DOWNTOWN HOUSING PROPOSALS
Horton Plaza--Despite the highly publicized success of the shopping center, some call the Erector-set, open-face facade as nothing more than an expensive eyesore. The Hahn Company wanted to build an office building on a small, 14,000-square-foot site on the 4th Avenue side of the plaza garage, but the configuration of the property made that “inefficient,” according to CCDC’s top administrator, Gerald Trimble.
CCDC wanted the Hahn Co. to build apartments instead, but Hahn was cool to the idea. Instead, in an agreement that is close to being finalized, CCDC will solicit bids for a project that will include 35 to 60 apartments, office space and ground-floor stores.
CCDC will pay Hahn $1.2 million for 75 parking spaces in the 2,574-car garage that would be used by people living in the apartments. Additionally, the agency will pay $100,000 to $200,000 to build a wall between the garage and the apartment complex. The Hahn Co. would provide mechanical ventilation to the garage.
CCDC would share in the developer’s net revenue from the project. When plans were announced three months ago, there was concern that CCDC was paying the Hahn Co. too much for a project that should have been Hahn’s in the first place. But on Wednesday, Trimble said he thinks the CCDC directors will OK the project.
Responses from developers are due Aug. 3. If the project proceeds on schedule, construction could begin early next year.
High-rise--The block bounded by First Avenue, Front and G streets and Martin Luther King Way has been one of CCDC’s biggest headaches. First, the Southwest Estate Group, which planned a large mixed-used project, canceled its plans. Then, it was discovered that part of the block was contaminated with toxic chemicals and gasoline. That didn’t deter Shapell Housing Inc., which stepped in with a residential housing proposal. But CCDC wanted a larger project, so Shapell dropped out.
Now the agency wants to solicit proposals for a high-rise residential building of 20 stories or more and upwards of 200 units. Trimble said it will take two years before the block is ready for construction but that, given the contamination problem, the agency should start the clock now.
As for the contamination, Trimble says that the owner of the property, the Starr Family Trust, has agreed to do the cleanup. CCDC is proceeding with condemnation anyway, and if the cleanup is not accomplished, CCDC will do it, subtracting the cost from what it pays Starr for the land. The block is seen as pivotal because it is across the street from the proposed Roger Morris Plaza, a hotel and high-rise apartment complex.
Gaslamp--Though not technically in the Marina Redevelopment Area, it is right next door. CCDC has become increasingly involved in helping in Gaslamp’s restoration. Now the agency wants to provide up to $300,000 to help the MFK Partnership convert industrial warehouse space into 26 loft-style apartments, and make facade improvements on property located between 5th and 6th avenues, including the old Metropolitan Hotel, the Simmons Hotel and Steele Building.
The apartments would be rented at market rates, probably between $550 a month for the smallest and $1,000 a month for the largest, according to Bud Fischer, one of the partners in MFK and a veteran of Gaslamp projects. Also in the partnership are Jerry A. Krasne and Chris Mortenson. As proposed, CCDC would share in gross income from the project, which has a construction cost of about $700,000.
If approved by the CCDC board, construction of the apartments could begin in August, said Fischer. The upper floors of the Metropolitan Hotel are being rehabilitated, without CCDC funds, into a 54-room residential hotel.
Residential Hotel--The federal government recently notified public agencies of the availability of about $100 million in housing grant funds. The Housing Commission and CCDC want about $3 million to help finance an $8-million, 200-room residential hotel project for low- and moderate-income persons. The four-story project, on a 25,000-square-foot parcel on a block bounded by 2nd, 3rd, Island and J streets, would be built by the partnership of Bud Fischer, Chris Mortenson and Shawn Schraeger, which has an option on the property.
CCDC would contribute up to $500,000 to the project, principally for sidewalks, curbs and gutters as well as building permit and plan check fees. Deadline for submitting the application to the federal government is July 7. Construction could begin next spring.
