06-04-2002 RA RPT 05 - Laserfiche WebLink

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People Serving People CITY OF RIVERSIDE AGENCY MEMORANDUM Riverside Ali-America City HONORABLE MAYOR AND AGENCY MEMBERS DATE: June 4, 2002 SUBJECT: ITEM NO: 5 Fa~:ade Easement Agreement - Farmer Boys Food, Inc. (Havadjia Holdings, Inc.) Designated as a Structure of Merit/Downtown/Airport Merged Project Area BACKGROUND: The Stewart Building (Structure of Merit 263) is located at 3452 University Avenue, within the City-designated Mission Inn Historic District. The Building was constructed circa 1892 and historically served as retail and office space (first floor) and apartments (second floor). In the 1960s, the building was remodeled for use as a "Pep Boys" retail store. However, for many years following that use, the building sat vacant and continued to deteriorate. In January 1999, Havadjia Holdings, inc., owner of Farmer Boys Food, Inc., purchased and renovated the historic structure to house the Farmer Boys Food, Inc. headquarters. The exterior design, which was approved by the Cultural Heritage Board at its meeting of November 17, 1999, includes an extensive remodel of the main facade incorporating elements of the Spanish Colonial Revival style. Improvements to the building included removal of the overhang, old storefront tile, stucco to expose the brick walls and underlying historic signage and restoration of the fa(j:ade. The adjacent parcels include the Crescent Building to the west, the Farmer Boys restaurant to the east, the Stewart Title Building across the alley to the south, and a public parking lot across University Avenue to the north. CURRENT ISSUE: The owner of Farmer Boys Food Inc., Havadjia Holdings Inc., has completed the restoration of the Stewart Building at a cost estimated at $422,595. In order to ensure the historic preservation by the property owner, its successors or assigns, the Agency proposes to purchase a fa(;ade easement in the amount of $16,000. The funds can be used to help offset the extensive exterior costs associated with the restoration and exterior maintenance of the entire building. As stated in the attached Fa(;ade Easement Agreement, the Property owner at its sole cost and expense, shall maintain the building faCade in good repair. The Fa(;ade Agreement and Declaration of Covenants, Conditions and Restrictions will be recorded to secure the terms of the Agency's assistance. The Agency has offered this type of assistance to Raincross Enterprises for the fa~;ade improvements associated with the Mario's Place Restaurant fa(;:ade improvements, Lake Alice Trading Company, and United Thrift and Loan. Purchase of a facade easement helps assure the perpetuation of the value to Downtown's economic viability derived from the rich architectural fabric of Riverside's older buildings. FISCAL IMPACT: Funds for the facade improvement in the amount of $16,000 are available in the Downtown/Airport Capital Project Fund Balance Account No. 0000478-298000, which currently has a balance of approximately $1,900,000. ALTERNATIVES: To not purchase the Fa~:ade Easement or provide assistance to Havadjia Holdings Inc. Doing so may compromise the maintenance of the fa~:ade should the property change ownership. 5-1