More than 14 months after the Newton community began buzzing about a $10 million historic renovation of the former Hotel Maytag, the building sale is not complete.
Project developer, Andy Frantz of Cedar Rapids-based Frantz Community Investors, said the renovation will happen — it’s just taken far longer to pull together than anyone initially thought.
Plans were unveiled on March 24, 2015 with much fanfare — a visit from Lt. Gov. Kim Reynolds and a roundtable discussion with developers Cedar Rapids-based Frantz Community Investors, architects, city leaders and historians.
The building project on the corner of First Street North and North Second Avenue East in Newton’s historic downtown is expected to restore the ballroom, add 36 market-price apartments, corporate apartments for shorter-term stays, commercial space and an upscale restaurant to the current Midtown building. Frantz, whose company specializes in historic restoration projects, began exploring the property in 2014.
Since the project was announced, Frantz said much work has gone into architectural drawings, general contractor work and the appraisal of the structure built in 1926 by F.L. Maytag.
“We’re totally invested in this,” Frantz said.
But meanwhile, the clock is ticking on a two-year timeframe to utilize a $75,000 Main Street Iowa Challenge Grant to restore the former Hotel Maytag ballroom. While Frantz said they’re aware of the clock, it’s not an issue.
“I have no concern we’re going to put that in jeopardy,” Frantz said. “We’re continuing work with state historic people, tax credits and it’s just been a longer project to pull together than anyone anticipated.”
Newton Main Street Director Andrew Bassman said his organization is understanding of the scale and scope of the project. He said even though project leaders don’t believe they need it, an extension on the grant could be requested.
In December, the Newton City Council unanimously approved an agreement that provides $600,000 in TIF development incentives and property tax rebates for the renovation of the building. The incentive includes property tax rebates, the sale of a lot for parking, a $50,000 contribution of TIF infrastructure funds and waiving development permit fees associated with the project.
The property tax value of the building, which is currently at $343,990 is expected to increase to $2.3 million before 2018. The agreement includes tax rebates for 15 years.
Bryan Friedman, director of finance and development for the city, said economic development leaders look at the long-term picture on a project like this, and pointed toward the recent development of the Newton Place Apartments. He said development began slowly and also took time to pull all the elements together.
“Now it’s a completed, great part of our community and it was worth the wait in that instance,” Friedman said. “I would certainly expect the Hotel Maytag to be worth the wait as well.”
Friedman said while progress is slow, it’s continuing. He also said attempts are being made to keep up with the maintenance to the benefit of the tenants.
“It’s a $10 million project and projects of that size tend to take longer to put all the pieces together,” Friedman said. “The expectation that it all could be put together in a few months after it was first proposed was probably a little aggressive.”
Ken Johnson, a spokesperson for Midtown Investors Group LLC, said when the announcement was made that he’s been a caretaker of the Midtown building for the past 15 years. He did not return a call for comment for this story.
“It’s a bittersweet thing, but it’s time,” Johnson said last March. “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.”
Some tenants of the building — including the Capitol II Theatre — 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 three years, has made large investments in digital projectors and new sound systems and are looking forward to even more progress.
“We are still very excited and hopeful about the sale and remodel of the building. With the newer theaters around us, we have been affected attendance-wise so, of course, our hope is that the Hotel Maytag project is finalized sooner rather than later,” Bleeker said. “Once the sale is complete, we will be able to move forward with some of our plans to improve the theater in hopes that people will again ‘think Newton’ when they go out to a movie.”
Contact Abigail Pelzer at 641-792-3121 ext. 6530 or apelzer@newtondailynews.com