City Clarifies Uptown Fire Rebuild: Businesses Feel Mixed Impact as Demolition is Scheduled to Begin Next Week

{Photo: Antionette Kerr/Davidson Local}

The City of Lexington says it is continuing to coordinate the permitting process for the planned demolition of the former Shoto's and The Candy Factory buildings, while emphasizing that the project is privately owned and managed.

In a statement provided in response to questions submitted through the City Clerk's Office, Marketing Communications Manager John Bullard said the demolition and redevelopment are not city projects.

"The key thing to know is that the buildings (Shoto's and The Candy Factory) are privately owned, so the demolition and the rebuilding that follows are private projects handled by the property owners and their contractor. It's not a city-led project and it isn't paid for with public funds."

Bullard said decisions regarding bids, contractors and the construction schedule rest with the property owners.

"The decisions about bids, the contractor, and the schedule all sit with the owners."

According to Bullard, the city's responsibility is limited to permitting, coordination and public safety.

"The city's part is the permitting and coordination side, reviewing and issuing the permits the work requires, helping keep the process moving, and keeping the area around the site secure while it's underway."

The owners' contractor is currently completing the paperwork required before demolition can begin, including a mandatory state review. Bullard said the city's Chief Building Inspector is helping coordinate that process with the state. Once the state signs off, the approval will accompany the demolition permit application before the permit is issued.

The city's Technical Review Committee also met with the external project team last week.

"A coordination meeting between the city's Technical Review Committee and the external project team happened today (August 21st) and staff will continue to work through the steps together. This coordination meeting is a standard meeting that developers utilize often."

Additional safety measures are expected soon.

"The contractor and NCDOT plans to put up fencing to further secure the site in the coming days."

If the permitting process remains on schedule, demolition is expected to begin on or around Aug. 3.

"Demolition is currently scheduled to begin on or around August 3. It may look slow at the start, since a lot of the early work is done by hand."

Bullard also confirmed that planning for the future of the properties is already underway.

"Both owners have started working with architects on rebuilding plans."

Because the project is privately managed, Bullard said the overall timeline will depend on the property owners, their contractor and the required regulatory reviews rather than the city.

"Because it's private work, the timeline really is driven by the owners, their contractor, and those required review steps rather than by the city. For anything specific to the bids or their own scheduling, the owners and their contractor are the best source."

Businesses Report Different Experiences

While the demolition process moves through permitting, businesses near the construction zone are reporting varying levels of impact.

Sean Bishop, owner of Fox and Olive on Main Street, said his business has declined by more than 90 percent since the street closures began.

Bishop said he believes several factors are contributing to the slowdown in addition to the road closures. Summer vacations, extreme heat and a perception that businesses in Uptown Lexington are closed have all likely played a role. He said some customers appear to be avoiding the area because they assume stores are inaccessible or do not want to navigate the roadblocks. The River Emporium also said that business was down drastically since the fire.

Not every business has experienced the same decline. One hemp distillery owner in the area said business has remained steady, with customers continuing to travel from outside Lexington specifically to purchase products despite the ongoing construction.

Looking Ahead

As rebuilding plans take shape, the property owners have indicated they intend to use insurance proceeds to finance the project. They are not eligible for historic tax credits, making insurance the primary funding source for reconstruction.

Although many longtime patrons have expressed sadness over losing historic features such as the buildings' nostalgic “creaky” wooden floors and other original architectural details, the owners see an opportunity to improve the properties for future generations.

Reconstruction will allow the buildings to be brought into compliance with the Americans with Disabilities Act (ADA), improving accessibility.