Developer pitches historic Galena Hotel conversion to micro-units; committee signs off on $1.3M support

Fernando Barrera, founder of the Barrera Organization, asked the committee for city assistance to renovate the historic Galena Hotel at 116 West Kalina Boulevard into roughly 21 micro-units and said he plans to use federal and state historic tax credits to make the numbers work.

Barrera described the property's challenging physical condition and the high per-square-foot renovation cost of historic rehabilitation. "For the past 2 years, my carrying cost had been roughly $50,000," Barrera said, adding that he has worked with historic tax credit consultants and a construction manager with experience on similar downtown projects.

His pro forma shows a construction loan around $2 million, owner equity near $500,000 and an owner-deferred developer fee; the city ask summarized in the meeting was approximately $1.3 million. Barrera said base rents on the smallest micro-units (about 260 sq. ft.) would start at $1,050, and that the project aims to provide modestly affordable market-rate units within the downtown district.

City staff and the committee discussed parking and proximity to a nearby city-owned garage; John Curley, chief development services officer, said staff had reviewed the team and timeline and is comfortable with the construction schedule and team qualifications. Committee members praised the project for reactivating a boarded, historic building and for including affordable micro-unit options. The committee approved the requested support and will move the item forward as required.