by Michael R. Allen
Lately, the unkempt stretch of dirt — not shown here, too bleak for the holiday season — where the Avalon Theater once stood has sported a for-sale sign with a slapped-on price of $125,000. That price seems to be missing one zero, compared to where the price for that parcel stood in 2009:
Avalon Theater Site Pricing
2009: $1,000,000 (with building and unrealistic asking price)
2011: $249,000 (with building)
2013: $125,000 (without building)
According to the 2011 demolition permit, the demolition cost $27,500. That non-deferred expenditure removed $124,000 for the sales price, and who knows what really from the final sales price. In 2012, when the building fell, many rejoiced that an “eyesore” was coming down. Yet today the demolition seems economically questionable.
The economics of demolition are simple: removal of buildings almost always decreases the worth of a property. The years of having the building listed at an artificial price, the years of city officials not taking reuse proposals seriously, the expenditure of city time and money to get the building demolished — all add up to reducing the parcel value and lowering revenues to city government.
Demolishing the Avalon Theater has already reduced the property taxes on the parcel:
Avalon Theater Assessed Valuation
2011: $111,700 (with building)
2013: $80,300 (without building)
If the city of St. Louis wants to be “open for business,” as elected officials often claim, it must retain assets that drive economic activity. Demolishing the Avalon Theater was a step in the wrong direction for South Kingshighway.