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Plant's next incarnation could be pricey, three-level condos
BY TIMOTHY O'HARA
keysnews.com
KEY WEST -- For four
decades the Key West Steam Plant clanged and howled with the sounds of
steam generators kicking out millions of watts of energy and providing
power to residents from Key West to the Seven Mile Bridge.
Since the plant was
decommissioned in May 1991, the building has stood as a silent giant at
the edge of the Key West waterfront. No more iron turbines pumping out
energy at ungodly decibel levels. No more workers scrambling around the
3-acre plant, checking dials, patching leaks and pumping millions of
gallons of crude oil into the generators.
Local developer Ed
Swift hopes the plant at Caroline and Grinnell streets will one day be
bustling again, but this time with neighbors cooking out and children
playing. He is proposing a posh condominium complex, abutted by
apartments for moderate-income workers and families.
Several developers
have tried to resurrect the aging lead-paint- and asbestos-riddled plant
and several have failed. From recreation centers to artist colonies, all
have been scrapped.
Swift, as the managing
partner of Old Town Key West Developers, has faced his own setbacks
recently. Swift plans to build 19 luxury condominiums, with Jacuzzi
tubs, pools and custom gardens overlooking Key West Bight. The building
will also house a steam plant museum and paintings documenting the
renovation, Swift said.
Swift is proposing
three-level, 5,000-plus square feet condominiums that will sell for
between $2.2 million and $2.7 million. The three-bedroom units will have
parking garages and personal elevators.
But in order to erect
the condominiums, Swift's company must build affordable apartments next
door. Plans call for 38 apartments with rents set at fixed rates. The
affordable housing project was slated to be built by the Miami-based
Carlisle Group. Last month, the group pulled out of the project, leaving
Swift to pick up the tab.
Swift has brokered
several multimillion-dollar projects and created a tourism empire in Key
West, but has he met his match with this project? He doesn't even know
for sure.
"That's one of the
intriguing things about this project. No one can figure it out," Swift
said. "The jury is still out on this one ... It's been a riot. I love
it. I love trying to figure out how to make it work."
A
battle from the start
When city officials
first began planning for the steam plant in May 1950, there were
arguments on what generators to use, where to put the plant, who to hire
and how to finance the plant. The utility board, which overseas the
public electric utility that powers the Lower Keys, initially went
before the city commission, requesting they borrow $2 million in bonds.
The cost rose to $3 million by the time the project broke ground June
28, 1951.
The utility board also
battled over where to house the massive building. Board members
considered Cow Key, Stock Island, before purchasing the property for its
eventual home on Trumbo Road for $35,000, records show.
While the plant was
still being planned in January 1951, power shortages loomed and City
Electric officials had to borrow power from the Navy. "Breaking all
records, the load at the City Electric System plant Saturday night was
7,530 kilowatts at 7 p.m.," The Key West Citizen reported Feb. 4, 1951.
Construction began
almost five months later, as crews began drilling wells for the cooling
system. A fire broke out during construction, destroying a large amount
of electrical and construction equipment.
The plant opened in
December 1952, sending soot as far as Caroline and Simonton streets.
Employees worked around the clock providing power to a growing
post-World War II Keys. The plant vibrated and rattled as the generators
pumped thousands of kilowatts a day. Inside the plant, temperatures
reached a balmy 120 degrees, said Desi Perez, Keys Energy Services
maintenance leader for facilities, who worked in the plant in the 1980s.
"This was the only
place in the Keys where you saw industry. This was all fishing down
here. You would go there and you would see big generators and hear loud
noises. This was it man," Swift recalls. "It played a significant role
in the history of Key West."
The plant grew from
two generators to five, as the population in the Keys increased and more
people wanted luxuries such as air conditioning. The plant would remain
operational until May 1987, when City Electric connected to the main
grid and saved ratepayers an estimated $3.9 million, reports state. In
May 1991, the plant was decommissioned.
A
slow resurrection
The plant would sit
dormant for years. Between 1997 and 2000, a group called the Washington
Square Partners worked with the utility board on a deal to bring shops
and a multiscreen theater there. The proposal died because of high
renovation costs. The YMCA expressed interest in rehabilitating the
facility, but decided against pursuing the idea because of costs.
In 2001, a group of
artists proposed building an art colony called the Peebles Artists
Community. The group spent $100,000 on designs and plans, Pebbles
chairman Bill Andersen said at the time. The project would have brought
artists into the community, supplied local artists with studio space and
provided 88 apartments for moderate-income families. They scrapped the
plan after developers could not get grant money to build the affordable
housing. Rehabilitating the 60,000-square-foot building would cost $6
million with yearly operating costs of $1 million, estimates at the time
stated.
Swift and his company
then stepped in with a proposal to build 19 posh condominiums. All 19
condominiums have already been reserved with a $50,000 deposit, Swift
said. However, he admits the project is far from locked in.
"You could have
another 9/11 or the market could drop," Swift said. "You don't know what
could happen."
Swift and his partners
planned to develop the upscale condominiums and the Carlisle Group would
build the affordable housing. However, the group pulled out last month,
after they were told they did not receive tax credits for the affordable
project. The project was no longer feasible. Swift has since raised the
price of the condominiums to offset the cost of cleanup and
redevelopment, he said.
The project will cost
$4.5 million to remove the tons of steel beams and iron equipment and
take out the asbestos and lead paint from the plant, Swift said. Actual
redevelopment costs are still pending, but estimates have put the
project close to $30 million.
Swift has a 99-year
lease with the utility board, and he will pay them roughly $1.6 million
up front and $100,000 a year, Swift said.
Under the terms of his
contract, condominium owners cannot move into their homes until the
affordable housing is built.
Some commissioners say
the project calls for low-income housing. Swift is proposing
moderate-income housing, with one bedrooms going for $1,090 and two
bedrooms for $1,260. Commissioner Harry Bethel is concerned about the
affordable housing end of the project and wants to make sure that the
housing remains "affordable," he said.
Swift will now have to
pursue financing for both the condominiums and the affordable housing
and start accepting bids from contractors. If all goes well, the project
could be completed by late 2005 or early 2006, he said.
tohara@keysnews.com |
