YOUR BUSINESS AUTHORITY
Springfield, MO
by Karen E. Culp
SBJ Staff
A stay in Springfield won't be complete without the Hotel Seville experience, once developers renovate the downtown structure.
Three partners, Sam Freeman, Tim Rosenbury and W. Phillip Burgess, have announced that they will close on a deal to purchase the Seville Hotel and the Marquette May 11. The three men have formed two limited liability companies, one called the Grand Seville, which will own the Seville, and another called Marquette Place, which will own the Marquette, also known as the State Hotel, which is now closed.
Plans for the deal became public at a council luncheon May 5, where City Council heard a proposal to help residents of the Seville relocate. The Seville Hotel has been a low-income residence, and the new owners are concerned that the tenants get some help in moving.
The city has developed a plan to assist the residents using funds from the now-inactive Rental Rehabilitation Program fund, said Chuck Marinec, grants administrator for the city.
The program was part of the Community Development Block Grant family, Marinec said, and from 1984-1992 it received grant funds. The program is no longer receiving federal grant funds, but it has loaned money out, so the program still has a revenue stream coming in as a result of parties who took the loans paying them back.
The only restriction on the funds is that they be used for rental rehabilitation projects. This particular rental rehabilitation project needs council approval because it is an unusual use, Marinec said. Council is set to have a first reading on the bill at its May 11 meeting. A final vote will probably take place May 26.
Currently, the fund is receiving about $35,000 a year in revenue, and there is about $150,000 in the fund now. The council bill asks for an allocation of up to $40,000 to assist in relocating the residents of the Seville.
Each resident could receive up to $1,000, depending on what he or she needs. The money is intended to cover a first and last month's rent payment for a new residence, and the utility deposit and hookup.
"Most people are limited in terms of moving because they don't have extra money available for a deposit and the initial expenses. This program is great because it helps with that part of things," Marinec said.
The cap for each household is $1,000, and only one payment per household will be made. The residents will have to file an application to get the money and provide documentation of what their deposit and utility deposit costs will be.
The city will oversee the administration of the funds. Neither the new owners or the current owner, Scott O'Reilly, will need to be involved in the process, Marinec said.
The new owners do not yet know when the residents will be given notice that they have to move, and City Council has to approve the fund allocation first.
"Right now, we're just concerned with getting the best possible help for the people who make the Seville their home. Our primary concern right now is that they be taken care of," Rosenbury said.
The partners' other concerns are with how the properties will be redeveloped. Though the plans for the Marquette are less solid, the design for the Seville is developing. The developers plan to make it a "boutique hotel," meaning that it will be a full-service hotel that is also small and unique.
"When we talk about boutique hotels, we are typically talking about those that resemble boutique stores small and unique shops that fill a variety of needs," Burgess said.
Burgess has expertise in the hotel and hospitality industry. He formerly worked as vice president of marketing for John Q. Hammons Hotels, and is now president of the Burgess Group, a national consulting firm in the hotel industry.
Freeman is an attorney and longtime center city developer, having been interested in downtown since the early 1980s. Rosenbury is an architect and partner with Butler, Rosenbury & Partners and has worked on a number of downtown renovation projects. The three are pleased at how well their interests coalesce, and have been working on a plan for the hotels for about eight months.
The partners have their purchase money in place, but have not yet determined how the financing for the renovation will work.
"We have an idea of how it's going to come together, but we're not at the point of saying, 'this bank will handle the financing,'" Rosenbury said.
The purchase price of the hotels was not released.
The lunch counter Gailey's will remain part of the hotel and will be one of two restaurants in the design. It will be the breakfast/lunch restaurant; another room will be developed for evening dining, Burgess said.
"We have an understanding that we will be allowed to continue the operations of Gailey's as part of the hotel, and a percentage of the profit will go to Beulah (Gailey) or as she directs," Freeman said.
"People love Gailey's; people try to re-create things like that," he added.
The Seville is estimated to be almost 100 years old. The construction date is uncertain, but is thought to have been around 1903, Rosenbury said.
The Seville became a hotel in the 1930s, Rosenbury estimated, but it had previously been a Great Southern Savings and Loan and the site for a Springfield insurance company. It became the Savoy Hotel in 1928 and the Seville in 1933.
Another Seville Hotel, which is still operating as an upscale hotel in Harrison, Ark., was part of a group of three hotels owned by the Continental Hotel Company, Freeman said. He said he thinks the name was probably changed to Seville when that company bought the hotel. Continental also owned a historic hotel in Hollister.
The remodeled Seville will have 32 "keys," or two-room suites, on the upper three floors. The full-service hotel will include amenities like valet parking and concierge service, Burgess said.
The partners are looking for a niche market of top-end hotel clients, and are considering listing the hotel on the Historical Hotels of America register, Burgess said.
"I think we've seen with the Springfield Brewing Company that when these things are done right, they don't just succeed, they prosper," Rosenbury said.
As far as renovating the structure goes, Rosenbury said, the group is basically going to start over as far as heating, plumbing and power goes. They are also planning to brighten the building's red brick.
Rosenbury's firm will provide architectural and interior design services for the project, he said.
"So many more ideas will be revealed as we move forward, but our top priority right now is taking care of these folks (the Seville residents) and getting them settled. We want to make sure that's done well," Freeman said.
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