By Bridget Levitz, Truth Staff
ELKHART -- An out-of-towner's ideas for the Civic Plaza won the support of the city and its residents.
Elkhart's Redevelopment Commission on Thursday selected Columbus-based developer Herman Renfro and his plans for the Civic Plaza.
Renfro and local architect Gary Frank plan to turn the downtown property into a four-story DoubleTree Inn complete with townhouses and condominiums on the top floors and a fitness center, full-service restaurant and other retail and dining spots at street level.
Now the city will spend the next 50 days working out a redevelopment agreement with Renfro. The commission wants the agreement in hand by April 20.
The goal, said Renfro, is to start construction in the fall, with the hotel opening in early 2008.
"We like to open hotels in the first quarter because (hotel) business gears up throughout the year," he said.
Renfro and local group Waterfall Terrace LLC, including developers Dan Brekke and Paul DeLano, both wanted to transform the plaza. Brekke and DeLano proposed a five-building design they said would bring retail, office, residential and conference room space downtown.
Though the city hoped for development at this spot since the Midway Motor Lodge/Quality Hotel was torn down in the late '90s, the commission's selection of Renfro's hotel plan was a surprise move.
Commission members went into Thursday's meeting not certain they would have time to digest recommendations from city staff, residents and the competing developers. And another city meeting was scheduled at City Hall two hours after the commission's starting time.
"We've sat on the property trying to come up with things that work," commission member Steve Eldridge said. "We have one that does appear to be ready, and that's the hotel project."
Downtown property owner Dan Boecher called the two proposals an example of the interest in downtown, but favored Renfro's project. The Waterfall Terrace proposal didn't have enough "meat" or named tenants or build-out timelines, he said.
A DoubleTree Inn downtown would become a regional draw, he said. Area residents have to go to South Bend to find a similar luxury hotel.
"People will navigate downtown for those kinds of amenities," Boecher said.
A nearby Hilton brand hotel concerned resident Bill Wargo. He questioned whether Hilton would approve a hotel when there's already a Hampton Inn near the Indiana Toll Road and a Hilton Garden Inn is said to be on the way.
Hilton's individual brands are so unique that the company doesn't view it as an issue, Renfro said after the meeting.
Within the next two weeks, Renfro will meet with Hilton regarding a formal DoubleTree application. Hilton already visited Elkhart, likes the plaza site and gave preliminary approval to the location and residential component, he said.
John Calvert, an Elco Theatre board member, asked the city to wait until March, when the city's 400 Block study group -- organized by Mayor Dave Miller to create a plan for the 400 block of Main Street -- will release its report.
Member Prudy Holtzhausen said Renfro's project blended well with the direction she thinks the 400 Block is going.
"This just fits with it," she said. "I really think we should go forward."
Matzke Florist owner Stan Rupnow urged the commission to make a choice.
"The longer the city, the redevelopment commission delay doing something in downtown Elkhart ... the longer it takes to get downtown Elkhart back in business again," he said.
In the end, it was the numbers presented by the city that convinced the commission.
Renfro's project offers greater economic impact and uses less public money, Economic Development Manager Brian Gildea said.
While both groups sought use of the tax dollars generated by their proposed projects, Renfro asked for 80 percent of tax incremental financing revenue while Waterfall Terrace asked for 100 percent. TIF revenue is available because the plaza is in the downtown TIF district.
Renfro also offered to lease the land from the city at about $60,000 a year, with the first full payment in the third year. Waterfall Terrace LLC hoped to buy the land from the city for $1.
The hotel component was a big factor, Gildea said. Brekke's group proposed more office space, while Elkhart already has high office vacancy rates downtown. The DoubleTree Inn proposal fits into the plans to create a downtown arts and entertainment district, he said.
"We're hopeful that ideas from both proposals will be used in other sites in and around downtown," Gildea said.
Following the meeting, Brekke said he will focus efforts on developing the vacant Borneman building on High Street and other projects.
"I hope the choice made by the commission will be the best for the city of Elkhart," he said.
Renfro said the turnout by the residents was encouraging.
"They're excited to see something happening downtown," he said. "The citizens care about the city and that's a great thing."