Committee steps up search for hotel occupant

(Photo by Kris Todd) Items from the interior of The Hotel were being removed Wednesday and placed into the back of a panel truck. No further details were available. [Order this photo]

The Tangney Hotel remains the most prominent building in Spencer's business district.

But just as prominent is the "for sale" sign in the front window.

The bar is locked up. The kitchen is empty. The term "vacancy" applies to the entire building at 605 Grand Avenue.

It has been that way since May 2006, when the hotel's last owner, Steve Bear, locked the doors amid foreclosure proceedings. The building was turned over to receivership then auctioned off in August 2007.

Spencer attorney Michael Bovee acquired the property for KES Properties, L.L.C. with his client's bid of $382,000. Bovee then submitted a $20,902 bid for the contents inside for a combined investment of $402,902.

The property is currently being marketed by Spencer developer Dave Jacobsen. His real estate company's phone number is on the for sale sign seen by passers-by.

Potential buyers have looked, he said. Some want to convert the building to apartments or condominiums. The most recent interest came from people who want to restore the business to a restaurant, bar and hotel.

"It's a big project," Jacobsen said. "We just have trouble finding someone that energetic."

A group of community leaders wants to help with the search. The Spencer Retail Task Force has established a "hotel subcommittee" to get the building three things: A roof, an elevator and an entrepreneur.

Time ticks and empty structures fall into disrepair, but city leaders are optimistic about the hotel's durability.

"It's a very solid building," said Spencer City Manager Bob Fagen. "I don't think it's going anywhere at any time in the future."

The next owner will acquire 38,000 square feet in the building, counting all of the finished space.

"The first two floors are both heated separately from the rest of the floors, so somebody could do something upstairs differently from the first two floors, for example," Jacobsen said. "But they would have to share an elevator and that is in need of repair, so it's really kind of early to know what the highest and best use is."

Potential investors could get some help. The city would like to expand its retail sales tax base and the hotel is a strong candidate for historic preservation grants.

The now-empty structure was built in 1920 as a four-story building. A fifth floor was added in 1936, making it the tallest structure along Spencer's Grand Avenue business corridor. The offerings included the restaurant, lounge with 40 rooms available to rent to the general public.

Longtime Spencer resident Bill Campbell is on the Retail Task Force. The group toured several empty buildings around the city. Curtis Dean and Kathy Fueston of Spencer are heading up the subcommittee specializing in the hotel search. The task force considers it a top priority.

"Personally, I think, after looking at the hotel, and going through it, that there is an opportunity for somebody ذ some entity ذ to take over that hotel," Campbell said. "It's in grand state. Yeah, needs some updating. It needs some elevator work and a roof. But it's not astronomical to get that building up and going again to the state that it was, and probably much, much better."

---

ABOUT THE SERIES

A handful of high-profile retail properties are unoccupied and a group of Spencer citizens are looking for ways to change that. The Spencer Retail Task Force includes 15-20 contributors who hope to bring new stores to town. This series will look at their work as they match available buildings with potential occupants.

BIGGEST DRAWBACK:

The elevator and roof need to be repaired. Both projects will be expensive propositions. The investor would be taking on significant square feet.

BIGGEST ADVANTAGE:

The Tangney Hotel is a historic, but durable, landmark in a key part of the business district. Community leaders would be especially supportive of efforts to revitalize the building.