Renovation firm makes offer on unoccupied buildings
Two years after Dutch Inn, LLC, made its initial offer for the Courthouse Square properties, partners Matthew Gianniny and Bruce Schweizer say the county and city are finally moving forward.
Red area shows Courthouse Square buildings. Map from yahoo.com.
“People
want to see something done,” Gianniny said. “The buildings are
deteriorating. They’re not improving with age.”
Gianniny and Schweizer have made five offers for the properties since
2005. Their most recent offer was to pay the county $1.33 million for
the old county jail, National Bank building, north-facing lawyer’s row,
and children’s clinic. But they will be revising that offer, Schweizer
said.
All of their previous offers fell through because of other county plans
for the property, including the possibility that the Museum of the
Confederacy would move to this area.
The latest change in plans occurred recently when the Rockbridge County
Board of Supervisors approved selling the old children’s clinic building
to Lexington attorney David Natkin for $145,000.
According to Supervisor Carroll Comstock, Natkin plans to move his
current law firm from its location at 11 E. Washington St. to the
children’s clinic building, which is behind the old jail on Randolph
Street. A public hearing on the proposed sale will take place at the
Nov. 26 Board of Supervisors meeting.
Gianniny and Schweizer just finished renovating the Dutch Inn, a
historic building on Washington Street. The Dutch Inn has won two
regional awards, including the Historic Lexington Foundation’s Founders
Award and The Valley Conservation Council’s “Better Models Award-Best
Historic Preservation Project.” But Gianniny and Schweizer are ready to
begin yet another restoration project in Lexington.
“Our hearts are in these kinds of projects,” said Schweizer. “They’re
very demanding and very risky. We enjoy these historical properties and
really appreciate what they contribute to downtown Lexington and
Rockbridge County.”
The bank building, which was built around 1900, is one of the biggest
projects Gianniny and Schweizer say they will face if they acquire the
property. According to Chamber of Commerce Executive Director Sammy
Moore, the building has been vacant for at least 15 years. But the Dutch
Inn partners want to see it restored to its original design.
“You almost just have a shell to work with, but at the same time you’re
trying to preserve as much original material as you can,” said Schweizer.
Gianniny said it would take a lot of money to restore the bank, although
they have no estimate yet. Just to install sprinklers in the bank
building will cost between $80,000 and $100,000.
“It’d be easier and cheaper to build a new bank,” said Gianniny. “But
that’s not what we do.”
Gianniny, a general contractor, and Schweizer, owner of a residential
design and roof
company in Florida, started buying property together as investments.
Schweizer had previously looked at restoring The Dutch Inn, but it
wasn’t until Gianniny decided to join him that they began their first
renovation of a historic building.
“Matthew [Gianniny] and I are loony enough to take it on,” said
Schweizer. “It’s the perfect partnership.”
According to the Chamber of Commerce’s Moore, the primary reason the
buildings have not sold since the county put them on the market in 2005
is the amount of money required to restore them.
“Pure economics is the problem,” said Moore. “When you figure the
purchase price and the development price, those are key issues.”
The partners’ vision for the buildings includes residential, office and
commercial use. The county jail, which Schweizer said dates to 1831,
would be developed into office space targeted to legal and professional
sectors.
Gianniny and Schweizer hope not only to restore the National Bank
building to its original design, but also to develop four or five
condominiums on its second and third floors. Schweizer mentioned the
possibility of a restaurant or retail space on the bottom floor of the
bank building. North-facing lawyer’s row would be developed as office
space, they said.
Almost a month ago, Gianniny and Schweizer decided to make their offer
public.
“We wanted to clear the air of rumors and move the process forward,”
said Gianniny.
Comstock expects that the county and the Dutch Inn, LLC, will reach an
agreement before the beginning of 2008.
But Moore remains skeptical of the progress being made.
“There’s all kinds of talk, but nothing concrete,” he said. “That
proposal [by the Dutch Inn, LLC] is the first thing I’ve seen on paper
that’s a doable project.”
If the Dutch Inn, LLC, purchases the property, Gianniny and Schweizer
estimate that it would be 18 months after the closing before the
renovations are complete. But neither is discouraged by such a long
project.
“We’re excited and well-equipped,” said Schweizer. “I’m looking forward
to it.”
Produced by Washington and Lee journalism students.
Lead supervisor: Prof. Brian Richardson
Reporting supervisors:
Technical supervisor: Michael Todd