ESCONDIDO: City may buy key downtown building
Vacant H. Johnson site could become high-rise housing
By DAVID GARRICK - Staff Writer | ∞
H. Johnson building up for sale City eyeing property. (NCT) 
Escondido is considering buying the abandoned H. Johnson furniture store site and perhaps turning it into a high-rise housing project with ground-floor retail and underground public parking. (Photo by Don Boomer - staff photographer) ESCONDIDO ---- Aiming to spur more upscale development in the heart of downtown, city officials said this week they may buy the vacant H. Johnson furniture store site to make way for a high-rise housing project that would feature ground-floor retail and underground public parking.
Such a project would have to wait until the housing market recovers, so the city's short-term plan for the site calls for a large municipal parking lot, said Mayor Lori Holt Pfeiler. The site is bordered by Broadway, Second Avenue and Maple Street, and it is only a few steps from the Grand Avenue business district.
Councilman Ed Gallo said the city has been trying to buy the site since H. Johnson furniture closed last summer. Gallo said a deal became more likely this spring when the owner, Dennis Roach of Los Angeles, lowered his asking price to about $4.7 million.
"He had been asking for an off-the-wall amount," said Gallo, a real estate agent. "But now that it's been vacant for a year, it's a bit of a different story."
Even if city officials are not able to find a developer to build the housing project, it is important for the city to gain control of the strategically located parcel, said Pfeiler.
"It's in the middle of our downtown, so we care very much what happens to that site," she said. "The fear is what might happen if we really had to provide more parking for downtown at some point. We have struggled to find and buy property there."
But Councilwoman Marie Waldron said the city should move forward cautiously on the purchase.
"It's a nice site, but there are other similar places in the area," said Waldron, whose family owns a T-shirt shop one block to the east. "To me, the big thing is making sure we spend our money wisely."
Assistant City Manager Charlie Grimm said the city would probably buy the site on credit instead of paying the entire purchase price upfront. The city is in the midst of a budget crisis created primarily by a sharp reduction in sales tax revenue.
Grimm said the city will soon have the site appraised to see if the asking price is appropriate. The city is also seeking confirmation from the county that soil under a small portion of the site is no longer contaminated by toxic dry cleaning fluids.
A dry cleaner operated on part of the site during the H. Johnson era, which spanned from 1975 until last summer, said Grimm. Before that, the site was a Sears, Roebuck and Co. from 1950 to 1974. The store was boarded up from 1972 to 1974.
According to city records, the site was an egg and poultry facility during the early part of the 20th century, and from 1933 to 1950, it was the Escondido Community Hospital, a precursor to Palomar Medical Center.
Tom Crowley, a downtown real estate agent hired by Roach to find tenants for the vacant site, said he has struggled to find the type of upscale clients that the city wants for Grand Avenue and nearby streets.
"We've been getting calls from low-end uses only," said Crowley, who declined to elaborate.
Crowley said a major hurdle has been that the 31,000-square-foot building would be difficult to divide up. The proposed rent, calculated at 80 cents per square foot, is about $24,000 per month, he said.
Crowley said he thinks it would be a smart move for the city to buy it.
"This is the only half-block site anywhere downtown," said Crowley. "It's terribly important."
Crowley said the site's Maple Street frontage should also make it more appealing, because another housing project is planned for Fourth Avenue and Maple and the city is planning a pedestrian plaza near Maple and Grand.
Contact staff writer David Garrick at (760) 740-5468 or dgarrick@nctimes.com.
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confused wrote on Jun 12, 2008 6:15 PM:Why is the city government involved in retail leasing and upscale housing? High End Low End? Do these city government people even live in Escondido? Hundreds of homeless people do, that's who, and many are beautiful people.
Jax wrote on Jun 12, 2008 7:02 PM:Across from that site, on 2d Ave, there are the former offices of the late Dr. Linus Adams, a fine man and excellent "family practitioner" of the sort that medical schools are not cranking out any more. He was one of the movers and shakers behind the construction of Palomar Hospital in 1950, where, in 1957, my tonsils were removed. (Now THAT warrants a special designation as a "historical site" of great importance!)
Escondeeter wrote on Jun 12, 2008 7:20 PM:Let's hope this is not the reincarnation of the Clark "mondo condo" project. A nine story building on that site is no more appropriate than it was on parking lot one.
The city of Ventura, California, on the other hand, offers a perfect example of how to make use of a site like that, and they did it in a way that helped drive the rehabilitation of the Main Street area of their downtown.
Essentially, the project Ventura built at California and Santa Clara Streets, which includes parking, commercial, and an outdoor plaza area, combined with a few stories of residential, would be a dynamite use for the location and would provide a major boost to the downtown without destroying what it is that makes Grand Avenue unique.
Buying this property exhibits excellent foresight on the part of city officials. Here's hoping that foresight remains 20-20 when they get around to developing it.
With What wrote on Jun 12, 2008 8:52 PM:The title reads: "City may buy key downtown building". My questions is: "With What?" - their good looks? Ha ha ha. AND they have aspirations to build a "high rise housing project" - OMG - what excess!!!
Ann wrote on Jun 12, 2008 9:19 PM:Where does the city have this kind of money?????We are already in a very bad budget crunch..Is it part of the 8 million they still have, pretty soon there will be none. The buildings at Washington/Escondido, Center City/ Washington are still sitting there and nothing being done. Businesses are vacating as it is. Think people!!!
George wrote on Jun 12, 2008 10:50 PM:Isn't this the same City of Escondido that is finalizing deep budget cuts for the coming year? The government isn't supposed to OWN the city, it's supposed to GOVERN the city. Besides, a merchant area such as downtown is the absolute wrong place to put housing of any sort, least of all a "smart growth" high rise that is certain to feature dinky living spaces and inadequate parking.
RandyR wrote on Jun 13, 2008 1:35 AM:Perhaps the city officials, the government of our fine city can set up a lemonade stand to help offset the price for this foolishness! I should run for a government office and yet, I'd be prone to telling the truth. And of course, when someone is running for office...the last thing anyone wants to hear, is the truth.
Hispanic wrote on Jun 13, 2008 2:27 AM:The city council has driven away all the hispanics from the community with all their racism which is a major reason that the city is doing poorly. They have caused us many lawsuits by the ACLU when they stop being racists then they can purchase property. They make no sence they want a parking restriction in the city and yet they are approving housing wihtout sufficient parking.
JP wrote on Jun 13, 2008 5:54 AM:I drive down Center City Pkwy every day and am growing increasingly irritated by the two partially finished high rise projects that have apparently been abandoned.
They're not selling because no one wants to live there. Stop wasting our tax money on your "dream" of turning Escondido into a cosmopolitan town.
Yes wrote on Jun 13, 2008 6:39 AM:Frankly anything upscale in this town would be appreciated, but please no more condos! I also wonder where the money is going to come from? What further costs are they going to shift to our property tax bill to pay for it?
Excuse me wrote on Jun 13, 2008 6:50 AM:But what parking problem do you have in your downtown? This isn't like San Diegos problem, people can still park just a block away and get their lazy behinds walking ONE block.
with no money wrote on Jun 13, 2008 7:07 AM:to educate our children the city wants to do this.... how foolish can they be. You want to clean up Escondido, get rid of the gang problems start by educating the kids.....Escondido didn't become the arm pit of North County overnight and it's not going to clean-up overnight.....education for the kids will work, and why your at it educated City hall, sounds like they need it too.
escondido native wrote on Jun 13, 2008 7:21 AM:Great! Just what the city needs, more empty housing. Who is going to buy this great upscale housing? The Homeless?!!! Why aren't we doing anything to help them get housing? I haven't seen as many upscale people flocking to escondido, but I have seen more and more bank owned homes.
To Jax wrote on Jun 13, 2008 7:30 AM:You should get ahold of good old Judge Burns. Maybe he'll have the city have a day for you and force your employer to give you a paid day off! lol
Ridgerunner wrote on Jun 13, 2008 7:44 AM:Still trying to genetically manipulate the area? Better to work on the problems with vandalism and automobile burglaries in that vicinity. Then perhaps people won't shy away. The furniture store failed because it catered to an absent upscale clientele. Escondido is middle-middle to lower-middle class. You guys need to stop fighting your demographics and work harder to provide decent AFFORDABLE housing for your constituents. The planners are definitely from another planet.
Thurston wrote on Jun 13, 2008 9:19 AM:I hope the next result isn't a defacto HUD housing project.
Jaque wrote on Jun 13, 2008 10:20 AM:The should buy the land, put a three story dance club/lounge there.
LisaP wrote on Jun 13, 2008 10:28 AM:I am still open to the idea of putting a strip club on that location. That would bring a lot of business to downtown. Plus, I need a job.
Chubton wrote on Jun 13, 2008 11:29 AM:I never realized the Council were also real estate investment managers.
With their track record to date, it makes me a little nervous to say the least.
If the Council cared wrote on Jun 13, 2008 11:32 AM:they would place a priority on repairing the embarassing condition of our local streets rather than plotting their next "good old boy" give-away project like the downtown hotel and the abandoned "condo" projects that have become an eyesore in this community. What ever happened to completion bonds? Get rid of Mayor Pfeiler and save our city.
To LisaP wrote on Jun 13, 2008 11:55 AM:I am working on getting the Arts Center converted into a strip club for you. The city denies converted garages, but they haven't said anything yet about converted art centers.
AResident wrote on Jun 13, 2008 12:29 PM:Does anyone other than myself find it interesting that the City is claiming to be spending it's reserves and should not be.
How can they think about buying realestate?
And lastley, has anyone noticed that the price has gone from 4M to 4.7M within a couple of weeks.
Who again is getting a commission?
Something's fishy
To Hispanic wrote on Jun 13, 2008 1:12 PM:I have seen no evidence of hispanics moving out of Escondido. I sure wish they would pass a law that doesn't allow 3 families to live in a two bedroom condo though!
Maybe they can save wrote on Jun 13, 2008 3:00 PM:it for next years fashion week, if the remaining windows haven't been shot out.
To Lisa P wrote on Jun 13, 2008 3:31 PM:I'll hire you!
Marie-Anne wrote on Jun 13, 2008 4:34 PM:TO HISPANIC:
Where can I donate to the leaving town fund?
GRINGO wrote on Jun 13, 2008 7:17 PM:TO HISPANIC You're darn right! We're tired of watching our city be turned into TJ right before our very eyes.
Whats Up Gringo wrote on Jun 13, 2008 10:21 PM:What's up Gringo. Haven't seen you in the blogs too much these days, Paul. You are such a drama queen with your comments...Escondido turning into TJ - oh get real!! You are soooooo self-righteous!
trevor wrote on Jun 14, 2008 8:08 AM:Why doesn't Escondido covert that building into a Farmers Market like they have in Los Angeles?
They could place stalls for quality & local green grocers, butchers, small shops and small eateries.
The clue will be "quality" and "selection".
I think it would work.
Al wrote on Jun 14, 2008 7:30 PM:Please no more condo's. The new ones aren't selling, so why add more? Rather, I would like to see the center city area be more family friendly, provide a magnet to draw families into town.
How about a food court or a modern bowling alley with live w/e entertainment? The town is dead on the w/e. Either of these, or perhaps both together with a 2-story version, would add weekend customers. Anchor the food court with a Fuddruckers which are very popular restaurants in Mira Mesa and Chula Vista. Look at the food court at NOrth County Fair (I refuse to call it Westfield Mall) or Restaurant Row in San Marcos. They are busy folks! We need something like that here! Center City Parkway makes it real convenient to get to this location. Folks would stop by for a meal or go bowling after work or Saturday night. And besides, when people finally start living in those empty condo's in downtown they'll have a convenient place to eat and entertain themselves within walking distance. In fact, a place like that would help lure prospective buyers to those empty condo's! I would go there with my kids and I am confident many others would also. This would bring needed sales tax revenue into the city coffers. Just do it!
I will send this idea to city council members too.
to whats up Gringo wrote on Jun 15, 2008 11:12 AM:You're part of the problem.
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