The Dog House Tavern and Langley took their first step forward together toward reopening the historic building on First Street with the approval of a land exchange Monday night.

On the recommendation of the director of Community Planning and Mayor Fred McCarthy, the Langley City Council gave its unanimous support at the county’s regular meeting to accept the property swap. Janice and Charlie Kleiner, the tavern’s owners since 2010, requested the exchange so they could own the property under the stairs and deck previously on an easement to get into the restaurant and upstairs residence.

“We’re thankful for your support,” Janice Kleiner said during the meeting. The Kleiners live in Issaquah and made the trip to Langley for the decision, which was not originally expected to come down at that meeting. “We’re excited to get it started.”

Based on Macaulay and Associates appraiser Jim Dodge’s review of the property, the exchange is for 620 square feet of land under the stairs and deck of the historic Langley building. Langley would receive 175 square feet from the property’s north side, essentially adding area to Seawall Park.

“I always thought that was a good approach,” said Councilman Jim Sundberg. He also said the property the city will get adds access to Seawall Park and Langley’s long-term vision to connect the park to the marina of South Whidbey Harbor, currently blocked by private property and the water.

The city’s main concern was that it cannot give away public assets, including property. The challenge in the proposal is that the land closest to the water is perceived as more valuable than land under the stairs and deck, which is what the tavern owners would receive.

“Despite the fact that there aren’t any comparable sales, I feel comfortable that the council, if they choose to accept this, can be assured that it’s a reasonable solution,” Director of Community Planning Michael Davolio said in a phone interview Monday before the city council meeting.

Langley will not get its own appraisal. Davolio said he figured that the amount the city could get would not be worth the expense of paying for the appraiser.

“We could get our own appraisal done, but it’s my opinion that the cost of getting that appraisal would probably exceed any increased value we might get,” he said.

“We have to be careful that we’re not making a donation or a grant of public property,” he added.

The bulk of the land the Kleiners would receive comes with restricted use. It may not be built upon for any purpose other than to get in and out of the building, which was the reason for the diminished value of property to be exchanged. The iconic stairs and deck are necessary because the bar and lounge entrance is on First Street and requires a separate entrance for the under-21 crowd to the restaurant area and the future top-floor residence proposed by the Kleiners.

The Kleiners proposed renovating the 100-year-old building listed with the National Historic Register in 2013. The upstairs level would become a residence, the main floor returned to its historic function as a restaurant and bar, and the lowest level used for a rental space. All of the interior work still has to be permitted through the city’s contracted building official, and all exterior work will need to go through the Design Review Board.

They went back and forth with the city, however, about what steps they’d have to take to renovate the building and previously sought a street vacation (essentially the city giving away part of a right of way) of the area under the stairs and deck. The hill next to the stairs and deck is an extension of Anthes Avenue and is considered a public right of way and water access, both of which come with strict guidelines.

Frustrated with the city, the Kleiners asked about the demolition process. That prompted the city council to approve an emergency ordinance halting approval of demolition permits, which gave the city time to develop demolition procedures for buildings eligible for or currently listed with the National Historic Register or Washington Heritage Register. The stall also gave McCarthy time to speak with the Kleiners and work toward renovation, even partial renovation, rather than demolition of a Langley icon.

Some Langley residents and people in the crowd cheered Monday’s decision at City Hall. Fred Lundahl, a business owner and ardent supporter of the Kleiners’ request and pursuit of reopening and renovating the building, handed Charlie Kleiner a dollar bill as they left council chambers.

“I’d like to pay to help get it started,” he said, drawing several laughs.