The architectural plans for two buildings on James Street North include closing in an alley now separating them to use as a lobby and an elevator shaft. The design is by Lintack Architects for developer Core Urban Inc., which has options to buy both buildings on the condition is it able to buy the alley from the city.
James North alley key to Hamilton restoration project
Mon., Feb. 9, 2015timer4 min. read
Core Urban Inc. wants to replicate the success it's had at the Empire Times building with another project at a neglected duo of buildings on James Street North.
The developer wants to combine the five-storey narrow building at 14 James St. N. with the squat three-storey structure to the south.
The plan, and the sale of the two buildings, hinges on Core Urban assuming ownership from the city of a one-storey alley between the two buildings and closing it in with a lobby and elevator that would service the combined project.
The building at 10-12 James St. N. has a cash lender and nail parlour on the ground floor, with 14 James is now home to Kohler Drugs. But neither of the buildings are occupied on the floors above. There is a total of 30,000 square feet of space.
"Honestly, if I took you up there you wouldn't believe the space that's up there," said Core Urban partner Steve Kulakowsky.
"But there's been no heat or cooling for 50 or 60 years. It's just a shell."
In fact, hopes were so dim the space would be occupied that an air conditioner needed for the pharmacy was placed in the middle of the third floor, instead of on the roof.
Core Urban plans to entirely renovate both buildings, including adding a glassed-in fourth floor on 10-12 James and plenty of glass at street level. Kulakowsky says they will rent to commercial tenants, just as they have at the now-full Empire Times a stone's throw away.
"These buildings have huge potential," he said of the James Street structures. "They are architecturally relevant and significant. But they are underappreciated because of how they look."
Only by combining the two buildings does it make sense to build an elevator, he said. And an elevator is necessary to rent out the upper floors.
Staff have recommended handing the alley over for $2. The matter was to be discussed at Monday's public works meeting but it was cancelled due to the storm.
Kulakowsky says he doesn't know when it will be rescheduled. He's been working on this project since December 2013.
It's a complicated situation because 14 James has ownership under the alley, the city owns the alley at grade and 10-12 James owns the building that extends over the alley.
The narrow laneway has been a matter of an ongoing dispute between the city and the owners of the Sirloin Cellar that was forced to close in 2012 when the crumbling alley caused water to leak inside the basement restaurant.
The alley has been shut off to vehicles ever since.
Kulakowsky says Core Urban would repair the leaking problem in the process of installing an elevator. He says the city has been told the problem could cost "in the seven figures" to repair, but a city spokesperson would only say the repair costs "would be quite significant."
When asked whether the Sirloin Cellar's owners' claim for damages to their kitchen due to the leaking water had been resolved, Kelly Anderson responded: "The issue with the Sirloin Cellar is a legal matter and remains confidential, but will be discussed in-camera at a future GIC meeting so we are unable to provide comment at this time."
Kohler Drugs has been issued notice to vacate the premises, a condition of the sale of 14 James.
Rishi Majithia, whose family owns Urban Alley on King Street, says he attended a recent meeting about the project intending to fight it. He didn't want to permanently lose access off James Street to his building's back door.
But he was quickly won over by the plan.
"If these guys are going to invest this kind of money and fix these buildings up and provide jobs and rental opportunities, that's a long-term benefit to the city."
The developers have done good work on past projects, says Majithia, and he's confident any outstanding issues about access can be worked out.
DeSantis Group, which owns the adjacent parking lot at King William and James, is opposing the alley sale. It doesn't want to see trucks delivering to the rear of the nearby buildings cutting through its lot.
Kulakowsky says the answer is putting medians around the lot. He points out the alley is already blocked off to any sort of vehicle from James but can be accessed from the other end.
All the delays and uncertainty have ended plans to have crowdfunded restaurant The Mule move into 14 James. St. N.
"This could take a year to work out and we can't wait that long," said Erin Dunham, a co-owner in the new venture. She said they are working on a deal to move into the former Reardon's Meat building, bought by Core Urban in September.
"It sucks and it's frustrating, but we're moving forward," she said.
Core Urban Inc.
Who are they: A Hamilton partnership of Dave and Maureen Sauve and Steve Kulakowsky. Dave Sauve is an ex-Ticat president and owner of seven local Tim Hortons. Kulakowsky is a Hillfield Strathallan College and McMaster University graduate and was named the city's young entrepreneur of 2011. He also received the NextGen award from the Canadian Urban Institute.
What else have they done? They purchased the century-old Edwardian gem The Herkimer apartments, restored the building and turned them into luxury condos.
They turned a former school into the Witton Lofts on Murray Street, adding two floors of glass-wrapped units.
They combined the former Times newspaper building with the Empire building next door on King William and installed a four-storey glass elevator between them. The units are now full.
They bought the former Reardon's Meats building on King William Street in September to prevent a methadone clinic from moving in there.