ADM buildings saved despite high value as scrap metal

Jun. 22—The Archer-Daniels-Midland buildings will survive despite a city official warning the Decatur City Council that it may be missing an opportunity for a high yield on scrap metal recycling that would offset most of the demolition expense.

The City Council voted 4-1 on Monday to reject Virginia Wrecking Co.'s low bid that would make the city's net cost $73,143 for demolishing four buildings and cleaning up overgrowth on the 7.4 acres just off West Moulton Street.

David Lee, city chief code enforcement officer, said before the vote that Virginia Wrecking's bid was a good deal for the city that it may never get again.

The bid included Virginia Wrecking offsetting its $263,143 demolition expense by $190,000 for scrap metal from demolishing the two main ADM buildings, the original 1901 ADM building and a storage building near West Moulton Street.

Lee called the scrap metal estimate "a gift." He also pointed out that the abatement of lead-based paint from the buildings could be expensive.

"I'm a bit skeptical that we can ever get $190,000 again for scrap metal," Lee said. "And the abatement cost alone (for lead-based paint) could be phenomenal."

Lee said they've also had trouble securing the property from teenagers climbing on the old conveyor belt, homeless people and wild animals like coyotes.

Mayor Tab Bowling said visiting developers "are 50-50" on whether to save the ADM buildings, but safety concerns and the bid weigh against saving the buildings.

However, the council majority rejected the bid mainly because of the perceived development potential of the two almost 25,000-square-foot former cotton-oil warehouses, both built in the early 1900s.

"I want to see the site cleaned up but, with all of the activity downtown, the ADM buildings are pretty neat buildings," Councilman Carlton McMasters said.

Kelly Thomas, executive director of the Decatur Downtown Redevelopment Authority, told the council her board recently voted to recommend saving the two ADM buildings. She said it should be up to any future developers whether they come down.

"We're not opposed to demolition if that's what the developer wants when they do purchase the property," Thomas said. "We feel there is value in those buildings because of the kind of development we're seeing."

Councilman Hunter Pepper and Thomas said they received a number of calls from local residents who also said they want to save the buildings.

"They are iconic," Thomas said. "People recognize them as a part of downtown."

Thomas said it should be up to the architect to determine whether the buildings are usable but historic buildings like those are irreplaceable.

She said there is an authenticity to the buildings "that you just cannot replace or re-create once it's gone."

She said the historic buildings could attract the right development to the property, especially since City Café is being renovated and a new hotel, city parking deck with retail stores and the Alabama Center for the Arts dorm are all under construction just across the train tracks in downtown Decatur.

"Right now, they are the most marketable they've ever been," Thomas said. "This section of downtown is about to just explode in development and growth."

Thomas said she learned from Caroline Swope, city historic district program coordinator, that there's also a possibility for state tax credits for improving historic structures to offset the developer's expense.

Councilman Kyle Pike said the ADM property is a large site that has a potential connection to downtown Decatur that could benefit the city. He said the site needs to be cleaned up and possibly fenced in.

"You could never go back and build those buildings," Pike said. "If somebody wanted to go back and do that style of building, it would never have the same feel. This would allow developers to have the feeling of an old cotton seed warehouse."

Pike said he understands Lee's recommendation to demolish the buildings now to take advantage of the savings "but that's with any demolition or project. That cost is always going to go up."

Councilman Billy Jackson said he mainly voted with the majority and against the demolition proposal because the expense would have come from the unassigned fund balance.

"We started out with $20 million in the unassigned fund balance and we're spending like money is going crazy," Jackson said.

Jackson said he also gets "suspicious and it put my antennas up when the mayor gets all in behind a project and I'm not familiar with why we're moving in that direction."

Council President Jacob Ladner was the only vote for demolishing and cleaning up the ADM property.

"I've been pretty split (on demolition)," Ladner said. "I would like to tear it down, but I get it that a lot of things are going on downtown."

Ladner said the city has been unsuccessful for decades in marketing the ADM buildings. The site was once viewed as the anchor for the Decatur Downtown Commons plan, which would extend north along Dry Creek. He also said Lee made some good points about their demolition and safety.

"I personally don't see the benefits of keeping them up," Ladner said.

— bayne.hughes@decaturdaily.com or 256-340-2432. Twitter @DD_BayneHughes.