Farhi wants Capitol levelled for parking

Thu, October 26, 2006 By NORMAN DE BONO, FREE PRESS BUSINESS REPORTER

“Temporaily closed” since February 2002, the Capitol Theatre is not about to reopen any time soon, despite the hopeful signs on its facade. In fact, it may never open again, as a cinema or anything else. Famous Players Inc., which promised the early reopening, has long since sold the 86-year-old building to London developer Shmuel Farhi, who wants to tear it down and use the site as a parking lot. (Dave Chidley, The London Free Press) Downtown dilemma: Razing the former cinema would put another gap in Dundas streetscape The owner of the Capitol Theatre building in the heart of downtown London wants to tear it down -- to help preserve the core's heritage, he says. Shmuel Farhi said he needs parking, the Capitol facade is in poor condition and, in any case, it is not historically significant. Farhi bought the buildings at 204 and 206 Dundas St. to tear down for parking, but the city only allowed a demolition permit for the rear -- allowing him to create 50 spaces. Demolishing the front would add another 20. He said he intends to apply to have that torn down now. The city has made it clear it wants the front of the building saved to prevent more gaps in the downtown streetscape, Controller Tom Gosnell said. "I would hope that does not happen. We have gone on the record stating we want to preserve the historical character of the downtown streetscape. If we allow piecemeal development to take place, it will have a significant impact," he said. Additional parking will keep his tenants in other true heritage structures he owns, Farhi countered. If not, and the buildings go vacant, that would hurt the core more. "We need some common sense here. I hope common sense will prevail, but time is running out," Farhi said. "Parking is essential for office use. It does not make sense to have derelict buildings rotting on Dundas Street." The buying and demolition of the theatre will cost Farhi close to $1 million, he said. Farhi owns 30 heritage properties downtown and 120,000 square feet of heritage property within one block of the Capitol -- but 85,000 of that is now vacant, he said. Janette MacDonald, MainStreet London manager, believes the issue exemplifies the two challenges of downtown redevelopment: Providing parking and preserving the esthetically pleasing and historic facades. "I really see both sides of it," MacDonald said. "It is a tough one. We know Mr. Farhi needs parking to care for his existing clients, but I don't want to see gap-tooth development on Dundas Street "They are talking and something may happen. We have a suggestion to offer and we will be at the table." Farhi owns about 250,000 square feet of vacant space downtown. If the city denies him the demolition, Gosnell fears the city may face a legal challenge at the Ontario Municipal Board. "If we allow this, what is to stop other buildings from being demolished? This could effect four or five blocks downtown and it may never recover," Gosnell said. But the city appears to have a double standard, approving the demolition of the old London Mews on Dundas Street and the Ridout Tavern by the Millennium Group, both of which became parking lots. The city has renewed the group's application for a parking lot without demanding development, said Farhi. Angered by the city's position, Farhi said any refusal may see him resort to moving his office tenants to buildings outside the core which has parking -- the city allows 5,500- square-foot office buildings outside downtown. In a recent letter to city manager Jeff Fieldng, Farhi said he would save the facade if the city leased space in it -- a guaranteed tenant is the only way he could afford the substantial cost of renovating the run-down structure, he said. The facade of the theatre has been identified as a "priority item" on a list of historically significant buildings, but does not have a designation. Farhi says he needs the parking because he has lost spaces in a downtown parking garage. The buying and demolition of the theatre will cost Farhi close to $1 million, he said. Farhi owns 30 heritage properties downtown and 120,000 square feet of heritage property within one block of the Capitol -- but 85,000 square feet of that is now vacant, he said. Janette MacDonald, MainStreet London manager, believes the issue exemplifies the two challenges of downtown redevelopment: providing parking and preserving the esthetically pleasing and historic facades. "I really see both sides of it," MacDonald said. "It is a tough one. We know Mr. Farhi needs parking to care for his existing clients, but I don't want to see gap-tooth development on Dundas Street. "They are talking and something may happen. We have a suggestion to offer and we will be at the table." Farhi owns about 250,000 square feet of vacant space downtown. If the city denies him the demolition, Gosnell fears the city may face a legal challenge at the Ontario Municipal Board. "If we allow this, what is to stop other buildings from being demolished?, Gosnell said. "This could affect four or five blocks downtown and it may never recover." But the city appears to have a double standard, approving the demolition of the old London Mews on Dundas Street and the Ridout Tavern by the Millennium Group, both of which became parking lots, said Farhi. The city has renewed the group's application for a parking lot without demanding development. Angered by the city's position, Farhi said any refusal may see him resort to moving his office tenants to buildings outside the core which have parking. In a recent letter to city manager Jeff Fieldng, Farhi said he would save the facade if the city leased space in it -- a guaranteed tenant is the only way he could afford the substantial cost of renovating the run-down structure. The facade of the theatre has been identified as a "priority item" on a list of historically significant buildings, but does not have a designation. Farhi says he needs the parking because he has lost spaces in a downtown parking garage.