News

By Jane Smith

Delray Beach could soon own the Artists Alley warehouses after its Community Redevelopment Agency board agreed in late May to send a letter of intent to purchase the property.
The four warehouses occupy 32,636 square feet of space in Pineapple Grove, creating an arts enclave and a popular destination.
“Our financial situation is up in the air,” said board member Paul Zacks. “I’d rather solve blight than create funkiness.” He was objecting to the $3.5 million the agency would borrow if the owner accepted the deal.
Even so, commissioners voted 6-0 to send the letter, after hearing from their attorney it was nonbinding. Commissioner Annette Gray left the meeting at the midway point before the vote.
Last fall, when the warehouses went into foreclosure, the city considered creating an overlay zoning district to preserve the studio spaces. The city was concerned that it would lose the synergy generated over time by having active artists if the next owner wanted to develop that space.
In February, the lender, LNR Property LLC of Miami, took control of the warehouses for a recorded $3.66 million.
The City Commission discussed the warehouses in April, noting that the zoning overlay district could be done only if the property were owned by the city.
The City Commission discussed the importance of artists to the city and added that the CRA has a major investment in the area. It also owns a 15,007-square-foot warehouse directly south of the Artists Alley warehouses. The agency has submitted plans to renovate the project, which is called the Arts Warehouse. The agency paid $1.1 million for the warehouse in February 2010. Its commissioners approved by a vote of 6-0 May 28 to hire an Arts Warehouse manager.
To buy the Artists Alley warehouses, the agency would need to take out a loan, which the City Commission would need to approve.
If it bought the warehouses, the agency then would hire a property management company to oversee the space and tenants while it develops a proposal for  developers. The proposal would  contain the affordable artist space, artist lofts and other art-related uses, which could include incentives for the developer in terms of residential uses.