The block that would have been home to The Boulevard.

Broken dream on the Boulevard: City approves and then denies funds for $56 million project

Community HousingWorks, a San Diego nonprofit organization that specializes in affordable housing and home loans, fell $8 to $9 million short of the $56 million needed for the Boulevard project, said Anne Wilson, senior vice president of housing and real estate development for Community HousingWorks.

According to Wilson, funding cuts at the City of San Diego Redevelopment Agency and the San Diego Housing Commission made the 175-unit project impossible.

                                        

The four-level North Park mixed-use parking garage opened in 2006 with 388 parking spaces and 15,000 square feet of street-level retail space. (Christy Scannell/SDUN)

But the structure, which is bordered by 30th Street, University Avenue, North Park Way and 29th Street, has its shortcomings.

“Aside from weekends and large events the garage is generally at less than 50 percent capacity,” said city redevelopment project manager Michael Lengyel, who noted that most months the costs to operate the garage are more than the revenue generated, though revenue has been increasing.

                                        

The Alternative Learning for Behavioral and Attitude (ALBA) high school is on Oregon Street at the site of the former North Park Elementary.

Almost a year later, ALBA has yet to receive those funds from the school district, though the money has been approved.

According to District 3 Councilmember Todd Gloria, $630,000 from Proposition S – a countywide, $2.1 billion school-funding measure voters passed in November 2008 – has been allotted to the joint-use areas of the school and park.
“The only wrinkle, from what I understand, is that their receipts are slowed because of the economy,” Gloria said. “At the end of the day, the commitment has been made and the improvements will come, we’re just working on a time frame at this point.”

ALBA has approximately 60 students, a mix from San Diego high schools and middle schools. Most of ALBA’s students were suspended or had behavioral problems at their regular schools and typically spend 18 weeks in the program.
Currently, only the high school students occupy the North Park site.

“Neighbors were initially concerned when they were talking about bringing the school here, people were saying, ‘We don’t need more delinquent teens in this area, cause we already have that,’” said Sean Hartigan, chair of the North Park Recreation Council. “But my feeling is that people haven’t had any issues with the students here.”

                                        

A $4 million refurbishment of the historic Lafayette Hotel in North Park began last week and is expected to conclude by the end of the year.

The El Cajon Boulevard icon – built in 1946 and a former haunt of celebrities such as Bob Hope, Lana Turner, Ava Gardner and Betty Grable – will receive a top-to-bottom remodel, including a return to its original pale blue exterior with a red roof. Funding for the project is coming from a $2.45 million forgivable loan from the City of San Diego Redevelopment Agency with the remaining $1.65 million from JCG Development, the property’s owner.

“We will not just be offering a stay, but an experience,” said Jay Wentz, principal of JCG Development and Hampstead Lafayette, which bought the hotel in 2004 for $11 million. “We will remember it as a community treasure and treat it accordingly.”

Although the Lafayette is valued at more than $12 million, Hampstead Lafayette’s mortgage is more than $13 million. Occupancy at the 131-room property recently fell to an all-time average low of 57 percent with a typical room rate of $68, compared to an 80 percent average occupancy rate and $180 average room rate for San Diego hotels overall.

Wentz said the overhaul will increase both the hotel’s occupancy rate and its ability to charge higher room rates.

“We’re in the valley; we’re slowly going to climb out,” he said, estimating the Lafayette’s rooms will go for $125 nightly once the renovations are complete. “This is not going to be a luxury hotel but a very well run, very welcoming place for both guests and the community.”