The Hollister City Council narrowly squashed further
consideration of a $1 million city loan to a contractor for plans
to restore a historic building downtown, as a month-long debate
became an hour-long tug-of-war at Monday’s meeting.
The Council voted 3-2 against lending Redevelopment Agency funds
to Tim Lantz to restore the Pendergrass Building at Fifth and San
Benito streets. Mayor Brian Conroy and Councilman Tony Bruscia
voted to continue discussions.
The Hollister City Council narrowly squashed further consideration of a $1 million city loan to a contractor for plans to restore a historic building downtown, as a month-long debate became an hour-long tug-of-war at Monday’s meeting.
The Council voted 3-2 against lending Redevelopment Agency funds to Tim Lantz to restore the Pendergrass Building at Fifth and San Benito streets. Mayor Brian Conroy and Councilman Tony Bruscia voted to continue discussions.
“It’s disappointing,” Lantz said. “I have unique capabilities that they’re not going to find in anyone else who’s willing to do that project.”
The Council heard from several proponents and opponents on the validity of Lantz’s four-year rehabilitation plan.
Hollister Downtown Association President Ignacio Velazquez, who also owns The Vault restaurant, has been the most boisterous opponent. He spoke during the study session and was pleased with the decision.
“I’m definitely satisfied,” he said. “I think there was a lot of misinformation, and people were not being honest with the final use and final cost of the renovation.”
The building was erected as the Pendergrass Hotel in 1927 and later became the Holland Hotel. Union Bank, the current owner, moved out in September. After the highest of 12 bidders showed a lack of commitment, Union Bank contacted Lantz – whose bid of $575,000 was placed in escrow awaiting Monday’s decision.
Lantz had planned to purchase the building. However, he said he needed assistance from the RDA to perform the restoration. Director Bill Avera supported the loan plan.
The Council initially planned to discuss the proposal on the March 10 agenda but decided to postpone the deliberations until a full Council could take part, as Conroy and Bruscia had been absent.
The Pendergrass debate
Lantz was willing to sign an Owner Participation Agreement, which is designed to protect the city’s financial interests, Avera said.
Under the agreement, Lantz would have been obligated to complete portions of the project before receiving loan allotments.
Avera, a leading proponent of the plan, told the Council it had two options – move forward and direct Avera to negotiate a potential loan or reject the proposal.
Other supporters included Planning Commissioner Ray Pierce, Airport Advisory Commissioner Gordon Machado and Sharlene Van Rooy, a member of the Historical Society.
“What if the walls of this structure really could talk?” Van Rooy said and added, “He (Lantz) will listen to the building and tell its story.”
Velazquez said he supports restoration of the building, but the project should be privately financed. The $1 million could be used for several other projects to benefit downtown, he said.
“One-million dollars can paint every business in downtown,” he said.
Moreover, drawing from his experiences renovating historic buildings in downtown Hollister, Velazquez said the project would likely cost about $500,000 to $1 million more than Lantz’s estimation.
“I caution you not to get involved in something like this,” Velazquez said.
Councilman Tony LoBue disapproved of the loan.
“I respectfully request that we move on and go on to the next subject,” said Lobue, who was suddenly interrupted by Conroy.
“I’d like to hear everybody’s concerns,” Conroy said.
Bruscia requested each Council member state his or her opinion to gauge a Councilwide sentiment before making a decision.
“I am willing to consider using RDA dollars to see that building get remodeled,” he said. “However, before I make any commitment, I want to see a specific game plan…”
LoBue again attempted a motion to dismiss the plan outright. And again, Conroy interjected, as he asked Avera the terms of the loan. Avera estimated it would be about 30 years.
Finally, the Council followed up on Bruscia’s request, led by Conroy. He agreed with Bruscia and said he would “like to see more on this.”
“Do we have a consensus?” Bruscia asked, to which Council members Pauline Valdivia and Robert Scattini responded, “No, not me.”
“I concur with Pauline and Robbie that we need to remove ourselves from this building until someone can bring us a game plan,” LoBue said.
After the meeting, knowing he would not receive the loan, Lantz said, “I’m going to do some soul-searching over the next few days. I’ll decide whether to continue pursuing it.”
