Developer predicts three-year timetable for hotel transformation
Photo
In this 2007 photo, the Monterey Hotel sits in downtown Janesville at Milwaukee and High streets. Developer Jim Grafft hopes to turn the hotel into an apartment/business complex within three years.
JANESVILLE — What's going on with the Monterey Hotel?
Three people Monday asked the question of Jim Grafft, the owner of the downtown Janesville landmark.
"Apparently, there's a lot of interest," said Grafft, who bought the historic hotel at a bankruptcy auction in 1996.
The short answer, he said, is that he and his family are getting closer to the building's transformation into four floors of upper-end apartments anchored by a restaurant and offices on the first and second floors.
"I think it can still be done in the next three years," Grafft said.
Grafft is a patient developer, one with the financial wherewithal to invest in properties for the long haul.
After 15 years of ownership, he agrees that the Monterey project has redefined "long haul."
Over the years, he's undertaken several other demolition projects and occasionally has been sidetracked by confrontations with city officials over building codes.
But Grafft and the city seem to be on the same page again. The city has committed a grant that will help Grafft improve the façade of the former Jeffris Theater, which sits next to the hotel.
City Manager Eric Levitt has said the city's contribution to the $67,000 project will help stimulate further development in the area. With funding problems of its own, the city is still trying to determine how much money it will contribute.
Grafft plans to make a curb cut on West Milwaukee Street to allow the front of the former theater to become a garage entrance. That would allow access to the rear of the building, which Grafft knocked down three years ago.
The entrance off West Milwaukee Street would access secured parking for the 20 apartments.
Grafft also will address the hotel's plumbing, which he said is in need of major attention.
Plans call for five apartments on each of the third, fourth, fifth and sixth floors. Grafft plans office space on the second floor, and a first-floor restaurant that he'd be happy to help develop but not operate.
The local real estate market hasn't improved much, but Grafft still believes there's a market for the apartments.
As evidence, he looks at his partner and daughter Britten, who moved into a renovated apartment in the next block.
"The young people who've gone through Britten's place say ‘Wow,'" Grafft said.
"They see what you can get downtown, a smaller footprint that can be done much nicer because it's less square footage.
"And it's right in the heart of some exciting destinations downtown. I think that doing the right kind of apartments down there makes all the sense in the world."
Since joining her father, Britten Grafft has worked to revitalize the multi-million dollar Monterey project.
"A lot of people just don't realize what they can get downtown," she said, adding that her newly renovated downtown apartment puts her in the middle of the action, both professionally and socially.
"Many of my friends are buying houses, and when they see my apartment they say they could have bought the whole building and fixed it up for what they paid for their house."
Britten Grafft said she is fortunate to have parking behind her apartment.
A lack of secured parking is the biggest problem for people who want to live downtown, she said.
That's why the theater façade improvements are important.
"I think it's a three-phase project," she said. "First the theater façade, second the parking and the plumbing, and, finally, the apartments.
"It can happen in three years as long as we keep the project moving forward. I really think that by the time the apartments are ready, the community will see more of an influx of young professionals interested in this type of living."
Jun 26, 2011 at 4:32 p.m.
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The building is very close to condemnable.
Jun 25, 2011 at 7:51 p.m.
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The Graft's could be described as squaters more so than developers. What have they developed other than a long line of folks who are fed up with them making money for doing no more than sitting on a property?
Then they luck out and the city get's tired of empty promises with no progress and gives them money to do something they should have done along time ago.
As for this project, it will get done in 3 years if and only if the Graft's are given grants for the next three years because everyone can see they won't open up their pocket books.
We all should be really happy that he makes money (a lot of it at that) from getting grants (where does that money come from) and buying properties to "develop" with little personal investment.
A+ resident and neighbor Graft's we can't wait until you choose to move onto another city to "develop".
Jun 25, 2011 at 9:44 a.m.
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" As long as you can maintain it to building code and pay the taxes, you can sit on it for years"
Is there a different building code for vcant vs an operating business? If they are the same no way is that building to code.
I would like it fixed up as well vs leveled. Just would like to see this before I am dead!
Three years - yeah right. Again why the delays and the lies of reno???
Jun 25, 2011 at 6:19 a.m.
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I remember going to that hotel as a little girl as my dad was the accountant. His secretary was Mrs Sartell (sp?) a long time Janesville resident. It was quite a beautiful place and has lots of memories for me. I think one of the bell boys (that's what they were called then) was a guy named Jimmy. This would have been in the late 40's.
Jun 25, 2011 at 12:32 a.m.
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NV it was built in 1930
Jun 24, 2011 at 5:34 p.m.
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frusion, it certainly does matter. Federal money does not come from property or sales taxes and has restrictions on its use. We (probably) can't just funnel that into keeping the pool open longer, for instance. If Janesville "refuses" that money, the way Walker refused the train money, then it will get reallocated, because it is already part of monies budgeted by Congress. We'll be proud non-users of the money, and it will be spent someplace else anyway. We refused the bike tunnel money, and it went back to be used by some other municipality. Didn't save you any taxes, and someplace else got the benefit.
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Here, though, even refusing the money to Grafft means it is still part of the city's CDBG fund and the city will just put it in one of the other programs, or to one of the other downtown facade projects. It's a lame objection.
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Besides, there isn't anyone who really has a legal reason for denying Grafft the assistance; they just decided they don't like him. That's pernicious in a democracy. All applicants should be treated identically, whether or not they are popular.
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You are somehow implying that an owner of a property has a legal mandate to "do something" with it. This is not the case. As long as you can maintain it to building code and pay the taxes, you can sit on it for years. As someone obviously in favor of historic preservation, I would rather that happen than it be demolished and become a parking lot. [Note: we are actually talking about the Jeffris here, which is already effectively demolished. The improvements are not to the hotel itself.] I just don't know what mechanism in the law you imagine exists to force property owners to find tenants or get banks to give them loans, or that there is some sort of deadline by which if they don't "do something" they are forced to yield the property another entity. There are commercial leases and development options with such features, but these don't apply here. If you have a theory along these lines, please explain how it would work. The rest of us will deal with reality, thanks.
Jun 24, 2011 at 4 p.m.
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Does anyone know when the hotel first openned?
Jun 24, 2011 at 3 p.m.
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Fixed:
...They made a stink about tearing down a DELAPIDATED barn, and yet let the HM sit there for decades. They destroyed the CRUBLING AND DANGEROUS old historic feed store on Rockport and Centerway......
Jun 24, 2011 at 12:47 p.m.
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Amazing idea, and I am super excited to see what becomes of the hotel. I would love to go inside, I have always thought that this was a beautiful building!
Jun 24, 2011 at 12:21 p.m.
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janesvillean, money is money. Why do people think that if it comes from one budget vs. another one it doesn't matter?
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Grafft has had plenty of opportunity before the economic down turn to do something with this property and he's done virtually nothing. What other city could a building sit in disarray and sit and sit?
Jun 24, 2011 at 12:03 p.m.
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Keep in mind that he's also paid 15 years of property taxes.
“Michael Vick treats his dogs better than they treat me,” Grafft said.
Jun 24, 2011 at 11:42 a.m.
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The city is not spending from the general fund. This is either federal Community Development Block Grant money, or money from TIF 15. I don't think the amount has been decided yet, but it's less than half the cost of the whole project -- somewhere between $12,000 and $30,000.
http://gazettextra.com/news/2011/may/24/...
Jun 24, 2011 at 11:15 a.m.
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Like others, I'll believe it when I see it.
Not when it starts (ie Jeffris Theatre) but when it's done.
Jun 24, 2011 at 10:16 a.m.
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Grafft shouldn't get any money from the city for this. Let him put his money into it, and see how far it goes. It is a total waste of $67K. That money could be used for better projects than this.
Jun 24, 2011 at 10:03 a.m.
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The Gazette should be ashamed of being used over and over again by Jim Grafft. How many articles will we see on the Monterey Hotel before any "development" work is really done??? The Monterey Hotel has become the symbol of downtown development...
Jun 24, 2011 at 9:13 a.m.
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Grafft.......what a joke, if u think this project will be done in 3 yrs,,,aint happenin, rich boy sittin on his hands again!! i heard same ref. the cell towers. Why renovate and lose that cash.
Jun 24, 2011 at 9:06 a.m.
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janesvillean
Jun 23, 2011 at 5:39 p.m.
Suggest removal You guys all understand that there was, you know, a financial market meltdown, and one result has been severely restricted credit, especially in the commercial market where many banks are overexposed, right?
Okay but what about the other 15 years of ownership???
Jun 24, 2011 at 9:04 a.m.
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Yep movin right along. Just like you said 4 years ago. Wait longer and the rich can get MORE free city money!!
Jun 24, 2011 at 8:27 a.m.
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This is a comedy piece, right?
Jun 24, 2011 at 7:46 a.m.
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Geez you people are cranky... lighten up.
Jun 24, 2011 at 6:55 a.m.
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I always thought it would make either a good halfway house for recently released offenders or temporary housing for the homeless. I mean, it was a hotel, right? So people would have a bit more comfort than a jail or the streets, but things like cooking and comings & goings can be controlled.
Jun 24, 2011 at 5:51 a.m.
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Yadda yadda yadda
Jun 24, 2011 at 12:59 a.m.
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Im with richardcranium on his statement. IMO, Graft is a tool and wont do a dang thing put promise work and never get it done...... just sayin.
Jun 23, 2011 at 11:40 p.m.
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Upper end? Who would want an upper end apartment downtown? Define upper end. Wouldn't it serve more people and serve the city better to make them low income apartments? Oh yeah I forgot the high society folks don't care bout the poor.
Jun 23, 2011 at 10:45 p.m.
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"The city has committed a grant"... Herein lies the problem. The city gubmint (and any other gubmint entity) has NO BUSINESS committing tax money, which was forcibly taken from YOU, to a private party.
Jun 23, 2011 at 10:27 p.m.
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Although no man knows the day or time, I believe that I can safely say that Jesus will return before Grafft renovates this building.
Sara Investments put 3+ mill into the building at Main and Milwaukee. This building is just as big. No way will Grafft put that kind of money into this building. He has not put anything like that into any building he owns.
You have better odds betting on the lottery than betting on Grafft.......
Jun 23, 2011 at 9:44 p.m.
Jun 23, 2011 at 9:44 p.m.
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Don't get your hopes up. This guy never does anything. A rich kid playing with toys.
Jun 23, 2011 at 7:27 p.m.
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i hope they keep a jeffris theater theme for the parking enterance.
Jun 23, 2011 at 7:12 p.m.
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Down town Janesville is WORTHLESS to development until the authorities (and that includes YOU, Janesville police) and the other powers that be clean up the riff-raff.
And the property landlords down there have to quit renting out their bug infested rental units to families of 27 people.
Jun 23, 2011 at 7:03 p.m.
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So, even if he DOES put some high-priced, fancy apartments up in there, who's going to rent them?
Are people going to come from all over and line up, just for a chance to live within walking distance of all the year-round-rummage (junk) stores downtown?
Speaking of which, how many consignment and crap stores do we need? I mean, c'mon.
Jun 23, 2011 at 6:08 p.m.
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"Seize it and sell it to the highest bidder? "
You must be some sort of commie
in AMERICA the govt should not "seize" personal property just because a few vocal commies do not like it, for whatever commie reason...if a school NEEDED to be built there , that's another thing..
Jun 23, 2011 at 5:39 p.m.
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You guys all understand that there was, you know, a financial market meltdown, and one result has been severely restricted credit, especially in the commercial market where many banks are overexposed, right?
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I'm not sure what you think the city's role is if they doubt his ability to complete the project, given that he is a private owner of the property. Seize it and sell it to the highest bidder? Ever hear of Kelo v. New London?
Jun 23, 2011 at 5:31 p.m.
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I'll believe it will be done in 3 years when monkeys fly!
Jun 23, 2011 at 4:57 p.m.
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I have always loved this building and have been hoping for something constructive to be done with it for some time. From what I have heard (could be pure speculation) the reason that there is no rush to renovate is that Grafft makes a pretty penny with the cell phone towers that sit atop this property.
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Why renovate when you can collect hand over fist by doing nothing?
Jun 23, 2011 at 4:51 p.m.
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I think Mr. Levitt is wrong.
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