Transcript Waterfront Communications, LLC presents

Waterfront
Communications, LLC
December 3, 2008
Proposed Re-Development Plan
For Central Business District of
Corpus Christi, TX
Proposed Re-Development of
Central Business District

Waterfront Communications, LLC forms internal task force to
examine potential for redevelopment and revitalization of
Central Business District, specifically Leopard Street, to a
vibrant, pedestrian and visitor-friendly office, dining and retail
district, currently a blighted area in the Community Renewal
District.
Proposed Re-Development of
Central Business District
Current Condition of Waco Street, Leopard Street, surrounding areas of
1024 Leopard Street
Proposed Creation of
Central Garden District

Begin with 1024 Leopard Street, incorporate green space in back of
building for courtyard, flowering “fence” around parking lot; trees and
plantings in front, total rehab of exterior to include architectural details,
local artist murals, and updates to attract retail/office tenant mix.
Proposed Exterior Rehab of
1024 Leopard
Proposed Creation of
Central Garden District



Complete renovation of Courthouse
Square, seek options on neighboring
Grossman theater, vacant buildings,
and those for sale, including
Braslau’s Furniture, and Caribbean
Connection. Estimated budget for
acquisition: $1.5- $2M.
Seek Main Street Rehabilitation
Grant with U.S. Dept. of Housing &
Urban Development, seek grant
with U.S. Dept. of Energy to create
green space and solar-power new
acquisitions.
Central Garden District to serve
CURRENT occupants of City Hall,
County Courthouse and Uptown
Financial District within walking
distance.
Proposed Renovation of Grossman Theater

March 2007: Toured 1024 Leopard Street, formerly Wolfson Furniture, as the
first of a number of potential acquisitions in the Central Business District.
Building used by Mr. Maury Wolfson as offices for Block Realty which contained a
single curio cabinet with jewelry and personal office furniture as well as a counter
used to receive rental payments from Block Realty’s tenants. At no time did I nor
my staff view any retail furniture for sale.
Mr. Wolfson ceased operations as a furniture store in March,
2006, a full year prior to our tour of the building.
(See attached Caller Times’ articles of Sept. 20 & 21, 2006, and attached Going Out of
Business Advertising TV Schedule with KZTV)
Acquisition of 1024 Leopard Street






June – September, 2007. Waterfront Communications, LLC reviews
construction remodeling needs with 5 major general contractors in Corpus
Christi, receiving final estimates at $110,000 for façade and interior remodeling
of entire building.
October 15, 2007. Company receives loan approval for the Acquisition and
Remodel of 1024 Leopard Street.
January 25, 2008. Waterfront Communications, LLC closes and acquires 1024
Leopard Street for $230,000.
February 4, 2008. Company engages Jim Boggs, City Architect, to design
interior remodel and façade plans. Many subsequent meetings held with Boggs
to receive designs for building.
August 15, 2008. Company receives final draft of interior remodel plans from
Jim Boggs and David Walker, subcontracted architect, engaged by Boggs
without Waterfront Communications, LLC direct knowledge. Company pays $10K
for interior remodel plans to David Walker, subcontracted architect.
August 16, 2008. Company engages Trinity Contractors, LLC for remodel of
1024 Leopard.
Final Interior Floor Plan 1024 Leopard
Acquisition of 1024 Leopard St.
Timeline of Discussion with City Staff


August 28, 2008: Company applies for Demolition permit from City.
September 11, 2008: Company applies for permit for remodel of 1024
Leopard. Permit is promised, in writing, by the City for September 20, 2008.
Building permit receipt states Parking Requirement as 5 spaces.



September 24, 2008: Permit for remodel is issued at 9:30pm after many calls
by Trinity Contractors, LLC, and Waterfront Communications, LLC. Five (5)
reviews by Development Services personnel are completed between 4 pm and
9:30pm on that date.
Late September, 2008: Several calls between Andrew Dimas @ Dev. Services
and Company, as well as Irma Caballero and Jay Reining to discuss parking
issues and tax abatement.
City Development Services staff has several telephone conferences during
September and October with Company principals, assuring principals that
parking ordinances will not be a problem or inhibit the issuance of Certificate of
Occupancy.
Acquisition of 1024 Leopard Street
Timeline of Discussion with City Staff

October 20, 2008: Company meets with Irma Caballero, Emily Martinez, Jay
Reining and Andrew Dimas, Development Services, to discuss parking
ordinances and tax abatement. Company is informed that no tax abatement
during construction period will be granted, as Company didn’t apply prior
to Oct. 1, 2007. Company DID NOT OWN building until January 25, 2008 and
applied, as instructed, for tax abatement prior to October 1, 2008.
In January, 2008, ad valorem property tax on 1024 Leopard Street tripled to
over $6800 per year from approximately $2200 per year. Attendees @ meeting
discussed several ways to avoid additional expense to the Company for
additional parking. Irma suggested a Special Permit for the entire building for 6
months, until Development Services could draft a proposal for the ZBA/City
Council to change the boundaries of the B-6 zoning district from its current west
boundary (ending at Carancahua Street) to extend through the Central Business
District to the Crosstown Expressway along the Leopard Corridor. ZBA Hearing is
scheduled for November 19, 2008.
Remodel of 1024 Leopard Street


November 18, 2008: ZBA Hearing for parking relief for project is
rescheduled to December 3 at City Staff request. Company explains
Certificate of Occupancy must be received no later than December 15,
as Company current office lease will expire on Dec. 31, and space has
been leased to new tenant by current landlord.
November 25, 2008: Company learns that no permits were ever
issued for building renovation on 1024 Leopard since 1927. Wolfson
disclosed to Company during negotiation phase that he added
approximately 2000 square feet of showroom space and the men’s
restroom since the 1950s. At no time prior to closing, did he disclose
the presence of asbestos and structural damage to the building and in
fact, warranted in the Commercial Real Estate Contract between the
parties that such conditions DID NOT exist.
Development of 1024 Leopard Street
Timeline of Discussion with City Staff



October 20 – November 24, 2008. City Staff, Bob Nix, Angel Escobar,
various Council members and Company have many telephonic and in-person
meetings and tours of the building. City Staff vows to uphold the B-5 zoning
ordinance, and Company explains the lack of ADA compliance, asbestos and
general structural failures of the building has increased the construction budget
for the project to over $300,000, more than DOUBLE the original, budgeted
costs.
Company explains the current rental rate the Central Business District (CBD) can
bear is no more than $1.15 per square foot. With the additional reconstruction
costs, it will be nearly impossible for the project to be profitable for many years,
as those costs cannot be supported by increased tenant rental rates in the
blighted area of the CBD.
Company maintains throughout each meeting that adequate on-street parking
exists, and points out the lack of enforcement/compliance with B-5 Zoning
parking requirements by neighboring businesses, including Templo Trinidad,
Caribbean Connection and others on Waco Street. Minimum of 30 public, nonmetered spaces exist on Waco Street, with dozens more, metered spaces on
Leopard Street.
Photos of Existing Parking
Conditions
City Findings Report



November 26, 2008. Bob Nix and staff in Development
Services submit incomplete report to Company recommending
the upholding of the current B-5 parking requirements,
increasing Company’s burden of operating expense and costs
substantially. “Anecdotal” information on parking lots for lease in
the area is referenced, without any hard data, contacts or
additional information for Company’s use.
Company submits two affidavits to City to refute City findings
that a “retail store” was operated in 1024 Leopard Street until
Company’s acquisition in January, 2008.
December 2, 2008: A final City recommendation report for
today’s meeting is emailed to Company at 5:35pm.
Waterfront Communications, LLC
Rebuttal To City Recommendation


Adequate public parking exists in Central Business District, and
on lot of 1024 Leopard to sustain current and future tenants.
RTA bus service exists along Leopard Street, with a bus
stop within 700 feet of building.
Company will provide 1 parking space on site to each proposed
tenant suite. Tenants will be directed to additional parking space
for lease in the immediate area, at their own expense and the
liability of the lot owner.
Leasing or acquisition of more land to accommodate additional
parking will place undue hardship on Company in additional
operating expense for rental/mortgage and insurance premiums
to cover tenants’ parking of their vehicles in those lots.
Waterfront Communications, LLC
Rebuttal To City Recommendation



City’s failure to require acquisition of leased parking when use of
building changed from Wolfson Furniture to Block Realty in
March, 2006 from 9 spaces to 30 spaces may be seen as
favoritism toward former owners of 1024 Leopard Street or
conversely, discrimination against Company, whose principal is a
minority, local developer and business owner.
City’s failure to enforce Federal mandates for ADA accessibility,
construction permit requirements and penalties for construction
code violations by former owners forced Company to incur
undue expense and hardship and caused the budget to swell to
over $300,000.
City’s failure to address ADA accessibility issues on Waco and
Leopard Streets has caused the Company additional expense to
upgrade sidewalks to accommodate its handicapped guests and
employees.
Conclusion

Waterfront Communications, LLC respectfully requests:
1. Denial, in its entirety, of the City Staff recommendation to increase the parking
requirement for 1024 Leopard Street to 30 parking spaces, and issuance of a full
Certificate of Occupancy for the entire building.
Company will maintain the 9 spaces for private, off-street parking on its lot for
tenant/guest use. This action by ZBA will in effect “grandfather” the Company
with the same advantages the former owners enjoyed with respect to required
parking.
2. Review of the ZBA of the entire B-5 Zone boundaries, and/or revision of current
code to allow for future development in the Central Business District.
3. Formation of a Task Force populated with City staff, ZBA members, business
owners, developers and private citizens to address developer relationships with
City, and, to recommend urban planning for blighted areas of the City needing
revitalization.
4. Review and simplification of the ordinance code language for ease of use by
developers and business owners alike.