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HDC_07 08 2019Page 1 of 19 DEPARTMENT OF PLANNING AND DEVELOPMENT 723 West Markham Street Little Rock, Arkansas 72201-1334 Phone: (501) 371-4790 Fax: (501) 399-3435 LITTLE ROCK HISTORIC DISTRICT COMMISSION MINUTES Monday, July 8, 2019, 5:00 p.m. Board Room, City Hall Roll Call Quorum was present being six (6) in number. Members Present: Chair Ted Holder Vice Chair Jeremiah Russell Lauren Frederick Amber Jones Robert Hodge Frances (Missy) McSwain Members Absent: Dale Pekar City Attorney: Sheri Latimer Staff Present: Brian Minyard Citizens Present: Rick Purifoy Ralph Wilcox Cleveland Thomas Chris Fletcher Charlsetta Harville Jim Rule Patricia Blick Paul Dodds Matt Pekar Approval of Minutes Vice Chair Jeremiah Russell made a motion to approve the June 10, 2019 minutes as submitted. Commissioner Rob Hodge seconded and the motion passed with a vote of 6 ayes, 0 noes, and 1 absent (Pekar). Notice requirements were met on all of the items except as noted in individual hearing items. Notice of public hearing was printed in a newspaper of general circulation, posted on the internet and emails were sent to interested citizens and the press to inform them of the agenda being posted online. Page 2 of 19 DEPARTMENT OF PLANNING AND DEVELOPMENT 723 West Markham Street Little Rock, Arkansas 72201-1334 Phone: (501) 371-4790 Fax:(501) 399-3435 www.littlerock.gov STAFF REPORT ITEM NO. IV -1. DATE: July 8, 2019 APPLICANT: Hilbun Home Improvement, LLC ADDRESS: 3023 W 7th FILE NUMBER: NR2019-005 REQUEST: Nomination of the Magnolia Service Station to the National Register of Historic Places PROJECT BACKGROUND AND DESCRIPTION: The subject property is located at 3023 W 7th. The property’s legal description is “Lots 1 and 2 of Block 1 Tower Grove Addition to the City of Little Rock, Pulaski County, Arkansas." Location of the Magnolia Service Station at 3023 W 7th Street. Page 3 of 19 This property was the subject of a rezoning to a Planned Development – Office (PD-O) on April 25, 2019 for an office use on the site. The zoning was approved by the Board of Directors on June 4, 2019. PROPOSAL: The Commission will review the Nomination of the Magnolia Service Station to the National Register. The nomination states: “The Magnolia Service Station is a one-story, brick, Spanish Eclectic-style building with a rectangular plan, prominent arched openings, and a parapet roof. The walls were originally built of red brick but an alteration to the front bay changed the opening from double arch shapes to two square openings and used white brick to infill around them. There is evidence that an awning with exposed wood rafters once hung over the main entrance. The original front double windows and transoms are still intact. All exterior doors have been replaced. The original terra cotta tile shingles still overhang the east and west sides of the building and line the short parapet over the front bays. The northwest end still has a chimney pot atop the roof's corner. The interior has exposed brick walls and a wood raftered ceiling. A bathroom with some remnants of the c. 1937 tile is still inside. A brick wall between the two original bathrooms has been removed. The station is in the Stifft's Station neighborhood but the boundaries of the National Register listed historic district do not include this structure. The property is in fair condition and retains much of its historic integrity with changes pre-dating the 50 year cut-off, making them part of the evolution of the building's history. “While the building has been altered since its original construction, the majority of the historic architectural elements remain intact. The building has not been updated since the alterations in the late 1950s, but appears to be somewhat neglected. However, amazingly, it is still in fair condition. It stands as a rare example of a Spanish Eclectic style service station from the late 1930s in Little Rock, Arkansas. “The Magnolia Service Station is being nominated to the National Register of Historic Places under Criterion C with local significance as a rare example of the Magnolia Petroleum Company filling station on West Seventh Street in Little Rock, Arkansas, in the Spanish Eclectic style. This building is a good example of the Magnolia Petroleum Company's corporate style, popularly used from c. 1920 into the 1930s. The building has undergone some alterations to the bay-doors on the north facade, but they are now part of the historic evolution of the building, and the remainder of the building is original to its building date of around 1937.” NEIGHBORHOOD COMMENTS AND REACTION: At the time of distribution, there were no comments regarding this application. STAFF RECOMMENDATION: Staff recommends nomination to the National Register of Historic Places under Criterion C. Criterion C is defined as: Property embodies the distinctive characteristics of a type, period, or method of construction or represents the work of a master, or possesses high artistic values, or represents a significant and distinguishable entity whose components lack individual distinction. Page 4 of 19 COMMISSION ACTION: July 8, 2019 Brian Minyard, Staff, made a brief presentation to the Commission. Ralph Wilcox, Arkansas Historic Preservation Commission, made himself available to the Commission for questions. Vice Chair Jeremiah Russell asked what it was going to be used for. Mr. Wilcox stated it was to be used for an office. A motion was made to recommend nomination to the State Review Board by Vice Chair Russell and was seconded by Commissioner Hodge. The motion passed with 6 ayes, 0 noes, and 1 absent (Pekar). Page 5 of 19 DEPARTMENT OF PLANNING AND DEVELOPMENT 723 West Markham Street Little Rock, Arkansas 72201-1334 Phone: (501) 371-4790 Fax:(501) 399-3435 www.littlerock.gov STAFF REPORT ITEM NO.”A”. DATE: July 8, 2019 APPLICANT: Ed Garland, Dept. of Housing and Neighborhood Programs ADDRESS: 1419 S Commerce FILE NUMBER: HDC18-030 COA REQUEST: Demolition PROJECT BACKGROUND AND DESCRIPTION: The subject property is located at 1419 S Commerce. The property’s legal description is “Lot 5, Block 157, Original City of Little Rock, Pulaski County, Arkansas." This single family house was built c 1886. The 2006 survey form states: “This simple early Colonial Revival style structure with asymmetrical front and porch between front and side wing. Front porch has been rebuilt. Typical bay window and window shutters reflect style of the structure.” It is considered a "Contributing Structure" to the MacArthur Park Historic District. This application is for Demolition of the structure. PREVIOUS ACTIONS ON THIS SITE: On October 27, 1998, a COC was approved and issued to Thomas Inner City for maintenance on the outside and interior rehab. PROPOSAL AND WRITTEN ANALYSIS OF THE APPLICATION BASED OFF OF INTENT AND GUIDELINES: Page 55 of the guidelines speak of alternatives to demolitions. It states that loss of contributing buildings to the district should not occur. Demolitions of those structures diminish the overall character of the district. Care should be taken when reviewing an application for demolition. The architecture of the individual buildings and their context within the district should be reviewed carefully. Location of Project Page 6 of 19 The Guidelines also state five conditions in which a demolition may be granted by the Commission. The first is public welfare. This building has been suffering demolition by neglect for the last twenty years. The current owner has owned the building since 1998. A building permit was issued in 2001 for rehab, which expired with no inspections or approvals issued. On or about September 9, 2005, a stop work order was issued for installation of new windows and siding without HDC approval or building permits. A permit was issued for rehab on March 29, 2006 for maintenance but expired with no inspections or approvals issued. It is unsure if the work was started on the 2006 permit. Housing and Neighborhood Programs has had this building on the Unsafe and Vacant list since January 24, 2012. The second point is rehabilitation or relocation possibilities. The guidelines state that it can be demolished if it is impossible due to severe structural instability or irreparable deterioration of the building. There is no eminent danger upon the building that would necessitate moving the structure to another location. Rehabilitation of the property is an alternat ive that will be discussed farther along in the report. All properties can be rehabbed if the desire is there. Staff does not have estimates on how much the project would cost if rehab were to be completed. Four rehab permits have been issued within 450 feet of the property. 1410 S Rock Street is currently being rehabbed with a building permit of $90,000. 1402 S Commerce which was partially burned currently was issued a rehab permit of $100,000. 515 E 15th and 517 E 15th Street were issued rehab permits issued for $83,500 each. 515 E 15th was sold this year for $195,000. The property at 1419 Commerce is currently listed as contributing to the MacArthur Park Historic District. State income tax credits of twenty-five percent of qualified expenses may be available for this structure. Federal income tax credits of twenty percent may be available if the property was income producing. The third point is economic hardship. No hardship argument has been claimed since the City of Little Rock is the applicant. The guidelines state that economic hardship relates to the value and potential return of the property, not of the financial status of the property owner. 1978 survey photo Contributing and Non-contributing map Page 7 of 19 The fourth point is if the building has lost its architectural integrity. The building has not lost its architectural integrity although it is in need of repair. The fifth point states that ‘no reasonable alternative is feasible, including relocation of the home.’ Staff believes that there are alterative to demolition of this structure. The first would be the sale of the property to another individual. The property has been redeemed for back taxes in 2002, 2006, 2010, 2014, and again in 2018. At the sale in early 2018, there was a bid on the property of $7,400. That sale was not completed since the owner redeemed the property by paying the back taxes and fees of $2,791. The bid of $7,400 proves that a private individual was interested in the property enough to win the bid on the property. This property could be donated to the City’s Landbank Program. The owner can write off the appraised value of the structure off their taxes. That program may or may not remove any existing liens from the property. Being part of the Landbank program does not require the new owner to occupy the structure for their personal use. Activity in the area has shown that in addition to four rehabilitation projects listed above, three new houses have been permitted within the last 2 years within three hundred feet of this property. 401 E Daisy Bates is a new house built in 2017 for $330,000 including land and improvements based on permit data and assessor’s sales data. 407 E Daisy Bates is also a new house currently being built for $379,000 based on same data. 603 E 15th is also a new house currently being built for $805,000 based on same data. If the property is demolished, Housing will place a lien on the property of approximately $5,500 for the demolition fees. Public Works will place another lien of approximately $2,000 for landfill charges. Liens are not necessarily forgiven by the City when the property is sold or developed. Staff believes that this property can be rehabilitated and put back into residential use. Income tax credits could be available on this property based on the work proposed to be done. It can be sold to another individual or donated to the Landbank program. Currently in the immediate area, rehabilitation permits and new single family building permits have been issued that prove that there is a market for housing in this area. NEIGHBORHOOD COMMENTS AND REACTION: At the time of distribution, there were no comments regarding this application. STAFF RECOMMENDATION: Staff Recommendation forthcoming. COMMISSION ACTION: December 10, 2018 Brian Minyard, Staff, made a presentation to the commission. Ed Garland, Housing and Neighborhood Programs Code Enforcement Division, spoke for the item. He stated there was $423 in outstanding liens on the property now. They have been unsuccessful in obtaining a response from the current owners. It has been on the Unsafe Vacant UV list since 2012. Appearing in front of the HDC is the first step in the demolition process. He spoke of the alternative processes available. If the owner has intent to rehab the structure, the owner needs to meet with the Director of the Housing Department and provide a detailed scope of work and a timeline on when the work will be completed. They will need to Page 8 of 19 have proof of financial capacity to finish the project. A 90 day “bring to code” building permit is issued and Staff follows up after 90 days to see how much work has been done. The Housing department may extend the “bring to code” permit for additional 90 day periods. Chair Ted Holder asked if this was a finish in 90 days or just start in 90 days permit. Mr. Garland said it was to make progress on the rehab. He also stated that they take lots of photos during the project to document the building activities. Cleveland Thomas, the owner of the house, said that the tornado of 1999 tore up the house. He has had some hardship rehabbing the house. The loves the structure and does not want it to be torn down. People have wanted to buy the house in the past, but the buyer fell through. Regions Bank has approved a $95,000 loan on the house but he had not found a contractor to do it for that price. He does not have any additional money to put towards the renovation of the house. He obtained a letter from a person that was willing to buy the house. He said he would sell the house. Chair Ted Holder asked if he considered donating it to the City Land Bank. Mr. Thomas replied that he wanted the house rehabbed and that he has had trouble with homeless people. Chair Holder reiterated that Mr. Thomas would like to rehab but does not have a contractor. He continued and asked what would happen if the time expires and he cannot sell it, it could be torn down. Commissioner Dale Pekar asked why he had not put up a for sale sign on the property. Mr. Thomas said that he has in the past but it was taken down. Patricia Blick, Quapaw Quarter Association Director, said that this item was presented at the November 27 Advocacy meeting. They recommended denial of the demolition application. She quoted the guidelines and stated it does not meet the conditions. Other options should be explored before the house is demolished. She shared a metaphor of a quilt where certain pieces were missing where the quilt is the neighborhood and individual houses were pieces of the quilt. The quilt and the neighborhood cannot stay together if there are too many missing pieces. Gabe Holstrum, 2102 Louisiana, stated that he was the person that was the $7400 bidder at the tax sale. He is interested in buying it if it is to be sold. He continued that three buyers in the audience should encourage the owner to sell. Lindsey Boerner, 401 E Daisy Bates, asked the commission to defer the application in order to allow rehab of the structure to occur. She did not want it torn down and welcomes the opportunity for a new family to move into the neighborhood. Mr. Minyard stated that the staff recommendation was to defer for six months in order for the owner to either: 1) list the property for sale, 2) donate it to the Landbank or 3) start the rehabilitation process. Commissioner Dale Pekar made a motion to defer with Staff conditions. Commissioner Frances McSwain seconded and the motion passed with 6 ayes, 0 noes and 1 absent (Frederick). STAFF UPDATE: In the almost six months since the last hearing on this item, the property owner has not contacted City Staff to discuss the property. A “For Sale” sign was not on the property at the time of this writing and Staff has not observed one there in the past. A check of the Tax Page 9 of 19 Assessor’s website and the County Treasurer’s office show that the property is still in the ownership of Cleveland Odell Thomas, hence not sold or donated to the Landbank. A building permit has not been sought to repair the property. Mr. Thomas has not completed nor initiated any of the three conditions in the approved motion since the last hearing. Staff notified the property owners in the area of influence again with certified return receipt letters on May 29th (shown on page 8 and 9 of this report) along with the “Notice of Public Hearing” Form. The letter shown on page 10 was sent both certified return receipt and plain envelope US mail. Each of the letters was mailed to all three known addresses. STAFF RECOMMENDATION: Staff recommends that this item will be forwarded to the Housing and Neighborhood Programs Department to review for possible condemnation and demolition. COMMISSION ACTION: June 10, 2019 The applicant, Ed Garland, of Housing and Neighborhood Programs was not present. According to the Bylaws, Article V E 9., “The applicant of each item docketed shall be present or represented at the meeting and prepared to discuss the request.” Mr. Brian Minyard, Staff, asked Sherri Latimer if she interpreted that to mean the applicant must be present. She responded yes. A motion was made by Vice Chair Jeremiah Russell to defer the item until the July 8, 2019 hearing. The motion was seconded by Commissioner Lauren Frederick and the motion passed with a vote of 6 ayes, 0 noes, and 1 absent (Pekar). STAFF RECOMMENDATION: Staff recommends that this item will be forwarded to the Housing and Neighborhood Programs Department to review for possible condemnation and demolition. COMMISSION ACTION: July 8, 2019 Brian Minyard, Staff, made a brief presentation to the Commission. Rick Purifoy, Housing and Neighborhood Programs, represented that department in the hearing. He submitted structural photos taken in 2018 of the roofs, the porch which is collapsing, and unsound walls. Chair Ted Holder made the point that when buildings are not in the dry, all of the flooring and joists go to mush. Mr. Purifoy st ated that this was the case here. Chair Holder referred to the second guideline that if there is severe to irreparable deterioration of a building. It is his opinion that it is going to cost more to rehab the structure than it is worth. He does not believe it is economically feasible. Commissioner Lauren Frederick asked if the owner was here tonight. The response was yes. Commissioner Frances (Missy) McSwain asked if there was more than 50% of the structure gone. Mr. Purifoy replied yes and that it was almost a total rebuild. He has watched the building decline over the years. The Department of Housing and Neighborhood Programs recommendation is to demolish. Commissioner Robert Hodge asked if a person could get hurt. Mr. Purifoy said that they could with boards falling from above. Commissioner Amber Jones stated that if they entered the building, they may fall through the floor into the crawl space. Commissioner Hodge asked if there were lots of holes in the building. Mr. Purifoy stated that there were lots in the roof. Page 10 of 19 Cleveland Thomas, the owner, stated that he was in the building on Saturday. The floor has deteriorated in places. He said that he had $175,000 from his 401k for fund the renovation. He has contacted a contractor but it may be too late for the house but he has borrowed the money already. Commissioner Frederick asked when he borrowed the money. Mr. Thomas said twenty-two days ago. There was a discussion between the applicant and Commissioner Hodge on the financial aspects of the money from his 401k. Commissioner McSwain stated there is a lot of trash that has been pulled out of the house and apparently had been burned at the curb. Mr. Thomas said that the house had been cleaned out. Mr. Thomas has a contract to fix the front porch but has not signed the contract yet. He had plans to start the front porch repair soon. He did have to call the police on a squatter at the property. Commissioner Frederick stated that the property was at the Land Commissioners last year for a sale for back taxes. Mr. Thomas said that his land was worth $35,000 dollars. Commissioner McSwain stated that he has said that he borrowed money last month and had a contract for repair. Mr. Thomas handed her a copy of the contract. Vice Chair Russell looked at the contract and noted it was not signed. He reiterated the five points in the Guidelines for demolition and stressed the Public Safety and Welfare aspects. Chris Fletcher stated that Mr. Thomas should be given more time. Vice Chair Russell restated the health and safety concerns of the property. Mr. Fletcher commented that a permit could be issued for the porch only. Mr. Thomas stated that he should be given more time. Vice Chair Russell stated again the health and safety concerns. Paul Dodds of Urban Frontier stated that he has rehabbed more than 15 houses in the Central High neighborhood. He talked with Mr. Thomas after the last meeting and he had fixed houses worse than this one. He said that the 50% rule for rehab to get state income tax credits may not apply in this case. Commissioner McSwain stated that is was more than 50% of new materials. Mr. Dodds asked that Mr. Thomas be given more time and a chance to rehab the house. He stated that he should do a Part One of the tax credit paperwork. If he has funding, he should be able to start. He said the City has a history of punishing houses instead of punishing owners. The City has the authority to issue fines but the city does not use that authority. Jim Rule said that he used to own 1419 Commerce in the 1970’s. He was saddened by the gradual degrading of the house. He said that the house should be brought back to life. Patricia Blick, QQA Director, stated they were opposed to demolition. She quoted the Guidelines for demolition and stated that in Number 1, it requires a report commissioned by and accepted by the HDC. She wanted to know if the report was commissioned and if she could have a copy of it. Commissioner McSwain asked if the QQA would be willing to assist t he owner through the process. She also asked if it were deferred, what the timeline would be. Ms. Blick stated that the timeline should be twelve months from the first hearing (December 2018). Page 11 of 19 Commissioner McSwain asked what we should expect from Mr. Thomas in that time. Ms. Blick said that there should be a Part 1 and 2 in 60 days. Commissioner McSwain stated that we do not know if he is interested in the tax credits or not. Mr. Thomas stated that he had visited with Heritage Department and he would probably need assistance with the paperwork. Commissioner McSwain asked after having the house twenty years, if how was now dedicated to fixing the house. Mr. Thomas said yes. Ms. Blick said that she would help but if it is not fixed, it should be sold to another person that would fix it. Chair Holder said that he heard good intentions from Mr. Thomas. He has no idea if $175,000 is enough money. He noted that he knew Paul Dodds had saved houses in that condition but was unsure of what experience that Mr. Thomas had in rehab. Mr. Thomas stated that the labor would be the most expensive item. Commissioner Jones commented that the proposed contract was for $4,000. She said that it was not enough in her experience to start the rehab for the materials to get it in the dry. Mr. Thomas said that he needed it to be in the dry and to pass city inspections. Commissioner Jones asked when the contractor could start. Mr. Purifoy stated that the city was not looking at foreclosure. Any rehab has to go through Housing and Neighborhood Programs and include a meeting with the director with the owner and the contactor. Proof must be provided that there is ample money to rehab the house and a signed contract to rehab the entirety of the house. A permit will be issued for a “ninety day bring to code permit” which would allow ninety days to bring the building up to current building code. At the end of ninety days, if sufficient progress has been made, the permit will be extended until the house is brought up to code. Ms. Blick asked if the application could be deferred. She understands the conditions made by the Housing department. Commissioner McSwain stated that the HDC is respectful of all parties and demolitions like these put the HDC in a hard spot. Commissioner Frederick stated that an additional deferral will not make any difference. Mr. Dodds spoke again to the commission. He spoke of problems with the ordinance on the issue of unsafe and vacant. A property can be vacant yet still be safe. He thinks it would take $40-50,000 to get it in the dry and in a safe condition, but it would still be uninhabitable. If he reaches that point, there is no longer a hazard to the community. The project scale would be different. Chair Holder expressed concerns of the structural quality of the house even if it is put in the dry. Matt Pekar, a resident of the neighborhood, was concerned about the safety of the area. He said that he exercised common sense and did not go into vacant houses. He spoke of homeless people in the area. He stated it took several years for him to rehab his house on 11th street. Commissioner McSwain asked Mr. Thomas if he has clear title to the house. He said that he did. Page 12 of 19 Vice Chair Russell suggested making a motion to defer thirty days. During that time, they must come to the meeting with Housing and meet the criteria that were stated earlier. If he has met those conditions, then a building permit would be issued. Chair Holder asked if the City had the wherewithal to state if $175,000 was enough to rehab the property. If he is issued a permit, full inspections would have to be made of the work. Mr. Purifoy stated that proof of funds and a signed contract will be required for his director to make a decision to release a building permit on the house. Vice Chair Russell asked if the Commission was willing to defer for thirty days. During those thirty days, he would meet the Housing Departments condition of proof of funds and a signed contract and get a building permit for rehab of the complete house. At that time, he would have an additional sixty days to get it in the dry and another 180 days to be totally done. He asked how the commission gets to this point. Discussion followed. A motion was made by Vice Chair Russell to defer 1419 Commerce to the next public meeting with the owner meeting with the Housing Department and providing proof of funds to rehab the house, a signed contract for rehab, a permit or an application for a perm it and a letter from Victor Turner, Director of Housing stating that the owner has met the conditions and that a permit may be issued. Commissioner Hodge seconded. Commissioner Hodge asked if Mr. Thomas understood. Mr. Thomas said he did. The motion passed with a vote of 5 ayes, 1 no (Frederick) and 1 absent (Pekar). Pursuant to the By-Laws each commissioner explained why he/she voted for or against the application. Commissioner McSwain stated she voted for the deferral because very clear benchmarks were stated and the owner showed intention to carry it out. Commissioner Frederick voted against because he has had twenty years to do something and why wait another thirty days. Vice Chair Russell supported one last ditch effort to try to save the house. Chair Holder said that he was close to Commissioner Frederick’s viewpoint, but the commission should not tear down houses except as a last resort. He is not sure next time how he will vote. Commissioner Jones would like to see it rehabbed but is wary that the owner may be playing both sides of the fence. Commissioner Hodge stated he was on the fence. He is upset that they are seven months down the road and nothing has been done. He said it would probably come down. He is concerned a homeless person could be lured there and it is a public safety hazard. Page 13 of 19 DEPARTMENT OF PLANNING AND DEVELOPMENT 723 West Markham Street Little Rock, Arkansas 72201-1334 Phone: (501) 371-4790 Fax:(501) 399-3435 www.littlerock.gov STAFF REPORT ITEM NO. “B” DATE: July 8, 2019 APPLICANT: Ed Garland, Dept. of Housing and Neighborhood Programs ADDRESS: 1414 Park Lane FILE NUMBER: HDC18-031 COA REQUEST: Demolition PROJECT BACKGROUND AND DESCRIPTION: The subject property is located at 1414 Park Lane. The property’s legal description is “Lot 9, Block 157, Original City of Little Rock, Pulaski County, Arkansas." This single family house was built c 1907. The 2000 survey form states: “Typical Colonial Revival cottage for the area.” It also states “After her husband’s death, this was the home of Mrs. Regina (John A.) Schmelzer. She and her husband had lived at 1123 Rock S. Rock.” It is considered a "Contributing Structure" to the MacArthur Park Historic District. This application is for Demolition. PREVIOUS ACTIONS ON THIS SITE: On November 2, 2000, a COA was approved and issued to Pastor C. Harville and Wali Caradine for exterior renovations. PROPOSAL AND WRITTEN ANALYSIS OF THE APPLICATION BASED OFF OF INTENT AND GUIDELINES: Page 55 of the guidelines speak of alternatives to demolitions. It states that loss of contributing buildings to the district should not occur. Demolitions of those structures diminish the overall character of the district. Care should be taken when reviewing an application for demolition. The architecture of the individual buildings and their context within the district should be reviewed carefully. Location of Project Page 14 of 19 The Guidelines also state five conditions in which a demolition may be granted by the Commission. The first is public welfare. This building has been suffering demolition by neglect for the last twenty three years. On August 30, 1995, the Department of Neighborhoods and Planning - Housing Programs, sent a letter to the then owner, George Pike Jr, stating that an inspection had been made of the house and it was found to be “unsafe, unfit for human inhabitation, offensive to the neighborhood, and it is dangerous to persons in the vicinity or lawfully passing by the structure.” On March 27, 1996, the property changed hands to Lighthouse Inc. and they have owned it ever since. Multiple permits were issued on the structure from 2001 – 2005. From June 2000 – February 2001, permits for building, electrical, mechanical and plumbing were issued for $17,200 to bring the structure to code. Most of these permits expired without completion. In mid-2003, permits were issued for building and electrical work were issued for $20,000 to bring to code and they expired without completing the work. From August 2004 – September 2005, permits for building, electrical, mechanical and plumbing were issued for $24,900 to bring the structure to code. Most of these permits expired without completion. Housing and Neighborhood Programs has had this building on the Unsafe and Vacant list since 2013. The second point is rehabilitation or relocation possibilities. The guidelines state that it can be demolished if it is impossible due to severe structural instability or irreparable deterioration of the building. There is no eminent danger upon the building that would necessitate moving the structure to another location. Rehabilitation of the property is an alternative that will be discussed farther along in the report. All properties can be rehabbed if the desire is there. Staff does not have estimates on how much the project would cost if rehab were to be completed. Four rehab permits have been issued within 450 feet of the property. 1410 S Rock Street is currently being rehabbed with a building permit of $90,000. 1402 S Commerce which was partially burned currently was issued 1978 survey photo Contributing and Non-contributing map Page 15 of 19 a rehab permit of $100,000. 515 E 15th and 517 E 15th Street were issued rehab permits issued for $83,500 each. 515 E 15th was sold this year for $195,000. The property at 1414 Park Lane is currently listed as contributing to the MacArthur Park Historic District. State income tax credits of twenty-five percent of qualified expenses may be available for this structure. Federal income tax credits of twenty percent may be available if the property was income producing. The third point is economic hardship. No hardship argument has been claimed since the City of Little Rock is the applicant. The guidelines state that economic hardship relates to the value and potential return of the property, not of the financial status of the property owner. The fourth point is if the building has lost its architectural integrity. The building has not lost its architectural integrity although it is in need of repair. The fifth point states that ‘no reasonable alternative is feasible, including relocation of the home.’ Staff believes that there are alterative to demolition of this structure. They are as listed below. The first would be the sale of the property to another individual. The property was redeemed for back taxes in 1999. This property could be donated to the City’s Landbank Program. The owner can write off the appraised value of the structure off their taxes. That program may remove any existing liens from the property. Being part of the Landbank program does not require the new owner to occupy the structure for their personal use. Activity in the area has shown that in addition to four rehabilitation projects listed above, three new houses have been permitted within the last 2 years within three hundred feet of this property. 401 E Daisy Bates is a new house built in 2017 for $330,000 including land and improvements based on permit data and assessor’s sales data. 407 E Daisy Bates is also a new house currently being built for $379,000 based on same data. 603 E 15th is also a new house currently being built for $805,000 based on same data. If the property is demolished, Housing will place a lien on the property of approximately $6,200 for the demolition fees. Public Works will place another lien of approximately $2,000 for landfill charges. Liens are not necessarily forgiven by the City when the property is sold or developed. Staff believes that this property can be rehabilitated and put back into residential use. Income tax credits could be available on this property based on the work proposed to be done. It can be sold to another individual or donated to the Landbank program. Currently in the immediate area, rehabilitation permits and new single family building permits have been issued that prove that there is a market for housing in this area. NEIGHBORHOOD COMMENTS AND REACTION: At the time of distribution, there were no comments regarding this application. STAFF RECOMMENDATION: Staff Recommendation forthcoming. Page 16 of 19 COMMISSION ACTION: December 10, 2018 Brian Minyard, Staff, made a presentation to the commission. He stated that the owner was in the audience and that the staff recommendation was to defer for six months in order for the owner to either: 1) list the property for sale, 2) donate it to the Landbank or 3) start the rehabilitation process. Ed Garland, Housing and Neighborhood Programs Code Enforcement Division, spoke for the item. He stated there was $704.32 in outstanding liens on the property now. If the house was sold to a new owner with plans of a complete renovation, they may contact the Director of Housing and Neighborhood Programs to discuss options on the outstanding liens. Commissioner Frances McSwain said she drove by both of them today and asked how much of it had been destroyed by fire. Mr. Garland said he did not know exactly how much. They had an estimate from 2013 for the renovation expenses and would want to get a contractor opinion on what it would cost for a total rehab on the house. Commissioner Dale Pekar asked if the property goes back to the City, if the liens could be forgiven. Mr. Garland said that each case is different and that liens can be forgiven. Liens are against the property, not the property owner. Charlsetta Harville, the owner of the property, stated that she was the president of the Lighthouse Center CDC. She stated that she has spent more than $70,000 on the rehab of the house to date. She spoke of vandalism and stolen pipes and materials form the house. She is aware of the fire damage. A contractor she had to look at the house recommended that it be torn down. She will go with what the board recommends for her to do. She would consider selling the house or building a new one in its place if the old one was demolished. Chair Ted Holder asked if she had a preference to sell or rehab. Ms. Harville stated that she would rather sell than to rehab. Vice Chair Jeremiah Russell asked her if she was aware of the potential of $10,000 in liens of the city demolished her house. Ms. Harville stated that the Lighthouse Center had donated lots to the Downtown CDC before and the house is more than she can take on. She continued that she thought she could get it demolished for less money than that. Vice Chair Russell said that the application for demolition was the city’s application not hers. If she was to demolish it, she would need to reapply for the demolition herself and go through this process again. Commissioner Dale Pekar asked if the property is for sale now. Ms. Harville said it was not but she would be willing to consider selling it. Vice Chair Russell asked her if a six month deferral was approved, would she agree to list the house for sale. She replied yes. Commissioner Robert Hodge asked if she had ever listed it for sale before. She said that she had not. She used to keep insurance on it, but does not anymore. Patricia Blick, Quapaw Quarter Association Director, said that this item was presented at the November 27 Advocacy meeting. They recommended denial of the demolition application. She quoted the guidelines and stated it does not meet the conditions. Other options should be explored before the house is demolished. She said that there were lots of photos of the house before that would aid in the renovation of the Schmelzer House. Page 17 of 19 Vice Chair Jeremiah Russell made a motion to defer the item for six months with the condition that the property be listed for sale within one month. The motion was seconded and the motion passed with a vote of 6 ayes, 0 noes, and 1 absent (Frederick). STAFF UPDATE: In the almost six months since the last hearing on this item, the property owner has not contacted City Staff to discuss the property. A “For Sale” sign was not on the property at the time of this writing and Staff has not observed on there in the past. A check of the Tax Assessor’s website and the County Treasurer’s office show that the property is still in the ownership of Lighthouse Center, Inc., hence not sold or donated to the Landbank. A building permit has not been sought to repair the property. They has not completed nor initiated any of the three conditions in the approved motion since the last hearing. The property was auctioned by the State Land Commissioner on April 9, 2019 for $704.32 of outstanding liens placed on the property. The property was purchased by a third party for $9,000.00. Ms. Harville redeemed the property (paid the liens off) on April 24, 2019. The property is again owned by Lighthouse, Inc, Staff notified the property owners in the area of influence again with certified return receipt letters on May 29th (shown on page 8 and 9 of this report) along with the “Notice of Public Hearing” Form. The letter shown on page 10 was sent both certified return receipt and plain envelope US mail. Each of the letters was mailed to the two known addresses. STAFF RECOMMENDATION: Staff recommends that this item will be forwarded to the Housing and Neighborhood Programs Department to review for possible condemnation and demolition. COMMISSION ACTION: June 10, 2019 The applicant, Ed Garland, of Housing and neighborhood Programs was not present. According to the Bylaws, Article V E 9., “The applicant of each item docketed shall be present or represented at the meeting and prepared to discuss the request.” Mr. Brian Minyard, Staff, asked Sherri Latimer if she interpreted that to mean the applicant must be present. She responded yes. A motion was made by Vice Chair Jeremiah Russell to defer the item until the July 8, 2019 hearing. The motion was seconded by Commissioner Lauren Frederick and the motion passed with a vote of 6 ayes, 0 noes, and 1 absent (Pekar). STAFF RECOMMENDATION: Staff recommends that this item will be forwarded to the Housing and Neighborhood Programs Department to review for possible condemnation and demolition. COMMISSION ACTION: July 8, 2019 Commissioner Lauren Frederick recused from this item. Brian Minyard made a brief presentation to the commission. Rick Purifoy spoke on this item on behalf of the Housing and Neighborhood Programs Department. He believes that is it below 50 percent of original material left. The owner does not respond to his calls and the letters come back unclaimed. Page 18 of 19 Chair Ted Holder wanted clarification that the wall was gone from the house. Mr. Purifoy said that it was unsafe and has not been inside it since the fire. Mrs. Charlsetta Harville, the owner of the property, stated she was the President of the Lighthouse. In December she was presented options to sell or rehab the property. She had contacted a realtor but the realtor had left town. She is currently trying to list the property with Coldwell Banker. Commissioner Frances McSwain asked if she had a contract with Coldwell Banker. She said she did not. She plans to sign tomorrow. Vice Chair Jeremiah Russell asked how much she was listing it for. She stated she would list for what it appraised for. Vice Chair Russell stated that he had been contacted by a developer and they had made an offer to her. Ms. Harville said she did talk to them but it did not go any further. Vice Chair Russell stated that there was an offer of $15,000 in cash for the property. Commissioner Frances McSwain asked if she had clear title to the property. She said yes. Commissioner Robert Hodge asked if they had a deed. She replied that she had a deed from the Land Commissioner. Ms. Harville spoke of prior building permits on the house and that her husband died in 2011. Patricia Blick, QQA director, state that their position was the same as before. She recommends deferral and wanted to see the report as stated in the guidelines. The guidelines set a high standard and there has been interest from the public in rehabbing the property. Chair Ted Holder stated that the Commission did not have to have a concurring report. Matthew Pekar asked if he could get the contact information for Ms. Harville. She stated she wrote it on the sign in sheet. Vice Chair Russell made a motion to defer 1414 Park Lane to the August 2019 meeting so that the owner can be under contract to sell the property or give it to the Landbank. Commissioner Hodge seconded and the motion passed with a vote of 5 ayes and 1 absent (Pekar) and 1 recusal (Frederick) Pursuant to the By-Laws each commissioner explained why he/she voted for or against the application. Commissioner McSwain stated that it brings pressure to do something on the property. Vice Chair Russell wanted to give one last try to save the property. Chair Holder stated that the Commission should be in the business of preservation. Commissioner Jones stated the location of the house may indicate that it was one of the Kleinschmidt houses and reiterated that they should be in the preservation business. Commissioner Hodge echoed the comments of others and would rather see it saved. He believes it has a chance of being rehabbed if it was sold. There was a discussion about the procedure listed in the guidelines. Sheri Latimer stated that she would review it in the future. Other Matters Enforcement issues Staff had none to report to the Commission. Certificates of Compliance A spreadsheet was distributed to the Commission earlier. COC's were issued to 1321 Scott for porch flooring repairs, 1023 S Scott for rear yard fence and 512 E 9th for roofing and soffit repair. Citizen Communication There were no citizens that chose to speak during citizen communication. Adjournment There was a motion to adjourn and the meeting ended at 6:35 p.m. Attest: Chair Date Secretary/Staff Date Page 19 of 19