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Hotel rehab is on track for summer start
Wednesday, June 18, 2014
From Bulletin staff reports
Revitalization of the former Henry Hotel in uptown Martinsville is on track to begin this summer, according to the developer and city officials.
Waukeshaw Development Inc. of Petersburg plans to spend $3.2 million to convert the four-story building at the intersection of East Church and Broad streets into 25 apartments and four commercial units.
Dave McCormack, the firm’s president, said regulatory approvals as well as financing have been obtained.
The city received a $600,000 grant from the state Industrial Revitalization Fund to put toward the project. McCormack said Virginia Community Capital, which helps finance community development projects, is financing the rest.
Closing processes for the construction loan are expected to occur by the end of this month, and soon thereafter a groundbreaking ceremony can be scheduled, according to McCormack.
Assistant City Manager/Community Development Director Wayne Knox said city officials want to wait until McCormack “signs on the dotted line” before scheduling a groundbreaking.
Once it begins, construction is expected to be finished in about 10 months, McCormack said.
Waukeshaw will maintain ownership of the building, but it plans to hire a leasing company to lease the apartments and commercial units, he said.
The city bought the former hotel, which dates to the 1920s, at a public auction in 2009 for $425,000. It used $95,000 of its own funds, and The Harvest Foundation contributed a loan to cover the rest.
Since then, Harvest has forgiven the loan.
Last July, Martinsville City Council voted to sell the building to Waukeshaw, which has done similar revitalization projects statewide, for $1.
Refurbishing the structure should help stimulate revitalization in the central business district, local officials and economic developers have said.