Paul McDermott remembers the first time he saw the site of the former Belchertown State School.
That was late last fall, several months after Ernest Bleinberger, senior vice president and COO for Maryland-based Hunter Interests first invited him to take a look. Hunter is the firm hired by the Belchertown Economic Development and Industrial Corp. (BEDIC) to conduct a feasibility study of plans to convert the site into a resort hotel and wellness complex and generate some interest for the project in the development community.
Bleinberger had worked with McDermott, now president of a Chicago-based venture called Bridgeland Development LLC, on a few mixed use development projects, and thought the BSS campus and the potential to transform it into something unique would intrigue him.
He was right.
“It took some prodding, but I finally got there,” said McDermott, who had been working on several large-scale development projects and thus struggled to find some time in his schedule. “And when I did, I fell in love with the site and the community, and decided that this was something I really wanted to go after.”
By that, he meant the unique concept that has been proposed for a portion of the 400-acre site — a destination resort spa with related, wellness-oriented businesses and attractions. The planned mix would include several of the elements from other projects McDermott has worked on, including hotels, wellness centers, sports facilities, equestrian centers, restaurants, and others, but not all in the same package.
“I’ve never done a project quite like this one, and that’s what intrigues me,” said McDermott, whose firm was chosen earlier this month to be the master developer for the BSS project, known colloquially as the Cold Springs Resort Hotel and Spa Complex. Bridgeland will spend the next three months taking the conceptual plans for the concept and shaping them into a working model based on market realities.
A memorandum of understanding could be inked by the end of the month, said McDermott, adding that, while the project’s final price tag will be determined by the components included in it, the cost will likely be between $70 million and $100 million (with 80% or more being private money), making it one of the largest development efforts the region has seen in recent years.
BusinessWest looks this issue at the next steps in the process of making it reality.
Mind over Matter
As he talked with BusinessWest via cell phone, McDermott was being guided by his car’s onboard navigation system to a massive, 1,200-acre development in Rock Hill, S.C., just south of Charlotte.
There, Bridgeland and its parent company, Cincinnati-based Pollution Risk Services Inc. (PRS), are finalizing plans for the Greens at Rock Hill Project — one of the largest development projects currently underway in the country — at the long-shuttered Celanese Fibers Company complex. Plans call for roughly 300 acres to be devoted to warehouse and light manufacturing, another 300 acres of retail, a satellite medical campus with a 100,000-square-foot wellness center, and more than 1,000 residential units.
Rock Hill is one of many environmentally challenged sites that PRS has placed in its portfolio over the years. The company specializes in remediation of such sites — more than 3,000 of them since the company was formed 21 years ago — and, in recent years, has added a development component to its roster of services.
The desire to expand the development aspect of the business led PRS President Mark Mather to partner with McDermott and create Bridgeland in early February. The company is already engaged in managing four urban mixed-use development projects, including Rock Hill, and is consulting on an equestrian center project in San Antonio, a 50-acre retail and hotel development project in Bridgeview, Ill., and a 100-acre mixed-use project in Costa Rica that will include more than 100 residential units, retail, commercial, and an equestrian center.
Bridgeland is the latest stop in McDermott’s 28-year career in the management of complex projects that cross several realms, including commercial, industrial, hospitality, residential, sports, entertainment, and others.
While serving as a project executive for International Facilities Group, LLC (IFG) and, prior to that, as senior vice president at Mesirow Stein Real Estate and manager of project management services for Hanscom Inc., McDermott worked on several large-scale projects. They include ‘The Glen,’ a $1 billion redevelopment of the closed Glenview Naval Air Station in Illinois; another base-closure redevelopment at the Orlando Naval Training Center; a $70 million project to build a new stadium for the Chicago Fire professional soccer team; and the $150 million Orlando Performing Arts & Education Center.
McDermott told BusinessWest that he will borrow from those experiences and many others as he works to bring the BSS concept from the drawing board to reality.
The Cold Springs Resort Hotel and Spa Complex is the vision that has emerged for the state school property, which has been the subject of considerable speculation since the state-run residential facility for the mentally retarded closed its doors in 1992. Several possible uses have been forwarded in the years since — from a jail to a retail center, to a national music center — but none have materialized.
The spa concept was eventually brought to the table by town resident Elizabeth Tarras, who once worked in marketing for Springfield’s Business Improvement District. She began researching the subject and concluded there was a market for a moderately priced resort spa in the center of the state, and that such a venture could be complemented with other health- and wellness-related businesses and activities to create a viable destination.
Hunter Interests, which has undertaken feasibility studies, market studies, financing plans, marketing strategies, and other initiatives for a wide range of development projects, including the one in Rock Hill, was hired in early 2005 to conduct such pre-development work for the BSS site.
This included the coordination of a request for proposals (RFP) for the site, which eventually drew responses from 23 “interested parties,” including Bridgeland.
McDermott said the Belchertown site is not considered to be environmentally challenged — although there are some issues, such as asbestos removal — but it does fit the profile of the type of mixed-use project that he and PRS specialize in.
The next three months or so will be devoted to putting a mix together and creating a working plan for the site. Elements to the Cold Spring project could everything from senior housing to a micro-brewery; a medical office building to cross-country skiing.
“We have 90 days to pull together a development team, which means we’ll select a hotel developer and operator, a wellness center operating company, restaurateurs, and a planning team with architects, engineers, and master planners,” he explained. “We’re looking at developing a museum, some sports facilities, an equestrian center, some retail … we’re going to come up with the package we think will work.
“We want to confirm that this is economically viable,” he continued, “or, to put it another way, confirm what it will take to make it economically viable in terms of amendments to the original plan.”
The assembled team will also assess which of the buildings on the campus can be renovated for new use and which will be razed, said McDermott, noting that while the overall site is historic, individual buildings on it are not.
“There are well over 20 existing buildings on the site in various states of disrepair, and one of our next tasks is to do an assessment,” he explained. “Essentially, we’ll have to do a cost/benefit analysis on each building regarding the cost to remediate, renovate, and their specific usability.
“Overall, there are a lot of questions we need to answer — for example, do we want a boutique hotel or a main-brand hotel; a 50,000-square-foot wellness center or a 100,000-square-foot wellness center,” he said. “Hopefully, we can answer them over the next 90 days.”
Building Suspense
If all goes well, permitting and site plan work and remediation of buildings within the complex could be completed over the next 18 months, said McDermott, adding that the hotel could be open within 2 1/2 years.
For now, though, the focus is on shaping the broad vision for the property into a workable plan.
“This is an awesome site with enormous potential,” he said. “I think we can do something special here.”
George O’Brien can be reached at[email protected]