Deals for the Bostwick Building have died, but the vacant Downtown structure is poised to live after a recommendation Tuesday to make it a historic landmark.
An appeal that would have allowed the owners to demolish the 101 E. Bay St. structure also was denied.
The building's owners were against both outcomes, but both passed the City Council Land Use & Zoning Committee with 7-0 votes.
Karl Bostwick, a fourth-generation owner, made many of the same arguments he has in past meetings. Namely that the decision to denote the building historic infringes on property rights, designation limits potential buyers and decreases market value and that rehabilitating the structure to code is not cost prohibitive.
Fines of $100 per day have continued to amount because the structure has been deemed noncompliant. That total has reached $60,200 in fines, all unpaid.
In an emotional appeal, Bostwick said seeking the demolition permit was the "only solution" to make the building code compliant. He also said that for anyone to make the renovations, the expenses would exceed the return on investment.
In the past year, several potential buyers emerged — civic leader Preston Haskell and Daily Record publisher Jim Bailey among them — but the deal that went the furthest was an agreement with Jacques Klempf, CEO of the Dixie Egg Co. He also is a partner in the Ovinte wine, cocktails and tapas lounge at the St. Johns Town Center.
The group came to a contract agreement with the Bostwicks for $325,000. The hope was to restore the building and convert it to a restaurant.
After a deal was struck in April, it was extended six times, Klempf said, as the two sides tried to come to a final agreement. A lawsuit regarding water intrusion was still outstanding by the building's neighbor and was not settled before Klempf let the contract expire.
"I just did not see it ending anytime soon and my meter was still running," Klempf told the committee. With engineering and structural analysis, legal representation and design work among other activities, the bill was in excess of $60,000.
"Everybody thought it could be renovated," he said.
Asked if he would still consider purchasing the building, Klempf told the committee he still had interest and would be willing to "come to the table …. But with different terms."
He said after the meeting he wanted to take a "wait-and-see" approach.
Much of the discussion came down to how much the building and the land underneath it actually is worth.
Bostwick told the committee the $325,000 accepted price was a reduction of market value and that given its high visibility at the corner of Ocean and Bay streets, at the base of the Main Street Bridge, the value should be closer to $375,000.
Yet, because of recent comparative Downtown property sales, the assessed value is much lower. Property Appraiser Jim Overton told the committee that the sales of the Laura Street Trio and Barnett Bank Building, and the former Haydon Burns Library have caused the reduction. The Laura Street deal came up to $11.40 per square foot, while the library deal went for $20.87 per square foot.
The Bostwick appraisal is between the two at $14.67 per square foot, or $112,000, according to a recent Truth In Millage notice. That's down from the $351,000 in taxable value from last year.
The full council will ultimately decide at its meeting Tuesday if the building should receive the designation and not be demolished.
Should it do so, a deal could still be struck for its sale, but the rolling fines continue.
The city also could decide to foreclose on the property to recoup those fines, should they not be paid.
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