Sykes' fans look for developer

Man envisions $15 million complex

A group of people organized to save Sykes' Grocery & Market in downtown Kalispell left a meeting Tuesday hoping to find a developer for a restaurant, grocery, pharmacy, social service and housing complex on the site.

A facilitator for the group, Gerald Fritts of Evergreen International, told participants that he didn't think the 103-year-old building could be saved.

"All the concern is for the services provided at Sykes'," he said. "The building is not attractive. We need to find a way to maintain the services provided at Sykes'."

None of the meeting participants challenged his assertion, although John Chalinder called Sykes' "the one big piece of charm this town has." But most agreed the building had no architectural significance.

At the start of the meeting, each person was asked why he or she was attending. Nearly everyone said he or she wanted to keep a place for seniors and others to gather for coffee or a meal as well as a location to get pharmacy items and advice and groceries.

Jim Atkinson, a Kalispell City Council member and executive director of the Agency on Aging, said he came because Sykes' serves as an unofficial senior center.

"We have a real interest in seniors and where they hang out," he said.

The citizen group formed recently after it became public that Sykes' elderly owners Doug and Judy Wise had their properties and business for sale for $1.6 million. The couple's business activities at the site date back to 1945 when Doug purchased the grocery store.

The Wises added the restaurant in 1976 and the pharmacy in 1981. The second floor of the building has apartments.

All of the businesses, including the restaurant, grocery store and pharmacy, remain open as the Wises continue their search for a buyer.

Mike McFarland of Western Brokers listed the property which includes two buildings on eight city lots. He said the couple had hoped to find someone interested in continuing to operate Sykes' as it is.

According to McFarland, Doug Wise asked that he find a way to "take care of the old people" in the disposition of the businesses. Since listing the property, McFarland said he has heard a story every day of the kindness and support Judy and Doug Wise have given their customers over the years.

"I don't know of anyone in the community who wants to see this leave," McFarland said.

He said he had three prospective buyers and now has more since the Sykes' story became public. But, after looking since October, McFarland said no one had stepped forward with the money and interest in stepping into the businesses and continuing them as they are.

Fritts said the revenue generated by these businesses won't support the value of the property. He has expertise as a low-income housing consultant with projects in North Dakota, New Mexico, Utah and Kentucky.

He got involved in the Sykes' movement as an interested citizen.

"I take my wife down there now and again," he said. "We have breakfast down there."

At the meeting, Fritts went through a scenario of a combination development with housing and social service offices with a ground floor for a restaurant, pharmacy and corner grocery.

"A market study would have to be done," he said.

Fritts said the restaurant needs significant space and might need some type of subsidy while the pharmacy could handle commercial lease rates.

His scenario included building 36,000 square feet of housing for $5.4 million, 16,000 square feet of commercial space for $3.6 million and 80,000 square feet of parking at $2.4 million. With the land and soft costs for architecture, the development comes in at about $15.2 million.

After calculating revenues including sales of tax credits and rents, Fritts came up a little more than $7 million short, about 40 percent, of supporting the project.

"This seems like a terrible gap, but I don't think it is for a subsidized project," he said. "I think there's an opportunity to develop a project here that makes sense - where we end up controlling the social environment."

Fritts said finding a developer and getting support from social-service and other groups was critical to getting grants and other political support necessary to make up the shortfall. He agreed that a citizen petition might prove helpful in dealing with local, state and federal political leaders.

He said he could bring up this proposal at an appointment he has set up with Sen. Jon Tester, D-Mont.

"I can't go in just as an individual," he said. "I need the support of various groups."

No one knew what time frame was available to put a project together. Fritts estimated that it would take about a year after finding a developer to purchase the land to put together grants and other methods of cutting down the 40 percent shortfall.

He said a year's interest on $1.6 million amounts to a cost of about $125,000 to the developer.

Interested developers or citizens should contact Lindsey at Evergreen International at 755-2377. The group expects to set up another meeting in about 10 days.

Reporter Candace Chase may be reached at 758-4436 or by e-mail at cchase@dailyinterlake.com.