Title
Request to Acquire Conservation Easement for 218 E. Portland St. in Evans Churchill Area (Ordinance S-44813)
Description
Request to authorize the City Manager, or his designee, to enter into necessary agreements with True North Holdings, LLC related to the acquisition and acceptance a conservation easement at 218 E. Portland St. The City would provide up to $125,000 of funding in exchange for the conservation easement. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Planning and Development Department received a request on April 30, 2018 to acquire a conservation easement on a bungalow duplex at 218 E. Portland St. in the Evans-Churchill Neighborhood. While the bungalow with detached garage is not individually eligible for listing on the Phoenix Historic Property Register, staff supports the request because it will help promote the historical significance of the area and provide an opportunity for an adaptive reuse of the bungalow and detached garage.
The bungalow was constructed in 1919. The previous owner had obtained a demolition permit. True North Holdings, LLC negotiated with the owner to purchase the property to adaptively reuse the structure. The owner is requesting $250,000 to complete the rehabilitation and adaptive reuse of the property as a restaurant with a local operator. This project will renovate the interior of the bungalow as well as create a new outdoor area for a total adaptive reuse project of approximately 3,700 square feet. This project will also create net new jobs and tax revenues as well as support the ongoing adaptive reuse of existing buildings in the Evans-Churchill Neighborhood. In exchange for the funding, the City will receive a 30-year conservation easement on the property.
Estimated project costs total $856,364. Consistent with other grants provided to projects within the area, staff is recommending up to $125,000 of funding in exchange for the conservation easement. Approval of this item will help protect these structures during the continuing transition of the area as well as foster continued Downtown economic growth of smaller scale developments.
Financial Impact
The action will have no impact on the General Fund. The $125,000 is available in the Community and Economic Development Department Capital Improvement Program budget using Downtown Community Reinvestment Fund.
Concurrence/Previous Council Action
The Historic Preservation Commission heard this item on May 21, 2018 and recommended approval as presented by a 7-0 vote.
This item was recommended for approval at the Downtown, Aviation, Economy and Innovation Subcommittee meeting on June 6, 2018 by a vote of 4-0.
Location
218 E. Portland St.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Managers Deanna Jonovich and Mario Paniagua, and the Community and Economic Development and Planning and Development departments.