Update on Live's real estate ventures... Options

[Aitkens]

Pretty funny that the image in the story is of CG, PD, and another guy, who I'm guessing is Bill Hynes.


http://www.ydr.com/ci_19755299

Former members of the rock band Live toured the world, but never filled a venue like this.

It is an enormous empty hulk of a building, majestic brick on the outside, decrepit and moldering on the inside.

Three bandmates who were part of Live want to fill it - not with fans, but with a high-tech business, more than 140 modern residential units and a peaceful, family-friendly courtyard. And the fact that it is in the heart of Reading only strengthens their sense of mission.

York connections

Chad Taylor, Patrick Dahlheimer and Chad Gracey are, as Taylor put it, "sons of Pennsylvania."

They formed their first band in Gracey's garage in York, perhaps 50 miles from the 110-year-old building at 801 N. Ninth St. in Reading. They like the idea of boosting an impoverished city in their home state with a successful business venture.

Their Lancaster-based company, Think Loud Development, also purchased a 47,000-square-foot building in York in December.

The structure, at 210-236 York St., is a former factory that has one tenant lined up, a high-tech company whose name is not being disclosed. The purchase price in York was $164,000, said Bill Hynes, a Northampton County-based real estate developer. The cost of preparing the building for occupancy by the high-tech company will be about $10 million, he said, with $4 million likely to come from Think Spot and $6 million from the tenant.

Taylor said the pursuit of rock music success and business success are similar.

"Both practices take discipline and hard work and tons and tons of energy, with a little bit of luck," he said.

Taylor, Dahlheimer and Gracey, along with Ed Kowalczyk, formed the rock band Live in York, where all four grew up. They soared to fame in the 1990s, with a string of platinum albums and world tours. Their hits included "Lightning Crashes" and "I Alone."

Then, in August 2009 - after nearly a quarter century of making music - the band announced a hiatus. In the fall of that year, band members communicated with fans through their personal websites and social media sites that the hiatus could be permanent.

Kowalczyk pursued a solo career. Taylor, Gracey and Dahlheimer started the band The Gracious Few with Candlebox members Kevin Martin and Sean Hennesy.

During a May 2010 interview, Martin and Hennesy said they moved from the West Coast to live with Taylor in Lancaster. Gracey moved in with Dahlheimer, who lives in York County. The said they rehearsed in a York studio they dubbed "The Spot." The band released a self-titled debut Sept. 14. on the its label Questionable Entertainment.

Taylor was involved in the Lancaster-based company Aurora Creative Group, which produced radio and TV commercials, web sites, digital communications, publishing, TV programs and feature films.

Reading development

The downtrodden structure in Reading at the heart of Taylor, Dahlheimer and Gracey's latest business venture is Reading Outlet Center Building No. 1. The three band members teamed up with Hynes and purchased the building a few months ago for $1 million.

Working through their Lancaster-based company, Think Loud Development, they said they plan to spend more than $36 million to make the project happen.

A crucial, formative piece was securing a major corporate tenant. Hynes said Think Loud, formerly known as Think Spot Development, has signed an agreement with the undisclosed high-tech company that will occupy at least 50,000 square feet of the 320,000-square-foot structure.

Hynes said a confidentiality agreement prohibited Think Loud from revealing the identity of the company. It will be disclosed in the next few months, he said.

Taylor said Live's prominence has brought band members into contact with high-profile people such as Ellen DeGeneres and David Letterman, and with companies such as Google, Microsoft and Andretti Autosport.

"The band Live has a lot of connections," he said.

The band often defers to Taylor, the guitarist, as their "numbers guy" in business dealings, according to Hynes. He said Taylor has a gift for approaching people and making things happen.

Taylor is chairman of Think Loud. His ability to call a company and say, "Hey, will you take a look at this?" has opened doors for Think Loud, according to Hynes.

The rundown interior of the massive structure at 801 N. Ninth St. belies a rich history.

When the band members walked through it in December, windowless openings gaped from the upper floors of the five-story facade. Aging wood floors were holed and scattered with broken glass.

An old, graffiti-marred sign outside showed names such as Eddie Bauer and Bugle Boy and Florsheim. Aside from that, there was little evidence that 30 or 40 years ago, Building No. 1 was a major part of an outlet complex that drew thousands of shoppers to Reading.

"The buses came to Reading in droves," said Berks County historian George M. Meiser IX. "It looked like the World's Fair, with people walking up and down the street. It was unbelievable."

Hosting outlet stores was the second incarnation of 801 N. Ninth St. The first was its original use, as a factory making seamless hosiery.

The structure retains an appearance of factorylike sturdiness, with massive wood beams and high ceilings.

For Dahlheimer, it has visual appeal.

"Once we started to tour the world, architecture started to grab my attention," Dahlheimer said.

Bringing it together

Hynes, 39, said he has multiple business interests, including ownership of BKS Technologies of Nazareth, a maker of mobile phone applications. BKS made an app for The Gracious Few.

He met the band members when a mutual friend suggested they do business together.

The link to Building No. 1 came, Hynes said, when an email from Alan W. Shuman, the building's previous owner, arrived while Hynes was having a conversation with Gracey.

The Live drummer took the idea of transforming Building No. 1 to Dahlheimer and Taylor.

"They thought it was a great idea," Gracey said.

Think Loud's interest in the project grew through the latter half of 2011. In late September, when The New York Times published a story that told how Reading had more residents living in poverty than any other mid- to large-sized city in the country, the band members' desire to go forward only increased.

"We are humble Pennsylvanians," Taylor said. "We figured out a way to work through adversity when we were young."

In Reading, Hynes said, Think Loud has occupancy commitments from the high-tech company, a Laundromat and a fresh-food market operator. Their plan also calls for a parking garage.

The residential units, the Think Loud principals said, will be of various sizes, including three-bedroom units. They have retained Shillington architect David M. Kleckner to design the complex.

Kleckner renovated a former silk mill building in Shillington into the office he now occupies.

Taylor has faith that the outcome of the project will be worthy of attention.

"Live will bring The New York Times here," Taylor said. "I will call them myself."

[jayda]

Damn, the pic is gone. Wanted to check out Bill