FRED COUZENS/VIEWDesert Sun Realty broker Bret Runion stands outside the Nevada Drug building at 1220 Arizona St. Runion plans to remodel the 60-year-old building and relocate his business there.
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"I've remodeled and refurbished a lot of homes around town, and I've enjoyed that," said Bret Runion, the new owner of the old Nevada Drug Building at 1220 Arizona St., on Jan. 9, the day after the city's Redevelopment Agency approved his application for $99,900 in redevelopment funds.
Once it's completed, whether Runion can say he enjoyed remodeling and refurbishing the 60-year-old building rife with structural, electrical, fire code and Americans with Disabilities Act (ADA) problems remains to be seen.
Runion applied to the RDA for the full amount possible after learning that it would cost him more than $376,000 to address the demolition of the existing bathroom, code issues related to faulty high-voltage wiring, installation of two new ADA restrooms, the design and building of a new entrance, fixing the leaking roof, removal of any asbestos, obliteration of any mold problems, fire code violations and other issues just to make the building useable.
"No new business could safely use this building without upgrading the complete electrical system," Brok Armantrout, the RDA's assistant executive director, noted in his write-up to the RDA board members. "Many different fire code violations exist and require action. These problems not only place this building in danger, but the adjoining buildings, as well."
With $376,000 in repairs and a sale price of $550,000, Runion's investment -- the actual buyer's name is BC Trust and/or Assignee -- is pegged at close to $1 million, but he said it's worth it.
"I like being in the old part of town," he said. "Actually, it's one of the larger buildings and there's not that many locations that you can consider relocating to. I had a lot of second thoughts about it. If it was only a financial decision, it wouldn't make any sense."
Runion's plan is to start the remodeling and refurbishing job next month and have it completed in the fall, at which time his 2,500-square-foot realty office of 12 years at 1000 Nevada Way would relocate downtown, leaving the remaining 1,750 square feet to be used as small business executive suites with a common reception area and other shared uses.
The realtor's request for $99,000 met with some resistance from RDA members Travis Chandler and Linda Strickland -- both, in the end, voted no on the request -- with Strickland agreeing that the applicant was qualified and that the request addressed blight, but that Runion failed to meet the qualification of not being able to find any other means of financing the project -- a requirement of state law.
"Basically, we're looking at giving away $100,000 of RDA money," she said. "I see this as a windfall to the owner."
However, Runion disagrees with those thoughts and has a different perspective on the use of RDA funds.
"I feel the RDA program is intended to be an incentive program to entice people to invest private dollars in these critical areas," he said. "I don't think it's intended to be financial aid. It may need some tweaking, but overall, it's been a very good program."
The Nevada Drug Building has twice been the recipient of earlier RDA funding.
Owner-pharmacist Scott Ricci was awarded $13,860 in November 2002 for reroofing, fixing the existing canopy and replacing the heating-cooling unit, and was awarded another $2,028 in December 2003 to replace his signage.
Ricci collected on the $13,860, but let his authorization for sign reimbursement costs expire without collecting any money.
According to Armantrout, "Although this building has received $13,860 for mainly exterior improvements in November 2002, this new owner/applicant has not received any funding to date for this proposed new project at this address. Thus, this new project is eligible for the full amount requested by the applicant."
While in the heart of downtown in what will be basically a new building, Runion said being off the beaten track isn't a bad thing since his business is mostly repeat and referral customers that doesn't rely on drop-ins.
"Originally, we were where the Subway shop is now on Nevada Highway when we started back in 1987," he said. "At that time, we were discouraged by the amount of traffic that came through the office. They were mostly out-of-towners and they were time consuming without much results. When we relocated the last time (12 years ago), and it's kind of funny to say this, but it was because we wanted a location with less traffic."
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