Developer adds lofts downtown

Downtown business owner and loft apartment developer Jason Murray is killing two birds with one stone in his latest redevelopment plans. They call for an upscale restaurant coupled with several loft apartments.

Murray will develop 2,400 square feet of restaurant space at the corner of College Street and Market Avenue. Surround-ing it will be 11 lofts, stretching between 501 W. College St. the restaurant's entrance and 507 W. College St.

The small residential community will be available to between 35 and 40 people by the middle of July.

City officials feel such downtown living is key to redevelopment success.

"Residential development in center city is very, very important," said Fred May, director of planning and development. "The more people you get living in and around the downtown area, the more day-to-day services you're going to get downtown."

Likewise, Murray knows it's the business development that will help attract city dwellers.

"We all agree that the more people that live downtown create more of a local base for the restaurants and cafes in the area. And the more businesses that are located here create more demand for living downtown. So, they complement each other," Murray said.

Murray purchased the buildings last November. His development company, Palacio Properties LLC, now owns the entire square block between Olive and College streets and Main and Market avenues, and comprises the office and warehouse for Artifacts Ltd., and more loft apartments. Artifacts Ltd. is another company Murray owns.

Last summer he developed seven lofts between 504 W. Olive St. and 235 N. Market Ave.

"I'm currently working on another renovation project at 308 S. Campbell Ave., next to Churchill's," Murray added. "I'm building a giant loft apartment on the second floor."

That rehabilitation project is a 2,500-square-foot, top-story loft with four bedrooms, two bathrooms and two living rooms. First-floor plans have not been determined, but options include more lofts, or office/retail use. The loft is scheduled for completion Aug. 1.

Murray declined to disclose total renovation costs, but said the new lofts on College Street will rent for $500 to $775.

He is utilizing a $40,000 city facade loan to recreate the old exterior and is maintaining original interior pieces such as woodwork, brick and flooring.

"It should look a lot like it used to back in the early 1900s," Murray said.

According to Richard Burton, president of Historic Springfield Inc., the building at 501 W. College St. was constructed in 1892 and is downtown Springfield's oldest remaining brick hotel structure.

It was best known as the Palace Hotel, he said, and later became the Baltimore Hotel. Originally a steam laundry shop, it also served at one time as an undertaker's parlor. Most recently, a storage company used the two buildings.

Burton is nominating 501 W. College St. for individual placement on the National Register of Historic Places, which will make it eligible for rehabilitation tax credits.

The restaurant will retain the original storefront, including the tile mosaic floor in the open entry. Downstairs, Murray saved 1,000 square feet for "an underground tavern atmosphere," with the original stone foundation exposed.

Ron Tappan of CJR Commercial is the leasing agent for the restaurant space. Murray hopes to have an "upscale restaurant" tenant in it by the end of the summer.

Keystone Architects helped design the restaurant and lofts, while Murray's construction company Form & Function LLC are acting as general contractor.

"I hope to see and it's actually happening now more and more buildings being renovated and turned into very nice loft apartments. And on the ground level, they're putting in upscale restaurants, art galleries, photo studios, night life," he said. "It's creating a healthy, vibrant downtown like Springfield should have."

Harlan Hill, project facilitator for the city's building development services department, leads a redevelopment review team that performs a site walk-through to assist in matching developers' plans with code restrictions.

"It kind of gives them a preliminary overview of things that may affect their costs and their feasibility of development," he said.

Hill said such meetings are held once or twice a week on average.

"The momentum for that type of development has finally caught hold and I don't see it stopping any time soon," Hill said.

"There is quite a bit of interest for downtown development. I think it's well on its way to achieving the vision."