By By ANDY HAMILTON / Niles Daily Star
NILES - Groundbreaking on the newest addition to downtown Niles has been set for Tuesday at 2 p.m.
The 7,800 square foot building on the corner of Fifth and Main streets is being constructed by Chemical Bank Shoreline as a regional headquarters and branch location.
President of Chemical Bank Shoreline Tom Grant said the company's mix of manufacturer, developer and retail customers in the surrounding area has made Niles an ideal location to build.
Chemical Bank Shoreline purchased the pair of lots from the City of Niles in August of 2005 at a price of $86,000. City Administrator Terry Eull said the money will be divided between the city's revolving loan fund and the general fund.
The properties were formerly occupied by Gary's Standard and Aalfs Petroleum and were purchased by the city for $250,000. Around $75,000 of the general fund was used to purchase the property while the rest was taken out of the revolving loan fund.
Part of the agreement required the city to conduct a Phase I environmental study and stake survey of the property. Tap fees for water, sewer and electric estimated at $5,000 were also waved.
Niles was also responsible for demolishing the Gary's Standard service station.
Another stipulation of the deal stated Chemical Bank Shoreline and developer Fiskars Construction and Engineering of St. Joseph would have to begin construction on the building within 12 months from the sale date. If the two failed to break ground by the deadline, the city would have the right to buy back the property at the same sale price plus a prorated 6 percent interest.
Other concerns with traffic flow were also raised at that meeting. Both Main and Fifth streets are controlled by the state and any work, such as approval on curb cuts and access points, is being done outside the knowledge of the city, Eull said.
Grant said Chemical Bank Shoreline has contacted the Michigan Department Of Transportation on the issue of traffic flow both during and after construction. The plan for the site is to have the building sit toward the middle of the two properties with parking on the corner of Fifth and Main streets.
Both Grant and Eull said they do not anticipate traffic problems during the construction process. Grant added Chemical Bank Shoreline remains in contact with MDOT concerning any issues with traffic that may arise once the bank is completed.
Chemical Bank Shoreline in Niles will employ 12 people at first, with plans to expand in the future, Grant said. Aside from jobs, the final product will also provide the city with a new look for one of downtown's busiest intersections.
Construction is expected to be finished by the end of this year, Grant said.