Another Suitor for the Luzon?
We’ve already mentioned that the street closures around the Luzon. Now we can get on to some (potentially) good news. Also in today’s Tacoma City Council Study Session was the presentation of a possible Luzon Building redevelopment deal. The gist of it is that L.I. Investment Group, LLC is proposing to purchase the historic Luzon Building at 13th and Pacific from the Gintz Group, create commercial office space, and restore the historic structure to the standards required by the various tax credits already involved. Serpanok Construction would be the general contractor.
Serpanok Construction, whose president is also the sole manager of L.I. Investment Group, has been involved in the renovation of the Metropolitan Development Council building at South 7th & Fawcett, the Wapato Boat House, the historic Neely House in Kent, and was a subcontractor at Mt. Tahoma High School.
The company is looking to proceed quickly and wanted the City Council’s support should they complete the deal with Gintz.
Upon acceptance of a deal, the developers would immediately hire structural engineers to start shoring up the Luzon – using their own money first. What was said to be different this time is that the new developer would be shouldering most of the risk as there wouldn’t be a development agreement or complete financing in place as work begins.
Ultimately, the development deal would include $1.65 million UDAG loan from the City on 12 month terms. This is a similar loan to what was available to the Gintz Group, but on a shorter timeframe.
The bank also has pre-lease requirements – the problem that hindered the Gintz’s redevelopment efforts – but the new developer has “strong interest” already and stated that they wouldn’t be taking this risk if they weren’t confident in their ability to lease the space.
The awkward thing, as was pointed out by Ron Gintz, is that the Gintz Group is still in the picture. They are still looking to make this project work and there is no deal yet to sell the building. That said, Council is supportive of any and all alternatives that see potential forward progress. The details are up to the developers at this point.
Once the heavy rains start to come, the redevelopment cost accelerates rapidly and the potential for success gets slimmer with each raindrop.
Filed under: General
5 comments
A altered Chords August 11, 2009
So…leasing agents were unable to lease 3 floors rendering Gintz’ financing unatainable. But L.I. has “strong interest” from potential tenants. The tension builds. Moving faster than the Elks building.
Coming soon – the new reality show:
“Pimp My Derelict Historic Building”
(an Altered Chords Production)
C CA August 12, 2009
If something doesn’t happen fast this building is gonna crumble.
J Jesse August 12, 2009
Ha! Altered Chords may be onto something here… How about a HGTV show that revamps troubled old buildings like the Luzon! That’d be neeto.
Anywho… when are they going to call “time of death” for this building? How many good people have tried to do something with it and failed? I mean, I’d love to see it saved but it may be time to get real here. I dunno, I hope I’m wrong.
M Mofo from the Hood August 20, 2009
I walked past this building last Sunday afternoon. I mean I did stop and looked really hard at the 13th ST side and the Commerce ST side. I looked at the arched brickwork and the ornamental ironwork and the deep recessed windows. And like countless daydreamers before me, I imagined myself sitting in a restored upper floor office and working hard typing letters on a restored Remmington typewriter. And in that daydream I was wearing 1920’s period slacks and collared shirt and a pocket watch. My colleagues didn’t seem to mind me so much, even though in that reality it was the year 2525.
D David Koch August 20, 2009
The year 2525 and we still have no hover-car… =(