Hatch Development Group selected for Hotel Maytag renovation

Following a comprehensive search, the city has found a preferred developer for the Hotel Maytag renovation.

Des Moines-based Hatch Development Group was selected from a pool of interested parties to begin negotiations on a development agreement for the historical cornerstone of downtown.

“We are very excited, and we are very privileged to be considered for your developer,” Hatch Development Group Principal Jack Hatch said. “We will work very hard for the next 75 days to get the financing that is necessary to renovate, not only a historical building, but a namesake and someone with history in this town that literally the whole world knows.”

Along with Hatch, May-May Ng and Tim Ng are also partners behind the project.

The agreement has the company designated as the “preferred developer,” which will give it exclusive rights to negotiate the details of a development agreement with the city for a 75-day period. During that time, the city will not negotiate with or solicit interest from any other developers.

The designation will allow the development group to invest resources in exploring detailed, creative ways to meet the city’s expectations for the project. The city is, however, under no obligation to reach an agreement and continues to maintain control of all the design, cost, occupancy and timing parameters of the project.

Should the city choose to move forward with Hatch, the company has outlined plans for redevelopment and designated the partners it will use during the development process.

“This a $13 million renovation. For those of us in this field, it is just amazing how expensive this is, to take an old building and renovate it,” Hatch said. “It is a lot easier to just tear it down and for many, many years, that is exactly what happened. For you to step for and want to save it and know you are going to put some participating money and resources into it, just shows how far we have come as a community and state to provide this kind of leadership.”

The proposal put before the city first has Hatch purchasing the building at the city’s requested price. Work will then move to renovating the second through fifth floors into one and two bedroom apartments followed by a restoration of the ballroom into a space for community use and co-working space for tenants in the building.

Throughout the process, Hatch will continue to examine the upgrading of the commercial spaces on the first floor including Midtown Cafe, the Capitol II Theatre and the open retail spaces.

To do the work, Hatch has assembled a team of professionals that “is highly respected and provides the experience this project requires.” Along with Hatch as the developer, Walker Coen Lorentzen will serve as the architect, WNC is charged as the financing tax credit syndicator and Jack Daugherty will be the construction consultant, who will work to find a contractor for the project.

If Hatch receives the city’s approval on a development agreement, he said they would be ready to go within six months.

“We are delighted you have an interest in working with us through this project and we look forward to the next 75 days,” mayor Mike Hansen said.

The city took an interest in the building following a lack of progress made by former developer, Frantz Community Investors. The Cedar Rapids-based company announced intentions for a $10 million renovation project more than two years ago that included adding 35 market-rate apartments, commercial space and an upscale restaurant, but little to no progress had been made and financing had not yet been secured to start on the project.

With progress stalling, the city made the move to purchase the building in early September for $549,000 with the intent of owning it for a limited time before a financial investor was selected to complete the renovations. It then conducted a two-part Request for Proposals process beginning in November. Companies submitted proposals for the historic rehabilitation of the building, attempting to meet the city’s stated vision of having more than 30 market-rate apartments on the upper floors, a restored ballroom on the second floor and renovated commercial spaces on the first floor.

During the search period, the city worked to get the building stabilized and ready for redevelopment by doing necessary maintenance and repairs. Work included repairing leaks in the roof, air conditioner units, a crushed sewer main, leaking steam pipes and completing a comprehensive hazardous materials study, among other repairs.

At the conclusion of the search, the city found Hatch’s proposal came closest to aligning with the city’s objectives. The city and developer will now have until Aug. 7 to reach an agreement. Should an agreement not be reached, the city will continue to seek other developers. If it has, the city will proceed with the steps to formally sell the property and enter into a full development agreement with Hatch.

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com