Developer announces plans for Marquette Hotel

A nearly century-old downtown building best known as a hotel is getting a much-needed makeover beginning next month, so long as financing comes through for architect and downtown developer Dan Scott.

Scott announced last week his plans to purchase the former Marquette Hotel at 400 E. Walnut St. and renovate it. The building, at the southeast corner of Walnut and Jefferson streets, is across from Scott's Design Agency office. The Marquette is currently boarded up and empty. It's a $2 million project, Scott said, that aims to bring national restaurant options downtown and apartments, offices or both, depending on demand.

Dan and Melissa Scott's undisclosed offer to Marquette Place LLC, a partnership of Sam Freeman and Tim Rosenbury, is expected to close May 22. Scott plans to begin cleanup within 30 days of closing, and expects to have it ready for occupancy in early summer 2004.

Developer's vision

Scott's vision for the 33,000-square-foot former hotel comprises up to four national restaurant chains between the first floor and basement and 16 apartments or small offices in 20,000 square feet on the top two floors.

"We're trying to attract some national food retailers," Scott said, adding that he is open to creating a food court concept or having three or four stand alone restaurants in the building. "This will be responding to a need that has been indicated to us. We've got some wonderful restaurants downtown, but it is often difficult to get in and out of them quickly. We need some more, quicker service-type restaurants downtown, as well as something with a more moderate price point."

Scott said officials with the city and Springfield Area Chamber of Commerce, as well as downtown Realtors, have expressed desires for the moderately priced national chains, but couldn't say what names he is seeking. "We're not prepared to release who we've had conversations with," he said. Some are new names to Springfield and some are not, he said.

Regardless, it would be the first new attraction of national food chain business downtown in a few decades, he added. Dairy Queen on Jefferson is the only existing national chain downtown.

One of the national retailers is interested in possibly creating a two-level dining situation, incorporating the 3,600-square-foot basement, Scott said.

Financing package

Scott's plans come as good news to city planners, who have been talking with developers about the property for five years, said Chuck Marinec, city grants administrator. Marinec administers the city redevelopment loans that Scott is using to purchase the building.

"It's exciting to have the prospect of a major development on that corner," Marinec said.

There are now more than 100 loans issued through the city's Small Business Development Loan Program, Marinec said, 75 percent of which are for center city projects.

Project values also are growing. The average loan amount five years ago was $55,000, but now it is $165,000, Marinec said.

"There is increased demand for greater public participation, but we've also seen and particularly in the downtown area larger projects requiring more capital," he said.

Since introducing the loans in 1984, the city has built a $7 million small-business loan portfolio.

"It's an interesting and complex financing package to do a project of this size," Scott said. "We have four different financing mechanisms in place." Scott purchased the building through the city's Small Business Development Loan Program and the majority of rehab is funded through traditional financing by Union Planters Bank, with some gap financing through Springfield Finance & Development Corp. The fourth financial mechanism is a property tax freeze at the current level for the next 10 years granted by the Land Clearance Redevelopment Authority, Scott said.

Most intriguing feature'

Scott found his favorite element of the building in the upper two floors.

"The most intriguing feature of the building, in my opinion, is the fact that it's doughnut-shaped," he said. "It has a large light well in the center of the building that we're going to renovate and keep as a valuable element."

The light well is currently roofed over on the first floor, but Scott plans to open it to all three floors. "It's going to be a full, three-story light well in the center of the building," he said. "We'll be adding skylights to the roof in that area to get as much natural light as possible."

Scott plans to maintain several existing features, including the building's tin ceilings and crown moldings, and will restore the original exterior character of the building while adding awnings. He is working with the city on new sidewalks and with City Utilities on new street lamps.

"It will be nice to have something beautiful to look at, rather than something boarded up," he said.

In fact, seeing the vacant building on a daily basis as he went into work served as inspiration for the project.

"Also, there is the need to get some of these larger buildings rehabilitated," Scott said.

"There have been several larger projects that have been put forward and talked about ... and they haven't happened. We wanted to make sure that this wasn't just another in a list of projects that were talked about but were never done. We are prepared to be working on this one within 30 days of closing."

But it won't be easy, and Scott is the first to admit it.

"It's a difficult building," he said. "It's in very bad shape at this point, but we're hoping that the experience that we've had on our three other projects will carry us through and we'll be able to get one of the important buildings downtown back on line."

Scott is one of a handful of developers taking center city redevelopment on their shoulders. The Marquette project is his fourth after rebuilding his Design Agency offices at 333 S. Jefferson; renovating the former Kemper Sign building at 438-440 S. Campbell into office space and lofts; and redeveloping one-story offices at 320 W. Pershing St.

Scott created a sister company to his Jericho Development Co. to purchase the property and appropriately named it Big Ugly Building Company. He said he's taking "a tongue-in-cheek approach, because this one will take a great sense of humor to survive the renovation process. It will be difficult, so we might as well go into it with a little sense of humor."

The Marquette Hotel was originally constructed in 1905 as Springfield Business College.