The Hollister City Council will decide today the fate of a
controversial proposal to loan $1 million to an area
preservationist to renovate a historic downtown building.
The Hollister City Council will decide today the fate of a controversial proposal to loan $1 million to an area preservationist to renovate a historic downtown building.
Tim Lantz requested the loan to renovate the Pendergrass Building – the former site of Union Bank – at Fifth and San Benito streets.
The item was originally on the March 10 agenda, but Council voted to delay the decision until a full Council could take part. Tonight’s meeting is Mayor Brian Conroy’s first since February because of commitments with his full-time employment. Also, Councilman Tony Bruscia was absent from the March 10 meeting and will be in attendance tonight.
“It’s a lot of money,” said Councilman Robert Scattini, who initially recommended the city delay the decision. “It’s important for all the Council members to be there. Personally, I’m just going to wait and see and look at all the angles and try to make an intelligent decision.”
There is no official resolution on the agenda tonight, but the Council can approve the plan by directing the Redevelopment Agency to negotiate a contract with Lantz, according to a staff report.
Proponents and opponents of the loan have debated whether the city should loan money for the project, which is scheduled to take about four years to complete.
Lantz has support from RDA Director Bill Avera, who has said renovation of the 76-year-old, four-story building – regardless of who renovates it – would likely demand assistance from the RDA.
Opponents such as the Hollister Downtown Association and its president, Ignacio Velazquez, have said RDA resources would be better suited for other downtown projects. Additionally, Velazquez said, “no plan has been presented…”
The building was erected as the Pendergrass Hotel in 1927 and later became the Holland Hotel. Union Bank, the current owner of the building, moved to the shopping center near Nob Hill in September.
After the building was appraised at $495,000, city officials decided to pursue the purchase of the building. However, after Union Bank set a minimum bid of $525,000, Hollister decided to back out.
The building has been placed in escrow, which means Lantz has an option for the purchase at $575,000. He said city assistance is essential to the feasibility of his plans.
Lantz has requested $400,000 the first year and $300,000 for both the second and third years. He has offered to sign an Owner Participation Agreement that includes a “phasing” structure requiring Lantz to complete the project in parts, each of which he must finish before the RDA pays another installment.
