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Dallas preservationists say neglected downtown building is historic, oppose demolition

Dallas preservationists were concerned when they saw city council plans two weeks ago to sell and possibly demolish the neglected former Family Gateway Building on 711 S. St. Paul St. without considering the economic incentive of preserving the 1947 building owned by the city.
Preserving the building, which is located behind City Hall, could result in a bigger payoff, the preservationists said.
Ron Siebler, president of Preservation Dallas, a nonprofit group aimed at preserving the city’s historic and cultural sites, sent council members an email on Sept. 3, first reported in a newsletter by Scott Goldstein, government relations consultant for Downtown Dallas, Inc.
In the email, Siebler explaining that the building is part of downtown’s Historic District listed on the National Register of Historic Places. The National Register is a federal list of buildings and structures that have artistic value or significance to local communities.
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“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,” Siebler said in the email.
He added that a buyer could use federal and state preservation tax credits to potentially cover 45% of the qualified expenses.
The building is expected to be put up for auction in October in a two-tiered bidding process, according to a city memo published Friday. During the auction, buyers can offer two bids — one that would pay for the land with the building, and another that would just pay for the land.
The two-tiered bidding process, which city staff said they had never done before during the Aug. 28 council briefing, was conceived after council members began debating whether the city should demolish the building before the sale.
City staff recommended putting the building on the market as-is. Council member Jesse Moreno, who represents the area, advocated demolishing the building before it is sold, since the land value is likely more desirable and the building was in disrepair, he said.
The building is situated in an area immersed in plans for a high-rise building with office and retail space, as well as several entertainment locales close to the Kay Bailey Hutchison Convention Center.
National Register listings, however, cannot prevent the buyer from demolishing the building, Siebler said. “We want buyers to be aware of the fact that there’s free money on the table for them,” especially as several buildings downtown have benefited from the tax credit program, Siebler told The News.
The old Family Gateway building’s inclusion in the Historic District came in 2008 when the district’s boundaries were extended to include areas around the City Hall. More than 30 buildings were added in the inventory, and the boundary expansion was officially listed in 2009.
“I was disappointed that the city management had not alerted us that this was a Historic District,” Moreno told The News Tuesday. “I live in a conservation district, history is important to me, but we need to also understand that not every single building that is old is worth saving.”
Moreno has said previously that the building had become a nuisance property after brushes with squatting and neglect.
“No one was there fighting for the building (before council discussions),” Moreno said. “If it was truly a significant contributing building, I would have expected people from the preservation community to come out and say, ‘Why have you done this to this building? Why have you allowed it to be graffitied? Why have you allowed it to become taken over by squatters?’ ”
Previously known as the American Optical Center, the building was designed by Walter W. Ahlschlager, a Dallas-based architect known for also designing the Mercantile National Bank Building on Main Street.
The registration form submitted to the National Register said the buildings in the area represent the architectural evolution of an early 20th century commercial area downtown “with buildings that range from one and two-story modest or vernacular commercial buildings” to significant structures associated with Dallas’ leading religious congregations, and buildings that reflect the modern era after World War II.
Assistant City Manager Donzell Gipson said city officials were conducting environmental sampling to determine demolition costs, according to the Friday city memo.
Gipson said the city could sell the property by November if it was sold in its current shape and form. Closing the property could take six or more months if the sale calls for a demolition. The process would depend upon the demolition vendor’s schedule, permits and a study on the environmental impact.
Clarification 9/11/2024: The property is owned by the city and is no longer associated with Family Gateway.

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