Seville Hotel Sold: New owners plan lofts, commercial space

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Vacant buildings along West Walnut Street in downtown Springfield are getting some help via new owners. The latest deal, expected to close Aug. 25, gives Downtown Seville LLC ownership of the historic, 30,000-square-foot Seville Hotel, 212-220 E. Walnut S

t.

Though the property was not on the market, Seville Hotel owners Sam Freeman of Center City Development Corp. and Tim Rosenbury of Butler, Rosenbury & Partners Inc. agreed to sell the hotel this summer. The new owners

Downtown Seville LLC, comprising Craig and Sharyn Wagoner, Russ and Janet Rose and Empire Bank as equity owner plan a 16-loft apartment complex with commercial space on the ground floor.

Its a big step for downtown revitalization, said Vern Morgan, Springfields center city coordinator.

Weve tried to facilitate the redevelopment of the Seville Hotel for 20 years, Morgan said. Its been a blighting influence on the downtown. Were just thrilled to see it being redeveloped.

Rehab is under way on another Walnut Street project targeted by the city.

Architect and downtown developer Dan Scott is gutting the former Marquette Hotel, 400 E. Walnut St. Scott purchased the Marquette in May and plans to invest $2 million to create apartments, offices or both, depending on demand. Scott also is

seeking national restaurant chains to operate on the buildings first floor.

Downtown Seville LLC

A unique element to the Downtown Seville LLC project is the partnership with Empire Bank. As equity owner, Empire Bank is investing $600,000 to secure feder

al and state historic tax credits for the project. Craig Wagoner, managing member of Downtown Seville LLC, expects the tax credits to exceed that amount, but he does not know the exact value at this time.

The bank also is providing some financing, but loan officer Russ Marquart could not say how much prior to the deal closing. Marquart, a senior vice president, said the arrangement is a change of pace for Empire Bank.

Its fairly new for us to come in and be an actual equity owner of a project, he said. But we feel it

s an important project for the city to see this area continue to develop and be revitalized. We think that investment in the downtown area is warranted, certainly the tax credits enhance that investment for us.

Wagoner would not disclose the purchase price, but he expects to spend between $1.5 million and $2 million to renovate the hotel. Crews will begin gutting the hotels interior this week, Wagoner said.

Other project financing is provided through the city of Springfields Small Busine

ss Development Loan Program. City loan officer Ann Peck could not disclose the amount of the loan last week because the deal had not closed, but she did say the loan was to go toward the purchase of the building.

A commercial tenant for the 5,000-square-fo

ot ground floor space has already been determined. Mudhouse Coffee owners Rob Weislocher and Brian King plan to join with an undisclosed business partner to reopen Gailey Drugs, which has been preserved in its original form since it closed in 2001. Weislo

cher said the working name is Gaileys Breakfast Caf

, and it will serve hot breakfast morning through lunch. The soda fountain theme will remain, he said, as the existing bar and barstools will be used in the new design. The expected opening date is early next year.

Wagoner said the entire project should be complete in one year.

Walnut Street progress

Wagoner is no stranger to downtown renovation projects.

Wagoner is landlord of Center City Grocery, 212 W. McDaniel St. He also is putting the finishing touches on sevenlofts at 408 E

. Walnut St., where he has invested $450,000, including acquisition costs. All lofts are pre-leased and will open Sept. 1.

Wagoner said within 48 hours of hanging a For Lease banner on the building, five lofts were leased. Such interest inspired him to take on the Seville Hotel as a residential complex, he said.

Scotts Marquette Hotel project is located next door to Wagoners existing lofts. Scott also received financing through the Springfield Small Business Development Loan Program. According to city records, Big Ugly Building LLC Scott

s entity for this project received a $304,500 loan.

The city has issued eight loans through the program this year, totaling $1,744,870.

Those have been target properties for the citys concern, Morgan said of the Marquette and Seville properties. This will be a banner year for downtown and Walnut Street.

Freeman and Rosenbury also owned the Marquette. The business partners purchased the Marquette and Seville hotels as a package deal in 1

998. They had intentions of redeveloping the Seville as a boutique hotel and then turning their efforts to the Marquette.

After securing investors for the Seville project three years later their plans hit a bump in the road. Freeman said a conference c

all with the National Trust for Historic Preservation in Washington, D.C., was planned at 10 a.m. Sept. 11, 2001. It never happened.

It hasnt been financially feasible for us to do the hotel since then, Freeman said, based on the struggling business travel industry.

Its been a long time coming, and were glad to be at this point, frankly, Rosenbury said of the deal.