No Razing of Bank Building--for Now : Landmarks: City seeks a development plan before it will approve Bank of America’s plan to tear down its Green Street facility.

Faced with a development dispute between business interests and historic-preservationists, the City Council has opted for a compromise that could lead to the replacement of Bank of America’s 64-year-old Green Street building with a major new commercial-residential project.

The bank sought immediate permission to tear down the 9,900-square-foot building, which was damaged in the June 28, 1991, Sierra Madre earthquake.

The council denied that request Tuesday, but members left the way open for demolition later--if the bank can produce a satisfactory development plan.

Councilman Rick Cole suggested that the bank try to incorporate the existing building into its proposal for a commercial-residential development. But, he said, the city would be willing to consider demolition, if necessary.

Though preservationists would prefer that the building be saved, Cole said, “I don’t think we’ve heard anyone say they’re going to be standing in front of the bulldozers.”

The Spanish Colonial Revival Building, on East Green Street at Madison Avenue, has been boarded up and surrounded by scaffolding since the temblor. Built in 1928, the one-story structure of unreinforced masonry construction was so badly damaged that businesses were forced to shut down.

Charles MacIntosh, an engineer hired by the bank, told the council that the building is structurally unsound and cannot be fixed.

“The building is a basket case,” he said.

But Donald N. Nollar, Pasadena’s director of building, planning and neighborhood services, said an expert hired by the city found the building was no more dangerous now than it was before the earthquake. He noted that the city has 900 unreinforced masonry structures that are potentially hazardous in a severe quake.

Lewis M. Phelps, chairman of Pasadena Heritage, told the council that the structure could be rehabilitated and warned against allowing the demolition on the basis of a promised development that may not materialize.

“What we’re looking at is a proposal to tear down a building now for something that may never be built,” he said.

Joseph Brown, a consultant representing the bank, said the bank has retained an architectural firm to develop plans for the entire Green Street block, which would include offices, townhouses and retail stores.

A preliminary proposal shown to the council Tuesday contained 215,000 square feet of commercial space and 240,000 square feet of residential construction.

Cole asked Brown: “In this real estate climate, what assurance do we have that this is any more than a speculative set of plans?”

Brown told the councilman that market conditions will determine whether construction proceeds, but “what the Bank of America can bring to a development is money--that puts them several levels above a speculative developer.”

Several speakers urged the council to protect the character of Green Street. One business owner called the bank’s building “handsome and useful” and urged its retention.

But Councilman Isaac Richard said he saw no particular merit in the building.

“Forgive my architectural ignorance,” he said. “I don’t find the building that pretty, that meaningful. . . .

“This is not a watershed issue for Pasadena.”

The bank applied for permission to demolish the building last July 19, but the city Cultural Heritage Commission blocked the request, finding that the structure was architecturally and historically significant. The commission ordered a series of stay orders, the latest of which is scheduled to expire in May.

The council, by a 4-2 vote, eliminated the stay of demolition but imposed a requirement that will keep the bank from tearing down the structure until the city has approved new plans for the property.

The approval process could take four to six months, officials said. Richard, who favored giving the bank the right to tear down the building immediately, and Councilman Chris Holden, who wanted the city to uphold the commission’s stay of demolition, voted against the council action.

Council members who voted for the motion said they wanted to encourage development of the property but were concerned that immediate demolition would leave the lot vacant for a long time, to the detriment of the area.

City Manager Philip A. Hawkey said city approval of a project would not guarantee construction, but at least the city would know what would be built on the site when market conditions warrant.

Cole urged the bank to work with the community to develop a plan for the property that will fit with the neighborhood.

Claire Bogaard, executive director of Pasadena Heritage, said that the council’s action “seems like a fair compromise” and that she hopes the bank will be willing to work with the community. “We’ll see if we can have some input into the plan,” she said.