URBAN RESIDENCE CLUB PROPOSED FOR HISTORIC MINT BUILDING

The city of San Francisco and their recently assembled Old Mint Task Force are in the process of reviewing a proposal to use and rehabilitate the long-vacant Old Mint - a National Historic Landmark erected between 1869 and 1874 - as San Francisco's first private residence club. Among other considerations is a city museum with restaurant, shops and offices or subsidized housing with retail and office space.

Located at 88 Fifth Street between Market and Mission streets in downtown San Francisco, the Old Mint originally hosted a coin minting operation as a result of flourishing gold miners in California and Nevada. The operation shut down in 1937 and later hosted a museum that closed in 1994. Deciding that the building's vacancy and declining conditions had continued long enough, the Old Mint Task Force requested restoration proposals.

Destination Club Partners (DCP), pioneers of the private residence club real estate concept, hopes to restore the 77,000 square-foot federal building as a 35-unit urban residence club with public exhibition space and event areas.

As envisioned by DCP, The Old Mint Club would be a member-owned lodging facility. The member/owners would be persons desiring a second home in the city for leisure and/or business use. DCP principal Greg Hadley said he anticipates there would be eight members for each fully furnished apartment at The Old Mint Club, providing each member with an annual minimum of 45 days use. The total estimated cost of restoring the building, bringing The Old Mint Club to market and completing sales is in excess of $40 million.

"The historic character of the Old Mint is fundamental to our marketing success," Hadley said. "We have designated a portion of the building for public exhibition space and we're confident it's financially viable without public funding. Our clubs typically experience higher occupancies than hotels and, since we do not intend to add commercial space, this will benefit surrounding businesses."

DCP anticipates that high-dollar expenditures during member-vacations will bode well for nearby merchants, the city and the local economy. In addition to high-income, high-spending owners, the physical improvements made to the Old Mint will attract other private sector investors for surrounding properties and thus build the tax base in the Redevelopment District.

These are issues that the Old Mint Task Force and the Mayor's Office of Economic Development will have to consider before making a recommendation to the mayor and the Board of Supervisors in January. The Task Force is also reviewing other proposals for the building's future.

The San Francisco Museum and Historical Society wants to build a museum about San Francisco in 40 percent of the building, allocating other space to exhibitions and shops about the Mint's history as well as offices for nonprofit agencies, a restaurant and retail space. Under their plan, the Old Mint would also house the Convention Bureau's visitor's center, which draws 500,000 annual visitors to their current location. Accommodating the museum and other neighbors would cost an estimated $50 million - funded in part by city, state, and federal funds.

Another proposal came from the team of Landar Project Resource (Manhattan), Urban Initiatives (Stamford, CT) and Northern Real Estate (Oakland, CA). The group is seeking $17 million in federal and state funding to build 40,000 square feet of affordable housing. They also intend to include retail and office space.

Whichever plan is recommended by the Task Force, the selected developers will have a long trial of exclusive negotiations awaiting with the Board of Supervisors, to whom the federal government may give title of the Old Mint in January.