Business owners tout downtown living in Urbana

Proposed renovations envision loft-style apartments, short-stay hotel.

Driving along U.S. 68 through downtown Urbana, Monument Square probably doesn’t inspire thoughts of upscale, urban living.

Hulking semi-trailers rumble through the center of the downtown, rolling past a solemn statue in the middle of the roundabout in Monument Square. There are a few local restaurants, an art studio and several privately owned shops, but the streets are largely empty, and a many of its 19th-century storefronts sit empty.

However, behind the brown brick walls of several of those buildings, most of which were built in the 1800s, a handful of local businessmen are quietly working to transform dark, musty rooms into fashionable lofts, short-stay hotel rooms and environmentally friendly apartments.

The projects are in various stages of completion, and none of the owners coordinated their efforts, but most of them are expected to be completed within the next two years.

Dave Smith, who owns Freshwater Farms Inc. on U.S. 68, is renovating a three-story building in the 200 block of North Main Street. The building, which consists of 12 two-room suites, was once filled with attorneys’ and dentists’ offices. The third floor of the building has been vacant since the 1920s, but when he’s finished, Smith envisions a combination of loft apartments and business spaces.

He chose the space, he said, because downtown Urbana has several advantages over other cities in the area when it comes to downtown living.

“As far as creating urban living, Urbana has a head start,” Smith said. “Banks are still downtown, there’s the square, restaurants, a grocery store, coffee houses, etc.”

All of those other businesses, he said, are within easy walking distance, and rent in most of the buildings is affordable.

Smith said he believes if more spaces are available downtown, it will eventually attract more young families, students and couples who are looking for an affordable place to retire. While families have been moving out of the city for years, Smith said he believes many people are beginning to look at cities as a more attractive option again.

“When I was growing up, urban was a dirty word,” Smith said. “And it’s not anymore.”

Whenever Annette Charles wants to remember what her home in downtown Urbana looked like when she bought it 10 years ago, all she has to do is flip through a couple pages of her photo album.

The loft-style apartment, located just above her business, the Hair Co. Salon and Spa, had warped floors, minor structural problems and decades old plaster coating the walls. A former cafe, it had been vacant for more than 10 years when Charles decided to remodel the space into a structure that would house both her business and her home.

“Basically, you’re buying a shell,” Charles said of the building, which, like many in the downtown, was first constructed in the 1800s. But after a series of renovations, the building’s first floor houses a spacious, well-lit salon with tile floors, brick walls and separate areas for manicures, pedicures and body treatments. When work is over, Charles simply walks out the rear of her salon, up a short flight of stairs and into her upstairs apartment, which features the same red brick walls and a massive window that looks just across the street to the county courthouse. With a grocery store, several restaurants within easy walking distance, and a nearby bike trail, Charles said she can go for more than a week at a time without ever setting foot in her car.

“I think I take for granted the simplicity my life has,” she said.

Now, a handful of business owners are hoping that by renovating several other buildings in and around downtown Urbana, they will be able to entice other residents like Charles to live and work downtown as well. If successful, they believe the projects could be a first step to help revitalize the downtown, making it a more attractive place for others to live or open a small business. Each of the five projects have slightly different goals, including short-stay hotel rooms, loft apartments and space for business.

Downtown potential

Mike Major said he first noticed the potential for the downtown area when he moved to the city years ago. A well-known local artist, Major is in the planning stages of a project to renovate space above his art studio on Miami Street, as well as spaces at 113 and 115 N. Main St.

Working with his daughter, a Columbus architect, Major said he has plans to renovate the now-empty spaces into environmentally friendly loft apartments that can attract families and individuals who are looking for a more convenient lifestyle.

Many of the buildings downtown have been empty since the 1950s or 60s, when businesses and residents began to move to the county or to suburbs near larger cities. But Major said this is the first time in decades that he can remember seeing so many individuals willing to take a risk and invest in the city’s downtown.

“I have more enthusiasm where I think it’s finally happening,” he said.

Melanie Kendrick, community development director for Urbana, said there’s no sure way to tell what’s driving the new investments downtown, but she said there may be several factors involved.

Most of the downtown is already zoned for a mix of commercial and residential spaces. Restaurants, shopping, and a full-service grocery store are all located within easy walking distance, and because many have been vacant for so long, rent on the majority of the spaces is affordable.

In addition, some of the downtown projects have been in the works for a while, and are just now coming together, she said.

Dave Smith, who also owns Freshwater Farms of Ohio just north of the downtown, said he has been working on a project to renovate a three-story building at 219-223 N. Main St. for about a year and a half. While it likely won’t be completed until late next year, he envisions a block of 12 two-room suites that would provide a combination of loft apartments and business offices.

When it’s finished, Smith said he’s hoping to attract a diverse set of tenants, including musicians, artists and others who he believes will be able to contribute to making the downtown more attractive. Projected leases will range from $550 to $750 a month.

“We’re looking to keep this affordable,” Smith said.

The project, which he calls Skylight Lofts, is still more than a year away from completion. The interior still needs major renovations. On the third floor, posters still hang on the wall from previous tenants who abandoned it in the 1920s or 30s. But Smith said he believes there is already a demand for apartments downtown, and if the renovations are done correctly, they can be turned into attractive spaces for potential clients.

Charles, who owns the hair salon, said many of her younger employees have already asked her about living downtown. The problem, she said, is that there are few spaces that are ready to be rented.

“The challenge has been for them to find something that’s updated and comfortable,” Charles said.

Ready to rent

John Doss recently finished renovating a large first-floor space at 138 E. Court St., which will house Sarica Manufacturing Co.. The company will sell lighting products under the Hughey and Phillips LLC name. While many of the spaces downtown sit empty, Doss argued it’s not because the space is inadequate or too expensive. The problem, he said, is that until recently no one was willing to make the investment to upgrade them.

“A lot of times, if a building is sitting empty in downtown Urbana, it’s just not ready to rent,” Doss said.

While there are no guarantees, Doss argued that if the city is successful in attracting more people to live downtown, the new residents would likely also help the city by providing more consistent support for the restaurants and businesses downtown.

“Residential is something you need before you have retail,” Doss said.

At least two other business owners are trying a different angle to lure more people to stay in downtown Urbana.

Pat Thackery has owned the building that houses his restaurant, Cafe Paradiso, for about three years.

He is moving ahead with a project at the Monument Square building, and this year he is hoping to open the upper floors as what will essentially be a bed and breakfast. He noted, however, that because of some requirements that are necessary for a short-stay apartment, it is possible it could also turn into an additional long-term apartment instead.

With a lack of available hotel rooms in the city, Thackery said he is betting that the space will appeal to those who are looking for an upscale hotel room downtown while on business in the city.

Thackery said while the economy has been tough for the region, it may have been beneficial for these types of investments. When regular jobs are less secure, he said be believes many investors are more willing to take risks in starting their own business instead of relying on others.

“I think it’s a good time to start a business because you’re on the ground floor and the business will grow with you,” Thackery said.

Rich Colvin, another local business owner, is also planning renovations in a vacant building at 205 Scioto St. The building, constructed in the late 1800s, will feature several rooms that can be rented on a short-term basis and may be completed as early as this fall. He said he became interested in the building because he was able to purchase it at a low price, and because there are few places for visitors to stay when visiting downtown Urbana.

“I’m finding that a lot of the businesses are referring their clients to Springfield for lodging rather than Urbana,” Colvin said.

At least one study seems to back up their theories. Mike Morris, economic development officer for Champaign County, conducted a basic survey of area businesses last fall.

The survey showed that more than 1,200 room nights per year were lost to other counties, largely because of a lack of available space in the county.

“Not saying we could get all of that business, but I think we could capture a significant amount of those rooms with a downtown hotel in Urbana,” Morris said.

One project downtown to create more hotel rooms is still in a holding period, despite efforts to find funding. The Douglas Hotel on Monument Square is owned by Miami-Scioto Development, an area nonprofit. Members of that organization were hoping to receive tax credits to renovate the historic hotel, but that plan received a huge setback as the economy declined. Now, members are hoping for government earmarks to help get the project started again.

Most of those involved in the downtown projects were reluctant to talk about the amount of risk involved in their investments, and said they are optimistic that there is plenty of demand for the spaces that will open in the next couple years.

Taking risks

But Melanie Kendrick, the city’s community development director, said in most cases they are putting up large amounts of their own money in order to get these projects moving forward.

She said she knows of some cases in the past in which local business owners have maxed out personal credit cards to purchase inventory hoping it would pay off in the end.

Kendrick noted these types of personal investments are particularly important in cities like Urbana, which often has to compete with nearby cities like Springfield, Bellefontaine and Columbus for business. She said because larger businesses and franchises often look to larger cities first, cities like Urbana need to look for more development from within.

“We have a need to get the independents in here as opposed to franchises,” she said. “This takes people willing to risk their assets.”

While profit is necessary to keep the businesses growing, Doss, who renovated the business space on East Court Street, noted that for the most part, everyone investing in the projects downtown also lives and works in the area in other capacities.

While he acknowledged some risk is involved, he said in general, most also want to see the downtown area improve.

“If it was strictly a profit thing we wouldn’t be doing it here,” Doss said.

He also argued that without some investment in the city, there would be little incentive for new businesses or residents to move back into the city in the future.

“If we don’t continue to renovate and grow, we could easily stagnate and go the other way,” Doss said.

Contact this reporter at (937) 328-0355 or msanctis@coxohio.com.

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