City issues building permit for DeMarcay project

A project approved nearly a decade ago is set to finally move forward — dealing a major blow to downtown stakeholders who hoped to preserve two historic properties.

Today, the city issued a building permit for the 18-story DeMarcay condominium project at 33 S. Palm Ave. The project will be constructed on the site of the DeMarcay Hotel and Roth Cigar Factory buildings, both of which are on the National Register of Historic Places.

The building permit issuance comes on the last day the developer could have obtained approval under the existing site plan. That plan was originally submitted in 2006 and approved in 2007, under the now-defunct Downtown Residential Overlay District.

XAC Developers, the team behind the proposed project, has submitted multiple proposed revisions to the original site plan. If the city deemed those revisions to be minor, it would allow the developer to avoid restarting the site plan approval process — and to use the increased density permitted under the DROD.

Until now, the city denied those modification requests. In July, city Neighborhood and Development Services Director Tim Litchet issued a memo explaining why the developer’s submitted site plan adjustments were considered major, rather than minor.

According to permit information, Litchet ruled Oct. 1 that another series of modification requests were indeed minor. As a result, XAC Developers was able to obtain a permit for the project.

"I always believed we'd get the permit. I didn't think we would be doing so on the last day." — Greg Kveton

Developer Greg Kveton said he remained confident the city would ultimately approve the project, but admitted that the timing of the permit issuance was a little too close for comfort.

“I always believed we’d get the permit,” Kveton said. “I didn’t think we would be doing so on the last day — but I’m elated that we did do it.”

A lawsuit attempting to block the project, filed by the 1350 Main Residential Condominium Association, is still open. The residents are arguing the original site plan should have expired earlier this year. Kveton said the ongoing lawsuit will not impact the construction schedule.

The developer is required to preserve the facade of the two historic buildings as a condition of the approval. The approved plans for the DeMarcay project include 39 residential units as well as 2,890 square feet of commercial space on the ground floor.

Kveton said his group hopes to begin construction around March 2016, with completion targeted for fall 2017.