Posted Jan 11, 2024, 3:36 PM
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Aging buildings at heart of historic preservation debate with city of Phoenix
Looks like it is indeed complete demo of ALL Millum buildings.
https://www.bizjournals.com/phoenix/news/2024/01/10/milum-textile-laundry-building-phoenix.html
Quote:
The fate of the 100-year-old Milum Textile Services property in downtown Phoenix is unclear as the owner continues a fight with the city over whether the longstanding buildings can be demolished.
The facility is located from 333 to 337 N. 7th Ave. between Filmore and Van Buren streets on the western side of downtown. Formerly known as the Phoenix Laundry and Dry Cleaning building, the property was rebuilt in 1935 after a fire destroyed a building that was developed in 1923.
The city of Phoenix historic preservation commission voted 8-0 at its Jan. 8 meeting to uphold a previous decision against demolition of the entire property, as it was deemed to have historic value. The property is considered architecturally significant for its Streamline Moderne-style design and use of multiple lamella roofs, according to the city.
The commission noted that the owners could appeal the decision with Phoenix City Council as a next step.
The Milum family acquired Phoenix Laundry and Dry Cleaning Co. in 1956 and founded Milum Textile Services, which is now owned by Craig Milum. Milum Textile Services provided textile cleaning services for medical facilities and restaurants and remained in operation until 2020.
For months Milum has been trying to get the approvals to demolish the complex in order to sell the property for retirement, but the historic preservation commission voted down the request in December, KJZZ reported.
The property owner returned to the commission on Jan. 8 for an appeal of the December vote and to demonstrate an economic hardship in preserving the facilities.
The city recommended the commission continue the request for appeal for additional time to compile information but the owner of the buildings did not want to continue the request, the city said.
Owners estimate it would cost $100,000 to preserve property
The city said the owners of vacant, underutilized buildings are required to submit a statement of potential return on investment based on existing or new uses, including costs of rehabilitation and supplementary new construction, among other data.
During the Jan. 8 meeting, Milum estimated it would cost more than $100,000 to save the property and nearly $19,000 to insure it, according to the city.
"They paid approximately — they're estimating about $40,000 in property taxes," the city said during the Jan. 8 meeting.
In a letter to the city of Phoenix historic preservation officer, commercial real estate brokers Paul Borgesen of Transwestern and Justin Horwitz of SVN said they have been actively marketing the property for sale since April 2020 and have been unsuccessful in securing a buyer despite strong interest.
"The overwhelming majority of prospective buyers do not pursue the purchase of the property due to concerns over multiple city of Phoenix interests in historical preservation of several major structures," Horwitz wrote in a letter to the city.
Developers are eligible for major property tax abatements for developments in downtown Phoenix that are mixed-use, preserve historic buildings or include affordable or workforce housing.
The proposed historic preservation has presented challenges such as a limited number of developers that could take on the project and difficulty obtaining a higher sale price because of the cost associated with retaining the buildings, the brokers said. The property is currently being marketed for $9.2 million, the city said.
"The majority of developers we have presented the site to ultimately are not equipped to handle an abnormal development process or do not have an interest in taking on the risk given the amount of unpredictable expenses in the pre-development and construction phases," Horwitz wrote.
Horwitz said they have also spent "countless hours" in the past few years identifying end users interested in using the existing buildings. They also received a rough estimate from a general contractor that it would cost $10 million to bring the building up to code, the letter said.
"While we have groups acknowledge the unique elements of the structures and have a vision for an end use, the estimated costs of renovations steer groups away from pursuing a purchase of the property," the letter added.
Commission members questioned the estimated $10 million cost identified by the owners and said they believed this was higher than what the actual cost would be. They recommended the owners obtain a formal estimate and bid for the property.
The historic preservation commission is scheduled to hear a separate application for a historic preservation rezoning for a portion of the Milum Textile Services property in February.
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