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Posted on Sun, May 23, 2010 : 6 a.m.

Shore up Thompson Block building in Ypsilanti and see if developer can deliver

By Tony Dearing

By design or by default, Ypsilanti’s historic Thompson Block building is in some danger of coming down.

Some might call it good riddance, given what an albatross the structure has been over the years. But we wouldn’t. We’d much rather see Ypsilanti officials and developer Stewart Beal tone down the rhetoric, work through their mutual frustrations and strike a deal that allows the building to be made structurally sound so that its redevelopment remains a possibility.

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The Thompson Block building has been at a standstill while Ypsilanti and Stewart Beal battle it out in court. The building has been ravaged by fire and the structural supports intrude into the right of way.

Tom Perkins | For AnnArbor.com

They probably will, if only because they are forced to. Washtenaw Circuit Judge Donald Shelton has ordered them to take part in facilitation sessions and come to an agreement by June 18. It’s a shame that the city and Beal ended up suing each other, rather than working out an accord on their own. But a court-ordered settlement is better than the stalemate that’s kept a public hazard unresolved for too long already.

Ravaged by a fire last September, the building is in danger of collapse, held up by structural supports that intrude into the right of way, blocking traffic on portions of River and Cross streets.

Given that Ypsilanti officials have been dealing with the Thompson Block for more than 20 years, they can be forgiven for feeling some impatience on the issue. But after years of legal wrangling with a previous owner, prospects for the building improved when Beal stepped in and proposed a redevelopment project calling for 16 residential lofts and 10,000 feet of commercial space.

Beal has a history of investing in Ypsilanti, something other developers have not been clamoring to do. By buying and rehabbing rental properties, he has helped reduce blight in a city that’s struggled with that issue.

But the Thompson Block proposal is a different type of project he has less experience in, and given the down economy and a credit crunch, it stalled after a promising start. Then came the catastrophic fire last fall, which is believed to have been started by vagrants trespassing in the building.

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What the Thompson Block Project was intended to look like upon completion.

Thompson Block Project

Clearly, the current situation can’t continue. The building is not just an eyesore, but a public safety risk and an impediment to traffic. There are Ypsilanti residents who have grown weary of the whole saga and would just as soon see it torn down. But Ypsilanti has nothing to gain from that, while a better outcome remains possible.

The first need is to get the building stabilized. Earlier this year, Beal and City Manager Ed Koryzno negotiated a deal that set out a timetable and conditions for determining the structural safety of the building, getting the structural supports entirely out of the city right-of-way and beginning renovations. But Ypsilanti City Council rejected the agreement by a 4-3 vote - a move that was both surprising and disappointing - and instead took Beal to court. Beal then countersued.

While both parties have sounded strident in the litigation filed against each other, the truth is that the issues aren’t that complex and the two sides aren’t that far apart. The agreement between Beal and Koryzno was well-crafted, and represents a good starting point. If the two sides negotiate in good faith, they should be able to identify clear, reasonable deadlines for making the building safe and clearing the right-of-way, coupled with a performance bond and some insurance protecting the city from damage claims.

Ypsilanti is at an important juncture. Among younger people, it is increasingly being viewed as a hip and affordable alternative to a more staid and expensive Ann Arbor. Beal’s concept for the Thompson Block would add economic vitality and tax base to a community that sorely needs more of both.

Earlier this month, Beal announced a new approach for the project, saying he has verbal commitments from two tenants who want to operate restaurants in the building. Granted, this is not a great climate for developing anything. But in Beal, the city has a reputable businessman who already has invested in Ypsilanti when others haven’t.

Ypsilanti has been waiting a long time for something, anything good to happen to the Thompson Block. There is no guarantee when, or even if, Beal will be able to realize his vision for that property. But the city doesn’t have a better prospect right now than working with him to get the building stabilized and keep the potential for redevelopment alive. As patient as the city has been, it should remain patient a little longer and see if Beal can deliver.

(This editorial was published in today's newspaper and reflects the opinion of the Editorial Board at AnnArbor.com.)