Council approves $1 sale of Old County Courthouse: Barrelhouse Brewing Company takes ownership
The Hanford City Council unanimously voted in favor of selling the Old Kings County Courthouse to Esteem Land Company LLC. for just $1 during their meeting on Tuesday night. Despite several requests from the community to table the discussion until every council seat was filled, the dais took the opportunity to rid the city of the financial responsibility of ongoing maintenance and operation.
Deputy City Manager Jason Waters briefly reviewed the building’s history and its ongoing issues, highlighting that the City is responsible for the current costs of maintenance and operation. Waters listed a slew of improvements needed throughout the building and said the revenues generated from the building’s tenants cover only the electricity. It has been estimated that the City would need $10M in private money to complete the improvements needed.
The city has searched for grant funding for historical buildings but has found opportunities few and far between. The use of funds from the General Fund to complete the wide-scope improvement project wouldn’t be feasible, and the city has considered looking into options for private partnerships.
“The most viable option that we looked at as far as partnering with a private developer is having a private developer acquire the building but have the city retaining, through an agreement, some control over how the building is developed and conditions that preserve the building and protect it and make sure that the improvements that are actually conducted are at a reasonable pace,” Waters said.
Kevin Nickell, co-owner of Esteemed Land Company, also co-owns Barrelhouse Brewing Company and Carvalho Construction, two businesses that will be key in the project. Nickell explained that through his business model, local small businesses like Hola Cafecito, Acai Bar, Divinity Clothing, and part of East Main Street in Visalia have transformed into thriving business areas.
“Businesses are going to go where they are going to make a profit. If they aren’t going to make a profit they don’t want to be there,” said Nickell. “They want an anchor. They need something that is successful, somebody that is willing to invest and take those risks in the community. We’ve been doing that and our business model seems to really be working… It’s been wildly successful. We have a great following. We have a 100% success rate in what we’ve been doing.”
Jason Carvalho, Nickell’s business partner and co-owner, said both he and Nickell are local men who were raised in the area and care about the community. He explained that together they opened their first brewery in a dilapidated building in Tin City where homelessness was high, similar to what is happening at the courthouse.
“The best deterrent for crime is activity and people,” said Carvalho. “So right now you see that at the courthouse has everything from homeless to crime to the defacing of the property. The best way to counter that is to have people and community there. The community then self-polices. People don’t want to commit crimes, people don’t want to loot and loiter when you have families around.”
Nickell said that his companies are heavily invested in Hanford and helped to build the fire and police stations, as well as many projects up and down the state. He and his team are familiar with the building processes and understand how to handle a project of the size and scope of the courthouse. It was explained that the sale price was only $1 because the developers would absorb all costs associated with the construction, renovation, and improvements to the building, as well as annual operation and maintenance costs.
“Our intention is to restore what is there, clean it up, make it viable, make it useable,” said Nickell. “We have no intentions of, nor could we do it because it is on the state’s register of historic buildings, we have no intentions to deface the building, change its structure, or anything like that. We just want that building operational, to clean it up and make it a safe building, meet the ADA requirements that are necessary, and get a place where we can bring in some small business.”
Nickell did mention that one of the goals of the project is to add a Barrelhouse Brewing on the top floor, and the second floor would be used to house other businesses. He said that their interest in beginning the project had spanned several years when they first considered the Bastille. When it was determined that buying the Bastille would not be viable, they slowly shifted view to the Old Courthouse.
Several members of the public were vocal in their thoughts on the seemingly sudden sale of the courthouse and claimed the price of $1 was a joke.
Dave Ayers verbalized his discontent with the timing of the sale, saying it was a poor choice to put the matter on the agenda on the same night as the General Election. He said the building was beautiful and belonged to the people and questioned the city’s reasons for the low price tag.
“I have a difficult time believing that is not a gift of public funds,” said Ayers. “You cannot tell me that building is only worth $1.”
He claimed that if it was really going to take $10M to fix the building, the developers would never consider the project and said that the developers were only in it for profit. He requested the council table the item and give the community time to be better informed.
Local resident Nick Wagner said he was concerned about the council’s transparency on the matter and listed several reasons he believed the item should be tabled including the fact that one district seat is empty and that candidates on the ballot for the seat may in favor of keeping the historical building in the city’s possession. He said this it the first time a transaction for the potential sale has been on the agenda and that to vote on the sale without letting the community know is sneaky.
Onan Champi and Jim Castleman rallied behind the idea of selling the courthouse to Esteem Land Company, saying that the business’ track record speaks for itself. It was noted that it isn’t often the city gets local people willing to invest vast amounts of money into the community.
“You have a hard time finding invested business people who are real estate investors in the city of Hanford who have the knowledge, the money, the wherewithal, and a business plan to turn a building like the [Courthouse] around,” said Champi.
Nickell said either way the council wanted to vote would not quell his adoration for the city and that he would continue to invest in the community, but that if the council did not decide on the sale immediately the offer would be pulled from the table.
“To be perfectly honest and totally candid, if you guys shot this down, you’re probably not going to hurt our feelings,” said Nickell. “We’re going to walk, it’s not going to harm us a lot. We can go to other cities where we are guaranteed a lot more success. This is an enormous risk for us to take… If the city wants to bear the burden of this for sure and the community thinks it’s best in their interest, then we respectfully honor that. Not a problem at all. We can definitely be successful elsewhere, but this is our hometown and we believe in it.”
Nickell re-emphasized the amount of money that will need to be spent to improve the building, but that his team has all the key components to make the project a success.
Mayor Travis Paden thanked the developers for being willing to take the risk and said he believes Esteem Land Company and Barrelhouse Brewing Company are ideal partners, and are ready and willing to make it work.
“I think they have proven themselves time and time again with the projects done already which gives me the confidence that you are going to make this a success,” said Paden.
Paden said he is concerned about the string of recent break-ins and would hate to see the courthouse fall to further dilapidation.
Vice Mayor Mark Kairis readily agreed with Paden and affirmed the need for local people to invest in the community. Councilman Martin Devine moved for the sale’s approval, and Paden seconded the motion. With a vote of 4-0, the old Kings County Courthouse