Title
Resolution Amending Resolution No. 079-16 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: 12/8/2016
Contact 1 and Phone: Jim Westmoreland, 373-2394
Contact 2 and Phone: Kathi Dubel, 373-4579
PURPOSE:
The City of Greensboro provided Preservation Greensboro Development Fund, Inc. (PGDF), Rentenbach Constructors, Inc. (Rentenbach), and Christman Capital Development Company (Christman) 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. The resolution authorizing the grant included a deadline of December 31, 2016, for PGDF to stabilize the structure. PGDF, Rentenbach, and Christman are requesting a 6-month extension of that deadline.
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.
City Council previously approved the conveyance of the property to Preservation Greensboro Development Fund, Inc. (PGDF) by Resolution No. 206-14. City Council also approved a grant to PGDF in the amount of $175,000 to locate a buyer willing to restore and preserve the Cascade Saloon. By Resolution No. 079-16, City Council also approved an additional grant in an amount up to $300,000 to Preservation Greensboro Development Fund, Inc., Rentenbach, and Christman Capital to assist with the structural stabilization of the Cascade Saloon. Rentenbach, a Christman Capital Development 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.
Resolution No. 079-16 included the following deadlines: PGDF to accept conveyance of the property on or before June 10, 2016, PGDF to stabilize the structure on or before December 31, 2016, Rentenbach to invest $2.925 million in the project on or before December 31, 2017, and Rentenbach to maintain existing jobs, create and retain new jobs for three years after creation of the new jobs.
The property was conveyed to PGDF by deed dated June 6, 2016. The City, PGDF, Rentenbach, and Christman entered into an Urban Development Grant Agreement in October and funds were disbursed in November. A certificate of appropriateness for the renovation work was issued by the Guilford County Historic Preservation Commission on November 15, 2016.
The stabilization deadline will likely not be met due to delays in obtaining necessary railroad and plan approvals. A 6-month extension will not impact the deadline for completion of the renovation project or the job creation and retention period.
BUDGET IMPACT:
The extension of the stabilization deadline will have no budget impact as the funds have been disbursed.
RECOMMENDATION / ACTION REQUESTED:
It is recommended that City Council authorize a 6-month extension of time for Preservation Greensboro Development Fund Inc., Rentenbach, and Christman to stabilize the Cascade Saloon structure.