As the City of Hollister considers lending $1 million to a
contractor for renovations on a historic downtown building, the
debate over the project’s validity
– and the city’s involvement – has heated up.
On one side stand supporters of Tim Lantz, the real estate
professional who plans to restore the Pendergrass Building on the
corner of Fifth and San Benito streets to its original
grandeur.
On the other are a group of detractors that includes Ignacio
Velazquez, president of the Hollister Downtown Association and
owner of The Vault restaurant.
As the City of Hollister considers lending $1 million to a contractor for renovations on a historic downtown building, the debate over the project’s validity – and the city’s involvement – has heated up.
On one side stand supporters of Tim Lantz, the real estate professional who plans to restore the Pendergrass Building on the corner of Fifth and San Benito streets to its original grandeur.
On the other are a group of detractors that includes Ignacio Velazquez, president of the Hollister Downtown Association and owner of The Vault restaurant. Velazquez is joined by other business owners and city officials who oppose the city making the loan.
Representing HDA, Velazquez said Lantz’s project should not get funding priority over other possible downtown projects. Also, he said the city’s Redevelopment Agency should not lend an excessive amount of money to a man who, according to Velazquez, has not disclosed detailed plans for the project.
“From what we’ve (HDA) heard so far, no plan has been presented to the RDA,” Velazquez said. “The only thing we know is that some individual (Lantz) promised to renovate the Pendergrass Building if the RDA gave him $1 million.”
Lantz has said he plans to recruit commercial tenants for the building’s first and second floors, but he has not made plans for the top two floors. He said he will know more about potential renters after the completion of renovations, which are planned to last three to four years.
“My work has proven itself,” Lantz said about his previous historical preservation of buildings. He also said he has won awards for his work from state and national organizations. Sharlene Van Rooy of the San Benito County Historical Society has voiced support in recent weeks for the loan to Lantz.
The purpose of the RDA is to revitalize downtown through funding assistance and renovation projects. Executive Director Bill Avera proposed the RDA lend Lantz the money because, according to a staff report, “the reuse of the building will require some assistance from the Agency.”
Avera said that based on a recent study and the lessons learned from the renovation of the Veterans Memorial Building, “We know that it’s going to be difficult for any private owner to do the rehabilitation without some help.”
In 1927, Hollister Mayor J.E. Pendergrass erected the building as the Pendergrass Hotel. It later became the Holland Hotel and Union Bank and is widely viewed as a potential anchor for increased consumer traffic downtown. The Historical Society has said the building maintains 80 percent of its original structure.
The building went up for sale in September when its owner, Union Bank, moved to the shopping center near Nob Hill Foods on Airline Highway. Several potential bidders, including the RDA, had expressed interest in the building, which was recently appraised at $495,000. The RDA had planned to buy the building and lease its levels, but could not bid when the time came because Union Bank’s asking price exceeded the appraised value.
For now, Union Bank has placed the building in escrow, which means a sale to Lantz for $575,000 is not final and depends on him acquiring the needed $1 million from the RDA for renovations. Exact terms of the potential loan with the city have not been finalized, although Lantz has requested a $100,000 grant as part of the deal.
Dissenting views, a concerned Council
Velazquez has also balked that Lantz has not made a commitment to adequately upgrade the building’s electrical system, fire safety and seismic retrofitting. He said building-code loopholes for historic structures would allow Lantz to forego certain upgrades.
“There’s going to be upgrades,” Lantz replied to those allegations. He did not disclose specific upgrades planned for the building, but did say he would enhance “those things that are necessary and pertinent.”
Hollister Fire Chief Bill Garringer said state fire codes provide exemptions for structures declared historic. The Pendergrass building was declared a historic building in the National Register in 1992 and the California register in 1998, according to a spokesman from California Office of Historic Preservation.
The Council was set to discuss the loan March 10, but it voted to reschedule the talk for a later study session because two Council members were absent. Councilman Robert Scattini said the issue demands the attention of a full Council.
Mayor Brian Conroy said he would support a loan to a private contractor only for low–income or senior low–income housing.
“If the loan is to help the developer in developing commercial property, I do not support it,” Conroy said.
Councilwoman Pauline Valdivia opposes the loan to Lantz because, she said, “There’s no plan. We have to be careful how we’re going to use the RDA funds… I have a big, big problem with it.”
Councilman Tony LoBue said, “We’re trying to gather information on it. A million dollars is a lot of money to be loaning somebody. We have to take that into consideration.”
Councilman Tony Bruscia said although he favors renovation of the Pendergrass Building, the city should not “give out” a million dollars without a more detailed plan.
Scattini said he would wait until the study session to express his opinion on the matter.
