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Friday's Internet Edition, November 21, 2008.
City council candidates spend less than $10,000 – so far
Stanhope fails to file
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Thanks to a redevelopment agency loan by the city of Galt, the old IOOF building, originally Galt’s first post office, will soon be turned into a restaurant on the lower level and either apartments or condominiums on the top level.
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By Kymm Griffin
Staff Writer
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As part of Galt City Council’s goal to resuscitate Galt’s downtown district, the council approved 5-0 to cap city fees at $40,000 for the rehabilitation the historical Odd Fellows Buildings at 201 Fourth Street and to loan the developer, D&S Development, $800,000 from the Redevelopment Agency.
D&S Development is considering purchasing the property and transforming the first floor into a restaurant and the second floor into condos.
“This is something I’ve been wishing for,” said Councilmember Barbara Payne, noting that this type of development was what the city was aiming at when they decided to invest money upgrading the downtown streets and sidewalks.
Staff also said that this type of development is what the Redevelopment Agency was created for, because the cost of rehabilitation is prohibitive to private investors.
“The cost of the rehabilitation of the building is estimated at approximately $2.26 million with an additional $900,000 required to make the necessary tenant improvements for a restaurant,” according to a staff report.
Built in 1868, the Odd Fellows Building housed the first Galt Post Office and later was the Brewster Co. Store before becoming the Odd Fellows Building.
In September 2007, after the council strengthened the Vacant and Board Building Ordinance, the owners of the Odd Fellows Building decided to sell.
“The building has been vacant and boarded for more than 15 years and is in a serious state of disrepair due to years of neglect. There are major structural problems with the building that will require extensive rehabilitation to make the building ready for occupancy,” according to a staff report.
Also, part of the deal is a loan from the city’s Redevelopment Agency for $800,000. The loan is broken up into three smaller loans for specific uses, and each has its own payback timetable.
“It’s a wonderful project,” said Councilmember Tim Raboy. “This is what Barbara and I have been talking about for years.”
Raboy also hopes that, once the downtown is anchored by redevelopment and vibrate restaurants, a farmer’s market could also be located downtown.
Currently, Cosumnes Community Services District is suing the Redevelopment Agency for a portion of those funds.
“However, staff is confident that there will be funds available to fund the commitments made in the loan agreement at the time the disbursements are due to the developer,” according to a staff report.
Assistant City Manager Jason Behrmann anticipates that there will be enough money for this project, but future redevelopment projects could be in jeopardy.
“These types of redevelopment projects would not occur if we lose the redevelopment funds,” said Behrmann.
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