Title
Durand Grocery/Villegas Shoe Repair/Robison Cleaners Buildings - Demonstration Project Grant Request (Ordinance S-45827)
Description
Request to authorize the City Manager, or his designee, to enter into necessary agreements and conveyances with Lorenzo and Margaret De La Cruz, related to a Historic Preservation Demonstration Project Grant of up to $100,000 for the Durand Grocery/Villegas Shoe Repair/Robison Cleaners Building located at 905 Grand Avenue in the Oakland Historic District. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The property consists of three buildings, now combined under one lot (905 Grand Ave.): Durand Grocery (ca. 1915); Villegas Shoe Repair (1932); and Robison Cleaners (1935). The buildings are contributors to the Oakland Historic District. Durand Grocery is likely the oldest remaining storefront on Grand Avenue. All three buildings are one story and constructed of unreinforced brick. In the early decades of each building, the original store type mentioned above remained in place, while the names of the businesses changed as each was sold. The buildings were purchased by Lorenzo and Margaret De La Cruz, owners of the Original Burrito Company, in 1996. The buildings have been vacant for a decade.
The De La Cruzes plan to open a second location of their restaurant in the two northernmost buildings. In the Durand Grocery Building, they plan to install a hand-made tortilla shop that will supply Original Burrito Company locations, walk-in customers, and other restaurants in the area.
The grant request includes full structural repair with steel reinforcement of the seriously deteriorated Durand Grocery Building; new storefront glazing/doors and paint removal for all three buildings. Staff recommends approval of a grant of up to $100,000 to assist with rehabilitation of the historic Durand Grocery/Villegas Shoe Repair/Robison Cleaners buildings at 905 Grand Ave.
Financial Impact
The total cost of these rehabilitation items is $389,797. The owners will invest approximately $1.6 million to reactivate the three historic buildings. Because Historic Preservation bond funds are not available, staff is recommending that Community and Economic Development Department (CEDD) funds be used. CEDD funds are appropriate as it will result in job creation. Funds of up to $100,000 will be available July 1, 2019. The funds will be disbursed to the applicant as evidence is provided of work completed. The applicant will be required to provide a dollar-for-dollar match, which may include exterior work items as well as items not typically eligible for Demonstration Project grant funds such as plumbing, electrical, mechanical, interior or site work. In exchange for the grant funds, the City will receive a 25-year conservation easement on the property. The easement will require preservation of the property and ensure the building is maintained in good repair.
Concurrence/Previous Council Action
The Historic Preservation Commission recommended approval of this item on April 15, 2019, by a vote of 8-0.
This item was recommended for approval at the Planning and Economic Development Subcommittee meeting on May 7, 2019, by a vote of 4-0, per the Historic Preservation Commission recommendation.
Location
905 Grand Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich, Deputy City Manager Mario Paniagua, and the Planning and Development and Community and Economic Development departments.