McMillan, Acquanette (Netta)
Subject:FW: City Council Agenda (9/30) - Adaptive Reuse From: Ana Soulriver
Sent: Saturday, September 28, 2024 1:57 PM
To: Hall, Melanie <mhall(a)cityofpasadena.net>; Potter, Martin <[email protected]>; Mikaelian, Jason <[email protected]>; Marauez, Miguel <[email protected]> Subject: City Council Agenda (9/30) - Adaptive Reuse
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Good afternoon,
While the adaptive reuse ordinance looks good for the most part my concern remains with the lack of Financial Incentives. Projects do not start because they are not financially feasible for the developer. How do we allocate money for sustainable development by promoting the carbon reduction the developer is doing through adaptive reuse.
Could the housing department, economic development or some other department come up with a combination of tax credits, grants and development funds to jump start development activities? Perhaps the city can be compensated at the end of the project, when it is cash flowing thereby saving the risk taker, the developer, from depleting their cash reserves.
Most developers cannot touch a building unless the building cost of acquisition is close to $0 PSF because of the amount of money necessary to convert the building. The problem ultimately remains with the funding of projects and that takes financial support. Thoughts?
The staff report
httt3s://ww2.citvofDasadena.net/2024%20Aeendas/SeD 30 24/AR%206.pdf Ana Soulriver | Senior Associate
225 S. Lake Ave, Suite #M270, Pasadena, CA 91101
[email protected] | Cal DRE Lie # 02042495
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19/30/2024
ltem6
PASADENA
HERITAGE
PRESERVATION | ADVOCACY | EDUCATION
160 NORTH OAKLAND AVENUE
PASADENA, CALIFORNIA 91 [01.1714
P 626.441.6333 F 626.441.2917
WWW.PASADENAHERITAGE.ORG
September 30, 2024
Mayor Gordo and Members of the City Council
City of Pasadena
100 North Garfield Avenue
Pasadena, California 91101
RE: SUPPORT FOR ADAPTIVE REUSE ZONING AMENDMENTS
Dear Mayor Gordo and City Council Members:
Pasadena Heritage strongly supports the concept of Adaptive Reuse and urges the Council to approve the recommendations before you this evening to amend the Zoning Code.
Encouraging the reuse of historic and non-historic buildings is a proven practice that is ecologically and historically beneficial. Pasadena should use every tool available to facilitate the reuse of existing structures, and the recommended code amendments are essential to revitalizing older buildings and making them viable again.
As mentioned in the staff report, Pasadena Heritage partnered with the City Planning Department last year to host a seminar on Adaptive Reuse, which was well attended by local and regional developers, architects, planners and real estate professionals. We are pleased that many of the insights gleaned at the session are incorporated into the staff recommendations.
Adaptive reuse projects seem so logical but they can be very challenging. Financing is often one of the greatest obstacles. A simplified review process and modified standards, as proposed, will help with costs, but any additional financial incentives would be of great help in seeing these projects realized. We urge further exploration of incentives in the future, but for the present, adoption of the code revisions proposed will be of considerable value in saving and reusing existing buildings.
Thank you for considering our comments.
Sincerely,
^^^^t'^U^ff-^
Bridget Lawlor, Ph.D.
Preservation Director
PRESERVATION | ADVOCACY |
9/30/2024
ED U CATI 0 rriem 6
^
^y
September 30, 2024
Pasadena City Council
lOONGarfieldAve.
Pasadena, CA 91101
RECEIVED
202'; SEP 30 PN 4: 29
CilY CLERK
CITY OF PASADENA
RE: ZONING CODE AMENDMENTS RELATED TO THE ADAPTIVE REUSE OF
EXISTING NONRESIDENTIAL BUILDINGS, INCLUDING CHANGES RELATED TO PARKING AND VARIANCES FOR (2024-09-30 City Council Agenda Item 6) Dear City Council Mlembers:
I am writing to express my support for the City's adaptive reuse ordinance, which is a commendable step toward increasing housing availability and promoting sustainabUity.
However, I remain concerned about the lack of financial incentives necessary to make these projects feasible for developers. While the ordinance offers a solid foundation, without meaningful financial backing, many adaptive reuse opportunities wiU remain untapped.
The primary challenge facing adaptive reuse projects is their financial feasibility. Developers often face significant upfront costs in acquiring and converting buildings. Without sufficient incendves, these projects struggle to get off the ground. To address this, I encourage the City to look at successful examples from other cities that have leveraged financial tools to stimulate adapdve reuse and sustainable development.
For instance, Los Angeles' Adaptive Reuse Ordinance has been highly successful, in large part due to the financial incentives provided to developers. The ordinance included fee reductions, streamlined permitting, and tax abatements that have transformed historic buildings into thriving residential and muced-use spaces. Another example is New York City's Industrial and Commercial Abatement Program (ICAP), lwhich provides property tax abatements for the conversion of non-residential buildings into residential use, particularly in designated zones. These financial mechanisms have been critical in turning vacant or undemtiUzed properties into much-needed housing and commercial spaces.
Additionally, cides like Philadelphia have offered a combinadon of tax credits, grants2, and low-interest loans to developers undertaking adaptive reuse projects. The financial support has made a significant difference in revitalizing neighborhoods and preserying historic structures, aU while addressing housing shortages and reducing the city s carbon footprint. 1 httDs://www.nvc.ffov/S!te/finance/DroDertv/benefits-industrial-and-commerciat-abatement-Droffram- icap.paee
2httDs://hiddencitvDhila.org/2024/07/Dennsvlvanias-historic-tax-credit-increased-to-20-million/ 9/30/2024
Item 6
I urge the City of Pasadena to consider creating a similar package of financial incentives, such as tax credits, grants, and revolving development funds, to support adaptive reuse projects here. The City could also explore a repayment model where developers repay the City once a project becomes cash-flow positive, reducing the initial financial burden while still recouping public funds over time.
As most developers cannot touch a building unless the acquisition cost is low, particularly given the substantial investineat required for conversion, financial support is essential.
Without it, the projects we envision will remain purely theoretical.
I hope the City will take these examples into account and adopt a more aggressive approach to incendvi2e adaptive reuse, aUowing Pasadena to lead in sustainable urban development while addressing our housing needs.
Thank you for your consideration.
Sincerely,
Ana Soulriver
225 S Lake Ave, Suite M270
Pasadena, CA 91101
[email protected] | anasoul:[email protected]
626.399.5283