Title
Resolution Authorizing Conveyance of 408-410 South Elm Street to Preservation Greensboro Development Fund, Inc. by Private Sale and Appropriation of $175,000 for the Preservation and Rehabilitation of the Historic Structure on the Property
Body
Department: CMO
Council District: 2
Public Hearing: Yes
Advertising Date/By: July 23 and 30, 2014
Contact 1 and Phone: David Parrish 373-4579
Contact 2 and Phone: Tom Carruthers, 373-2320
PURPOSE:
The City of Greensboro has been requested to convey 408-410 South Elm Street to Preservation Greensboro Development Fund, Inc. and to appropriate $175,000 for the preservation and rehabilitation of the historic structure on the property.
BACKGROUND:
The property is improved by a structure known as the Cascade Saloon which was constructed in 1896. It lies between two rail lines in Greensboro. The Cascade Saloon was designated as a historic landmark by ordinance adopted December 19, 2006. The designation includes the exterior of the structure and all exterior features including all architectural features, iron works on the front façade windows, doors, hardware, and the entire parcel. Due to the deteriorated condition of the building, the property was condemned and ordered for demolition on January 11, 2005. The demolition has been placed on hold while the City located an entity that would restore the structure. The Guilford County Preservation Commission issued a certificate of appropriateness on March 19, 2013, to permit demolition of the structure. The Greensboro City Council resolved on June 4, 2013 to condemn this property. This property is within the Downtown Redevelopment Zone.
The City of Greensboro acquired 408-410 South Elm Street by condemnation on February 22, 2014. The previous owners were Ross and Ann Strange who acquired the property originally in 1974. Mr. and Mrs. Strange did not file a timely answer in the condemnation case and therefore a default judgment was granted to the City. Just compensation for the property was determined to be $0.00 based on the appraisal by Charles Foster dated March 14, 2013.
Staff is proposing to convey the property to Preservation Greensboro Development Fund, Inc. subject to appropriate preservation covenants. Staff is also proposing the transfer of $175,000 to Preservation Greensboro for the purposes of preserving and rehabilitating the structure. Preservation Greensboro, a local non-profit, is in discussions with multiple third parties with serious interest and capabilities to stabilize rehabilitate and restore the structure. In the event that Preservation Greensboro Development Fund, Inc cannot locate a willing buyer to restore or stabilize this property within 12 months of closing (or has not undertaken to do so itself), the City will have the right to repurchase the property for $1.00 and Preservation Greensboro Development Fund, Inc will return the $175,000.00 to the City of Greensboro.
BUDGET IMPACT:
A total of $175,000.00 to be paid in FY 14/15. The grant will be funded by the City's Economic Development Fund.
RECOMMENDATION / ACTION REQUESTED:
In accordance with NCGS § 160A-266 and § 160A-400.12, it is recommended that City Council approve the conveyance of 408-410 South Elm Street to Preservation Greensboro Development Fund, Inc. by private sale and authorize funding of $175,000 to Preservation Greensboro for the preservation and rehabilitation of the historic structure located on the property.