By STEVE OSTERMANN
Ozaukee Press staff
Posted 9-2-09
The Village of Grafton is poised to finalize an agreement to buy the Grafton Hotel and resell the long-vacant downtown property to a group of local investors for redevelopment.
The Community Development Authority was scheduled Wednesday, Sept. 2, to consider resolutions to purchase and sell the building at 1312 Wisconsin Ave., as well as a development agreement that would pave the way for both transactions.
Village Administrator Darrell Hofland said the CDA could at the same meeting finalize a deal to purchase the hotel from Rob Ruvin, who bought it in 2006 but has been unable to complete redevelopment plans or secure tenants for the property. Since then, the 19th-century building has remained empty and continues to deteriorate.
Early this year, the village took steps to acquire the hotel through eminent domain but abandoned that plan after property appraisals left the sides $260,000 apart. The village had the property appraised at $310,000, while Ruvin’s appraisal set the price at $570,000.
Subsequently, the CDA agreed to continue working with Ruvin to secure a developer for the site.
“The CDA and hotel owner set aside the eminent-domain option and were successful in reaching an agreement,” Hofland said Tuesday.
Hofland said he could not identify the local investment group or whether it plans to raze or renovate the building because negotiations were ongoing.
Village officials have identified the Grafton Hotel as a centerpiece in downtown redevelopment plans. The building, which has a long history as a lodging and dining establishment, adjoins the Paramount Plaza at the intersection of Wisconsin and 12th avenues and Bridge Street.
Several officials have called for the building to be razed because of its condition, while others have said it should still be preserved.
The CDA was also scheduled this week to continue discussing a master plan for redevelopment of the former lumberyard site, which is off Wisconsin Avenue, east of the railroad tracks and south of Beech Street.
Hofland said the plan calls for a six-acre site that has mixed-use development, including commercial and residential. Most of the land is currently owned by Robert Zellmer.
According to Hofland, the commercial uses would include professional offices and retail businesses, and residential development would include either condominiums or apartments.
“The majority of the land has been cleared, and all environmental issues have been resolved,” Hofland said. “Other additional properties still need to be acquired.”
Hofland said all the land has access to sewer and water service, but a stormwater-management system is required and a number of electrical lines will have to be relocated.
“Through the development of a master plan, the village and landowner hope to hit the ground running with an improved economy,” Hofland said.
The master plan is expected to be approved this fall, after which active marketing of the site will begin, he added.
The CDA was scheduled to meet at 6:15 p.m. Wednesday at Village Hall.
