The Establishment, a boarding house for SLO creatives was almost sold to hotel developers, but it wasn’t. Last year when resident’s of The Establishment found out the building was up for sale, they organized a group of 40 former residents to buy the house and maintain it as a community living space.
Now, because of its colorful history, the new owners are attempting to issue the house under the Mills Act, a tax incentive program for preserving and restoring historic properties.
The Establishment was built around 1886, but at that time it was named the Call Hotel. The building has seen many faces over the years, including famous American novelist Jack Kerouac.
Last week, one of the building’s new owners, Matt Ritter, applied to preserve and restore the housing under the Mills Act.
“I think it's a really special thing for San Luis Obispo. I feel like [by] buying it, we saved it. We really are interested in keeping it how it is and any alternatives to what we wanted to do were painful and so we came through with the money to own it,” Ritter said at SLO’s Cultural Heritage Committee meeting, last week.
The Mills Act is a California State Law that allows cities to enter contracts with owners of historical buildings. The owners have to agree to preserve, maintain and improve their historic properties in exchange for property tax savings.
In 1997 San Luis Obispo launched their own Mills Act Program, and they’ve entered into about 40 contracts with local homeowners so far.
That’s what Matt Ritter wants to do with The Establishment now.
“We love the building. We love the history. We love the community there. And so we're excited to be able to get this Mills Act application through so that we can keep it as it is, improve it, do everything that's required,” Ritter said.
The building has gone through many stages since it was built. At one point it was even a brothel. But ever since the previous owner Sara McEre bought it back in 1977, it’s become a local hub for artists and creatives. It’s also affordable housing for people living in it.
Ritter said people will continue to live in the building whether or not it’s approved as a historical landmark.
“They decide who lives there. The 19 people that each have a room. They have their house governance, all of that. We stay out of all of that and just let them run it and try to make the building great,” Ritter said.
The application was accepted by the Cultural Heritage Committee and moves next to the City Council.
