FORT WAYNE – The dreams of The Harrison have for years been just that as the once promised downtown development has consistently missed deadline after deadline.

Fines were crafted, failure was declared and it even had its own “Mission Accomplished” moment earlier this year when officials announced it was “a go” only to see it fall apart just a few months later.

But the recent arrival of two respected local developers has infused the project with not only capital and credit, but also much-needed public credibility.

Even critics of the project said the addition of the developers will help ensure the success of The Harrison – if only because they wouldn’t associate themselves with failure.

“I don’t think they want their name attached to something that is going to fail,” said City Councilman Tom Smith, R-1st, who has been a repeated critic of the project. “These two guys can make the difference.”

On June 13, Mayor Tom Henry announced Mark Hagerman, CEO of The Hagerman Group, and Simon Dragan, president of Whitley Manufacturing Co., will partner with Chris Schoen, CEO of Atlanta-based Barry Real Estate, to form New Harrison LLC. The new entity will be responsible for developing the project that Barry Real Estate was originally to build.

The limited liability corporation was formed the same day of the announcement, according to records with the Indiana Secretary of State. Dragan said he and Hagerman are the primary investors in the new company, with Schoen playing a smaller role.

The Harrison is a proposed $17.5 million mixed-use development slated to be built adjacent to Parkview Field. It is the only piece of Harrison Square left unfinished. The downtown development also includes a parking garage and a Courtyard by Marriott hotel with Champions sports bar.

Hagerman declined several requests to be interviewed by The Journal Gazette for this story. A representative for Hagerman said, because the financing for the project is not complete, it would be premature to discuss it. Mayor Henry echoed those sentiments as he also declined to be interviewed.

Dragan did discuss his role, and hope for the project, sounding more bullish about its prospects than did almost anyone else involved.

“There’s no doubt in my mind we will finish the job,” he said.

A host of sources, including interviews, public documents and company records, show two men with a history of local success – including being able to turn around a struggling project.

Building downtown

Hagerman, 67, is likely the more publicly known of the two local investors. The leader of one of the best known local developing companies has had his share of public laurels – including a proclamation from Henry declaring May 3, 2011, as “Mark Hagerman Day” for his work with the American Red Cross and other charitable organizations.

A graduate of South Side High School and Valparaiso University, Hagerman started work at the family company in the 1960s. By 1978, he was named president. He relinquished that role in 2008 and now serves as company chairman.

The company’s work includes numerous high-profile developments. For example, it constructed Memorial Coliseum in 1952 for $3 million – and then was hired to raise the roof and expand it in 2003, according to the company’s website.

It built the City-County Building in 1969, Fort Wayne International Airport in 1941 and the Northcrest Shopping Center in 1958. It might be best known for building Lincoln Tower in August 1929 and completing the work despite the stock market crash that soon followed.

The company was involved in constructing Parkview Field and was brought on by Barry Real Estate to help construct The Harrison several years ago. Schoen of Barry Real Estate last month said it was only after Hagerman’s company became involved in the project that Hagerman was approached about becoming an investor.

In December, city officials said a private investor had committed at least $1 million toward the financing of The Harrison. It was later revealed that Hagerman was that investor.

At the announcement of the new investment team, Hagerman said he was happy to help make the long-anticipated project a reality.

“To be a partner in helping The Harrison come to life reflects our commitment to this community, one that grows stronger with every investment that we have been privileged to make in it,” he said in a statement. “I look forward to watching The Harrison rise from the ground and welcome its positive impact on downtown and the entire city.”

While Hagerman is listed as the contact agent of the new corporation, city officials did not disclose the financial terms of the new company. Because it is a private entity, such information is not required to be released.

American success

While Dragan’s current position isn’t far from Hagerman – the two live about 1.5 miles from each other in Aboite Township – he started half a world away.

Dragan, 63, was born in Vurpar, a small town in the Transylvania region of then-Communist Romania. He escaped to the United States as a political refugee in 1969, despite fears that the Communists would kill him as a spy, according to family friend Jim Sack.

Sack, who worked previously for Dragan and retains a close friendship, said the refugee eventually landed in Baltimore, where he was able to get a job with Williams Scotsman, a modular construction company.

Upon arriving, Dragan said he found an openness to outsiders that was not found in Western Europe, where he said he was still considered a foreigner.

Using his Romanian toughness and conservative business acumen, Dragan rose to vice president of operations at Williams Scotsman before deciding to buy the South Whitley factory in 1993. Dragan, who still retains a hint of an accent, called the purchase of the plant a “big risk,” but said it not only turned out good financially for him, but also saved the jobs of about 60 workers.

He now not only oversees that plant, but similar operations in Rochester – which are currently shuttered – and Marysville, Wash. Whitley Manufacturing started to provide homes for veterans returning from World War II but now focuses on office manufacturing.

Locally, the company has developed several projects, including two four-story dorms at Fort Wayne’s Indiana Tech campus. He met Hagerman on one of the dorm projects and the two maintained a relationship, Dragan said. He noted Hagerman did good work that was on budget.

But Dragan’s success is much more than just big buildings, Sack said. While he has a tough, conservative business side, he also has used his success to help build community here and in his country of birth.

The company’s website touts its construction of a concession trailer for the Bippus Lions Club – a “fun project” that “helps the community,” Dragan said regarding the site. Sack said Dragan has also worked to send medicine, eyeglasses and other support to his hometown in Romania, while also creating a microloan program for its residents and helping construct the town’s city offices.

After PNC Bank determined the deal for The Harrison “needed more strength,” according to Schoen, Dragan was brought on board as an investor after being approached by Hagerman. Dragan said his company had considered being a part of The Harrison development several years ago but determined it wasn’t appropriate for their business.

The structure of the developer, New Harrison, with he and Hagerman as the primary investors, is likely the reason PNC is willing to help finance the project, Dragan said.

Drew Welborn, who works as Dragan’s attorney but said he has known Dragan for most of his life, said his boss got involved in such a controversial deal – a step that is not his norm – partly because he wants to help his hometown and also because he sees value in it.

“He’s doing it because he wants Fort Wayne to succeed,” Welborn said. “He also expects it to be a good business deal.”

Dragan was blunter, saying he isn’t doing this to lose money and that he believes it will be a success. He did admit he was surprised by the public nature and politics surrounding a private development and that he’s already heard from friends and counterparts questioning why he would get involved in such a deal.

“I’m convinced we’ll be a success,” he said.

Pat Carmody, president of Innovative Modular Solutions, is supplied by Dragan’s company. He said Dragan’s agreeing to participate in The Harrison can mean only good things for its future.

“He has been very successful in any business endeavor he’s ever undertaken,” Carmody said.

City Councilman Tim Pape, D-5th, has been a strong champion for Harrison Square since its announcement. His law firm, Carson Boxberger, will occupy the building’s entire second floor if it is constructed.

The addition of Dragan and Hagerman gives Pape renewed confidence in the project because of their history of success, he said. It also was nice to have some local investors participating in such an important community development – as Hardball and Barry Real Estate are located in Atlanta and the hotel developer is not from Fort Wayne.

“If they find value in the project, it’s extremely good news for the people of Fort Wayne,” he said.

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