Incentives sought to support proposed downtown Rochester historic district

Feb. 13—ROCHESTER — The fate of a proposed downtown historic district could hinge whether Rochester can provide incentives for affected property owners.

"I look at these properties as privately owned, but they are a public good," Rochester City Council President Brooke Carlson said of nearly 30 buildings that would be designated as contributing to a proposed historic district.

She voiced a desire to ensure property owners have incentives to continue protecting the buildings.

Several property owners made similar requests in 2019, when the council opted to delay a decision to gather more information and allow city staff to clarify policies.

Shawn Fagan, owner of 324 S. Broadway that houses Fagan Studios and was once known as C.J. Morrill and Son, Wholesale Grocer, was among property owners who opposed the concept in 2019 and he still has concerns.

Now a member of the city's Heritage Preservation Commission, he said the city has made some progress in making sure property owners don't face huge barriers by owning historic properties, but more needs to be done.

"I think we are getting closer, but to me it's still not there," he said.

John Kruesel, a long-time advocate for the proposed district, said current incentives often require property owners to borrow funds, since they only pay for a portion of a project and don't help reduce other costs of maintaining buildings.

As owner of the building that houses his Third Street store and the Half Barrel Bar and Kitchen, he said a lack of effective incentives puts the proposed district in jeopardy.

"If we want to bring some of our history into the next century, then there needs to be an incentive to do so," he said.

Rochester Realtor Bucky Beeman, who owns the former Columbia Hotel at 330 S. Broadway Ave., along with partnering in ownership of two other buildings in the proposed district, agreed incentives will be key, if the city wants to ensure the older buildings remain community assets.

"They have been and continually are great places for organizations and businesses to start and grow," he said, but pointed to increased tax rates and upkeep costs as potential barriers.

Rochester council members voiced similar concerns on Monday as they decided to eventually discuss the issue at a future meeting.

Council member Shaun Palmer said he welcomes the chance to vote on the issue, but said he plans to vote against it as it currently stands.

"We have less incentives that we did in 2019, with the state tax credit falling off," he said of state support that is set to end unless approved by Minnesota lawmakers.

Molly Patterson-Lundgren, the city's heritage preservation and urban design coordinator, said the city offers a new option for developers to work with owners of historic properties by transferring development rights, but acknowledged the state support could end.

Council member Kelly Rae Kirkpartick, who represents a portion of the proposed district, called the current proposal a "double-edged sword" needing to find balance when it comes to protecting history and supporting property owners.

With the decision to continue the discussion and make a potential decision on the proposed district, the council could act on it as early as its Feb. 22 meeting.

The proposed district would include approximately three city blocks, largely sandwiched between Broadway Avenue and First Avenue Southwest. The northern border would include buildings just north of Second Street Southwest, and the southern line would primarily run along Fourth Street Southwest.

A single property south of Fourth Street Southwest — the Riverside Building at 400. S Broadway Ave. — would be included in the district.

Buildings considered contributing to the district were identified based on their use during specific periods of downtown development, which ranged between 1870 and 1962. Most of the buildings were built in a 50-year period starting in the 1870s.

The properties considered contributing to the district are:

* 195 S. Broadway Ave., Dayton's Department Store.

* 307 S. Broadway Ave., Clausen and Adler Hardware.

* 309 S. Broadway Ave., F.J. Paine Co.

* 311-313 S. Broadway Ave., F.J. Paine Co./Palace Block.

* 315-317 S. Broadway Ave., Bach Music Company.

* 318 S. Broadway Ave., A.J. Bjerring Barbershop/Bjerring Hotel.

* 319-321 S. Broadway Ave., Baker and Hanson/The Council Saloon.

* 320-322 S. Broadway Ave., Rochester Egg and Poultry Co.

* 323 S. Broadway Ave., Black's Lunch.

* 324 S. Broadway Ave., C.J. Morrill and Son, Wholesale Grocer.

* 325 S. Broadway Ave., F.A. Poole Building Contributing.

* 326-328 S. Broadway Ave., Great Atlantic & Pacific Tea Co.

* 330 S. Broadway Ave., Columbia Hotel.

* 400 S. Broadway Ave., Riverside Building.

* 202 First Ave. SW, C.F. Massey Co.

* 210 First Ave. SW, Blakeley Building.

* 212 First Ave. SW, Rochester Commercial Club Building.

* 216 First Ave. SW, Holland's Food Shop Contributing.

* 220 First Ave. SW, Stebbins Building.

* 224 First Ave. SW, former City Hall.

* 304 First Ave. SW, William's Block.

* 7 Second St. SW, Olmsted County Bank and Trust Co.

* 15-21 Second St. SW, Northwestern National Bank of Rochester.

* 23 Second St. SW, I.O.O.F. Lodge #13.

* 4 Third St. SW, Union National Bank Building.

* 10 Third St. SW, Kennedy Building.

* 17 Fourth St. SW, Hotel Francis.

Three properties within the district boundaries are listed as non-contributing: 318 First Ave. SW, 324 First Ave. SW and 14 Third St. SW.