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These homes are old, and some are not very well built. They are in various stages of disrepair. The Downtown Specific Plan encourages the commercial base of downtown to spread and to strengthen, and the building owners feel they are meeting the goal of the City to convert the buildings to commercial and office use_ When they commence the necessary additions or Code occupancy upgrade, they discover the poor condition of many o£the buildings. At that point, they are faced with extensive repair bills. The challenge is to preserve the buildings, to allow and encourage their conversion to commercial in a way that meets the goals of the City and the property owners, as well as the City G'ode_ This has been a difficult process, because there that been no standard used by which to preserve or demolish the buildings. Staff realized the need to develop an objective measure to serve as a guideline with respect to what is reasonable to tear down or preserve_ This measure would be for use by staff and the Commission, but would not be the only criterion_ The 50% rule was not arbitrary; the Code states that if a building that is non-conforming is damaged or has a fire, if more than 50% of it is destroyed, it must be rebuilt to conform to the Zoning C7ode. If Icss than SO% is destroyed, it may continue as anon-conforming use. That principal was used in this guideline_ Mr_ Iserson stated that the cost of repairs would be computed to make the building livable and safe as a residential structure_ That cost would be compared to the value of the existing structure as a residence. If it cost less than SO% of the value to rehabilitate it, staff would recommend its preservation; if it cost more than SO% to rehabilitate it, staff would recommend its demolition and rebuilding with a product that would match the design, materials, and detailing of the original building. Staff used the residential cost because the buildings were constructed as houses, and most had not undergone the Code conversions to make them commercial structures. In addition, the Code requirements for commercial are variable, and depend on the occupancy, type of use, and other factors that determine what needs to be done to make a building suitable for coirimerci al use. As a residence. a single family home has one standard. Also, staff did not wish to have the cost of converting to commercial become a deterring factor. He noted that the Commission's questions focused on the specifics of the formula. He noted that there was a property on Spring Street that began as a remodel, and became a demolition because of the extensive nature of work required to meet Code. Staff wishes to address this issue proactively in the future_ The applicant's engineer, the architect, and the contractor would inspect the building and submit a report identifying what needs to be done to repair it, and make it a safe, livable building as a residence. The cost of repairs would be itemized and submitted to sta££ The items could include the roof, foundation, plumbing, electrical, and other components and systems of the building. The cost would include the cost of materials and labor. Anything done to the building would have to meet Code, but would not be considered bringing the building up to Code because staff would PLANNING COMMISSION MINUTES April 9, 2003 Page 9