Letter and Application.pdf

Main:  614.246.2400   |   rockbridgecapital.com   |   4124 Worth Avenue, Columbus, OH 43219 
August 11, 2023 
City of Phoenix Historic Preservation Office 
200 West Washington Street, 3rd Floor 
Phoenix, AZ 85003 
(Delivered via Email) 
Attention: Kevin Weight, Principal Planner; Helena Ruter, Acting Historic Preservation Officer 
Dear Kevin and Helena, 
RB Phoenix LLC(“Owner”) of Hotel San Carlos (202 N Central Ave, Phoenix, AZ 85004), would like to 
formally apply for grant funding of $500,000 through the City of Phoenix Historic Preservation Office’s 
Demonstration Project program to finance components of the building’s conservation and necessary 
rehabilitation. Enclosed please find ƚŚĞapplication, checklist, and related requested items. Also saved 
here: https://rockbridgecapital.egnyte.com/fl/ofkQ0PdrdC 
Owner acquired the asset in October 2021 and has spent nearly two years evaluating the asset and 
planning a comprehensive renovation plan. As the oldest continuously operating hotel in Phoenix, Hotel 
San Carlos has held a prominent role in the cultural evolution of downtown Phoenix. Despite its 
historical and architectural significance, and its prominent location in Downtown Phoenix (at the corner 
of N Central Ave and W Monroe St), the property has not received necessary renovation in more recent 
history to maintain the building or ƚŽ achieve its competitive position in the market. As a result, the 
property’s condition and the hotel’s performance have suffered. Through a nearly $80M renovation, the 
95-year-old property will not only be fully restored and maintained but also be repositioned for the
future as a best-in-class hotel.
Expenses eligible for Demonstration Project funding include $4.2M of the $80.0M overall project cost. 
dhe project team is asking for grant funding from the City of Phoenix Historic Preservation Office’s 
Demonstration Project program to help finance the significant rehabilitation and restoration required to 
successfully capture the spirit of Hotel San Carlos. These funds would help support selective demolition 
of alterations and enlargements constructed outside of the building’s period of significance, structural 
repairs, façade restoration and repair, reinstatement and unification of historically accurate window and 
storefront systems, roof restoration and repair, conservation of architecturally significant interior 
components, and the replacement in-kind of exterior lighting fixtures. 
We look forward to further reviewing with the City of Phoenix Historic Preservation Commission on 
August 21, 2023. Please advise if any further questions or ŝĨadditional informationneeded. 
Best regards, 
Kerry Hsu 
Vice President 
Rockbridge 
ATTACHMENT A

Demonstration Project 
Grant Application 
Page 1 of 5 
For more information or for a copy of this publication in an alternate format, contact Planning & Development at 
602-262-7811 voice or TTY use 7-1-1.
S:\Historic Preservation\Handouts & Forms\Financial Incentives\Demonstration\Demonstration Grant Application 
HP/DOC/00177 
Internal 
Rev. 4/16 
In completing the application, please be as concise as possible, read all questions before answering to avoid 
repetition and write legibly in pen or type.  You can include continuation sheets if needed.  All required 
supplemental information must be included and be unbound.  
I.
APPLICANT COVER LETTER
Please include a cover letter from the property owner or authorized person submitting on behalf of the owner 
summarizing the request for Demonstration Project funding.  Briefly describe the overall project purpose and the 
eligible work items.  Indicate the total project budget, dollar amount for eligible work items, and the total amount 
requested for Demonstration Project funds.  
II.
APPLICANT AND PROPERTY INFORMATION
Applicant:
Legal Name of Property Owner:  
Mailing Address:  
Phone:
 Email Address: 
Property Address:  
Historic District (or name of individually-listed building):  
Current Use of Property:  
Is Property Vacant? ܆ Yes ܆ No 
If Yes, Length of Time Vacant? 
Date Current Owner Purchased Property: 
III. HISTORIC PROPERTY INFORMATION
1.
Historical/Architectural Significance. Briefly describe the historical and/or architectural significance of
your property, including the date of construction, architect/builder if known, construction method, original
use of property, and subsequent uses over the years.
Historic Preservation Office Use Only: 
Historic Status:
܆Individually Designated
܆Contributor to an Historic District
܆Eligible / Not Currently Designated
܆Non-contributor with Potential
܆Designation in Progress
܆Non-contributor without Potential
Relationship to City Revitalization Program: 
܆Enterprise Community
܆Neighborhood Initiative Area
܆Redevelopment Area
Kerry Hsu
RB Phoenix LLC
4124 Worth Avenue, Columbus OH 43219
614-246-2400
klhsu@rockbridgecapital.com
202 N. Central Avenue Phoenix, AZ 85004
Hotel San Carlos
Hotel and Ground Floor Retail
✔
NA
October 29, 2021
Completed in 1928 and designed by Los Angeles architect George Whitecross Ritchie, The Hotel San Carlos (located
at North Central Avenue and Monroe Street) serves as an anchor of cultural heritage for Downtown Phoenix.
Architecturally, this seven-story (with basement) Renaissance-revival style hotel is distinctly representative of the rapid
growth and cultural revolution that overtook the city in the late 1920s. Constructed of reinforced concrete, the
street-facing elevations are adorned with a scored terra-cotta façade that creates the appearance of masonry
construction. The building was originally built for hotel use and has remained in hotel use throughout its life – serving
as the sole, historic, Phoenix hotel to operate in this intended capacity today.

City of Phoenix Planning & Development Department 
Demonstration Project Grant Application – Page 2 of 5 
HP/DOC/00177
2.
Property Description.  Briefly describe the primary exterior features of your property, including
information on style and materials of exterior siding/finishes, roof, doors/windows, porches, and any
decorative or unique features of the property.  For these features, indicate whether they are original or
altered/replaced, and if they were altered/replaced when this occurred (if known).
3.
Historic Property Inventory Form.  Attach a copy of the Historic Property Inventory Form (if available
from the City of Phoenix Historic Preservation Office) for your property.
4.
Photographs.  Attach photographs showing overall site, street views, all exterior facades, and close-up
views of original/decorative features and areas where work is to performed.  Include interiors for work
proposed to be funded only.  Label views on back of photos (i.e., north façade, east wood casement
window) or on separate photo log sheet.  Original color photographs/digital images are acceptable.
5.
Property Condition.  Describe the overall condition of the property, providing descriptive information on
areas that are deficient or deteriorated.  If an architectural or structural assessment has been performed,
please attach.
6.
Previous Rehabilitation Work.  Briefly describe previous rehabilitation work you have already completed
on your property as well as work that you are aware of that was conducted by previous owners.  List the
major work items and the year work was done.
Hotel San Carlos features a painted, terra-cotta faced exterior at the street facing south and east elevations, while
the secondary, interior facing elevations feature a painted, utilitarian, concrete exterior. The building encompasses a
seven-story hotel tower with a two-story extension located at the west elevation. The majority of the facade is original
(from 1928) but features some subsequent changes. The building features primary entrances and storefronts at the
south and east elevations. Some of the storefronts are original and others feature subsequent changes. The
windows throughout are modern replacement windows. Located at the southeast corner of the exterior is a large
blade sign. The sign extends between floors 2-7 and is constructed of aluminum. This sign was installed in 1955 (in
the original signs previous location). The building features three rooftops: atop the first floor within the interior
courtyard space (an enlargement added outside the period of significance); atop the second floor at the two-story
extension (original but altered beyond recognition outside the period of significance); and atop the seventh floor hotel
tower (original but altered outside the period of significance). Please see Item A Historic Property Inventory Form,
Item B Photos and Log Sheet, and Item I the National Parks Services Part II Submission.
Hotel San Carlos built for hotel use in 1928, has been maintained in this capacity throughout the building’s
near-century-long life. Nearly all building components remain structurally sound and operable to date. However,
despite its historical and architectural significance, and its prominence in Downtown Phoenix (at the corner of N
Central Ave and W Monroe St), cycles of property upkeep and interior renovation typical to the hotel use class have
not been maintained. As a result, the property’s condition, and in turn the hotel’s performance in comparison to
competitive hotels within the local market, have both suffered. The property needs a significant renovation to not only
preserve and maintain its historic integrity but to also reposition it for today’s guest.
For further detail on specifically deficient components of the existing building, please see Item G2 – Property
Condition Assessment, Item H – Structural Assessment, Item I - the National Parks Services Part II Submission.
Since retaining control of Hotel San Carlos on October 29th, 2021, Owner has performed no rehabilitation work on
the property. The only past, sanctioned rehabilitation work to have been performed on the property (to the knowledge
of Owner) occurred in conjunction with a previous preservation easement through the City of Phoenix Historic
Preservation Office’s Exterior Rehabilitation Program and those items submitted to the Historic Preservation Office
since 1987. This preservation easement was executed between the City of Phoenix and the property’s previous
owner, in 1993 – encompassing the building’s east façade with work performed by previous owner in exchange for
$25,000. Owner is unaware of any details concerning the extent of the rehabilitation work performed in conjunction
with this previous preservation easement.

City of Phoenix Planning & Development Department 
Demonstration Project Grant Application – Page 3 of 5 
HP/DOC/00177
IV. PROJECT INFORMATION
1.
Project Purpose.  Describe the primary purpose and objectives for the proposed project for which
Demonstration Project funds would be expended, and the extent to which the project meets the city's
Preservation Philosophy.
2.
Project Plan.  Describe how the proposed project fits into an overall plan to rehabilitate the building and
the time frame for implementing the various components of this plan.
3.
Project Work Scope, Budget and Time Schedule
a.
Cost estimates.  Cost estimates for all work items must be provided by licensed contractors or other
qualified individuals who perform the proposed work on a regular basis (not by architects/designers).
Please attach the itemized cost estimates to the application form.  Two cost estimates are required
for each work item.  The City Historic Preservation Office solely determines if the estimates are
adequate.
b.
Itemized budget.  Include an itemized project list and budget for entire proposed project (including
items not to be funded with Demonstration Project funds) using the form in Appendix A.
Example of itemized budget for a project:
Eligible Demonstration Project Construction Items: 
Repoint brick walls on east and south facades 
$ 
8,500.00
Repair/replace 16 wood-frame double-hung windows 
$ 
16,000.00
Repair stucco cracks on west façade 
$ 
1,800
Repaint west facade wall 
$ 
500
Eligible Architectural and Engineering Expenses: 
$ 
1,500
Structural analysis to determine source of stucco cracks 
Total Eligible Expenses: 
$ 
28,300.00
Architectural and Engineering expenses (limited to no more than 10% of request): 
Amount:  $1,500.00 
Percentage of Total Project Cost:  5.3% 
Ineligible Construction Work to be Funded by Property Owner: 
Plumbing upgrades 
$ 
8,000.00
Refinish wood floors 
$ 
2,000.00
Repair tile on three fireplaces 
$ 
3,000.00
Total Ineligible Work Items: 
$ 
13,000.00
The use of funds is intended to conserve and rehabilitate the existing building to celebrate the cultural and
architectural heritage Hotel San Carlos offers Phoenix, AZ. Owner has identified approximately $4.2M of eligible
expenses related to the Demonstration Project Funds. This include selective demolition of non historic structures
including existing back of house structures, existing pool, and existing mechanical and storage penthouses,
improving the super structure, improving exterior skin (facade repair, storefront repair, window replacement), roofing
repair, new rear addition and stairways, exterior lighting replacement, repair of marquee sign. See Item C Cost
Estimate and Work Item Description and Item D Appendix A.
Owner intends to invest over $80M on the reconstruction, renovation and repositioning of The Hotel San Carlos to
141 rooms (from existing 128 rooms). The overall project scope will reposition, reconstruct, and renovate the nearly
100 year old asset to not only preserve its integrity but also position the property for the future. The property will
expand its food and beverage amenities including a new destination restaurant and lobby bar, a basement
speakeasy, the reintroduction of the historic palm room and accompanying tea court, addition of pool and roof top
amenities, and feature approx. 5,000 sf of meeting space. The renovation will also fully address modernizing all guest
rooms and bathrooms, provide new mechanicals systems (HVAC, plumbing, electrical), new roofs, refinish and repair
elevators. The transformational renovation will position The Hotel San Carlos as a leading hotel in the Phoenix market
and gain national attention. The scope of the work has been review and approved through the COA process.

City of Phoenix Planning & Development Department 
Demonstration Project Grant Application – Page 4 of 5 
HP/DOC/00177
c. Descriptions of work items.  Include narrative descriptions for all itemized work items proposed for 
Demonstration Project funding.  Attach on a separate sheet using Appendix B.  If contractor bids/cost 
estimates included detailed descriptions, this item may not be necessary. 
Ex. of narrative description for one work item: 
Repair/replace 16 wood-frame double-hung windows.  Project will replace two windows beyond 
repair in-kind to match existing.  Fourteen windows need frame repair (new ledger, header and/or 
sill), sash repairs/replacement, and some new glass panes to replace missing and broken glass.  
Refer to attached window-by-window assessment and itemization from contractor. 
d. Time schedule.  Indicate when work is projected to commence, the project duration and the order in 
which items will be implemented. 
Estimated Project Beginning Date:  
 
Estimated Project End Date:  
 
Sequence of Work Items:  
4. Project Financial Information. 
Provide information regarding financial capability of owner to complete the project.  Such information 
should include:  pro forma profit/loss statements for the business proposed, bank statements or other 
evidence that owner can obtain a loan from a bank, financial or lending institution to complete the project.  
If the project is proposing to use federal tax credits, grants, or other financial incentives, please provide 
evidence and information on the contribution of these sources and the status of these applications.
5. Drawings/Building Assessments.  Please attach: 
a. Scaled site plan showing location of main buildings, all outbuildings, existing/proposed fences and 
walls, and property lines.  If additions, demolitions or other site changes are proposed as part of 
proposed project, please indicate on site plan.  Indicate all areas of proposed work on the site plan 
(Note:  Demonstration Project funds cannot be used for site work, new additions or demolitions of 
historic building fabric.) 
b. Architectural plans or elevations drawn to scale showing all building facades on which work is to 
be performed, with notes depicting locations/description of specific work items.  Include roof plan 
when structural roof work is proposed. 
6. Professional assessments for structural repairs (when applicable) 
For Demonstration Project funding requests for structural/foundation work proposed, include 
assessments from appropriate professionals verifying work is essential for protection of the resource and 
for city code compliance.  (If this work is not funded with Demonstration Project funds, then disregard.) 
Q4 2023
Q1 2025
Please see Attachment J - Preliminary Development Schedule. Detailed timing subject to change however
estimated project beginning and estimated project end date remain as noted above.

City of Phoenix Planning & Development Department 
Demonstration Project Grant Application – Page 5 of 5 
HP/DOC/00177
V.
INFORMATION ON PRIMARY LIENHOLDERS.
The city's purchase of the Conservation Easement requires the consent of all lienholders.  A title report will be 
obtained by the City to verify all information provided.  Accuracy of this information is critical.  Consent from the 
lienholder(s) must be received prior to disbursement of any funds. 
1.
Primary mortgage company:
Contact person:
Correspondence address:
(Note: This is usually different
than the payment address)
Company telephone number:  
Company fax number:  
 
Loan number:  
2.
Secondary mortgage company:
Contact person:
Correspondence address:
(Note: This is usually different
than the payment address)
Company telephone number: 
Company fax number: 
 
Loan number: 
VI. SIGNATURE
I declare that I have reviewed the Demonstration Project Program requirements and am submitting this 
application in accordance with those requirements.  All information submitted is true to the best of my knowledge 
and belief.  I acknowledge that any error may affect its review and approval.  I understand that if I wish to change 
any aspect of the project after it has been approved, I must obtain the written consent of the City.  I also 
understand that I will be required to obtain a Consent Agreement from my lienholder(s), and will sign and abide by 
the terms of the Demonstration Project Program Agreement and Deed of Conservation Easement.  I understand 
and agree that the City Historic Preservation Office staff may perform necessary site visits on my property at 
mutually agreed upon times to facilitate their review of this proposal. 
Property Owner Signature 
Date 
Property Owner Signature 
Date 
.HUU\+VX
Western Alliance Bank
Barry Lieberman
1 East Washington Street
Phoenix, AZ
85004
602-389-3500
8/11/23