"Building for a Buck" development agreement proves successful with Cornerstone Building in Waukon

The initial efforts of the "Building for a Buck" program sponsored by Waukon Economic Development Corporation (WEDC) recently came to a successful conclusion as area real estate developer Dick Sullivan fulfilled the terms of a development agreement for what was formerly known as the Ulring Building at the corner of Rossville Road and Main Street in Waukon. The building, now dubbed the Cornerstone Building, has been completely renovated, businesses occupy all of the commercial spaces available and all of the apartments on the upper floors have been rented.
The building was donated to WEDC by previous owner Jim Ulring near the end of 2012 in a state of general disrepair following absentee ownership and development of the property not following as originally planned. Recognizing the historical significance of the building, the Waukon City Council and WEDC Board agreed that it would be in the best interest of the community to see the building renovated, but in order to do that, an incentive would need to be offered to attract commercial developers.
WEDC Board member Howard Van Ruler suggested the "Building for a Buck" idea, a program which had been tried in his home town, and the program guidelines were developed.
Three different investors expressed an interest in the program, and ultimately Sullivan and Tom Lewan were awarded with the development agreement. In exchange for a $1 purchase price, that agreement required the completion of numerous renovations within two years, including:
• Renovation of the three retail units on the lower level;
• Removal of unnecessary wiring, awnings, deteriorating concrete and old signs;
• Replacement of storefront doors;
• Repair and painting of all woodwork;
• Completion of outside work as needed;
• Renovation of the three retail units on the Main Street level;
• Installation of heating and cooling units;
• Repair or replacement of plumbing and electrical fixtures;
• Renovation of the residential rental units on the top floor, including the addition of a washer and dryer in the laundry room.
Sullivan eventually purchased Lewan's interest in the agreement and completed all of the terms in December of 2014.
The project started in sections at first, Sullivan said, but it didn't take long before everything was being done at once as renters expressed interest in the units. The retail units were restored to their original condition by removing the plaster on the walls, the ceilings and flooring, and the heating system was replaced. The apartments on the top floor of the building, which were fully renovated, turned out to be the biggest part of the undertaking, Sullivan said.
Sullivan estimates his total investment in the project at around $50,000. "The building was not in as bad of shape as some people thought," he said.
Getting the units rented wasn't as difficult as Sullivan thought it would be, either. "I was lucky enough to find renters," Sullivan said. "It's hard to find people who are willing to get into business. By offering lower rents and a helping hand to get the businesses going, we were able to make it work."
Currently, all of the retail units are rented, housing Ewing Real Estate, the Heart Song Center and Above the Rest. All six of the apartments upstairs are also rented.
"If you live in a town, it's nice to try to help it," Sullivan said. "By doing this, a lot of people around downtown are getting motivated to turn the town around."
"This is certainly a great thing for Waukon. We managed to save a building that I think we were all worried about. This was a good partnership between Dick, the City and Waukon Economic Development," said WEDC Board member Irv Fosaaen.  "It's what economic development is about - taking something and making it into a viable business site again. We're very pleased to have been able to take part in this. We appreciate the generosity of the people that donated the building. The program has certainly worked the way it was intended."