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Portland

ordinance makes

such

buildings a poor risk

financially, lawyer argues

By SHELL McKEDY Special writer, The Oregonian

The city has forced residents out of two his toric houses, saying the owner hasn ’t kept his word to maintain and preserve them. But the owner, attorney John S. Marandas, says he has plans to renovate the buildings, which once were the homes of pioneer Simon Benson and businessman Edward C. Hochap-

fel. Others think he is looking for a way to bull

doze the aging stpuctures and use the valuable land beneath them for something that will

make more money. The city told Marandas to evict tenants liv ing in the two buildings, both on the Nation^ Register of Historic Places. A caretaker still

lives in them to provide security. Gregory A. Carlson, housing services supervisor with Portland ’s Building Bureau, said code violations forced the city to shut the buildings down. The 53 violations include faulty electrical wiring and plumbing, exten sive water damage, damaged asbestos insula tion, rotting wood and lack of Are exits.

Both bidldings are large residential struc tures. The comer house, 1504 S.W. 11th Ave., was built by Benson, a Norwegian immigrant who became a prominent figure in Oregon ’s history. A lumber tycoon and highway com missioner, he was well known for donating 20 bronze drinking fountains and Multnomah

Falls to the city. He also built the Benson

Hotel.

Benson built the 4,727 square-foot Victorian house at the turn of the century. It is a prime example of Queen Anne architecture with

leaded-glass windows and lavish ornamenta tion. Each room was paneled with a different

kind of wood. The home was the last place Benson lived before moving to California, where he died in

1942.The Hochapfel house, at 1520 S.W. 11th Ave., was built in 1904 by successful rice importer Edward C. Hochapfel. It has 6,000 square feet and is one of only seven buildings remaining of 47 designed by prominent archi

tect Justus F. Krumbein.

Although the houses are links to Portland ’s

early days, most of the value is in the proper

ty. According to Multnomah County tax rec ords, the Benson house is valued at $7,000, while the lot it sits on is worth $185,500. The

Hochapfel house is worth $19,500, while its lot

carries an estimated value of $122,200.

Marandas is considered to be the owner of

both pieces, although he sold them about two years ago to two different corporations, both with the same mailing address. He said the houses continue to be “family owned ’’ and his mother is an officer of both the ownership

companies.

“The most serious problem (with the Ben son House) at this point is that it’s got a bad roof, ” said Carlson. “If the roof isn ’t repaired the water could cause (more) damage and rot and it could ultimately cause the house to col

lapse. ” Marandas has until July 1 to correct several

The landmark house and the cafe next door

do not meet city codes.

Gregory

Jackson operates the Telecale,

next to the Simon Benson house.

order to make this

building

pencil outf the

only way to do it is to make

It a commercial property. ”

— owner John Marandas

violations, including removal of the damaged

asbestos insulation. He also must improve plumbing and ventilation in the adjacent cof

fee

shop. Telecafe, at 1022 S.W. Clay. The state in 1985 granted Marandas tax breaks for 15 years in exchange for preserving the buildings. In November of 1988 the state threatened to withdraw the tax breaks and impose a fine because no renovation had been done, said James M. Hamrick, deputy state

historic preservation officer. Marandas countered with renovation plans

for both buildings. The special tax assessments provide incen tive for owners to rehabilitate buildings recog nized on the National Register. The true cash

values of the buildings are frozen for 15 years. In addition, a 20 percent tax crecht is allowed

for income generated by the buildings. But the special tax assessment may be pulled if Marandas does not satisfy the demands of a June 11 letter from the sta.te c^- ing for “concrete evidence that stabilization and rehabilitation activities has begun ” on the

two properties.He has 90 days to prove to the state that work is under way or will begin in earnest. He wiU be required to eliminate code deficiencies that Mirandas and the city have already agreed upon, submit plans for review and approval by the state preservation office and produce “concrete evidence ” that work has

Cracked and peeling paint, hidden by overgi

historic Simon Benson house. The city say

one next to It, are In urgent need of significai

begun, which “means that a construction crew is working at the site, ” according to the June,

11 letter. _ ? If Marandas fails to do so, the matter will go before the State Advisory Committee on His toric Preservation to review. If the special tax assessment is repealed, Marandas will face

both penalties and back taxes. “We more or less have 1,400 properties in

Oregon and we don ’t necessarily know if peo

ple are doing what they say they will, ” said

Hamrick. “The properties have not been pre

served. ” Both houses have been divided into apart ments and rented since the 1950s, Marandas

said.He expressed frustration at the myriad

problems he has faced in attempts to restore the houses. “There have been perennial but differing problems that have created inability to rehabilitate the properties, ” he said. The biggest roadblock has been financing the estimated $700,000 he says is needed to rehabilitate both structures. “The lenders that have the money think the project is too small to be worth spending the time and energy, ” Marandas said. “Simply put, they ’d rather build a glass-and-steel structure that was a known commodity rather than a historical

unknown. ” Zoning has also been difficult. The city granted Marandas a conditional-use permit in

)

mark house and the cafe next door

eet city codes.

! Jackson operates the Telecafe,

he Simon Benson house.

^rder to make this

Ung pencil out, the

way to do it is to make

ommenial property. ”

— owner John Marandas

08, including removal of the damaged 8 insulation. He also must improve ig and ventilation in the adjacent cof- ), Telecafe, at 1022 S.W. Clay, state in 1985 granted Marandas tax for 15 years in exchange for preserving Idlngs. In November of 1988 the state ned to withdraw the tax breaks and a fine because no renovation had been aid James M. Hamrick, deputy state preservation officer,

indas countered with renovation plans

1 buildings.special tax assessments provide incen- owners to rehabilitate buildings recog- 0 the National Register. The true cash jf the buildings are frozen for 15 years, tion, a 20 percent tax credit is allowed ime generated by the buildings. the special tax assessment may be if Marandas does not satisfy the Is of a June 11 letter firom the state call- “concrete evidence that stabilization labüitation activities has begun ” on the

iperties.

tas 90 days to prove to the state that 1 under way or will begin in earnest. He required to eliminate code deficiencies Irandas and the city have already upon, submit plans for review and al by the state preservation office and e “concrete evidence ” that work has

The Oregonlan/MICHAEL LLOYD

Cracked and peeling paint, hidden by overgrown bushes, hides some of the beauty of the

historic Simon Benson house. The city says the 4,727-square-foot Victorian house, and

one next to It, are in urgent need of significant repairs.

begun, which “means that a construction crew is working at the site, ” according to the June

11 letter.If Marandas fails to do so, the matter will go before the State Advisory Committee on His toric Preservation to review. If the special tax assessment is repealed, Marandas will face

both penalties and back taxes. “We more or less have 1,400 properties in Oregon and we don ’t necessarily know if peo ple are doing what they say they will, ” said Hamrick. “The properties have not been pre

served. ” Both houses have been divided into apart ments and rented since the 1950s, Marandas

said.

expressed frustration at the myriad

unknown. ” Zoning has also been difficult. The city granted Marandas a conditional-use permit in

1982 to use the building for commercial pur

poses.

Marandas had plans drawn up to reno vate the buildings into office space, but the

permit expired in 1985. vThen in 1989 the law changed. Conditional-

use permits on previous high-density residen tial zoned property would be limited to 40 per

cent commercial use.

“ In order to make this building pencil out, the only way to do it is to make it a commer cial property, ” Marandas said.

Despite having no residential value now that the tenants have been evicted, and no financing to rehabilitate it, Marandas said . selling the property would be a last resort. “We ’re trying to work with restoring the building through non-traditional sources, ” he

said, declining to elaborate.

City and state officials worry that Maran das will apply for a demolition permit to level the buildings because they sit on valuable

land.

“John ’s stuck. He ’s got to get out from under it,” said Michael G. Bums, a historic- building preservationist who tried to buy the Benson House three years ago. “He ’d proba bly like to demolish it... because he can ’t rent it out. The city of Portland should take 50 per cent of the rap here. They ’re not doing their job. Because of that ordinance, that site can

not work economically. ”