Title
Request for Change of Grant Terms for Historic Dud R. Day Motor Company - Phoenix Motor Company Building, 401-447 W. Van Buren St. (Ordinance S-44064)
Description
Request to authorize the City Manager, or his designee, to approve a change of grant terms for a previously approved Demonstration Project grant of up to $250,000 for rehabilitation of the historic Dud R. Day Motor Company - Phoenix Motor Company Building, located at 401-447 W. Van Buren St.
Report
Summary
On Sep. 5, 2017, the Historic Preservation Office received a request from the property owner, SoHo on Van Buren, LLC, to change the terms for the $250,000 Demonstration Project grant that was approved for the rehabilitation of the Dud R. Day Motor Company - Phoenix Motor Company Building.
The City Council approved the $250,000 Demonstration Project grant on May 10, 2017. In exchange for the grant funds, the City was to receive a 30-year conservation easement to protect the historic character of the property. The funds were split between $75,000 of Historic Preservation Bond funds and $175,000 of Downtown Community Reinvestment Funds. Rehabilitation was completed and "The Van Buren" opened as an event center on Aug. 23, 2017.
The owners of the property are requesting the flexibility to market the building or make changes after the 15-year lease has expired for the event center. The proposed new grant terms allow the owners the ability to pay back the grant funds and extinguish the easement, if needed. If the owners seek to extinguish the conservation easement during years 1-15, they would be required to repay the full $250,000. Starting in year 16, the repayment amount would be reduced to $125,000, with the remaining years pro-rated.
Financial Impact
There is no financial impact for changing the terms of the grant, which has already been approved unless the term of the easement is reduced. A portion of the grant funds would then be returned to the city, to potentially invest in other projects.
Concurrence/Previous Council Action
The Historic Preservation Commission recommended approval of this item on Sep. 18, 2017. The City Council approved the original grant request on May 10, 2017. The Downtown, Aviation, Ecomony and Innovation Subcommittee recommended approval by a vote of 3-0 on Nov. 1, 2017.
Location
401-447 W. Van Buren St.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Deanna Jonovich, and the Planning and Development and Community and Economic Development departments.