UniversityofWisconsin‐Whitewater

EconomicsDepartment,800W.MainStreet,Whitewater,WI53190FISCALANDECONOMICRESEARCHCENTER

MARKETANALYSISOFHISTORICGASSTATIONPROPERTY

by

RussKashian&

ReneePfeifer‐Luckett

FiscalandEconomicResearchCenterUniversityofWisconsin–Whitewater

HylandHall

August2010

Contributors:

PrincipalResearchersRussellKashian

ReneeA.Pfeifer‐LuckettJustinJ.Kasper

DataAdministrationandAuditing

ChristieKornhoff,AdministrativeAssistant

TableofContents PageIntroduction 1HistoricalOverview 1LocationOverview 1‐2LiteratureReviewofHistoricServiceStationRenovation 2‐4CurrentEconomicOutlookforJanesville 4‐5FundingRenovation&Redevelopment 5‐6

WisconsinHistoricPreservationTaxIncentivesTaxIncrementalFinancing

SituationAnalysis 6‐7Conclusion 7Appendices:

AppendixA:BusinessLocatedNearFranklin&WallStreets(two‐blockradius) 9AppendixB:CurrentUseofHistoricGasStations(90mileradiusofJanesville) 10AppendixC:WisconsinEconomicOutlook,August2010 (attachment)AppendixD:WisconsinHistoricalSociety‐HistoricPreservationTaxIncentives (attachment)AppendixE:WisconsinHistoricalSociety‐GuidelinesforPlanningHistoric (attachment)PreservationTaxCreditProjects

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IntroductionThismarketstudyfortheStandardOil“Super‐ServiceStation”propertylocatedindowntown

JanesvilleWisconsinwaspreparedtoprovideinformationtothoseinterestedinmakingproductiveandprofitableuseofproperty.Includedinthemarketanalysisisanoverviewofthepropertyandit’slocation,aliteraturereviewrevealinghowlikepropertieshavebeenmanagedinothercommunities,aneconomicoutlookforJanesville,andadiscussionofpropertyrenovationfundingopportunities.Lastly,thisreportprovidesasituationanalysisor“SWOT”ofrepurposingthegasstationproperty.

HistoricalOverview OnthecornerofFranklinandWallStreetindowntownJanesvilleresidesanhistoric–yetcurrentlyvacant–1930’sSpanishColonial‐styleStandardOilServiceStation.TheL‐shapedbuildingincludesdetailssuchasdecorativetileinsetsandred‐clay‐tile,aswellshed‐roofedparapetsthatresemblethetileroofsoftypicalSpanishColonialhomesoftheera.StandardOiloriginallyconstructedthisbricksuper‐servicestationinanefforttotakeadvantageofaprimelocationonthecity’smainthoroughfare,Route14(nowBusinessRoute14).

Builtasa“super‐servicestation,”StandardOilconsolidateanumberofautomobile‐relatedactivitiesunderoneroofandcreatedanattractive“one‐stopshop”forcustomersTheformersuper‐servicestationhousedasizableshowroomtodisplaythenewestproductlinesoftires,batteries,andotherautomobileaccessories.Byexpandingtheproductsandservicessold,thevisibilityofthebusinessincreasedandthesuperstationwasabletogeneratesupplementaryincome.Ahighdegreeofcompetitivepressure,coupledwiththeturbulenteconomyoftheGreatDepression,forcedpetroleumretailerssuchasStandardOiltoprovideawidevarietyofreliableproductsandservicestotheircustomersinordertocreateacompetitiveadvantageinthemarketplace.Inthisregard,Janesville’ssuper‐servicestationonceofferedpracticallyanyproductorserviceneededtomaintainanautomobileofthetime–frombrakesandtirestooilchangesandwashing.Thelargeservicebayswereoutfittedwithlatestequipmentoftheera,includinghydrauliclifts(insteadofpits),machinestorepairtiretubes,andspecializedequipmentforchangingcarbatteries.

StandardOil’ssuper‐servicestationindowntownJanesvillehousedtire‐andautomobile‐relatedbusinessesthroughoutitsexistence,withtheexceptionofaperiodinthelate1970’swhenitwasvacatedforseveralyears.Intheearly1980’s,H&HAutomotivetookoveroperationsandcontinuedtooccupythesuper‐servicestationformorethantwentyyears.In2002,newJanesvillepolicefacilitieswereproposedtobebuiltonthesiteofthehistoricservicestation;however,thebuildingsurvivedthethreatofdemolition.TheCityofJanesvillenowownsthebuilding.

DespitethefactthattheStandardOilsuper‐servicestationiseligibleforlistingontheNationalRegisterofHistoricPlaces,thefutureofbuildinghasonceagaincomeintoquestion(2008WisconsinHistoricalSocietyPress).Furthermore,thegasstationhasgainedsignificantnotoriety“online,”andisprominentlyfeaturedontheblog“FuelishThoughts:WisconsinGasStations”(visithttp://fuelishthoughts.blogspot.com/).

LocationOverview

TheCityofJanesvilleisconsideringtherenovationofthe1930’ssuper‐servicestationbyappropriateinvestors/developers.Sincethebuilding,whichislocatedinwhatsomewouldconsiderthe“centerofcitygovernment,”currentlycrowdstheeastwallofthepolicestation.Duetoitslocation,thebuildingalsorunstheriskofbeingtorndowntoprovideadditionalparkingorgreenspace.However,duetothebuilding’shistoricsignificanceandinterestingarchitecturalfeatures,renovationofthebuildingbyanappropriateinvestor/developerisanattractivealternative.

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FranklinandWallStreethavelimitedamountsoftraffic,butthebuildingisvisiblefromthehighertraffickedareasofMilwaukeeandCenterAvenue.Thesiteonwhichtheformersuper‐servicestationresidesissmall,butissurroundedonallsidesbywell‐maintainedmunicipalbuildingsandpassedinspectionfortoxicsubstances.Thebuildingitselfisstructurallysolidandrelativelysmall,therebyallowingasmallbusinessownertomanagetheneededrenovationstothebuildingandsiteonwhichitresides.Thebuildingisindireneedofupdatedrepairsincluding:structural,plumbing,electrical,glass,etc.Furthermore,theamountofparkingon‐siteislimited,butthereisampleparkingonthestreetssurroundingthebuilding(ConstructionOptionsInc).Thehistoricsuper‐servicestationisalsowithinwalkingdistancetothreelargeapartmentcomplexthatinhabitthesurroundingarea.Localresidentshavethepotentialtoprovideadequatefoottraffictothenewlydevelopedbusinessthatoccupiestheformersuper‐servicestationinlieuofthelimitedtrafficgeneratedbyFranklinandWallstreets.

Thereareavarietyofbusinessesandgovernmentofficesintheimmediatevicinityofthesite,whichcouldsupportaretailbusinessthatmightoccupythegasstation(seeAppendixAforalistingofareabusinesses).Notably,furnitureretailandhomedesignbusinessesrangingfromaneclectic,usedfurnitureretailstoretoacustominteriordesignbusinessesexistinthearea.Thereareveryfew,“non‐tavern”beverageoptionssuchascafésorrestaurantsforthoseshopping,livingorworkingintheimmediatearea.Asdiscussedintheliteraturereviewbelow,manyhistoricgasstationsacrosstheUnitedStateshavebeensuccessfullyconvertedintocoffeeshopsandrestaurants.TwolocalexamplesincludeMonty’sBluePlateDinerinMadisonandSven’sCaféinMilwaukee.LiteratureReviewofHistoricServiceStationRenovation Theliteratureontherenovationofformerservicestationsintonewlydevelopedbusinessisplentiful.PerhapsthemostnotablysuccessstoryisthatofBenCohenandJerryGreenfieldwhoopenedanicecreamshopinBurlington,Vermont.InMay1978,with$12,000instart‐upmoney,athirdofwhichwasborrowed,thetwoproprietorsrenovatedanoldgasstationonacornerindowntownBurlingtonandopenedtheveryfirstBen&Jerry’s.FromtheirhumblebeginningsinarenovatedgasstationBen&Jerry’shasgrowntobeahighlysuccessfulproducerofsuperpremiumicecream,frozenyogurt,andicecreamnoveltiesinrichandoriginalflavors.AlthoughthehugesuccessthatBenandJerry’shashadfromtheirstartupinarenovatedgasstationisrare,therearemanycasesofsuccessfulrenovationsofformerservicestations.

SteveGoretzkoopenedSven’sCaféat2699SouthKinnickinnicAvenueinMilwaukeeWisconsinbyturningavacantgasstationintoatrendyandattractivemeetingspotforlocalresidentsinBayView.Duringthe1950’stheformergasstationwasonthebusiestgasstationsinMilwaukee,butbeforeGortezkodecidedtoacquirethepropertyithousedaleathermanufactureandbeforethattheMilwaukeeJournaluseditasaneighborhoodnewspaperdistributionnode.Sven’shastransformedthethree‐wayintersectionofKinnickinnic,Logan,andRussellavenuesintoa21st‐century,communitymeetingplace,helpingdefineoneofthecrossroadsofBayView.TheEuropean‐stylecaféhasbecomeverysuccessfulbydrawingincommuters,passers‐by,andthosewhoseekoutGoretzko’slarge‐batchroastedcoffee(BayViewCompass).Furthermore,BobandPatriceOlinhaverevitalizedtheabandonedCopelandServiceStationon4924WestRooseveltDriveinMilwaukee,Wisconsinintoathrivingcoffeeshop.TheShermanPerkcoffeehouseisaprimeexampleofanadaptivereusethatwasabletoutilizecity,county,andstatefundingtoturnadilapidatedservicestationintoaprofitablebusinessandacommunitygatheringspace(2008WisconsinHistoricalSocietyPress).

LocalinvestorsnearMobile,Alabamawhowere“regulars”aschildrenatlocalneighborhoodstoreinSpringHillnowowntheoldPetroStationonOldShellRoad.ThethreeinvestorsboughttheoldPetroStationandhaveinvested$650,000inlandandrenovationsoftheformereyesore.Thethree

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investorswantedtoownalocalplacewheretheycouldoffercustomers“necessities”whileonthewaytothebeachorcampgroundsinthelocalarea.Thethreeinvestorsclaimthatthereisn’tanyotherlocalconveniencestorethatofferstheproductssoldbyBebo’sSpringHillMarket(PressRegisterBusiness).

AservicestationthatwasbuiltfortheMagnoliaPetroleumCompanyofTexasinthe1920’slocatedatthecornerofDaisyL.GatsonBatesDriveandParkStreetinLittleRockArkansasisgoingtobeafutureeducationcenter.Theservicestationremainedinoperationintothe1980’s,whenitwasclosedandwasacquiredbyaflorist.Thefloristcompanyuseditforstorageuntil1996whenCentralHighMuseumInc.purchasedthepropertytobeusedasavisitorcenter.TheMobilFoundationassistedinrestoringtheexteriorofthestationtoits1957appearance.Thevisitorcenteropenedin1997forthe40thanniversaryofdesegregationeventsattheschool.TheservicestationisbeingconvertedintoLittleRockCentralHighSchoolNationalHistoricSite’seducationalcenter.Thehistoricappearanceoftheservicestationwillbekeptontheoutside,buttheinteriorwillberenovatedintoaclassroomspacewhereteachersandstudentscanlearnaboutthepastandfutureofsocialjusticeandcivilrights(U.S.DepartmentoftheInterior).

Apairofentrepreneurscreatedanupscaleeateryandmarketlocatedat1501W.MagnoliaAvenueinFortWorth,Texas.Therestaurant,whichfeaturesseasonalcuisinemadefromtheseasonallocalingredients,ishousedinarestoredhistoricfillingstation.Therestaurantco‐ownersbelievethattheirtrendybusinesslocationisgearedforsuccess.Theabandoned1920’sgasstationintheFairmountHistoricDistrictneededmajorrepairsfromholesintheroof,brokenwindows,todoorsthatdidn’tshut.However,theformerfillingstationhadthefeelandthelocationthattheco‐ownerswerelookingfor.Thehistoricfillingstationreceivedanoverhaulingofthe3,200squarefootstationintoamodern,relaxingrestaurant.Aprivatediningroomoccupiestheformergarageserviceaswellasacoveredoutdoorseatingareawherethegaspumpsoncestoodgivesadditionalseating.Therenovatedhistoricfillingstationincombinationwithanexcellentlocation,andasupportiveandexpandinglocalneighborhoodshouldgeneratesuccessinthefutureforEllerbeFineFoods(FortWorthBusinessPress).

AsimilarrenovationinMadison,WisconsinoccurredwithMonty’sBluePlateDiner.ThisisaperfectexampleofasuccessfuladaptivereuseprojectbecauseEdLinvilleandco‐developerJoeKrupptransformedanabandonedgasstationintoarestaurantrightoutofthedaysofRichieandFonzieinthepopulartelevisionseries“HappyDays.”Thegasstationwasperfectsitetocreateanattractivedinerduetoitshighvisibilityandthereuseofthebuildingwasacosteffectivealternativetonewconstruction(CorporateReportWisconsin).Additionally,apairofentrepreneursintheMadisonareatookadvantagethepotentialthatabandonedgasstationscontain.MichaelDixandhispartnerJohnKuehlleasedagasstationindisrepaironMonroeStreetandworkeddiligentlytogetthestoreoperational.OnAugust22,1986thepartnerswereabletoopenMichael’sFrozenCustard,whichbecameaninstantsuccessduetogreatservice,comfortableatmosphere,andhighqualityproduct.SoonaftertheopeningtheMonroeStreetstorethepartnerswerelookingtoexpandtheiroperationsandonceagaindecidedtorenovateagasstationthistimeinVerona,WI.ThisstoreopeneditsdoorsonOctober5,1987andwasfilledwithautomobilememorabiliatolinkitbacktoitsformerdaysasgasstation.DuetothecontinuedsuccessofthefirsttwostoresthepartnerswereabletorenovateanothergasstationthistimeasdinerwithstainlesssteelexteriorandredboothinterioronAtwoodAvenueinMadison.ThisstoreopenedonMay10,1989andaddedanothersuccessfullinktothechainofMichael’sFrozenCustardrestaurantsinrenovatedgasstations(Michael’sFrozenCustardHistory).

A1,000squarefootformerfillingstationindowntownLeslie,MichiganisbeingturnedintoLeslie’sonlydowntownflowershop.ThenewflowershopBloosomEtc.islocatedon200SouthMainStreetinLeslieandduetoitsexpansionitwillalsosellgourmetcoffee,soaps,giftbaskets,andchocolate.

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Theentireformergasstationisbeingrenovatedandremodeledtobeusableasaflowershop.ThecitymanagerofLesliestatesthatit’sthrillingtohaveanewbusinessmakinganinvestmentandrenovatinganunderutilizedbuilding.Thecityhasworkedhardtomakethedowntownattractivetobusinessesandwillcreateadditionalfoottrafficandactivitydowntown.Theownerbelievesthatthenewlocationwillbeabigplayerinthedowntownareabecauseofthenewadditionofgourmetcoffeeandteawillencouragepotentialcustomerstostopinandvisittocreateadestinationplace.

TheLongIslandBakeryinQueensNewYorkatthecornerof11thStreetand47thRoadwillbeutilizingtheabandonedGettyGasStation.Therenovationofthegasstationinvolvestheconversionofthegasstationmechanicsgarageintoawarm,inviting,andsustainableenvironment,andtoincorporatetheideaofabakeryintothearchitectureoftheformergasstation.Theprocessbeganbyremoldingtheexteriorbyintroducingsteelchannelsandwoodendoughrollersintotheskinofthebuildingthatreplacedthedecayingmasonryfaçadewithaninnovativerainscreen.Additionallytheasphaltparkinglotwillreplacedwithconcreteblockandgrasstohelpreducetheheatislandeffectandcreateaninvitingatmosphere(LIQCITY).

Examplesofpublishedreuseprojectsthatturnedabandonedorunderutilizedservicestationsintonewlydevelopedsuccessfulbusinessesareextensive,andspecificallyinterestinhistoricWisconsingasstationshasbeenrevived.AsaresultofthereleaseoftheWisconsinHistoricalSocietydocumentary“Fill’erUp:TheGloryDaysofWisconsinGasStations”(toviewtheprogram,visithttp://www.wisconsinstories.org/fillerup/video.cfm),abookofthesamenamewaspublishedin2008byauthorsJimDraegerandMarkSpeltz.Alistoflocalhistoricgasstations,alongwiththeircurrentuse)areshowninAppendixB.)CurrentEconomicOutlookforJanesville Aswiththenationandstateasawhole,economicconditionsinJanesvillehavesufferedrecentsetbacks,includingbusinessclosuresandhighunemploymentrates.NearlytwoyearshavepassedsinceGeneralMotors(GM)endedproductioninDecemberof2008inJanesville,WI.TheclosingoftheGMplantsaw5,000jobsandotherauto‐relatedfirms,suchasLearCorporationthatbuiltseatsforChevyTahoes,wipedout.ThelossoftheJanesville’sautoindustryhascreatedanauraofuncertaintyforfuturegrowthofJanesville’seconomy(Channel3000).

ThecurrentscenarioforJanesvilleanditsresidents,morethanayearaftertheclosingoftheGMplantandthesubsequentauto‐relatedfirmshasbeenfilledwithhardchoicesandhardtimes.Manywhowerelaidoffbecauseoftheplantclosurehavebeenforcedtopursuereturningtoschoolforthefirsttimeindecadestobeabletoswitchintodifferentcareers,orperhapsrelocatetoGMplantsthatarecurrentlystilloperational.Additionally,Janesvillehasyettofigureoutawaytolurethethousandsofjobsneededtoinapost‐GMeconomy,butmildimprovementskeepsbusinessleaderslookingahead(MilwaukeeJournalSentinel).

TheWisconsinDepartmentofWorkforceDevelopmentreportedinMaythatRockCounty,inwhichJanesvilleresides,added300jobsfromMarchtoApril,resultinginadropinthecounty’sunemploymentratefrom12.8percentto11percent.Thisdramaticimprovementhascausedtheunemploymentratetodroptoitslowestlevelin16months.At11percent,theJanesvilleareaisnowtheonlyMetropolitanStatisticalArea(MSA)withdouble‐digitunemployment.However,thelocalemploymentgaincomesasmanylocaldislocatedworkerscontinuetoexhausttheirunemploymentbenefits.Nonetheless,Janesville’sjoblessrateof12.8percentinMarchwasthehighestamongthestate’s12largestMetropolitanareas,andnowat11.3percentJanesvillehasonlythesixthhighestrateinthestate(GazetteXtra).

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Manybelieve,however,thatrecentjobgrowthindicatesthattheeconomyhasreacheditslowpointintermsofemploymentAccordingtotheAugust2010WisconsinEconomicOutlookreportproducedbytheWisconsinDepartmentofRevenue,DivisionofResearch&Policy(seeAppendixCforthefullreport),employmentandincomeareexpectedtorisein2010.Wisconsinhasalreadyrealizedanincreaseofmorethan25,400jobssinceDecember2009,withmanufacturingjobsup10,900.Personalconsumptionhasalsoincreasedby3.5percentduetoincreasinglevelsofemploymentandmorehoursbeingworked,aswellasalowersavingsrates.Furthermore,historicallylowinterestrates,coupledwithanimprovingjoboutlook,setsthestageforprofitableinvestment.Despitepositiveeconomicsigns,thenear‐termstateofJanesville’seconomystillremainsuncertain.

FundingRenovation&Redevelopment Inordertopursuefundingforthisproject,aclear“champion”(eitheranindividualoragroup)fortherenovationofthehistoricgasstationmustemerge.Securingincentivesandfinancingismostcertainlyatimeconsumingendeavor,butnotimpossible.TwokeyalternativestotraditionalfinancingarepossiblefortherepurposingofthehistoricgasstationinJanesvilleatthecornerofFranklinandWallStreets:HistoricPreservationTaxIncentivesandTaxIncrementalFinancing.WisconsinHistoricPreservationTaxIncentives

AsdescribedinAppendixD:HistoricPreservationTaxIncentives,federaltaxincentives“providea20%investmenttaxcredittoownerswhosubstantiallyrehabilitatetheirincome‐producingcertifiedhistoricstructures.InWisconsin,thetaxincentiveprogramisadministeredbytheWisconsinHistoricalSociety’sDivisionofHistoricPreservation.Furthermore,theStateofWisconsinalsooffersanaddition5percentsupplementtothealreadyestablished20%federalincometaxcredit.Thissupplemental5percentcredit"canbedeductedfromWisconsinincometaxesbypersonswhoqualifyforthe20%federalprogram;andreceiveNationalParkServiceapprovalbeforeanyphysicalwork(includingdemolition)isbegunontheproject.”SuchtaxcreditsprovidestheCityofJanesvilleincentivetoretainownershipofthehistoricgasstation.AppendixEalsoprovidesmoredetailsonthetaxincentiveprogramavailableforhistoricbuildings.TaxIncrementalFinancing

OneofthepossibletoolsoffinancingavailableforredevelopmentisTaxIncrementalFinancing(TIF),isawayofpublicallyfinancingdevelopmentincommunityimprovementprojects.TIFisatoolusedforfuturegainsintaxestofinancecurrentimprovements,whichwilltheoreticallycreatetheconditionsnecessaryforfuturegains.WhenaTIFisstarted,thereistypicallyaresultingincreaseinthelandvalueofthesurroundingarea,withwhichcomesincreasedtaxrevenues(ataxincrement).TIFdedicatestaxincrementswithinacertaindefineddistricttofinancedebtissuedindistressedorunder‐developedareaswheredevelopmentmightnototherwiseoccur.TIFfundsaregenerallyusedtopayforrealestateimprovementsincludingbutnotlimitedtosidewalks,utilityupgrades,orconstructionprojects.

WhilethebeneficialpossibilitiesofTaxIncrementalFinancingprovidetheoreticadvantages,itsproposalisalwaysbasedonpro‐formaexpectations.Asaresult,unanticipatedeconomicforcesmaypropeltheresultstolevelsunanticipatedbybothconsultantsandplanners.Theseresultsmayoverperformthepro‐formatothebenefitofthedistrict(resultinginanearlypayoff)orunderperformthepro‐forma,thustemptingfailure.Asaresult,propertiesthathavebeengenuinelynegativelyimpactedbyeconomicandphysicalconditionareamongthebestcandidatesforTIF.ThismaybethecaseinJanesville.

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SituationAnalysis

Basedontheresearchcompletedforthisreport,weareabletosummarizetheinternalstrengthsandweaknessesoftheproperty,alongwiththeexternalopportunitiesandthreatsthatinfluencetheprospectoftheproject.TheSWOTchartshownbelowdetailsstrengthsandopportunitiesthatareoverwhelminglypositive,whileexistingweaknessesandthreatstotheprospectoftherepurposingofthegasstationmaybemanaged.

Oneofthestrengthsofthesiteisthevarietyoffoottrafficintheareageneratedbythosewhoworkintheimmediatevicinity,suchasgovernmentemployeesandarearetailworkers.Localbusinessessuchasfurnitureandhomedesignretailshopping,StudioAllegro(musiclessons),YMCA,andChaseBankalldrivetraffictothearea.Itisalsoworthnotingthattwolargeapartmentbuildings(e.g.,RegencyHouseRiverplaceandTheCottonMills)arelocatedacrossthestreetfromthegasstationsite,andithasbeenconfirmedthatresidentsinthesebuildingsaremiddleincome,withlimitedsubsidizedhousingunits–thereforeapartmentrenterscouldalsorepresentasignificantpotentialmarketforlocalbusinesses.

Thebuildingitselfisuniquearchitecturally,andhistoricallysignificant,andnaturallypiquestheinterestofthosewhopassbythelocation.Aresurgenceofinterestinhistoricplaceshasemergedinpopularcultureasevidencedbyamyriadofrenovationandhistoricpreservationtelevisionprograms(forexample,“IfTheseWallsCouldTalk”),renovation‐themedmagazines,andretailbusinesscateringtotherenovatormarket(e.g.,www.rensup.com).Environmentallyfriendly,or“green”constructionandbuildingpracticeshasalsoleadtoanincreasein“repurposing”ofbuildingsratherthandemolishingthem.Also,somewhatironically,vintagegasstationpropertieshavegainednotorietyinWisconsinduetotheWisconsinHistoricalSocietyvideodocumentary“Fill’erUp:TheGloryDaysofWisconsinGasStations,”followedbythereleaseofabookofthesamename.Whilethebuildingdoesrequireasignificantlevelofrenovation,thegastankshavealreadybeenremoved,therebyeliminatingtheneedtoundertakeatankcleanupprocess.

Thekeyweaknessistheconditionofthebuilding.Thebuildingclearlyneedsextensiverenovation,butthisweaknesscanbemarketedasanopportunityfortherightinvestor:“bringback”thebuildinganddosowithanenvironmentally‐friendly,andhistorically‐accurateapproach.Theneedforextensiverenovationalsoprovidestheopportunitytocompletearenovationthatmostcorrectlyreflectstheeraofthebuilding,ratherthandealwithashoddypriorrenovationthatmustbere‐done.Thecostofrenovationcanbecreativelymanagedthroughgrantsandtaxincentives.Forexample,theCopelandGasStationinMilwaukee,wasawardedasiteassessmentgrant,afacadeimprovementgrant,andaretailstart‐upgrant–allfromtheCityofMilwaukee.Thosegrants,alongwithhistoricpreservationtaxcreditsallowedCopelandGasStationownertodeduct25percentoftheprojectcostfromhisstateandfederalincometaxes.AppendicesDandEprovidemoredetailsregardingtheWisconsinHistoricPreservationTaxIncentiveprogram.InJonesCountyIowa,ahistoricgasstationwasconvertedintotheNationalMotorcycleMuseum–therebyaccessingstategrantfundstosupporttherenovationofthebuildingtoaccommodatetheexhibits(www.iowahistory.org).

Themainthreatof“lackofinterestedinvestors”canalsobeaddressthroughthismarketstudy–therearemanypositiveaspectsofthisprojectthatwerenotpreviouslyfleshedoutandorganizedinameaningfulway.MarketingtheopportunitytorestorethegasstationpropertyatFranklinandWallStreetinJanesvilleshouldbepositionedonthebasisofitsdowntownlocationanditshistoricsignificance.Janesvilleisathrivingcommunity,despitetherecenteconomicdownturn.Entrepreneursrecognizetheopportunitythispropertyrepresentsinthelong‐term.Successofthisprojectwillmostlikelyrequireacooperativeeffortbybothprivateandpublicefforts–publicawarenessofthepropertymustberaisedandmunicipalofficialsthatmanageresourcesmustalsobeinformedoftheproperty’spotential.

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SWOTStrengths• Locatedinthedowntown“governmentcenter”• Historicandarchitecturallysignificantstructure• Passedinspectionfortoxicsubstances• Buildingisstructurallysolid• Amplesquarefootageformostsmallbusinesses• Uniquefloorplancouldaccommodatetwo

relatedbusinesses• Amplestreetparking

Weaknesses• Propertyandbuildingrequiresrenovation• Notonmainstreet–lackshighvisibility• Nophysicalroomforexpansion(landlocked)• Limitedon‐siteparking

Opportunities• Downtownbusinesses,apartments,and

governmentalofficesnearby• Areabusinesses(andresidents)driveshoppers

&foottraffic• Fewbasicretailbusinessesinthevicinity

(café/coffeeshops,bakery,dryclearer,flowershops,restaurants,etc.)

• ManysuccessfulrepurposingofhistoricgasstationprojectsinWI(conceptproven)

• ConsumerspendinginWisconsinisincreasing• Currently,historicallylowinterestrates• Redevelopmenttaxincentives• Historicpreservationtaxincentives• TaxIncrementalFinancingdistrict• ResourcesofForwardJanesvilleandotherlocal

businesssupportorganizations

Threats• Severedownturnintheregion’seconomic

climate• Potentialriseofinterestratesinearly2011• Expansionofpolicefacilities• CityofJanesvillelacksinterestinthe

property• Pursuitoffinancingistimeconsuming• Lackofidentified,qualifiedinvestors

Conclusion

TheStandardOil“Super”ServiceStationlocatedindowntownJanesville,Wisconsinisanarchitecturallysignificantbuildingthathasthusfaravoideddemolitionwhilemanyotherhistoricbuildingshavenot.ThebuildingqualifiesforlistingontheNationalRegistryofHistoricPlaces,andtherebyalsoqualifiesforspecialtaxcredits.Asignificantinterestinthebygonedaysoftheoriginalgasandservicestations–asevidencedthroughpopularculture–isalsoanimportantfactortoconsider.Manyhistoricgasstationsthroughoutthestatehavebeensuccessfullyrenovatedandrepurposed.Theconceptof“renovationchampion”isalsoacommonthreadinsuccessfulhistoricgasstationproperties–thosewhospearheadsuchaprojectmustbepassionateaboutrestoringapieceoflocalhistory.

Theadvantagesofrenovatingthiskeybuildinginthedowntown“governmentcenter”arenumerous,includingareaattractivenessandprovidingnewretailopportunitiestothosewholive,shop,andworkinthearea.Thekeytocapturingtheattentionofinvestorsiscreativemarketingofthepropertytopotentialbusinesses.Marketresearchshowsthatpastrepurposingofsuchbuildingshavebeenretailinnature,withansignificantmajoritybecomingfoodestablishmentsorcoffeeshops–retailvenuesthataresadlylackingornon‐existentindowntownJanesville.Thebuildingalsoeasilylendsitselftohousingmorethanonebusiness,providinganentrepreneurialopportunityfortwocomplementarybusinessestooccupythespace(e.g.,coffeeshopandflowershop,restaurantandgiftshop,etc.).Creativeleveragingofthebuilding’shistoricnaturewillbekey–bothfinanciallyandfromamarketingperspective–inreinventingthevintageStandardOil“Super”ServiceStationinJanesville.

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Appendices

AppendixA:BusinessLocatedNearFranklin&WallStreets(two‐blockradius) AppendixB:CurrentUseofHistoricGasStations(90mileradiusofJanesville)AppendixC:WisconsinEconomicOutlook,August2010 42pagesAppendixD:WisconsinHistoricalSociety‐HistoricPreservationTaxIncentives 6pagesAppendixE:WisconsinHistoricalSociety‐GuidelinesforPlanningHistoricPreservation 10pagesTaxCreditProjects

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AppendixA:ActivebusinessLocatedNearFranklin&WallStreets(two‐blockradius,asofJune2010)MilwaukeeSt.

• ChaseBank• PhonesPlus• RepublicanParty• EdibleArrangements• ElliotLawOffices• AssociatedCollectorsInc.• RichterReality• Combs&Associates–LandSurvey&CivilEngineering• EdwardJones• Rumor‐StudioLounge&Boutique

RiverSt.Businesses:

• PlazaFurniture• DrivingSchool• OfftheWagonBar&Grill• TheLiquorHoleSaloon

DodgeSt.Businesses:

• YMCA• PostOffice

JacksonSt.Businesses:

• KenleyPharmacy• Attorney• AllSeasonRunnerassessment

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AppendixB:CurrentUseofHistoricGasStations(90mileradiusofJanesville)

Darlington,WI404MainStreetUpforSaleasof2007

MineralPoint,WI110SouthChestnutStreetCurrentlyUpforSale

Monroe,WI1323NinthStreetEcowaterSystems

Platteville,WI340SouthChestnutStreetB&B’sServiceStationandfuel‐deliveryservice

PrairieduSac,WI105WaterStreetMidwayOilCompany

Rockbridge,WI1082LodgeStreet

SouthLancaster,WI7697HurricaneRoadPrivateResidence

SpringGreen,WI137SouthWinstedStreet/StateHighway23CabochonGems&Designs(andPhotography)

Burlington,WI148WestChestnutStreetJustPawsDog&CatGrooming

Cedarburg,WIN58W6189ColumbiaRoadPagodaFineJewelry

TownofEmmet,WIN1085Highway26OfficeSpace

FondduLac,WI117NorthMainStreetPrecisionLocksmithing

Glendale,WI7575NorthPortWashingtonRdPhillipsGasStation

Hartland,WI252‐256WestCapitolDrivePrivateResidence

Janesville,WI720CenterAvenueRestoredcottage‐stylegasstationnotinuse

Jefferson,WI109NorthCenterAvenue

Kenosha,WI2122SixtiethStreet(eitherInternationalAutoSportsorFlowerShop=conflictingreports)

Kewaunee,WI302EllisStreetParkosOilCoInc(MobilGasStation)

Madison,WI1129SouthParkStreetClarkGasStation

Madison,WI202EastWashingtonAvenuePahlTireCompany

Madison,WI2502MonroeStreetParman’sServiceStation(NoGasoline)

Madison,WI2089AtwoodAvenueMonty’sBluePlateDiner

Madison,WI2531MonroeStreetMichael’sCustard

Madison,WI3826AtwoodAveMichael’sCustard

Verona,WI407W.VeronaAveMichael’sCustard

Madison,WI950SouthParkStreetShellOilCompanyStation

Mequon,WI11209NorthCedarburgRoadTowneMarketMobilstation

Milwaukee,WI4924WestRooseveltDriveShermanPerkCoffeeShop

Muskego,WIS98W12578StateTrunkHwy36DurbanHillAutoSales&Service

GenoaCity,WIN1055TombeauRoadPrivateResidenceWorkshop

Pulaski,WI159WestPulaskiStreetPulaskiChamberofCommerce

Stoughton,WI480EastMainStreetMeltonMotors(Used‐Cardealership)

Waterford,WI28407NorthLakeDrive

Waterford,WI100SouthJeffersonStreetUncleHarry’sFrozenCustard

Watertown,WI501SouthThirdStreet

WestAllis,WI1647South76thStreetAPetrolianaMuseum

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AppendixC:WisconsinEconomicOutlook,August2010(seedocumentattachmenttoemail)

AppendixD:WisconsinHistoricalSociety‐HistoricPreservationTaxIncentives(seedocumentattachmenttoemail)

AppendixE:WisconsinHistoricalSociety‐GuidelinesforPlanningHistoricPreservation(seedocumentattachmenttoemail)