Michael Leash, principal for Rapoza Development, turned in his keys to buildings on the Granada block this week and informed city officials that he will no longer be responsible for heating and overseeing security for the three properties.
That move by Leash followed the Oct. 12 decision by The Dalles City Council, in its role as the Columbia Gateway Urban Renewal board, to seek other development proposals for the Second Street block.
Rapoza’s exclusive right to buy the Recreation Building, Blue Building, Granada Theater and Commodore II parking lot to create a hotel/conference center complex expired on Sept. 30.
Leash was unable to meet conditions in the contract that was signed about 29 months ago. The council denied his request to continue working toward completion of the $24 million project.
Rapoza was to have purchased the properties from the city at a cost of about $1.2 million. Leash’s plan was to tuck a 117-room Hilton Garden Inn into the block, which necessitated demolition of the Recreation Building. The complex was to have included 6,000 square feet of dining space, retail outlets and meeting rooms. The historic character of the Granada Theater would have been preserved during renovations.
On Thursday, Leash sent an informational email to Julie Krueger, interim city manager, about what needed to be done to protect the three properties with winter just around the corner.
Krueger was away from the office and unable to be reached for comment as of press time Friday.
About five years ago, Leash took responsibility for heating the buildings and keeping the fire suppression systems from freezing.
He estimates the average cost of labor for maintenance, both inside and outside, has been $200-$300 per month.
In addition, Leash said that he paid about $700 per month in electricity bills during the past year.
In his Oct. 15 email, Leash gave Krueger a “quick rundown” of things the city needed to know about building maintenance, including the fact there was no heat source in the Recreation Building.
He said extension cords had to be run from nearby facilities to power portable heating units in order to keep sprinkler head from freezing and breaking.
“We used a laser and checked the temp of the sprinkler heads in all areas of the buildings – this included the second floor of the middle Recreation Building and all basements,” he said.
During frigid weather, Leash said water needed to be kept out of the drain system on the Granada roof to keep it from caving in when ice formed.
He advised that the empty theater be kept at a temperature of no lower than 58-60 degrees or the plaster ceilings would be damaged.
“All three of the roofs leak badly, so once the rains start someone will need to empty all of the buckets that catch water inside the building every other day,” he wrote of the Recreation Building.
He said the roof on the Blue Building was also leaking.
“I hope all of the information helps with the management of the properties,” wrote Leash.
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