Grafft believes in a future for Janesville's Monterey Hotel
Podcast Episode
The owner of the Monterey Hotel in downtown Janesville remains hopeful the historic property will soon come back to life. Jim Grafft says he believes the restoration could be complete within the next five years. Kyle Geissler reports. You can read more in Friday's Janesville Gazette.
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Artiste rendering showing suggested plan for using the tear of the former theatre building and the Monterey Hotel in downtown Janesville.
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Jim Grafft and his daughter Britten Grafft are moving ahead with their project to remodel the Monterey Hotel in downtown Janesville.
JANESVILLE — Jim Grafft says he’s a patient developer, one with the financial wherewithal to invest in properties for the long haul.
That explains his interest in the historic Monterey Hotel, which he bought at a bankruptcy auction in 1996.
With 13 years of ownership and several demolition projects at the hotel behind him, Grafft believes the hotel could be redeveloped sooner rather than later.
“I don’t see it being any more than five years,” Grafft said of his plans to convert the Art Deco building to upper-end apartments and a restaurant.
Last year, Grafft’s daughter Britten helped revitalize the project. The architecture student worked on interior and exterior surveys of the building. At the time, she believed work could start on the project sometime this year.
Britten’s now graduated, and she’s the project coordinator for Grafft Investments Real Estate Redevelopment. Other company interests have taken her and her father away from the project.
The most notable was Grafft’s purchase of the assets of the TecumsehPower Co. engine division, which he moved to Janesville.
“Moving 270 semi loads of parts to Janesville, hiring 50 people and trying to get that company up and running have kept us more than entertained,” Grafft said.
Much of the work the Graffts want to do at the hotel is awaiting approval from various commissions that must sign off on tax credits and improvements to the historic site.
In the meantime, Grafft is in the middle of a 30-day “order to correct” from the city on four code violations at the hotel and neighboring theater building.
“When you look at the building, you see an architectural jewel, an icon, that we need to preserve,” said Gale Price, the city’s manager of building and development services and the author of the code violation letter to Grafft. “We’ve got Jackson Square on one corner of that block, and we need the other corner to bolster what’s been done and promote additional development.”
Grafft refers to one of the alleged code violations as a “stroke of genius.”
Grafft was told that because the hotel is not zoned as a garage, he can’t park his gas-powered scooters inside.
His solution is to make a curb cut on West Milwaukee that will allow the front of the former theater to become a garage entrance. That will allow access to the rear of the building, which Grafft knocked down last year.
“That lets me accomplish two things,” he said. “I’ve solved the secured parking problem, and I get a place to park my scooter.”
Grafft said parking has been the single biggest challenge facing the project.
Plans call for two apartments on the second floor and five on each of the third, fourth, fifth and sixth floors.
For 22 apartments, Britten Grafft said the site needs a minimum of 22 parking spaces, plus more where they can be squeezed in.
Grafft said the redevelopment will costs millions of dollars.
“The restaurant would be a destination, and it would require significant dollars alone,” he said.
He’d be happy to develop the restaurant and its historic Janesville theme, he said, but not run it.
“It would be along the lines of what Mick (Gilbertson) did at The Armory or Chad and Anita (Karl) did at The Speakeasy.”
Whether downtown Janesville is ready to support high-end apartments remains to be seen.
Price said he thinks the building will need a minimum investment of $3.5 million. He bases that in part on the $4 million Sara Investment Real Estate spent to gut and renovate the former Helgesen Building.
“And that building’s 50 years younger and wasn’t dilapidated like the Monterey,” Price said. “It can be done. Any building can be redeveloped, but the question is what is the expectation of the developer from a standpoint of rate of return.
“I’d be concerned about entering the upper-end apartment or condo market right now.”
The Graffts think the market is there but only if downtown is safe.
“As young professionals, my brother and I would love to live downtown and be where the action is, but safety is a huge issue,” Britten Grafft said.
“For anything to work, we’ve got to protect these downtown areas at all costs,” her father said. “They have to be pedestrian friendly and safe to the point that people don’t even think about it.”
Grafft said the Monterey is a work in progress.
While the project might not be moving as quickly as some in the community would like, Grafft said he has the patience and financing to see it through to completion.
“I could have sold this building several times,” he said. “But what we would have had is a building with 80 single-unit residences, a flop house.
“That would have been the kiss of death for the downtown.”
Grafft said he’d be much farther along with the redevelopment if the fire department and its code inspector weren’t routinely sidetracking him.
And he bristles when city officials suggest the building is nearing the point of falling down.
“I’m offended when they say my leaky roof is any more of a problem than their leaky roof at the Tallman House,” he said. “Anything that’s coming down is heavy plaster that I’d have to remove anyway. It’s much easier to pick up off the floor.
“The structural analysis on this building says it’s solid, but it can’t sit forever.”
Oct 14, 2009 at 3:47 p.m.
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funny sound like kimballs are going to beat you out in this condo idea- first milw st condo for sale $125 ish for 900 sq feet. SNOOZE youll lose and have another winey excuse" well kimballs sold all the condo market before I could fix my building in 18 years" whine whine wah, wah.
Oct 13, 2009 at 3:55 p.m.
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“I could have sold this building several times,” he said. “But what we would have had is a building with 80 single-unit residences, a flop house."
This quote shows how little Grafft thinks of the working people of Janesville and how ignorant he is concerning the potential of the Monterey Hotel.
I used to live there during its last three years of business (1987-1990). There were a few apartments on each floor with the best being on the second floor and the penthouse. The rent for these apartments were the best in town at the time and were mostly rented by those who were working at GM, the city of Janesville, or commuting to Chicago. During the time that I had lived there, it was never a flophouse. Anyone who didn't take good care of themselves and their rooms didn't live there for very long. I was a student at Blackhawk Tech when I lived there. I couldn't find any place that included electricity, heat, basic cable, Orleans restaurant room service, live wake up calls and phone messenging, and maid service for $208 a month. I think that Janesville would be better off with the Monterey Hotel than the Monterey Luxury Apartments.
Oct 9, 2009 at 3:17 p.m.
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I remember attending quite a few wedding receptions there. The food was always good and the reception area was always done so nice.
Does anyone remember how beautiful the floor was in the entry way? They had that floor just shining.
Oct 9, 2009 at 3:03 p.m.
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coppertop- i remember it was there but to fancy for my parents or something. big boy was the fav for fri night and burger chef was a treat too.
Oct 9, 2009 at 1:58 p.m.
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I remember eating at "New Orleans" Restaurant there as a child in the very early 70's.
Oct 9, 2009 at 10:14 a.m.
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This was built by the citizens of Janesville in 1929. With their hard work and efforts the hotel was visited by Louis Armstrong, Eleanor Roosevelt and President John and Jackie Kennedy.
Has Janesville Management given thought to putting our unemployed workers to work rebuilding some of our famous historical buildings. There must be funding somewhere that can relate to what we need to do; as our fore fathers once did. I know there are federal grants out there that provide technology training to unskilled workers. Restoration is a type of technology. When the hotel had a fire there was a gentleman in Lake Geneva that came and helped restore the building.
I believe that the city should take over this property and contact this Lake Geneva builder, Scott Lowell to help train our unemployed and find Janesville funding to restore this grand old building.
The building can't wait 5 more years, before Mr. Graft has another excuse why he can't do this. I believe he has far too many properties to deal with. Take a drive around the many properties he owns. They are all needing repair or needing to be torn down. FYI old supper club across from the Redwood Hotel.
Oct 9, 2009 at 9:27 a.m.
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justme46, I think sometimes comments about the Fourth Ward (and Look West) are excessive, but I'm more worried about dismissing the real problems we have, and the fact is that within sight of the Monterey there are at least two problem blocks where drug trafficking openly takes place. We've been worried for years that there could be crime directed against Armory patrons. Fortunately that has not happened yet. But it is a real problem, not just a perception. It needs real addressing by the city still. Even with the nuisance ordinance, landlords are stubborn to handle problem tenants.
Oct 8, 2009 at 10:59 p.m.
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Hannah, I wouldn't know what you post, I usually don't waste my time reading them.
Oct 8, 2009 at 2:22 p.m.
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justme46- I stated that point once- crime is ALL over so get off that EXCUSE already!
Oct 8, 2009 at 10:42 a.m.
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It seems like Grafft is using Janesville as his own little Monopoly game. Looks like his strategy is to load up on the Baltic and Mediterranean Avenue-type properties with the hope that someone will "need them" someday.
Oct 8, 2009 at 10:42 a.m.
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Why is everyone always getting down on the fourth ward? I have lived there in the past and never had any problems. The fourth ward also has a high number of homes that people have owned and lived in for years. Yes, there is alot of rental property but that doesn't make it bad. Drive down Milton Ave. and look at all the for sale and for rent signs. Now there is where I would not want to live. There is crime going on in every part of Janesville and Wisconsin and the whole United States. Just because people are prejudice in this town, they don't like the "fourth ward". Shame, Shame!!
Oct 8, 2009 at 10:22 a.m.
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wow look at wcca under jim and james. seems it just isnt the city that likes to pick on you.
Now I know why fairwiew florest moved after MANY MANY years in that location- says eviction - FOR WHAT I wonder
How long has grafft owned the fairview mall?
Oct 8, 2009 at 10:06 a.m.
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lawyers cost too much- he prob represents himself.
Oct 8, 2009 at 6:10 a.m.
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He has a difficult time getting anyone to work for him; Lawyers, tradesmen, contractors because he often "stiffs" them for payment. His reputation for that is well known among area workmen. He often is forced to hire people from out of the area who haven't heard about him yet. He'll often ask for an itemized statement, then pays half of the amount of the statement and tells the contrator to "take it or leave it".
Oct 6, 2009 at 9:40 a.m.
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Who is his lawyer?
Oct 6, 2009 at 7:21 a.m.
Oct 5, 2009 at 10:08 a.m.
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good point gfan- what will 5 years bring- A NEW EXCUSE?????
fine you can sit on your investment till the cows come home but it needs to be maintained and safe till you do so.
I am still taking bets on NOTHING will start in 5 years either. that will be 18 years since he bought it and NOTHING will be done. WHAT AR EYOU WAITING FOR. nothing that what- lies as somebody else agreed with me.
Oct 3, 2009 at 6:13 p.m.
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OK who stuck a quarter in Hannah??
Oct 3, 2009 at 2:44 p.m.
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Grafft says that it wouldn't be wise to develop the place during the economic downturn.
But he owned the Monterrey during one of the greatest economic booms in the history of humanity. Too bad about his "patience."
Oct 3, 2009 at 2:17 p.m.
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I'm glad janesvillecomments is not on our economic development team. I'm also glad that hannah and gabby06 are not running these projects, they seem to have little idea how to judge whether something is economically viable. Obviously a city such as Janesville will not have uniform rents. Even the presence of some high-end condos downtown is not going to change the overall apartment market very much. The goal of urban planning is accomodating all levels of income such that everyone has "enough" of the type of housing, transportation, and jobs they need. Maybe there aren't 22 luxury condo buyers in Janesville, not in this housing market, but that's partly why the banks haven't loaned him the money yet. In capitalism, shocking as this may be to some, you're allowed to be wrong. It's called innovation and risk. I don't support Grafft in everything, but I don't see how he should be criticized for being unable to finance the only obvious option for this building, given economic conditions.
Oct 3, 2009 at 2:15 p.m.
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Briargrafft.
Oct 3, 2009 at 12:34 p.m.
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All Janesville has to do is bull dose all the low income housing to the south of the Monterey Hotel and make it into a parking lot. That would kill two birds with one stone. No more crime and no more parking issues down town.
Oct 3, 2009 at 11:45 a.m.
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Telegram for Mr. Grafft... Downtown Janesville got the kiss of death decades ago.
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The growth in the population of Janesville and resulting traffic exceeded the limited capacity of the downtown area to handle the volume of shoppers and traffic. There wasn't enough parking space, and the buildings and streets were laid out more than a century before the volume of sales by downtown retailers required semi-truck delivery capacity.
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The decades of neglect caused by the the major banks (locally owned and managed back then). They convinced many of the property owners to put their buildings into trust funds which the banks managed, and then bled dry - collecting rents and not investing in maintenance, upkeep and renovation. By the time stores were moving out to Milton Avenue and The Janesville Mall, the properties were run down and not attractive to lease or sell to other businesses.
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There's a reason Mr. Grafft got the property via a bankruptcy sale. It wasn't economically viable for the previous owner to refurbish the building for a use that would cover the costs of doing so. Nobody wants to pay high rent for hotel rooms or apartments in downtown Janesville.
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The building needs to be repaired to meet safety codes. Other than that, Mr. Grafft should free to pay property taxes and let it sit vacant and "develop" it at his own pace. Based on my quick drives through downtown Janesville (only during the daytime and keeping my car doors locked), I'd say appropriate development might include a tattoo parlor, pawn shop, and beer joint. Perhaps the 4th through 6th floors could be remodeled as a juvenile detention facility.
Oct 3, 2009 at 10:02 a.m.
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Yes It would be cool to have a theatre again.
One floor could be lounge/casual-restaurant
second floor fine dining- if this fits on first floor you could do business space instead
third floor theatre
4 and 5 th NICE hotel
6 th high end apartments
break it up they say not to put all your investment in one spot- this would divide them up.
parking issue solved
Oct 3, 2009 at 9:57 a.m.
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ehw-"I don;t think high-end apartments would do well here at all- we just don't have the density of people."
like I said the owners daughter doesnt think it is good enough for HERSELF to live there.
All other telling me to get a life- Sorry but I am sick of HIS BABBLE.
oldvet- RIGHT ON!!
Oct 3, 2009 at 9:45 a.m.
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Miltonalum- I don;t know where you are looking, but in Janesville I could walk out the door and be the owner of a $30,000 home by noon. When a house payment would be a maximum of $300 a month, why would anyone want a $1000+ month apartment? There is also a glut of homes on the market to rent.
I don;t think high-end apartments would do well here at all- we just don't have the density of people. You need a higher population density with a high income to support this kind of housing.
Sad to say, but 'flophouse" housing would be much more profitable. You would at least fill up the rooms.
Oct 3, 2009 at 9:45 a.m.
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Nice way to get the focus off of the Green-Tek and CPT fiascoes happening in Edgerton. He thinks this kind of article makes him look smart? Read the comments, looks like Janesville don't buy it in the least. I Can't wait to see how bad the Highway Trailer building in Edgerton will look in 5 years! Maybe he can park his scooters there?
Oct 3, 2009 at 9:05 a.m.
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"But what we would have had is a building with 80 single-unit residences, a flop house"
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I hope Mr. Grafft tells his prospective tenants about all the ex-cons and sex offenders housed two blocks away at 7 N. Academy St.
Oct 3, 2009 at 8:20 a.m.
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hannah has no clue what she is arguing, she just babbles.
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FYI $1500 isnt high end, run down piles of garbage rent for 1000 around here.
Oct 3, 2009 at 7:26 a.m.
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hannah im a little concerned about your health I think you might have the big one soon.
Oct 3, 2009 at 6:22 a.m.
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"Liar, liar pants on fire".................Yada, Yada Yada
Oct 3, 2009 at 3:47 a.m.
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Just outta curosity why are people trying to make Janesville into the next Madison or something? Janesville is supposed to be the nice sized town that you could still raise a family in & commute to Madison, Rockford, & Chicago. Why do we need to put in 'high-end' apartments? Why someone would pay over $700/mo for rent is beyond me!?! These APARTMENTS that are over $1000/mo are ridiculous! You could buy a house and the payment for TWO months could be cheaper than that. I guess I just hate it when 'big shot' people think they can do whatever they want & 'modernize' everything.
Oct 3, 2009 at 3:42 a.m.
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lierre04~I was thinking the same thing! If he has such concern about the 'unsafe' neighborhood & can afford to fix this place up for 3.5 million, then maybe he should buy out a couple of blocks down there & rent to different people. Honestly I don't think downtown is that bad. Alot of the problems come from the bars, but they are a couple blocks from all that. I honestly wish that they would make it into a hotel again. We have no hotels on the southside. There is the Northern Inn on 51 but a room with virbrating beds probably isn't a place my grandparents wanna sleep. HA!
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Are they renovating the movie theater too? I think it would be neat to have a downtown movie theater & restraunt.
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Oct 2, 2009 at 11:21 p.m.
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Maybe instead of buying that property and trying to renevate it, he should have bought properties, renevated those, and rented to decent people that passed a background check. I am so sick of everyone saying certain neighborhoods aren't safe yet they aren't doing anything about it.
Oct 2, 2009 at 8:48 p.m.
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Maybe the policy has changed, but I'm not so sure that the Marshall School Apartments accept Section 8. The management does have some apartments that are designated as "moderate income" and cost a $100 or so less per month than the "market value" apartments. Also, the top price for an apartment there is about $1,000 a month. One of those that I visited a couple of years ago had floor space measuring greater than 1,600 square feet.
Oct 2, 2009 at 8:31 p.m.
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I think Hanna needs to find a hobby! I don't see Hanna out there bringing jobs into town and such. Last I knew it wasn't a crime to not start a project. I understand the not fixing code violations though. It's his property and until such time as it becomes a safety hazard to the community, he has all legal rights to sit on this project, I know I would in today's economy.
Hanna, get a life...
Oct 2, 2009 at 8:28 p.m.
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Marshall apartments accept Section 8. As such, there are some conflicts of culture there, and, some people that have paid a fair amount of money for their apartments (though I never heard THAT high), mixed with others that are struggling. It causes for issues with neighbors. And, Gazette- that is the STRANGEST picture I have seen. The building looks great with the sun. The other 2 look to be superimposed over it. Very, very strange In my opinion.
Oct 2, 2009 at 5:56 p.m.
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I heard there were high end apartments at marshall with rents way over $1500- isnt that high end for around here????
STAN MILAN-
http://wclo.com/podcasts/stan-milam-show...
I see youre crying for him today.
You say he brought a company here and employed 50 people. YES so what . many other employ people here locally and seem to FOLLOW the rules and codes. WHY do you think he is special and doesnt have to follow rules. You are not exempt and nobody is "harassing you" . You get "harassed " when you dont follow the rules and not sure why you think youre so special and dont have to follow. You cut your own curb for your scooter- wow "special" are we. why dont you park it in your pile of bricks?????? there is plenty of room back there. It is going to be a PARKING lot. Are you afraid something will fall on it?? I love how whe people dont follow the rules and get into trouble theyre harassed and think they can do what ever the ...they care to cause they have money or what ever!
Are you related to Briarmoon. I love how you blamed them coming after you again on your tenant "cause she didnt pay the rent" well somebody has to call when things are falling down. That is why you get into trouble because people call to complain. DONT blame the city for "picking on you".
Oct 2, 2009 at 5:40 p.m.
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Given current economic conditions I'm not too surprised that Grafft has had problems financing this project. I do think he should do more to keep it from falling down, though.
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I think the drawing of the structure is just cut off. Grafft does seem aware of the structure's architectural importance. Also note that it is not in the Courthouse Hill Historic District, which is the only part of the city required to seek permission from the Historic Commission.
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It's unfortunate that the city code requires 22 spaces for 22 apartments for a downtown building, when there's ample street and lot parking nearby. Urban planning thinking today realizes that one-for-one parking requirements actually stifle high-density development.
http://yglesias.thinkprogress.org/archiv...
Oct 2, 2009 at 5:39 p.m.
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Affordable housing is needed more than 'high end'. I don't know of many people that would pay high rent for apartments downtown to begin with. Do something good for the area. Not everyone in Janesville is making big money.
Oct 2, 2009 at 5:27 p.m.
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Marshall apartments are high end? lol
Oct 2, 2009 at 5:27 p.m.
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Marshall apartments are high end? lol
Oct 2, 2009 at 5:14 p.m.
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This is why I believe it is all a lie that anything will ever be done. He made this same "unsafe" comment when he bought it. Nothing has changed and nothing will. You will always be near low income properties if you are in a downtown city that has sprawled out everywhere. I dont hear of any more killing and crime in the paper in 4th ward vs other places. CRIME IS ALL OVER so you might as well get off that excuse right now. There are "high end" apartments at Marshall and they are close to down town too!! If it is "secure" parking what is the problem. they cannot get you from 6 floors up either.
You sound like my silly parents. They wont go downtown at night. WHAT EVER!!
Are you really trying to sell the place?????
You daughter even stated she wont live there. Not good enough for you but hoping it is good enough for others? If nobody rents it is nobodies fault but your own talking about how "unsafe" the downtown is when in reality it is no more unsafe than the rest of this city.
Oct 2, 2009 at 5:02 p.m.
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I can see his concern with investing millions of dollars into converting it into higher end apartments when the neighbor hood directly to the south is not safe. Who in there right mind would rent a high end apartment when there is so much risk if crime in that neighbor hood? Not to many... So where does that leave Grafft? Out millions with a big beautiful empty building.
Oct 2, 2009 at 4:52 p.m.
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jvl- look at the "plan"drawing- picture. that is what I am talking about. NOt the "now" pic of building
Oct 2, 2009 at 4:47 p.m.
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Hannah says : I dont see the HISTORICC art deco tower in your plan. where is it? breaking historic codes before you get started?
Uh Hannah... The whole building IS art deco, and the tower is the corner, you can see it in the pic with the story , so he isn't breaking and "historic codes" I just wish he'd actually start something he says he's going to do.
Oct 2, 2009 at 4:46 p.m.
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Jimmie I still think you should tear it down so city hall will really have something to p & m about it.
Oct 2, 2009 at 4:45 p.m.
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the ceiling falling down could crush you scooter- oh well. Is it "code" to just let your home fall apart? oh well
Oct 2, 2009 at 4:38 p.m.
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maybe he should invest in a dell taco store here in janesville.
Oct 2, 2009 at 4:32 p.m.
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Kennedy may have visited the Monterey back in the day because their sister was at St coletta in Jefferson. They would fly into janesville late at night visit and go back and nobody even knew they had been gone. Except for when they stopped to eat of course.
I would love this nice new restaurant!!
Oct 2, 2009 at 4:32 p.m.
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The city should not put up with a tentative start date for this project that is five years into the future. Either Mr. Grafft doesn't have a real plan, or he's working another agenda for the property that is as yet unknown.
Oct 2, 2009 at 4:28 p.m.
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I dont see the HISTORICC art deco tower in your plan. where is it? breaking historic codes before you get started?
Oct 2, 2009 at 4:27 p.m.
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so 18 years later youll START to develop. "patient" okay what ever you want to call it.
SELL IT TO SOMEBODY WHO CARES AND WILL GET IT DONE ALREADY!! oh you would prob want royalties from the towers.
"I’m offended when they say my leaky roof is any more of a problem than their leaky roof at the Tallman House,” he said. “Anything that’s coming down is heavy plaster that I’d have to remove anyway. It’s much easier to pick up off the floor."
nice - just let the back wall fall down as you almost did before they said TAKE it down. it is easier to pick up if it falls down on the people homes behind you!
yes 1 million seems light since they say tallman house need 2.5 million and I would say it is in better shape- not TOTALLY neglected- you know just "wait for it to fall down"
Oct 2, 2009 at 4:18 p.m.
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This is good news. It is good to hear that people are still willing to invest in Janesville. We need more investors like this that are willing to add some culture to Janesville. Although I am sure that some people will complain because it's not another chain taco or burger place being built.
Oct 2, 2009 at 4:18 p.m.
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http://www.gazettextra.com/news/2008/aug...
Oct 2, 2009 at 4:17 p.m.
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this is taken from aug 08
"2008: Jim and Britten Grafft begin interior and exterior surveys, preparing the building for an overhaul that would restore it to its original form. Interior construction could start as early as winter 2008 and exterior work as soon as summer 2009."
see what I mean dont hold your breathe!
Oct 2, 2009 at 4:15 p.m.
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He can’t park his gas-powered scooters inside. LOL There are way to many codes.
Oct 2, 2009 at 4:15 p.m.
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didnt you say last year you were going to start SOON. now you say FIVE more years just to start.
there is a song about all i hear is BLA BLA BLA.
You tore down a wall over a year ago and havent put it back up yet and we are supposed to believe youll "start " in 5 years. Oh I see you planted a seed of "have to work with people" codes, commissions etc" this will be you next excuse.
I still think the real plan is to collect money from the towers and NEVER fix the monterey.
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