City green-lights completion of "eyesore" on Enfield Road

City green-lights completion of "eyesore" on Enfield Road

By Patrick Brendel Friday, 13 November 2009

First State Bank gets approval to finish construction of Pleiades condominiums after two-year stoppage

AUSTIN — If the thousands of people who travel Enfield Road every day needed a reminder of the recession, this is it: For two years, the unfinished structure of the Pleiades condominiums has stood, construction suspended, near the stoplight at West Lynn Street.

“It is a blight upon the neighborhood,” said Jim Wilson, whose family owns the nearby Marsol apartments on the north side of Enfield.

Two years after markets began to falter, some economists are seeing signs of recovery in the Austin area, and soon activity could be stirring once again at the corner of Enfield and West Lynn.

OWANA’s OK

Construction on the 22-unit Pleiades stopped in 2007, and First State Bank took control of the property through foreclosure in fall 2008. The bank hired development consultant Jim Bennett and independent builder Robert Hageman to help determine what to do with the property.

Hageman initiated a conversation with the Old West Austin Neighborhood Association (OWANA), telling members that the bank was considering two scenarios: finish the building out as close to originally planned as possible; or demolish the structure and in its place construct a different residential building, about 50 percent larger.

OWANA members ultimately decided to endorse the bank’s plan to complete the Pleiades, telling Hageman that the association would not agree to zoning changes required to build the bigger structure.

“We designed a real nice building. They didn’t like it. They did not support the variances to build the nicer building,” Hageman said.

Original plans for the Pleiades did not call for any zoning variances, so OWANA’s endorsement was not sought before construction began. After the bank assumed ownership, it was determined that, in order to complete the Pleiades, a staircase needed to be relocated 6 feet closer to the back property line. That did require a variance, which OWANA members approved.

On Oct. 12, the City of Austin’s Board of Adjustments green-lighted the resumption of construction, swayed by OWANA’s consent and the reasoning that completing the condos is better than not completing them.

“One man’s trash is another man’s treasure. We’ll see if you can make a silk purse out of a pig’s ear,” board member Michael von Ohlen said.

The bank still has two additional options, Hageman said—to sell the property as is, or to raze the Pleiades and build a new structure that would not require zoning changes (and hence, OWANA’s approval).

“Blight upon the neighborhood”

Even before construction of the Pleiades condos halted two-thirds of the way through, neighbors had expressed skepticism about the building’s large size and unusual design.

Now, scrap materials lie in heaps and bundles in what would have been an underground parking garage. Sun and rain soak into the overgrown grass and exposed wooden stairs. Graffiti sprawls across the corrugated metal and concrete walls.

Certainly, it stands in contrast to its surroundings: the historic and wealthy neighborhoods of Clarksville, Old West Austin and Old Enfield.

“I don’t disagree with [Wilson’s] statement that it is a blight on the neighborhood—in its unfinished condition,” Bennett said.

“Everybody has an opinion about design, and whether something looks good or something doesn’t look good,” said Larry Halford, an architect and member of OWANA’s zoning committee.

“But the overriding theme that I heard was that people are tired of this thing, this eyesore, this incomplete project with weeds growing out and fence surrounding it,” he said.

An unusual situation

Banks do not usually act as condo developers, which is what First State Bank has found itself doing, Halford said. It is not typical for a developer to have to turn a project over to the bank in midconstruction, in a recession, when it is hard to find a buyer who is willing and able.

“The situation is unusual for a number of reasons—because of decisions made by the owner, then shortly thereafter we entered a period of very significant economic decline. That makes financing and capital formation very difficult for this kind of project,” said Boone Almanza, an attorney who focuses on real estate litigation.

Almanza is representing Pleiades builder QMET Building and architect Gordon Bohmfalk in a lawsuit against original developer Bolter Corp. QMET and Bohmfalk claim that Bolter owes them $500,000.

In 2005, movers relocated the existing homes from the property where the Pleiades now stands. QMET got the City of Austin’s approval to start building the development in 2006. In June 2007, Bolter shifted the development’s purpose from rental units to condos for sale, said Almanza, adding that the torrential summer rains in 2007 caused heavy construction delays.

“In August 2007, Bolter became incapable of making payments on the invoices and then shut the project down in September,” he said, adding that QMET went out of business because it did not receive those payments.

The bank foreclosed on the property about a year later, in fall 2008. Almanza speculated that the property has sat dormant for so long—not because the development is undesirable, but because of the nationwide credit crunch.

“It’s hard to go out and get money to take on projects these days and has been now for the better part of a year-plus,” Almanza said.

Project timeline

• 2005 — Existing homes moved off 1603, 1605 and 1607 Enfield Road.
• 2006 — QMET Building applies for permits to build the Pleiades. Construction starts.
• Summer 2007 — Heavy rains delay construction.
• June 2007 — Pleiades is repurposed from rental units to condos for sale.
• August 2007 — Dispute begins between developer Bolter Corporation, and builder QMET and architect Gordon Bohmfalk.
• September 2007 — Pleiades construction stops.
• Fall 2008 — First State Bank takes ownership.
• 2008-2009 — OWANA and bank representatives discuss the project.
• Oct. 12, 2009 — City of Austin OKs completion of the Pleiades condos.

Spotlight on the Board of Adjustments

The City of Austin’s Board of Adjustments hears requests for individual variances (exceptions) to zoning regulations, such as the minimum distances between structures and the edges of the property.

One of the major sources of power of neighborhood associations is their ability to endorse (or object to) property owners’ requests for variances.

The board is composed of seven members appointed by the Austin City Council. The affirmative vote of six board members is required to grant an appeal or variance. The board members serve two-year terms, beginning Aug. 1, and elect officers each year.

Board of Adjustments/Sign Review Board

• Leane Heldenfels (Chair)
• Clarke Hammond (VC)
• Heidi Goebel
• Jeff Jack
• Bryan King
• Nora Salinas
• Michael von Ohlen
• Cathy French (SRB only)
• Melissa Whaley Hawthorne (Alternate)

For meetings agendas from the City of Austin’sboards and commissions, visit www.ci.austin.tx.us/agenda/boards_comms.htm.

What does “Pleiades” mean?

Pleiades (PLEE-uh-deez) is the name of a cluster of stars about 100 million years old. Its conjunction with the sun in spring and opposition in fall marked the start and end of the summer sailing season in Greece. In myths, the Pleiades are a group of seven sisters, the daughters of Atlas and Pleione.