Historic Dannenberg

Building Revitalization

MAKING MAIN STREET WORK – CASE STUDIES IN

DOWNTOWN REDEVELOPMENT

NADO ANNUAL TRAINING CONFERENCE

NEW ORLEANS, LOUISIANA

TUESDAY, OCTOBER 27, 2015

The Dannenberg & Downtown Macon

Joseph Dannenberg, an immigrant from Germany, arrived to Macon in

1867 and started a wholesale dry goods store. In 1875, he founded the

Dannenberg Company.

The Dannenberg Company went through several expansions, moving to

the final location in 1903. It was one of the first retail department stores in

the country, and by the 1960s it was the largest store in Middle Georgia.

Joseph’s son, Walter, continued the family business, and also became one

of the leaders of desegregation in Macon, helping to peacefully integrate

Macon stores in the 1950s and 1960s.

The Decline of Downtown

The Westgate Mall, the first fully-enclosed shopping mall in Georgia,

opened in 1961, approximately three miles from downtown.

Being unable to compete, Walter Dannenberg closed the Dannenberg

Store in 1965.

Downtown began to decline, as did the Westgate Mall, following the

opening of the new Macon Mall in 1975.

Today, this mall is 70 percent vacant; a new outdoor mall opened across town.

Downtown Macon continued its decline, suffering from high vacancy and

crime rates, significant poverty, poor schools, and a negative perception

that drove growth to neighboring communities instead.

Dannenberg

Building: Mid-2000s

Dannenberg Building: June 2012

Mother’s Day Tornado – May 11, 2008

CDBG – Disaster Recovery Funds

CDBG-DR: A special kind of CDBG appropriation to assist

with recovery from Presidentially-declared disasters.

FY 2008 - $6.1 billion allocated to aid recovery from all

2008 disasters, including Hurricanes Ike, Gustav, and Dolly.

$4.5 million to Georgia for Mother’s Day Tornado Outbreak.

With assistance of Middle Georgia Regional Commission, the City of Macon and Bibb County jointly applied for and received $1.5 million in CDBG-DR funds.

Proposed project to develop new housing units in Macon and Bibb County.

Project site selected as Atlantic Cotton Mill

Atlantic Cotton Mill Project$12.5 Million project

106 new loft development units

Atlantic Cotton Mill Project

The Dannenberg Project$7.5 Million project

69 new loft development units, 3 commercial retail spaces

Dannenberg Project

Many partners & many funding sources:

$3 million loan – State Bank & Trust

$2 million loan – NewTown Macon

$1.5 million – CDBG-DR Funds

$1 million equity – 476 Third Street, LLC

Project began in summer 2012.

First units ready for move-in by

December 2013.

Challenges

Lead Paint Remediation

The Dannenberg is one of the oldest

buildings in downtown. Even the

“newest” addition was added in 1913.

Need to remediate potential lead

contamination to safe standards as

determined by HUD.

Cleaning and inspection lasted several

weeks, but all units passed inspection.

Permanent Financing

Goal was to quickly create a revolving

loan fund using the repayment of $1.5

million in CDBG-DR funds directed to

476 Third Street, LLC.

This process has been delayed, and

the property owner will now do a

standard 20-year repayment.

Dannenberg Lofts

Additional Efforts

Several businesses were also located in the Dannenberg Building.

MGRC Georgia Small Business Lender assisted with this process through an EDA

revolving loan fund for a grocery store.

A gym and seafood restaurant is also located in the building.

NewTown Macon has continued support for downtown investment,

leveraging $5M in bonds into eight projects, worth an estimated $26.1M.

Mercer University has begun investments in downtown through the Mercer

Medicine building and apartments.

Macon-Bibb County is investing significant funds in blight removal and

revitalization of the Second Street Corridor.

Benefits

Construction of 69 new loft apartment units, including eight rent-controlled

units for low-income individuals.

Three new occupied commercial storefronts in downtown.

Keystone in broad redevelopment in downtown Macon, attracting new

individuals (especially young professionals) to the city and additional

activity to a once dormant downtown area.

More loft development has followed in and around the

Dannenberg Building, responding to high demand.

Blair Lofts

Blair Furniture is currently converting their downtown storage

warehouse into four loft apartments and two retail spaces.

Lamar Lofts

38 new loft apartments recently converted from three historic commercial buildings in downtown.

Lofts at Silver

Two buildings down from the Dannenberg, has been vacant for 30 years, and is now being converted to 24 loft apartments and a new commercial storefront.

Macon Progress

Macon Progress

Additional development has followed in

and around downtown.

$50M commercial development in

downtown including a hotel, apartments,

retail space, and restaurants.

Located along the Second Street Corridor.

New mixed-used developments near

Navicent Health.

Additional developments around

Mercer University, including apartments,

hotels, restaurants, and dorms.

ContactGreg Boike

Senior Government Services SpecialistMiddle Georgia Regional Commission

175 Emery Hwy, Suite CMacon, GA 31217gboike@mg-rc.org

478-751-6160