Judge orders demolition of South Beloit's Garden Hotel; owners fined $8.8 million

Winnebago County Circuit Court Judge Ronald Barch has ordered the demolition of the long-neglected Garden Hotel and Conference Center and imposed a staggering $8.8 million fine on its owners, New Chapter Group, Inc. The ruling follows a protracted legal battle over persistent code violations at the property located at 200 Dearborn Avenue, which had remained a blight on South Beloit for over 1,600 days.

The City of South Beloit has announced that sealed bids for the demolition of the Garden Hotel will be accepted until 10 a.m. CST on August 9, 2024, at the South Beloit City Hall. The project includes the comprehensive demolition of the hotel, abandonment of utilities, removal of buildings and foundations, backfilling, erosion control, and site restoration.

1,657 days of code violations

In September 2019, city inspectors discovered numerous code violations at the hotel, including severe flooding, dangerous mold levels, leaks, structural problems, and crumbling ceilings and floors. The property's deteriorating condition led to its voluntary shutdown on March 25, 2020.

Since its closure, the Garden Hotel has been a hotspot for vandalism and break-ins, with incidents reported as early as 2020. Earlier this year, a fire broke out at the hotel, further underscoring the urgency of the demolition. The Winnebago County Health Department condemned the property after city inspections revealed severe safety issues, including flooding, mold, leaks, structural problems, and crumbling ceilings and floors.

More about the Garden Hotel

South Beloit prepares for demolition of Garden Hotel

Interview: Garden Hotel’s demolition marks new beginning for South Beloit

WIFR: Emergency crews respond to fire at South Beloit’s Garden Hotel

WREX: South Beloit Garden Hotel condemned by Winnebago County officials (2019)

Beloit Daily News: South Beloit hotel fate far from decided (2022) 

The City of South Beloit filed a complaint against NCG in August 2022, seeking the hotel's demolition and fines. On March 28, 2024, Judge Barch ruled in favor of the city, citing 1,657 days of violations at the hotel property.

The court imposed a fine of $500 per day for each of the 10 code violations, totaling $8,825,500. Additionally, the court has ordered a daily fine of $5,000 from November 15, 2023, until the completion of the demolition, which must take place within 30 days.

Bidding on the demolition

Bidders must submit their proposals for a non-refundable fee per the contract documents available from McMAHON, with digital bidding documents accessible through QuestCDN. To guarantee each bid, a certified check or bid bond totaling at least 10% of the highest bid must accompany it.

The city reserves the right to reject any bids, waive informalities, or accept the bid that best serves the interests of South Beloit. Contractors must comply with state laws and local ordinances, including equal employment opportunity requirements and prevailing wage laws.

City Administrator Sonya Hoppes praised Community Development Director Shawna Henthorn and City Attorney Roxanne Sosnowski for their hard work in achieving this outcome. She said, "This bold of a decision is a statement and something we will take pride in. This is the result of meticulous documentation, exhausting circles run by competent and diligent staff." Mayor Tom Fitzgerald also thanked city staff and the legal team for their dedication to addressing the property's safety concerns.

City officials hope this ruling will ensure other property owners pay attention to their responsibilities.

Legal notice from Rock River Times, Feb. 3, 2021

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