19 - BUILDING REDEVELOPMENTItem No. 19
memorandum
TO: Mayor & City Council
FROM: John Godwin, City Manager
SUBJECT: BUILDING REDEVELOPMENT
DATE: August 10, 2016
BACKGROUND: Redevelopment of older buildings, especially those that have been
unoccupied for some time can be a challenge, both structurally and financially. Paris has an
unusually high number of such buildings per capita, most of which are located in or near
downtown, and very many of which contain asbestos. In addition to the real issues relating to
such redevelopment projects, there are a lot of myths and misunderstandings out there that tend
to frighten potential redevelopers away. For example, we hear that the city requires every
building to be heavily sprinklered at a cost that can run over $200,000. That is of course, not
true, and in fact only a small minority of structures downtown would require any sprinklering at
all. We hear that the city is trying to restrict onsite storage; that too is incorrect. Only
warehousing as a primary use is prohibited by current zoning. In response to these types of
misunderstandings, we recently prepared the two attached flyers for distribution: "What Do
People Say about Downtown Paris ?" and "Things You Can Do in Downtown Paris." In fact,
redeveloping older buildings can in many cases be less expensive than building a newer one, and
we have tried very hard to make the redevelopment process easier and more reasonable.
STATUS OF ISSUE:
• The fire code is cited as the number one reason why redeveloping in downtown is so hard
and so expensive. The fact is, however, the fire marshal and fire chief will work with
anyone to make reasonable accommodations, as long as fire and life safety are adequately
addressed. At present the only buildings downtown that would require a sprinkler system
are: restaurants of 5000'+ or occupancy of 100+ (only one now requires sprinklering),
restaurants in basements, residential spaces in a basement or upper floor and mixed with
other uses, and buildings that have a system already installed (very few). Stores, shops,
law offices, repair shops, mercantiles, and almost any restaurant that could fit downtown
require no sprinklers.
• Residences that should be sprinklered do not require large commercial sprinkler systems.
Smaller residential systems are much less expensive, averaging less than $1.50 per square
foot.
• In addition, when the city replaces the water and sewer mains in downtown as part of the
current major 2013 bond utilities construction project underway, we will include stub -
outs at city expense to make it easier and more cost effective for those few structures that
will need sprinklering.
• The building code states "No building or structure shall be used or occupied [by humans
or for storage] ... until the building official has issued a certificate of occupancy." The
purpose of the CO is to make sure a building is safe once it is occupied. This is not a new
requirement, and is common all across Texas, in urban and rural areas alike. Completely
empty buildings in downtown do not require a CO; therefore, they are not out of
compliance.
• To turn on power to a commercial building the owner must apply for a CO and submit
what the intended use(s) will be. The city also has the authority to inspect vacant shell
space that is part a building that is being actively used. This is important not just for the
safety of the owner and his/her building, but for neighboring structures owned by others
and often physically connected, and for firefighters who may have to enter in the case of
an emergency.
• In an effort to help make sure downtown buildings are safe, we recently began a program
to inspect all structures with more than one floor. As I have previously reported to you,
most of these inspections have been completed, with full cooperation from property
owners. Our purpose is not to discover violations, but to point out needs to property
owners to help ensure their safety, and help our fire department better pre -plan in the
instance of an actual fire. Such pre - planning is a key to keeping a fire from spreading
and also to firefighter safety.
• There are three different grant opportunities available for redevelopers in downtown, and
the city has partnered with four local financial institutions to offer low interest repair
loans of up to $15,000 specifically for downtown buildings. The city has also discussed
creation of a TIRZ, or TIF, to help encourage downtown investment. Another option that
is available to cities is creation of an empowerment zone, which would leave
development fees to be spent on downtown improvement and maintenance.
• Because we understand that redeveloping an existing building is simply different from
building a new structure, the city adopted and enforces the Existing Building Code. This
ameliorates some of the requirements of the standard Building Code, making
requirements more reasonable, more common - sensical, and usually more affordable. In
other words, older buildings do not have to meet all of the requirements of building a
brand new one, provided life safety is addressed.
• One of the issues we experience is developers jumping into the process without a full
knowledge of what needs to be done and when. This is much more common with
redevelopment projects than traditional projects, so we see a much higher percentage
done by "amateur" developers, usually the owners themselves. The city engineer has
instituted a new development process which encourages meeting with the development in
advance, so that the entire process can be laid out and confusion avoided. This is a new
process, but has shown itself to be of value to developers and city staff alike.
• Asbestos is a potentially deadly material if it enters a person's lungs. It can only do that
if it becomes "friable," which means airborne in tiny particles. Unfortunately, because of
its history of fires Paris has far more asbestos than almost any other city. As a result,
demolition and reconstruction are often very expensive. Laws regulating asbestos
removal and containment are set and enforced by the state, however; the city plays no
role. There are techniques to encapsulate asbestos in some cases, safely saving costs.
BUDGET: NA
RECOMMENDATION: Direct staff to make modifications and changes as required.
WHAT DO PEOPLE SAY ABOUT
DOWNTOWN PARIS?
(And Is It True ?)
There are no businesses in downtown, so
why bother going there? There are in fact
over loo businesses in downtown Paris,
including eleven restaurants.
There is nothing downtown but a bunch of
antique stores. There are eight antique
stores. They are outnumbered by
restaurants (11), retailers (22), and service
related businesses (53). There are also six
venues for arts and entertainment, a
farmers' market, churches, civic buildings,
and three parks.
damage. There was one violent crime
reported in three years.
There is nowhere to park! There are a total
of 1,169 parking spaces in downtown. At no
time are they all full except for special
events like parades and festivals.
If you can find a place to park, it is too far
away. The city recently prepared a diagram
overlaying the Wal -Mart property onto
downtown Paris. The overlay covered from
Houston to Kaufman and from 2nd to 1st
Empty spaces in downtown and full spaces
at Wal -Mart suggest this is a perception
only and not a real problem.
The city's fire marshal is unreasonable. In
the past the marshal worked hard to ensure
Downtown Paris is
downtown fire safety and at times may
just too dangerous.
have been unwilling to negotiate solutions.
Studies have shown
However, the current marshal and chief are
the crime rate in
dedicated to working closely to partner
downtown is no
with downtown owners and developers.
higher than in the
rest of the city, and
the overall crime rate in Paris has declined
for three straight years. A two -year analysis
of police reports in downtown show three
hit - and -run calls, and eleven property
It is impossible to redevelop anv of the old
buildings because of ridiculous fire
sprinklering requirements. The city will
work with and negotiate compliance issues;
in many cases, only certain portions of
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buildings will need to be sprinklered, and
that is usually at a very affordable cost.
Many downtown buildings are too small to
even need a system at all. In addition, the
city is replacing water lines and adding fire
connections on every block to make fire
sprinklering easier and cheaper.
You lust cannot work with the Historical
Preservation Commission; thev won't let
anyone do anythin>Y! We have had a few
instances in the past where the HPC may
have been overprotective of historic
downtown buildings. However, the
structure, oversite and composition of the
commission have changed. Over 93% of all
requests are approved.
It is going to take 5ioo of thousands to
refurbish an old building and make it
functional. That is rarely the case.
Certainly a building in disrepair can be
expensive, and opening a restaurant
anywhere can be expensive due to
requirements for venting, sprinklering,
exits, etc. But downtown buildings can be
a low cost alternative to other locations for
many businesses. In addition, there are
grant programs to assist property owners
with the costs of improvements.
It is cheaper to just build new on the low.
Depending on the type and size of a
business, the loop may very well be a better
location. However, land on the loop is
almost always more expensive, and traffic
patterns and volumes there support a
different type of business than will thrive in
a downtown. Depending on the building
you select and factors such as age,
condition, and size, it can be much cheaper
to locate downtown.
Paris needs to be like Sulphur Springs.
Sulphur Springs has a very nice, active
downtown area with enhanced paving and
landscaping. However, Paris's downtown
is far larger, contains many more
businesses, has much higher traffic counts,
and a larger surrounding population from
which to draw customers. Paris is
improving its sidewalks and added loo new
trees in 2016. In addition to many festivals
and special events, Paris has the rapidly
growing farmers' market, downtown skate
park, historic plaza and fountain, Bywaters
Park, and a new spray park for kids.
There is no public restroom. This is no
longer true. In cooperation with a number
of local partners, the city recently
constructed a new public restroom at the
corner of Lamar and 3rd Street NE.
There are too many empty buildings used
Just for storage and that creates potential
code and fire safety issues. We agree. In
response, we are changing some of the old,
inappropriate downtown zoning, and have
also started a program whereby larger
under -used buildings are more closely
monitored and periodically inspected for
fire safety issues.
Traffic goes by too fast to see the
businesses. The maximum speed limit
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through downtown is 30 mph. The more
traffic and visitors there are downtown, the
slower the average speed will be. And
traffic here is still dramatically slower than
in any other retail area of the city.
Old utility lines mean low pressure, poor
water quality, and frequent sewer
stoppages. That is true, but the city will
spend several million dollars on utility line
replacements downtown in 2oi6 -17.
The sidewalks are inadequate. The entire
downtown is served by sidewalks. TXDOT
recently improved accessibility issues, and
the city is working with the state to replace
two to three blocks of older sidewalks each
year. Significant progress has been made.
For interested owners, the city also has a
program whereby we will share the costs of
a new sidewalk with contiguous property
owners.
DOWNTOWN FAQs
1. Can I live above my business? Absolutely. In fact a number of
people already live above their businesses and enjoy the unique
lifestyle of downtown living.
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z. What kinds of businesses can be located in downtown Paris?
Almost any kind of business can locate downtown. Only
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industrial, manufacturing, and warehouses are not allowed by
zoning ordinances. Offices, retailers, and restaurants are
especially good fits for downtown.
3. Can I have more than one tenant in a single building? Yes. Many larger buildings are
perfect for two or more tenants, though each usually needs its own access for safety
purposes.
4. What do I have to do before I renovate my property? Your project needs to be reviewed
by city staff, and depending on the type and size of the work, it may need review by
the Historical Preservation Commission as well. Of course a building permit will be
needed for most major work, just like anywhere else in town.
5. Will I have to fire sprinkler my entire downtown property? Probably not. This will
depend on the type of use and the building in question. Many downtown buildings are
not large enough to require a sprinkler system at all. The fire marshal will work closely
with any property owner to make a building safe for as little cost and trouble as
possible.
6. Can I get tax credits? Yes, state and federal laws provide for historical tax credits on
many downtown buildings. The city does not have a role in this process, but can
provide basic information and contacts.
7. Are there grant programs available? Yes! There are grant programs for most
downtown building projects, including the BIG grant and a fa4ade grant. There is also a
property tax exemption program for many improvements.
8. Do I need an asbestos study completed? State laws require that property owners
complete certain reviews and file various reports. However, the city does not enforce
state laws, and there are no municipal ordinances regarding asbestos. In many cases
asbestos can be encapsulated instead of removed to make it safe, though you should
always check with the Texas Commission on Environmental Quality.
g. Is there enough water pressure downtown? Generally yes, but the city is currently
building several million dollars' worth of new water and sewer mains in downtown,
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which will ensure great water pressure and quality, reduce leaks, and ensure adequate
fire protection.
10. Can I do my own renovations? That depends on the size and complexity of the work,
and your skills and abilities. Some projects by law require certain licensed workers,
such as plumbers and electricians. The city's building inspector can offer advice at no
charge.
11. Can I get signage approved? Like most cities, Paris does have a sign code to manage the
unsightliness and clutter caused by too many, too large, and inappropriate signs. The
H PC and city staff will provide direction and assistance prior to approval. Most sign
requests can be approved in- house.
How do I get started? Contact the city's Community Development Department or the Main
Street Coordinator. They will have the information, contacts, and forms you need.
Item No. 19
COUNCIL MEMBER AGENDA ITEM REQUEST
Please complete this form to have an item placed on the agenda for the Council's consideration.
The deadline for requesting an item on an agenda will be the Wednesday before the council
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prepare /review an ordinance, resolution, or other document such as a contract. In order for your
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important that you describe the item with as much detail as possible and include any supporting
documentation so that it may be included in the Council's meeting packets. Please return this
completed form to the City Manager's office or the City Clerk's office.
Council member making request:
❑ Aaron Jenkins ❑ Matt Frierson
❑ Sue Lancaster ❑ Cleonne Drake
❑ Billy Trenado ® A.J. Hashmi
❑ Steve Clifford
Description of Item: Discuss and provide direction to staff regarding renovation of
existing buildings
Are additional sheets or supporting materials attached? ® Yes ❑ No
I request that this item be placed on the agenda for the:
® City Council meeting on this date: August 22, 2016
❑ Sometime in the next 2 meetings
❑ No specific time in mind — just keep it on a list of pending issues
Signature: s /A.J. Hashmi Date: 8 -15 -2016
City of Paris Revised 05/18/2016
As we look towards improvement in the appearance of our city one of
the things that very quickly pops out is the downtown area and old
dilapidated buildings that are uninhabited.
As times goes on and as buildings remain empty, they will further go
into disrepair and eventually fall down, either injuring people or
requiring the City to eventually incur the cost of demolition if the
owner is not in a capacity to afford the costs.
Some of the challenges that our City faces is the fact that we are off the
main highways and there is not a large enough population to support
growth, nor does the City have enough funds to assist in rejuvenation
of the downtown area.
Unlike places such as McKinney, their downtown has been rejuvenated,
due to their location or the population growth, etc. In those areas it is
easy to follow all International, State and local laws regarding safety
and fire protection since the property prices are much higher and
return on investment is much greater.
If we were to follow the International Code completely as it was
adopted many years ago, people would have to spend more money to
renovate the buildings than the worth of the buildings, since our city is
challenged by the fact that downtown property prices are not high
enough.
Now the ideal here is not that we should negotiate on safety, since
health, safety and quality of life are the primary duties that this council
is entrusted with. As we talk about safety and the current conditions of
the buildings (I do not mean to imply that every building creates an
unsafe situation either), we as a city must be able to negotiate so that
while safety remains a priority, we don't make it so difficult for the
owners that it becomes next to impossible to improve the current
conditions of the buildings. As we can see from the memo from the city
manager, some of it is myth and some of it is reality, but we must move
forward and try our best to improve the conditions so that we provide a
safe downtown environment and help the property owners bring their
buildings up to safety standards.
I would suggest at this point that a committee of city staff members,
downtown owners, and the fire chief be formed and bring back to the
council a new set of suggestions that makes the growth and
renovations of our downtown properties much easier so that we can
see some improvements there.