Pagliai’s Pizza building one step closer to being designated a historic landmark

An iconic Iowa City building with bohemian roots is one step closer to being designated a historic landmark, a move the owner says relates more to the restaurant it houses than the building itself. The structure, officially known as the Slezak-Holub-Skarda building but referred to colloquially as the Pagliai Pizza building, has been the subject of a months-long debate concerning owner rights vs. historic preservation, with both sides equally attempting to persuade the council over the past few months. The petition to designate 302-316 E. Bloomington St. as a historic landmark began this past fall, when owner Gary Skarda put the building up for sale in September 2023 for $5 million. Currently, the property is zoned CB-2 Central Business Service, but would rezone as CB-2 with a Historic District Overlay (OHD/CB-2) if the council passes the ordinance. A February article in the CBJ said the Historic Preservation Commission, a department of the city of Iowa City, met with Mr. Skarda sometime after October to discuss the process of historic landmark designation, and what it would mean for the owner of the property. Following that meeting, the Friends of Historic Preservation hired local historian, Jennifer Price, to complete the site inventory form that documents the history, integrity and significance of the property. Mr. Skarda believes the push to preserve the building has less to do with remembering the city’s Czech heritage and more to do with Pagliai’s Pizza, which has been an iconic eating establishment in Iowa City for more than six decades. “Everyone remembers Pagliai’s Pizza. They wouldn’t remember the building other than Paglai’s Pizza," he said at the April 16 meeting. Mr. Skarda’s concern is that the historic overlay zoning would put a constraint on what future owners can and can’t do with the property, thus reducing its marketability. Rex Brandstatter, RE/MAX realtor for the Pagliai building, said they have made potential buyers aware of the possible rezoning. “There are interested parties, but they haven’t run away yet,” he said, in a phone call with the CBJ, when asked if the historic overlay rezoning has dissuaded interest in the sale.

Zoning meets requirements for city plans, says P&Z Commission

During a work session prior to the meeting, the council met with the Planning and Zoning Commission to discuss the issue at length. Mike Hensch, chair of the commission, said historic designation would make the building eligible for tax credits and special exceptions through the Board of Adjustment, to help future owners support the continued use of the property. If the rezoning is approved, the building’s exterior will have to go through the historic review process, said Mr. Hensch, but the new zoning should “not prevent the owner from making a sizeable profit” off the building, he added, noting that it has always been fully leased for tenants and commercial use. Currently, the building houses 16 apartments, a laundromat and the restaurant. “Ultimately, historic preservation provides a public good to all the residents of Iowa City and makes Iowa City a better and more interesting place to live and work because of designations such as this,” he said. Commission member Scott Quellhorst said that while he agreed the building is architecturally important and significant to Iowa City history, the historic overlay would impose a cost on the owner, noting that it would impact the cost of maintaining and improving the buildings. “Ultimately, I really view this as a question of whether it’s worth imposing those costs on a particular individual for the benefit of the community,” he said. The Commission said it bases its conclusions on whether or not properties are consistent with Iowa City’s 2030 Comprehensive Plan, Central District Plan and Historic Preservation Plan, concluding that the rezoning proposal met the requirements for all three.

Public opinion split

During the public comment period, multiple Iowa City residents took the podium to express either support for Mr. Skarda or support for the historic landmark designation. Mr. Skarda’s daughter, Victoria Skarda, said her father’s poor health has made maintaining the building difficult and health care costs have increased his financial burden. “My family has worked extremely hard to maintain this building. Putting it on the market was a hard decision for my father to make, and we’re not claiming it will get demolished once it’s sold…this building is far more significant to my family and I than anyone who is on the Historic Preservation Commission,” she said. The council had a lengthy discussion weighing the merits of granting historic district overlay zoning versus the best interest of the owner. “How can we make this benefit for everyone?” asked mayor pro tem Mazahir Salih. “Like a win-win situation, we want to keep the building but at the same time help the owner,” adding that she would vote yes but only to keep the conversation going. Mayor Bruce Teague agreed, saying he had more questions about the issue. “I want to be sensitive to everyone before I make a vote…I definitely have questions that I will want to work with staff directly for my own knowledge," he said. The council unanimously passed the first reading 7-0, and two more readings remain before the designation becomes official.