1922 Withdrawn

Community Three Development withdrew its application for 1922 Third Street.  As we wrote before, the developer proposed renovating and expanding the historic main house, renovating the historic carriage house, and constructing a new townhouse on the south side of the lot.

The proposal was set to go before the Historic Preservation Review Board last Thursday, but the developer, while at the meeting, withdrew his proposal and the board ended discussion on it.

In preparation for the board meeting, the Historic Preservation Office issued this staff report critiquing the proposal from a historic preservation standpoint.  One of the most significant suggestions was that the developer remove the “hyphen” section connecting the main house with the proposed townhouse, a concept alteration that would require a zoning variance.  Receiving a zoning variance is by design a costly and protracted process that’s not guaranteed to succeed.

In an email to us, the developer stated that due to these various issues, ranging from some neighborhood opposition to unresolved zoning issues, they could not proceed with their plan.

Regarding the politics of the proposal, the developer wrote:

[T]he economic and physical constraints inherent in the redevelopment of this site require all participants to contribute to a solution that benefits the greater whole, and in this case, we unfortunately found that certain stakeholders were unwilling to do so. We will potentially revisit this project when local pressures realign, but it may be very difficult for progress while these differences remain irreconcilable.

Through this process, we were surprised to the degree to which the developer reduced his ambitions, but ultimately the business of housing is a business driven by public tastes, local regulation, construction methods, and— above all— economics.  If a proposal is financially impractical, it will not get built, unless it is built at a loss as a pet project of a wealthy financier.

Somebody will eventually buy the house, though maybe not soon.  For it to remain a single-family house, as many want it, a potential owner must be able to afford replacing the roof, gutting the interior, building a new kitchen and bathrooms, replacing the wiring, replacing the plumbing, installing insulation, replacing many of the floors, installing a new furnace, replacing much of the drywall, fixing the foundation, and repairing the carriage house— renovations that will likely run near a million dollars, if not more, on top of the sale price.

A condo project with fewer units (and without a townhouse) could still succeed, but the reduced number of units will likely exclude an affordable housing component (only required of projects with 10 or more units).  Furthermore, those fewer units will have to be sold at higher prices to justify the renovation costs.

The neighborhood opposition (far from universal, mind you) unwittingly set a new entry criterion for purchasing the property: if you want to live at 1922 Third Street, you must be a very wealthy person.

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What do you think?  Are you glad or are you disappointed that the proposal was withdrawn?