Plans to develop an eight-story, 260-unit condo at the old Denny's site on the corner of Market and 15th has been put on hold due to recent economic troubles, according to a representative of the developers, Rhapsody Partners.

Louis Richmond, a spokesperson for the developers, said financing is still being sought and there is still a desire to move ahead with the project. Such has happened with other local developments, the recent economic slump has put the project on hold, possibly indefinitely.

Over last summer the old diner, originally a Manning's Cafeteria built in the 1960's, was demolished after a battle between preservationists and the developers ended in a landmark designation for the exterior of the building. The decision was later reversed because the Seattle Landmarks Preservation Board determined the owners of the property could not see a reasonable return on their investment with the landmark status.

Owners of the site, Benaroya Properties, bought the site for $12.5 million from the failed Seattle Monorail Project and were in negotiations to sell it to Rhapsody.

Katie Vance of Rhapsody Partners said the company has been in talks with several lenders, but since they do not have building permits or a firm timeline in place, it's been difficult.

"The whole banking system has changed," said Vance. "That's the times we are living in right now... It's hand over fist and you hear the same story all over the place."

Ballard District Council Officer Catherine Weatbrook said it would be tough to see the corner just sitting there because it's not a lot of fun for anyone to look at. However it's not a unique situation and she also has been hearing and seeing the financial troubles across the board. She hopes the economy will turn around for everyone's sake.

Alan Michelson, head of the Architecture-Urban Planning Library at the University of Washington and one of the members of the Save Manning's group, said the developers could have made the project work without demolishing the historic structure.

"We made lots of efforts to get a hold of the developers and Benaroyas but we were brushed off," said Michelson. "To some extent they may blame us by slowing them down but we may have also helped them by stopping construction for something that could not be built. It was their own arrogance that exacerbated the situation."

The Manning's/Denny's building was demolished in June 2008, shortly after the landmark decision was reversed. Many believed the diner to be a good example of "Googie," a style of roadside architecture that originated in Southern California.

"I think it's interesting that it wasn't lost on people that the developers destroyed the Manning's building as fast as they did," Michelson added. "It was clearly not economic but a political message to people that cared about preservation that basically owners have total control ..."

When asked if she thought the Save Manning's group slowed down the development, Vance said

"Sure it slowed us down. We had about a year delay so how do you not say it slowed you down, but what are you going to do about it? It's over and done with and we're moving on. We did have delays and we had added costs because of it."

"Others of us were wondering what was going on with the property," said Anne Forestieri, another member of the preservation group. "We've been following it on the outskirts because we're ticked off that they tore the building down."

Disappointed with the news that the project may be put on hold indefinitely, Beth Miller, executive director of the Ballard Chamber of Commerce, hopes that the property owners will work with them in creating a temporary project that could take place of the development in the meantime.

"It would be nice to have life and activity in the space to add to the community," said Miller. "I would hate for that to just sit idle. The problem is you just don't want a site to sit empty. It's an invitation for vagrancy, graffiti and other activities."

Miller has offered a possible flea market, basketball courts, an impromptu park of potted trees or temporary art that could fill the bare property until funding is found.

"Hopefully they can partner with some of us to show their good faith and keep the area lively."

Allison Espiritu and Rebekah Schilperoort may be reached at 783-1244 or allisone@robinsonnews.com or rebekahs@robinsonnews.com.

January 27, 2009
Photo credit: Photo by Dean Wong

NO FINANCING: The historic Manning's/Denny's building was torn down last June to make way for an eight-story condo, but that project is now on hold due to financial difficulties according to the developers.