Studer Community Institute

New life for old eyesore?

April 23, 2015
/ Carlton Proctor
/ economy

Vacant since 2004 when Hurricane Ivan caused severe water damage, the former Medical Center Clinic building on North Palafox Street is now attracting the attention of developers. Most recently the Atlanta-based PACES Foundation, a nonprofit sustainable housing developer, applied for a $1 million tax credit from the Florida Housing Finance Association. PACES put together a multifamily, residential housing plan that called for four, four-story towers on the 3-acre property. The $1 million tax credit was critical to the success of the project, said Randy Wilkerson, Escambia County's director of the Multi-Family Program. Wilkerson said competition in Florida for the housing tax credits is intense, and the PACES project did not make the cut. "I haven’t heard from that group (PACES) if they are planning to resubmit their application," Wilkerson said. Several attempts to reach executives with the PACES Foundation were unsuccessful. Despite that setback, the property’s owners, Jacksonville-based Palafox Partners LTD, has just received a “letter of intent” to purchase, said Tom Bell, the NAI Halford broker who has the listing. “We have received a letter of intent from a developer and we are in the process of drawing up a sale contact over the next couple of days,” Bell said. Bell said he could not yet reveal the name of the group submitting the letter of intent. Wilkerson said the property has had numerous mildly interested suitors over the years, but that interest has vaporized once they get a look inside the structure. Water damage, deterioration issues inside Part of the problem was the selling price, which was deemed too high to make it a viable development. Bell said the price has been lowered recently to $750,000. The asking price in 2010 was $1.7 million. In addition to the price, the biggest drawback is the interior condition of the building. Water damage, mold, and other deterioration presents a daunting task for any would-be developers, Wilkerson said. “Over the years there have been probably a half-dozen developers who have looked at that building, some in a cursory manner, some seriously,” Wilkerson said. “In my arm-chair opinion, you'd have to go in a completely gut the building to save it,” he said. “When you walk in the front door today, because of the mold and dampness, it will take your breath away.” Housing could fill a niche Despite all the drawbacks of the building, there appears to be a growing market for affordable, workforce, and retirement housing in that area of North Palafox, which is adjacent to the historic North Hill neighborhood. “We were hoping the PACES project would be built there, or something similar on that site," said Melanie Nichols, president of the North Hill Neighborhood Association. “It’s an easy walk or bike ride on Guillemard Street all the way to downtown, not to mention that any residents there would have access to neighborhood parks close by in North Hill and Long Hollow.” Nichols also mentioned the frequent activities at the nearby First City Arts Center, located on Guillemard, only a few blocks from the building's Palafox location. “We think a residential development on that site would be very attractive for people looking for affordable apartments,” Nichols said. “I know our North Hill residents would make them feel very welcome to the neighborhood," she said."

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New life for old eyesore?

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