Subject: Knight Foundry Update

From: [email-masked] (Davidlindq)
Date: 7 Jun 1996 07:50:53 -0400

In the past there has been some interest here in the Knight Foundry
located in Sutter Creek, California. It is probably the last water powered
machine shop and foundry in the United States. Much of the following I
found out during the annual meeting of the Society for Industrial
Archeology, May 30-June 2, 1996. Most came from Carl Borgh, owner of
Knight Foundry and from Ed Arata of Friends of Knight Foundry.

Knight Foundry is currently in operation. It is _not_ open to visitors or
tours or doing workshops. They are  working on a job casting parts for 4
railroad turntables for 4 customers including the Orange Empire Railway
Museum. They had started this work by the end of April  (I spoke to Russ
Johnson at the Foundry at that time. Russ had also been with Historic
Knight & Co., Ltd and is now handling this job for Carl Borgh). Carl told
us they have about another 6 weeks to go. They may also do some machining
of the parts, this is as yet undecided. He does not know what will happen
after this job is completed.

Ed Arata told us their basic problem was lack of money. Historic Knight &
Co., Ltd., the entity which had leased the foundry from Carl Borgh and was
operating it was doing O.K. until about last summer when their business
fell off drastically. By the end of 1995 they could no longer sustain
their losses and had no prospects of funding to carry them through to
possible better times and so had to cease their operating arrangement with
Carl and dissolve Historic Knight & Co. Friends of Knight Foundry, which
was seeking money to acquire the site _and_ stabilize _and_ improve it has
not been able to come anywhere close to raising the estimated $750,000 to
$1,000,000 needed to do all this. Ed said that barring a miracle, Friends
of Knight Foundry will probably also be dissolved. He further said they
got "a lot of ink", Penton Publication's Foundry Magazine did a cover
story on them and we got a copy of the article in the current issue of
Historic Preservation. While he encountered a lot of interest over the
last few years of trying to raise funds from both the public and private
sector, the money itself was not forth coming in sufficient amounts. He
said the site will probably make the National Trust for Historic
Preservation's "endangered list". This may or may not cause a miracle to
happen. He echoed Carl Borgh's uncertainty about what will happen once the
current job is done. At the end of this session, Walter Gray, head of the
California State Railroad Museum said he's always saying to his staff "The
only thing that stands between us and our dreams is millions of dollars."

I wish I had better news.

David Lindquist
[email-masked]

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From: [email-masked] (J. Kimberlin)
Date: 7 Jun 1996 17:09:37 -0700

In article <[email-masked]>,
>Knight Foundry and from Ed Arata of Friends of Knight Foundry.
snip

>$1,000,000 needed to do all this. Ed said that barring a miracle, Friends

I guess I don't understand why the Knight Foundry Property would cost 
$750,000.  IMHO it is worth about $300K max given the buildings, the land, 
the potential, and the environmental cleanup that would be required to 
use the property for much of anything else.  It is a wretched place, full 
of old unkempt machinery, dirt, roof leaks, dust, crud, and totally 
lovely for people like us, but hardly worth $750-1M to a practical person 
who has not won the lottery and able to be charitable to afficianados.

Maybe I am being cynical but whoever the property owner actually is may 
be trying to milk the *history* for whatever he can suck out 
of some afficianado or other sucker, with no thought to the historical 
significance.

Has anyone thought about getting a group together to start a trust 
partnership to buy the place?  Just as a historic place in which one 
could work and not have to produce to pay a mortgage?  Where you could 
give tours if you wanted to and if anyone was there to act as a guide?  
Are there 10 of us here on the net that can contribute, say $50,000 each, to 
make an offer?

David thanks for the update, but I still remain sad about Knight 
Foundry.  Please continue this thread and lets see what net-wisdom can 
come up with in ideas.

JerryK

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From: [email-masked] (Davidlindq)
Date: 8 Jun 1996 14:24:38 -0400

J. Kimberlin ([email-masked]) wrote:

"I guess I don't understand why the Knight Foundry Property would cost
$750,000. IMHO it is worth about $300K max..."

What I wrote previously was:

"Friends of Knight Foundry, which was seeking money to acquire the site
_and_ stabilize _and_ improve it has not come anywhere close to raising
the estimated $750,000 to $1,000,000 needed to do all this."

This money is the amount that Ed Arata said was needed not simply to buy
the property from the owner, Carl Borgh, but also to do the necessary work
to stabilize the site and to make needed improvements. It does not
represent the asking price or the perceived fair market value of the
property.

David Lindquist
[email-masked]

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From: [email-masked] (J. Kimberlin)
Date: 8 Jun 1996 15:20:28 -0700

In article <[email-masked]>,
>represent the asking price or the perceived fair market value of the

David, thanks for the clarification.  I wonder now what the asking price 
is?  As I suggested before, should some people get together in a trust 
partnership and buy the place?  Maybe Ed Arata has a prospectus listing 
the repairs and improvements he has envisioned and the costs he 
attributes to these items.  It would be interesting to explore this.

JerryK

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From: [email-masked] (Jim Shockey)
Date: 9 Jun 1996 08:21:02 -0700

In article <[email-masked]> [email-masked] (J. Kimberlin) writes:
>From: [email-masked] (J. Kimberlin)
>Subject: Re: Knight Foundry Update
>Date: 8 Jun 1996 15:20:28 -0700

>JerryK

While I haven't visited this site, I have followed this thread 
for the past few days. It occurs to me that, if the description 
I've seen of the physical condition is at all accurate, you might 
well need to budget that 1M before you get the papers signed. 
Since no one in his right mind would buy a piece of property 
anymore without, at least, a Level One Enviro. Survey, I'm 
sure you are aware of how quickly the price of an old industrial 
site can soar, once the cleanup starts. It may well be that  "repairs 
and improvements" are the least of the costs associated with 
owning this parcel. 

Good luck, 

--jim			<[email-masked]>

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From: [email-masked] (J. Kimberlin)
Date: 9 Jun 1996 12:23:40 -0700

In article <[email-masked]>,
Jim Shockey <[email-masked]> wrote:

snip...
>--jim			<[email-masked]>

Jim, good comment.  It is doubtful that any contamination other than iron 
and associated metals exist at Knight Foundry.  I don't think they made a 
business of lead, tin, zinc, and other RCRA metals.  While I can't 
predict what may be there without sampling and analysis, at face value 
the dirt and cobwebs, falling paint etc. may be the worst of it.  I would 
think the buildings have lead paint, however, and that may have to be 
removed.  As an historic place, perhaps a waiver can be granted for some 
types of contamination.

JerryK