The Hollister City Council Monday delayed discussing two
controversial issues about whether to loan more than $2.6 million
to assist developers in renovations of local projects because two
members were absent.
The Hollister City Council Monday delayed discussing two controversial issues about whether to loan more than $2.6 million to assist developers in renovations of local projects because two members were absent.
Councilman Robert Scattini petitioned moving the two Redevelopment Agency agenda items to a March 16 meeting because Mayor Brian Conroy and Councilman Tony Bruscia are expected to return from outside-business obligations. Scattini said the issues demanded a full Council’s attention.
“I have some grave concerns about these two issues,” he said.
One item on the RDA agenda was a resolution to loan $1 million to developer Tim Lantz to renovate the historic Pendergrass Building at the corner of Fifth and San Benito streets. The building went up for sale in September when Union Bank moved to a new location near the Nob Hill shopping center.
Several parties expressed interest in buying the building that was built in 1927 as the Pendergrass Hotel. It later became the Holland Hotel and Union Bank afterward.
The RDA originally had plans to buy the building, which was appraised at $495,000, and resell the levels for different enterprises. The plans included retail space on the first floor and possibly a hotel, educational services and senior housing on the top three floors.
The RDA later backed out of the plan and did not make a bid for the purchase.
Now, Lantz wants to buy the Pendergrass Building – with help from the city – and refurbish the site to its original grandeur. But several Hollister residents have expressed disagreement about the city’ $1 million loan.
Interim City Manager Ed Kreins said his office has heard several “concerns about the loan” and Ignacio Velazquez, president of the Hollister Downtown Association and owner of The Vault restaurant, opposed the proposal.
Velazquez said the building can be renovated at less cost and can be financed through bank loans and sweat equity instead of a loan from the city.
The other project on the RDA agenda Monday was discussion of a nearly $1.8 million loan to the Lado Del Rio apartment complex. Lado Del Rio is a housing project made up of 42 low-income units.
