Corporation) with Managing Partners, Equity Partners, NonProfit/Municipal Partners, and Contractor/Business partners to stabilize the
building, restore/rehab the building, and utilize the building as a guest
house/writer's retreat.
Managing Partners initially will be Aaron Wunch and John Haigis who will
be responsible for the organization and operations of the entity.
Equity Partners are those individuals and organizations willing to commit a
certain level (yet to be determined) of money, time and/or services to the
entity, who will be able to benefit from their investment and eventually recoup
their investment.
Non-Profit/Municipal Partners will be those organizations who support the
mission in various ways.
Contractor/Business Partners are those individuals and companies willing to
invest in the entity in expectation of a return. These can include contracting
companies who may use the rehabilitation process to train personnel, or
investors who may have interest in participating in the business.
Additional Context and Background
Although there are similar buildings and facilities such as Valley Green Inn
and Chamounix, the Valley House location on Darby Creek is picturesque,
unique, and serene. It's remoteness is one of its chief assets as well as one of its
large challenges (see attached SWOT (Strengths, Weaknesses, Opportunities,
Threats) analysis.
The historic significance of the building points to it being the largest surviving
remnant of the Tuscarora Mills, developed in 1844 by English emigre George
Burnley (1804-1864) on the site of a Revolutionary War-era paper mill. The
history of Burnley's enterprise, which produced cotton goods and spun yarn, is
amply documented, and this is among the few buildings remaining to
commemorate Upper Darby's mid 19th c. industrial history. It's also worth
noting that Burnely's enterprise kept going into the 20th c. and played a key
role in the township's social history. The story isn't an especially happy one (it
seems to involve significant amounts of child labor) but it is certainly
important. The house is significant and, as such, is eligible for listing in the
National Register of Historic Places as a building "associated with events that
have made a significant contribution to the broad patterns of our history" or a
building that embodies “the distinctive characteristics of a type, period, or
method of construction. This means, among other things, that if the township
used Federal money to buy it or proposes to use Federal money to demolish it,
they will need to abide by Section 106 of the National Historic Preservation
Act: http://www.achp.gov/docs/CitizenGuide.pdf
Although a series of alterations over the past 170 years has muddied the
historic record, the building may present an opportunity to teach the special
skills of working with historic buildings, present a unique tourism
opportunity, and be an asset along the proposed greenway connecting to the
Swedish Cabin downstream, Burnely Manor upstream, other parklands, and
eventually to the John Heinz National Wildlife Refuge at Tinicum.
Funding
Funding remains a challenge for any organization. As a for-profit entity,
Valley House LLC would be able to take advantage of a number of funding
streams not available to a not-for-profit entity.
In addition to grants which can still be obtained by non-profit partners, there
may be an option of Investment Tax Credits and or other tax advantages for
investors (is the sale of Transferable Development Rights a possibility?),
rentals (office space to a non-profit, events/parties at the site, eventually
caretaker (nominal rental?) and guests, fees for workshops and classes, sale of
crafts (as in Beria Kentucky,) and other possibilities not yet considered.
Potential partners include Americorps, Natural Lands Trust, Darby Creek
Valley Association, Academy of Building Conservation, Center for Historic
Architecture and Design (CHAD)
Reasons and Resources for using the LLC form
Flexibility
Limited Liability
May be attractive to investors
Downside: Entity would have to be structured in the correct way. The new
entity (and investors therein) would pay taxes on earnings.
Non-profit participants may be subject for payment of Unrelated Business
Income Taxes (UBIT) but may have more flexibility in how the business was
run and could provide revenue for the non-profit.
http://www.sdlaw.com/files/Download/subsidiaries.htm
https://www.quora.com/What-are-the-ground-rules-governing-non-profitsowning-equity-in-for-profits?share=1
http://www.ehow.com/info_8059415_can-nonprofit-own-forprofitbusiness.html
Preliminary SWOT Analysis
(Strengths, Weaknesses, Opportunities, Threats)
Prepared by John Haigis, Co-Director, Academy of Building Conservation
Strengths:
Spectacular location on a greenway/proposed bird sanctuary
Historic connections to Tuscarora Mills/ originally a twin built circa 1845.
Solid construction/good bones, stone walls approx. 20-30” thick (c 1845)
Owned by Township, possibly amenable to a win/win solution
Working electricity
Many rooms/possibilities
Adjacent to Burnely Manor upstream and Swedish Cabin downstream
No immediate call for redevelopment or proposed building on site
Parking area available
Possible allies (DCVA, Historical Commission, UD Historical Society, Sierra Club, Audubon Society,
HistoriCorps http://historicorps.org/, Academy of Building Conservation
www.DarbyHistory.com/Academy1 , Friends of the Blue Bell, others)
Weaknesses:
Narrowing window of opportunity before demolition becomes inevitable
Not widely known, lack of a vocal, committed. organized, constituency
Remote location, difficult to monitor... Open window at rear allows easy access for vandalism
Expense of rehab/code compliance (Lead/Mold/etc)
Compromised physical condition (tree at rear created opening on back soffit allowing infiltration of
moisture and creation of mold)
Possible flooding (as has been the case for the past 180 years)
Trash/debris from previous occupancy
Lack of easy vehicle access (also a strength?)
Opportunities:
Cost of Demo may exceed cost of initial stabilization
Funding possibilities through LLC format
Similarities to Fairmount Park's Valley Green Inn
Expertise within DCVA and area in historic conservation, mold remediation, fundraising, organizing,
etc.
Educational opportunities at site
Possible collaborations with other organizations
Opportunity to teach skills of conservation, community building, etc.
Threats
Time, water, gravity, vandalism, open window at rear, leaks, mold, remote location, indifference,
organizational challenges, sheer number of area historic assets overwhelming available resources,
differing visions, lack of funding, narrowing window of opportunity, etc.
Preliminary Stabilization Estimate
Stop water Infiltration:
The most severely compromised section of roof is the left rear (NW Corner) and the remainder of the
roof appears intact….EPDM (rubber similar to thickness of inner tube) can be installed to stop water,
allowing the structure to dry, mold to die, and further evaluation to take place.
EPDM comes in rolls 10’ x 50’ at a cost of approx $350 a roll plus install. One roll will cover
compromised location. Entire roof will take 4 rolls
EPDM 4 rolls
$1,400 Furring strips/misc
$ 500 Rental of Bucket Truck $ ???
Block open window
The most immediate threat is the open rear window (36 x 52) allowing easy access Decorative floral
patter concrete block is available (12”x12”x4”) for $1.44 ea
12 blocks, morter, tax, etc $45 or donation of 30” x 50” metal grill
Secure Door
Dumpster
$350
$500
Insurance (Township as Add’l Insured) (Unknown…similar for other buildings under $900
Labor (unknown…est $1,200)
Labor (Community Service )
Total $4,895
Proposed Timetable
Phase One - Initial stabilization ....Immediately or as soon as possible...stop the leaks, prevent access
through the open rear window
Second Phase- (after purchase or after obtaining insurance with Township named as additional insured)
By June 1, 2016 - debris from building cleared, building allowed to dry and mold remediation measures
started, present conditions evaluated - scope of work and sequence of critical path elements determined,
partners enlisted, funding sources identified and first three applications made. Port-a-potty rented.....
classroom/workshop space cleared for fabrication of wooden replacement windows, windows selected (if
present vinyl windows can be repaired, they may be left for the time being)
Summer of 2016 Front porch removed, walls re-plastered, new windows fabricated utilities restored, roof
repaired (metal roof over open frame)
May 1, 2017 First guests