CITY OF SAN ANTONIO March 23, 2018 Mitch Meyer Loopy Limited 9033 Aero Street, Suite 202 San Antonio, TX 78217 Subject: Decision regarding HDRC Case Number 2018-D05, 803 Cherry Dear Mr. Meyer, The Historic and Design Review Commission (HDRC) has considered case number 2018-DOS, 803 Cherry Street, at multiple public meetings. Your request is to construct a ?ve-story, mixed-use structure to feature multi?family residential and retail space on the vacant lot located to the north of the Hay Street Bridge at 803 Cherry. The proposal also included a small public park dedicated open space located between the bridge and the development which is critical to consideration of this request. The purview in this case is limited to design review only to ensure compliance with the Downtown Design Guide. After hearing testimony from the petitioner and from members of the community, the HDRC voted 5-3 to recommend denial of the request. I have reviewed the recommendation and issue the following decision: IS ll, '1 El Approve Case Number 2018-D05. 41 Approve Case Number 201 8-D05 with conditions outlined boiow. DDisa eryl Soul OFFICE OF THE CITY MANAGER 0 PO. BOX 839966 0 SAN ANTONIO, TX 78283?3966 0 TEL: 210?207?7080 0 FAX: 210?207?4217 Additional Background: The property at 803 N. Cherry Street was sold by the City to Alamo Beer LLC in August 2012 for development of a brewery. This decision came after several community meetings, planning commission approval, and City Council approval. The Hays Street Bridge Restoration Group ?led a lawsuit in 2012 alleging the City of San Antonio breached a contract by failing to develop the property into a park as part of the bridge restoration project. The group also alleged that the land was park land and thus could not be sold absent a public vote. A jury found that the property was not park land, but that the City was required to apply the value of the property to offset the budget for the Hays Street Bridge restoration costs as a ?fund? under the contract. The City appealed the jury?s decision to the 4th Court of Appeals and on March 1, 2017, the 4th Court of Appeals ruled in favor of the City reversing the judgment of the trial court, rendering judgment for the City, and dismissing the case. The Hays Street Bridge Restoration Group has appealed the case to the Texas Supreme Court where it is now pending. During the time of the litigation, Eugene Simor (owner of Alamo Beer) selected to instead develop the Alamo Beer Brewery on the lot at 415 Burnet Street. The brewery opened in 2015 and has had a positive impact on the redevelopment of the near east side. There are no recorded deed restrictions for the property at 803 N. Cherry Street. Nonetheless, as part of a Master Economic Development Incentive Agreement between the City and the developer, the developer agreed to certain conditions including a limitation that any permanent structure shall not exceed the height of ?ve stories. The proposed housing project at 803 N. Cherry Street project was heard by the HDRC because the property is zoned Downtown District and is subject to the Downtown Design Guide. The property is not in a historic district nor is it a historic landmark. The Downtown Design Guide addresses design issues such as scale, massing, setback, site plan, materials, and design. The Downtown Design Guide provides for both requirements that are written as design standards and other parts encourage appropriate design. Compatibility with the surrounding neighborhood is within the purview of the HDRC. The use of the property is not within the purview of the Downtown Design Guide or the HDRC. This development is also subject to design review because it is receiving incentives through the Center City Housing Incentive Policy (CCHIP program). CCHIP focuses on housing redevelopment within the Greater Downtown Area an area that is well positioned for residential and for mixed-use development based on an assessment of market momentum, physical capacity for growth, and proximity to areas with established neighborhood character. These incentives are ?as of right? and were approved on February 20, 2017 Conditions of Approval: The City is supportive of a viable project at this location that is respectful of the historic Hays Street Bridge and that addresses design concerns identi?ed by both the HDRC members and the community. The City is aware that land prices, construction costs, and the housing market often dictate the size, scope, and ?nancial feasibility of any proposed project. The City also recognizes the importance of the testimony provided at the HDRC hearing and the recommendations provided by the commissioners as the body that is charged with preserving the unique character of San Antonio which is key to the local economy. OFFICE OF THE CITY MANAGER 0 P.O. BOX 839966 0 SAN ANTONIO. TX 78283?3966 0 TEL: 210?207?7080 0 FAX: 210?207?4217 Therefore, subject to the rules of the HDRC, which by ordinance is advisory, the project is approved with the condition that the applicant meet with the Dignowity Hill Architectural Review Committee (ARC) and reach agreement on changes to the design as outlined below. You must also present the agreed upon changes to the Design Review Committee (DRC) of the HDRC within 60 days for consideration of a design concept that addresses the following stipulations: Stipulations previously provided by Of?ce of Historic Preservation and Planning Department staff: 1) That all lighting, including parking and security lighting, feature hoods and be directed to avoid spillover into neighboring residential properties. 2) That selected window speci?cations be provided to staff. Staff does not recommend white vinyl windows. An aluminum-clad window with a darker color is most appropriate. 3) That details regarding location of ventilation and mechanical systems be provided to staff. All un- desirable equipment must be screened or located to service areas positioned away from public v1ew. 4) That the roof plan be further developed to include mechanical appurtenances and provided to staff. Any roof-mounted equipment that is visible from the right of way including the Hays Street Bridge must be screened from public View. Additional stipulations based on HDRC Commissioner feedback: 5) That the proposal for public art continues to be developed through HDRC and community input. 6) That the proposed public ?portal? be repositioned to provide a publicly-accessible View of the Hays Street Bridge. 7) Divide the building facades into smaller modules that more closely resemble the scale of the neighboring residences. This is particularly important on the Cherry Street facade. 8) Incorporate a greater separation between the south face of the building and the bridge by retaining only a single-story bay at the southeast corner and stepping back the upper ?oors away from the bridge by at least one bay. The goal is to improve site lines from this corner and a more appropriate transition from the proposed green space. 9) Explore the feasibility of reducing the overall building height or changing the massing to incorporate a greater setback from Cherry and Lamar Streets. 10) That architectural elements further reinforce the industrial character of the site and respond to the architectural design and materials of the Hays Street Bridge, particularly on the end of the building closest to the bridge. 11) That the applicant formalize through deed restrictions or some other means the dedicated open space included in the proposed development. CC: Historic and Design Review Commission; District 2 Councilman Cruz Shaw; Assistant City Manager, Roderick Sanchez; Assistant City Manager, Lori Houston; Shanon Miller, Director, Of?ce of Historic Preservation; Bridgett White, Director, Flaming Department James McKnight, Brown Ortiz OFFICE OF THE CITY MANAGER 0 RC. BOX 839966 0 SAN ANTONIO. TX 78283?3966 0 TEL: 210-207?7080 0 FAX: 0207?4217