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Minutes Historic Pres 10 24 02MINUTES Thursday, October 24, 2001 5:00 p.m. ICN Room, Carnegie Stout Library 360 W. 11th Street, Dubuque, Iowa PRESENT: ABSENT: Chairperson Wand; Commission Members Chris Scheopner, Suzanne Guinn, and Terry Mozena; Staff Members Laura Carstens, Tim O'Brien and Wally Wernimont. Commission Members John Whalen and Jim Gibbs. AFFIDAVIT OF COMPLIANCE: Staff presented an Affidavit of Compliance verifying the meeting was being held in compliance with the Iowa Open Meetings Law. CALL TO ORDER: The meeting was called to order by Chairperson Wand at 5:01 p.m. ACTION ITEM (TABLED): Application of Cooper Development Co. LLC (tabled) for review of an application for property tax rebate for historic properties for property located at 299 Main Street in the Old Main Historic Preservation District. Chairperson Wand noted receipt of a memo dated October 29, 2002 from Planning Services staff informing the Commission that Greg Phrem, Cooper Development Company, had contacted Economic Development staff to request tabling their application. Motion by Guinn, seconded by Mozena to table the application as requested. Motion approved by the following vote: Aye - Guinn, Mozena, Scheopner and Wand; Nay - None. DESIGN REVIEW: Application of Colts Drum & Bugle Corps to demolish residential structure to create a parking lot at 1112-1114 Central Avenue in the Downtown Demolition District. Greg Orwoll, Executive Director of the Colts Drum and Bugle Corps, stated that the Planning Services staff analysis was accurate, but that the Colts had not submitted an up-to-date profit and loss statement for the parking lot. He went on to say that the Colts are not looking at the parking lot as a profitable venture, but rather at the quality of the neighborhood in the vicinity of the Colts Bingo Hall at 1101 Central Avenue. Orwoll said the Colts want to expand their bingo business, and found the Planning Services staff's analysis of available parking in the area valid. He added that ultimately the Colts want to improve the quality of the neighborhood at their front door, and to control its appearance and use, not just to create more parking. Orwoll said that the type of residents at 1112-1114 Central Avenue was a concern, as was the condition of the structure. Minutes- Historic Preservation Commission October 24, 2002 Page 2 Commissioner Mozena noted ample parking in the area on weekends. He felt the building had architectural significance. He said if the residents are not reputable, that perhaps this is an issue for the property owner to address, and so he did not see demolition as necessary. Staff Member Carstens reviewed briefly the information provided by the applicant, the information not provided as required by City Code, and the staff analysis. She noted that the Commission is to consider two criteria for demolition requests: (1) if the building is historically or amhitecturally significant; and (2) if denial of a demolition permit does not allow the property owner to earn a reasonable economic return. She added that the Commission is in an advisory role, and is to provide a recommendation to the City Council. Commissioner Scheopner asked Mr. Orwoll how many people the Colts bingo draws. Orwoll said bingo games top out at 220, and the building is rated for 404. Orwoll added that the Colts are beginning to market the bingo hall for trede shows. Commissioner Scheopner asked about the surrounding properties, and Orwoll described them. Commissioner $cheopner asked if there was handicapped parking. Mr. Orwoll said there are two on-street spaces, and one new space is proposed for the new parking lot. Commissioner Scheopner asked how many stalls the proposed lot would have. Mr. Orwoll replied that 24 spaces are being proposed. Commissioner Scheopner asked about impacts on the neighborhood. Mr. Orwoll stated that most of the Colt's issue is with the building and its tenants. He felt the best use of the economic return is to reuse the property for parking. Jerry Anderson of Anderson Design and Consulting, project designer, noted in Exhibit A of the staff report, that they can't do exterior rehab only and earn the same amount of rental income. He said it would be only $1,000 per year in rents. Michael Visintin, 1790 Asbury Road, property owner, said the property was owned for years by Mary Bussan before being condemned by the City~ He said he acquired the property at cost with a silent partner, who took a second mortgage. Mr. Visintin said he made a $6,000 investment. He added that rents were maximized at $540 and $640 per month. He said he can't get reliable tenants primarily due to the location. He said the Police were at the site five times this year. He said the apartments were redone due to wear and tear of tenants. He added that he had evicted five drug dealers. He said his typical tenant has alcohol or drug abuse problems. He described some of his tenants who he took without reference checks or in spite of poor references. Mr. Visintin argued that he can't make the investment shown in Exhibit A to generate the income shown. He said the building doesn't have a return now. He said with the investment shown, he won't be able to make a return or sell the property. He said the income he receives now is sufficient to keep the building in compliance with code. Chairperson Wand said that the Commission needs to look at two issues: (1) historical/architectural significance; and (2) economic return. Minu~s- Histodc Preservation Commission October 24, 2002 Page 3 The consensus of the Commission was that the building has significance based on the State report submitted. Motion by Wand, seconded by Guinn, to determine that the building is significant based on the State report. Motion approved by the following vote: Aye - Guinn, Mozena, Scheopner and Wand; Nay - None. Commissioner Wand noted that with respect to economic return, some information has not been submitted, including grants and loans that would help reduce the rehab costs. He agreed with Mr. Anderson that exterior only rehab would be a stopgap measure at best. Commissioner Guinn said she needed a more complete application to make a decision. She said she would like to see multiple bids/costs/quotes. She referenced the quote of $500 for windows without competitive bids to back it up. She also noted a lack of maintenance and repair records/history from the City's Housing Department. Commissioner Guinn added that the property owner has stated that the property is earning enough of a return to keep it in Code, and this is reason to preserve it. Commissioner Mozena felt that the building has potential as an office structure if housing units are not the highest or best use. He added that if you maintain a structure, you build equity. He noted the economy of downtown with the planned investments by the public and private sectors. Commissioner Scheopner also noted that the property owner has said he is not earning a return because of his tenants, yet he is earning enough to meet Code. Vicky Schaefer, Colts Drum and Bugle Corps, said she has toured the property and she has never seen anything like this condition, even in East St. Louis. Chairperson Wand reviewed the maintenance list submitted by the Colts. Mr. Visintin clarified that items listed from 1999 on were fixed. Chairperson Wand said he agreed with Commissioner Mozena that we'd be tearing this building down to fix the neighborhood and that we haven't looked at other options for viable use of the structure. He said if we were to tear down buildings just because they are in "bad neighborhoods," we'd tear down buildings all over downtown. He didn't feel that they had enough information to make a determination of economic return. Mr. Visintin said he had purchased the building at $50,000 with a second mortgage for $16,000, and he has paid some off. He said it had an appraised value of $70,000- $74,000. He added that he had been turned down by two commemial realtors to sell it. He felt the building won't make it as an income property. Commissioner Scheopner said if you pumhase a building like this, you have to realize that you will have replacement costs due to the age of the building. Minutes-Historic Prese~ation Commission O~ober 24, 2002 Page 4 Commissioner Guinn said she couldn't make a decision on economic viability at this meeting. She and Commissioner Mozena agreed they would support tabling the request for the applicant to submit all the required information. Mr. Orwoll asked how the Commission defines reasonable economic return. He said he would define it as 6-8%. He also noted that there is no daytime parking in the area. He added that there is heavy truck traffic on two sides of the building. Assistant City Attorney Tim O'Brien answered that the Commission defines reasonable economic return as they see fit on a case-by-case basis. He said it could renge anywhere frem 1% to 10% and is what anyone reasonably would expect. He explained the Supreme Court's ruling on "takings," which prevent a reasonable return on preperties. He added that the standard is designed to allow regulation, but not to a point where a reasonable return can't be earned or a reasonable use of the property is restricted. Chairpereon Wand asked Mr. Orwoll if we have any reason to believe that the Colts need this property for parking. Mr. Orwoll said no, it is not necessary. Chairperson Wand said the question or dilemma for the Commission is that if the Colts don't need the parking and don't own the building, how can denial prevent an economic return? Assistant City Attorney Tim O'Brien explained that the Colts step into the shoes of the property owner in this case, by virtue of their option to purchase. He also explained that there is no time restriction on the Commission's review of this request, because an application for demolition permit has not been filed with the Building Department. Chairperson Wand noted this special meeting and preliminary design review was done as a courtesy to the Colts. Commissioners discussed what additional information they will need to see in order to make a determination on reasonable economic return. Commission Guinn listed: (1) exactly what needs to be done to rehab the property as determined by the City Housing Department; (2) more than one set of estimates to meet these rehab requirements; (3) estimated value of the preperty after renovation; and (4) any items identified in the staff report as being omitted. Commissioner Mozena added that the applicant needs to previde documentation of State grants, incentives that come with National Register eligibility, and all other information in item #15 in the required submittals under City Code. He also said staff should work diligently with the owner to find incentives. Chairperson Wand clarified that research needs to be documented on local or state agency letterhead, not on a list or letter submitted by the applicant. Motion by Guinn, seconded by Mozena, to request staff to work with the applicant to complete the application and to provide the information required for economic return analysis. Motion approved by the following vote: Aye - Guinn, Mozena, Scheopner and Wand; Nay - None. Minutes- Historic Preservation Commission October 24, 2002 Page 5 ITEMS FROM PUBLIC: John Gronen, 1766 Plymouth Court, presented his preliminary proposal for rehabilitation of historic buildings at 1042, 1066, 1086 and 1091 Main Street and 248 W. Ist Street in the Downtown Neighborhood Demolition District. He explained that he is applying for historic rehab tax credits. He said his proposal will create affordable housing units on the upper levels, and commercial storefronts on the street level. He reviewed that parking would be in the rear of the buildings, off the alleys. Mr. Gronen also reviewed the existing lean-tos and addition he would like to demolish on the rear of the buildings, and the proposed new additions. He asked the Commission for a letter of support to him and to the Iowa Finance Authority for adaptive reuse and rehab of these properties, for his tax credit application. Commissioners thanked Mr. Gronen for making the presentation and complimented him on the project. The consensus was the proposed demolitions were not a major concern to the Commission because they are not original. Motion by Guinn, seconded by Mozena, to submit a letter of support to John Gronen and the Iowa Finance Authority for adaptive reuse and rehab of these properties, as supportive of downtown revitalization, historic preservation and creation of affordable housing downtown. Motion was approved by the following vote: Aye- Guinn, Scheopner, Mozena and Wand; Nay- None. ITEMS FROM COMMISSION: Commissioners discussed the code enforcement process for the Bricktown parking lot and the inclusion of criteria within grants, loans and other financial incentives that would address violation-of/non-compliance with City Ordinances. Assistant City Attorney Tim O'Brien recommended that the code enforcement process for the Bdcktown parking lot should be implemented by the Building Services Department, and that broad language be used to cover this situation in City financial incentives. ADJOURNMENT: Motion bY M0Z~na, seconded by Guinn, to adjourn passed unanimously. The meeting adjourned at 6:41 p.m. Respectfully submitted, Laura Carstens, City Planner Adopted