Title
Resolution Authorizing an Urban Development Investment Grant to Preservation Greensboro Development Fund, Inc. in an Amount up to $300,000 to Assist in the Stabilization and Renovation of the Cascade Saloon
Body
Department: CMO
Council District: 2
Public Hearing: Yes
Advertising Date/By: 3/24/16
Contact 1 and Phone: Jim Westmoreland, 373-2394
Contact 2 and Phone: Kathi Dubel, 373-4579
PURPOSE:
The City of Greensboro has been requested to provide Preservation Greensboro Development Fund, Inc. a grant in an amount up to $300,000 to assist with the structural stabilization and renovation of the historic structure on the property located at 408-410 South Elm Street.
BACKGROUND:
The property at 408-410 South Elm Street is improved by a structure known as the Cascade Saloon which was constructed in 1896. The Cascade Saloon was designated as a historic landmark by ordinance adopted December 19, 2006. In order to prevent demolition of the historic structure, the City of Greensboro acquired the Cascade Saloon by condemnation on February 22, 2014.
The condition of the structure has deteriorated and is in danger of collapse and is a continuing liability for the City. A subsequent engineering report has estimated the cost of stabilization of the structure at $850,000. If the structure were to be demolished, it is unlikely that the railroad will allow any new construction in such close proximity to tracks which are in active use. The estimated costs of demolition of the structure exceed $300,000.
Preservation Greensboro Development Fund, Inc has requested an additional grant up to $300,000 to assist with the structural stabilization of the Cascade Saloon. Rentenbach Constructors, Inc., a Christman Company, will invest $2.925 Million in the renovation and restoration of the historic structure and will relocate 25 existing jobs and create 6 new full-time positions at the site. The site will serve as a regional corporate headquarters for Rentenbach. Public benefit will be derived from the enhancement of economic development and revitalization of the downtown portion of the City and is intended to promote business investment in the downtown area that would not occur but for this grant.
BUDGET IMPACT:
The impact to the Capital Leasing Fund budget will be $300,000: $205,000 from the existing FY15-16 budget and $95,000 to be financed through the appropriation of fund balance. The Economic Development Fund will be increased by $300,000 financed by a transfer of funds from the Capital Leasing Fund.
A budget ordinance and budget adjustment are necessary to complete this request. The budget ordinance is on this agenda, referenced as Agenda Item: 16-0267.
RECOMMENDATION / ACTION REQUESTED:
It is recommended that City Council authorize a grant of $300,000 to Preservation Greensboro Development Fund Inc. to assist with the stabilization of Cascade Saloon.