Preservation Society Acting Director, Robert Gurley, expresses concern for halt in construction on Cigar Factory renovations in Post and Courier

Monday, December 21, 2009 - Construction Workers Aim to Protect Cigar Factory
Post and Courier
Business Review
REAL ESTATE
By Katy Stech

The Cigar Factory, a brick behemoth that anchors East Bay Street near an on-ramp to the Ravenel Bridge, has survived hurricanes and earthquakes during its 128-year history.

But its latest $75 million renovation, now stalled amid the frozen lending markets, has left the building’s core exposed to the elements, raising concerns about how it will fare as it weathers the financial storm.

“We’re always concerned when construction stops on a historic building,” said Robert Gurley, acting director of the Preservation Society of Charleston, who applauded the renovation. “There’s a possibility for vandalism or for rain to deteriorate historic material….When a building’s exposed to weather, bad things can happen.”

The project is the largest historic renovation project to stall so far during the recession.

Cigar Factory project manager Scott McKenna said crews are still at the site trying to “button up” the building. That process involves reinforcing wooden support beams, sealing the building’s elevator shaft and installing an air circulation system.

Most of the building’s previous heating and cooling system had been removed, he said.

“From day one, we’ve been working to protect it,” McKenna said. “I’m sure there’s a lot less leaks now than when we purchased it.”

The project’s developer, the Simpson Organization Inc. of Atlanta, still hasn’t found financing to continue construction. Silverton Bank, also of Atlanta, agreed to lend the group $37 million, but the transfer of that money stopped this summer after the bank was seized by the Federal Deposit Insurance Corp.

Developers funded the project for several months before deciding to stop construction the day before Thanksgiving. Trident Construction Co. was the project’s general contractor.

The Cigar Factory’s redevelopment calls for a mix of shops, 66 luxury condominiums and a white-tablecloth restaurant. The group has sold about a fourth of the condo units, which start at $380,000 and climb to $1.6 million.

Developers purchased the building for $20 million in 2007.

For information contact: Robert Gurley at (843) 722-4630, www.preservationsociety.org or Email: rgurley@preservationsociety.org