Preservation Dallas Says City-Owned St. Paul Building is Historic, Eligible For Tax Credits
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When the Dallas City Council voted last month to auction a city-owned property that’s been overrun by vandals and squatters, Councilman Jesse Moreno said he was disappointed that immediate demolition wasn’t authorized. It appears that at the time, neither Moreno nor his colleagues knew the building was on the National Register of Historic Places.
In a memorandum filed Sept. 6, Interim Assistant City Manager Donzell Gipson said that recent inquiries about the property have highlighted the fact that the property is listed on the National Register, maintained by the National Park Service.
“However, as per guidance from the City Attorney’s Office, this does not impose any special procedures or requirements to selling or demolishing the structure,” Gipson’s memorandum states. “According to the National Register … Under Federal Law, the listing of a property in the National Register places no restrictions on what a non-federal owner may do with their property up to and including destruction unless the property is involved in a project that receives Federal assistance, usually funding or licensing/ permitting.”
So the show must go on? It appears that way. Moreno, who represents the downtown area where the 17,646-square-foot building is housed, clearly supported immediate demolition when the matter was discussed at an Aug. 28 City Council meeting.
“I believe anyone that comes in is going to demolish the building,” Moreno said last month. “I don’t want to see the building continue to be vacant and then have another incident of vandalism happening … We’ve had a number of residents and business owners who have reached out with continued concerns about what’s happening. I just think it’s in the best interest of our city and our neighbors in the immediate area to clean and clear the land so it can be developed appropriately to its best use.”
Not so fast, says Preservation Dallas
At the late August meeting, the City Council approved the surplus designation and subsequent auction of the St. Paul property. The Council asked that the auction be advertised as a two-tier bidding method — one bid for the property “as is” (including all existing improvements) and another for the property post-demolition.
City staff members agreed that a one- or two-story building is not the highest and best use for prime downtown property near City Hall. The building is valued at about $2.4 million, according to the Dallas Central Appraisal District.
Ron Siebler, president of Preservation Dallas, wrote an email to Mayor Eric Johnson and council members pointing out that not only is the site on the National Register of Historic Places, it’s also inside the 2008 expansion of the Downtown Dallas National Register Historic District.
“Originally known as the American Optical Center, and more recently the Family Gateway, the building was designed by Walter Ahlshlaager & Associates in Dallas and constructed in 1947,” Siebler’s email states. “Because the building is listed on the National Register, there are significant economic incentives for a new owner to preserve the building and do a qualified rehabilitation in spite of its neglected and deteriorated condition. This includes potential federal and state tax credits for a combined total of up to 45% of the cost of qualified expenses.”
Preservation Dallas believes the property’s inclusion in the Historic District, and the potential preservation and rehabilitation of this building, represent a higher potential for the sale price and future revenue stream to the City of Dallas, Siebler said.
The Preservation Dallas president told CandysDirt.com on Wednesday that his intent, after speaking to renowned architect Marcel Quimby — who wrote the 2008 application for the expansion of the Downtown Dallas Historic District — was to raise awareness about the property’s history.
“From our perspective, from the perspective of a preservationist, the fact that the property is in a historic district is significant,” Siebler said. “It does not preclude them from tearing it down. From a stewardship standpoint and a preservationist standpoint, we wanted to make sure the council was aware. The city is going to dispose of the property, but the fact that the credits are available might make it more attractive to a developer.”
Next Steps For 711 S. St. Paul
The auction advertisement for 711 S. St. Paul St. was published earlier this week and will be posted for three consecutive weeks. An auction is tentatively scheduled for Oct. 2. Open house dates are scheduled for Sept. 26 and Oct. 1.
The city’s Facilities and Real Estate Management team is coordinating with an authorized environmental testing vendor to conduct the necessary sampling required before demolition or before determining “actual demolition costs.”
“Results from the testing are expected within one to two weeks and will be used by the City’s demolition vendor to calculate a revised demolition estimate,” Gipson’s memo states. “Using the revised demolition estimate, a staff recommendation will be prepared and presented to the City Council in an executive session within 30 days from the auction date.”
If the property is sold “as is,” divestiture could be complete by November 2024. If demolition is required as a contingency of the sale, Gipson said an updated timeline will be provided based on permitting, environmental abatement, and the demolition vendor’s schedule.
Because there is an ongoing concern about vandalism and homeless encampments in the area, Dallas marshals, Emergency Management and Crisis Response, and Code Compliance will continue regular property inspections “to prevent and, if necessary, abate nuisance activities until the property is divested,” Gipson said.
Siebler said he hasn’t received any response to his email but believes it’s important for the council to have the facts about 711 S. St. Paul when they review the bids.
“If [the building] had not been compromised by people seeking shelter, I don’t think this issue would have become what it’s become,” he said.
