$10M resurgence planned for Hotel Maytag

The former Hotel Maytag in Newton will get a $10 million historic renovation which is expected to restore the ballroom, add market-rate apartments, commercial space and an upscale restaurant to the current Midtown building.

Cedar Rapids-based Frantz Community Investors is heading up the project which brought Lt. Gov. Kim Reynolds to Newton Tuesday morning for a tour of the building in the historic downtown district, which just last fall earned a spot on the National Register of Historic Places.

Gov. Terry Branstad was initially scheduled to attend with Reynolds, however, he was still recovering from a cold and didn't make any public appearances Tuesday.

Reynolds, who toured the historic Capitol II Theatre, grabbed a bag of popcorn and even met the theatre mascot, Joy the pig, said she was impressed with the historic structure and the vision for Newton’s downtown.

“We need every community vibrant and growing and that’s how we’re going to continue to grow this state,” Reynolds said.

Andy Frantz, vice president of operations for FCI, said his company, which specializes in historic restoration projects, began exploring the property last fall. The sale of the building, which sits on the corner of First Street North and North Second Avenue East, is expected by the end of the April. A construction period of 12-16 months is anticipated, he said, with crews working from the top to bottom floors.

As community-minded investors, Frantz said he took the input from community leaders in setting designs for the building. That’s where the ideas stemmed for market-rate apartments, fine dining, restoration of the ballroom and corporate suites.

“This is just one project of many Newton is doing to enhance the community,” Frantz said.

Ron Walker, of Des Moines-based Walker Coen Lorentzen Architects, presented floor plans Tuesday during a meeting with Reynolds and community leaders on the second floor of the Midtown building.

Walker said the upper floors, three through five, will be converted into market-rate housing units, which will include 35 to 40 apartments while the first floor will be restored to include commercial space and two restaurants.

“Really the crowning jewel in this building is the second floor, which has the ballroom,” Walker said.

The ballroom will accommodate more than 200 people or can be divided up into three spaces for other uses. The second floor will also feature three corporate suites designed for those traveling on business.

Newton was designated a Main Street Iowa community just last year, and Newton Main Street Director Andrew Bassman said this project could be transformative for the community.

“The effect on other businesses and building owners could be huge,” Bassman said. “We appreciate the Lt. Gov.’s interest, I think it signals how big of a project this is.”

Tenants of the building — including the Capitol II Theatre and Midtown Café — are expected to remain in the building and enjoy the perks of a renovated structure.

Dawn Bleeker, who has owned the Capitol II Theatre along with her husband, Paul, for more than two years, said she’s thrilled about the project.

The Bleekers have added new screens and digital projectors to the historic theatre, however this project could mean many more improvements — including new seating.

“We’re going to be able to do some updates and move forward,” Bleeker said. “I really am excited.”

Ken Johnson, a spokesperson for Midtown Investors Group LLC, said he’s been a caretaker of the Midtown building for the past 15 years.

“It’s a bittersweet thing, but it’s time,” Johnson said. “I’m excited, we’ve had several opportunities to sell the building but it wasn’t the right vision. I love Newton and this will be great for Newton.”

Johnson is also CEO of EasyKeep Management, which operates the existing apartments in the Midtown building. Johnson said he will work with tenants who wish to relocate to assure they find housing.

Tuesday’s event also provided an opportunity for Frank Liebl, director of Newton Development Corporation, to highlight some bright spots in Newton’s recovery following the departure of Maytag in 2007. Those highlights include the addition of 15 new companies, 1,700 new jobs and an unemployment rate below 5 percent.

“We decided we weren’t going to be a one-horse town anymore with one major industry,” Liebl said. “With these 15 new companies we’ve diversified our employment base and we feel that’s very important.”

Reynolds congratulated the community on its progress.

“It speaks to the community as a whole and their determination to fight back and really see a rejuvenation,” Reynolds said.

In partnership with the city of Newton, the hotel project will utilize state and federal historic preservation tax credits. Newton Mayor Mike Hansen said the renovation is an exciting project for the downtown centerpiece.

“I would venture to say if Mr. Maytag were able to join us today he would be grinning ear to ear,” Hansen said.

Contact Abigail Pelzer at 641-792-3121 ext. 6530 or apelzer@newtondailynews.com