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

Short on time? Read our quick report on what's next for the Garden Hotel property.

As the long-awaited demolition of the dilapidated Garden Hotel in South Beloit nears, City Administrator Sonya Hoppes sheds light on the challenges and meticulous planning behind the decision. In an exclusive interview, Hoppes discusses the city's efforts to hold the property owners accountable for the $8.8 million in fines and the importance of reclaiming the site for the community's future. The following conversation has been edited for length and clarity.

Alycia Dioneda: The South Beloit Garden Hotel has been a longstanding issue for the city. I understand that the city received 12 bids for its demolition. Please tell us more about that process.

Sonya Hoppes: We were very pleased to receive 12 bids at our bid opening last week. We weren't sure how many to expect, as sometimes we only get a small handful. It was great to have so many bids, all within a comparable range, which gives us more flexibility in moving forward.

Alycia Dioneda: There has been some concern about whether the city will be able to recover any costs from the New Chapter Group, the property's owners. Is there any hope of collecting those fees?

Sonya Hoppes: We're continuing to pursue every legal avenue, but our legal team has advised us that in cases like this, people often declare bankruptcy or walk away. We're not expecting much, but we won't give up on our options to fight for recovery. This company left behind a dilapidated structure that's been rotting away, and they can't just walk away without consequences. It's a difficult situation, but we are committed to doing everything we can to hold them accountable and recover taxpayer dollars.

Alycia Dioneda: Many area residents have wondered how the property's owners can avoid this. They're appealing the foreclosure but not the demolition order. How does that work?

Sonya Hoppes: Essentially, there have been two different paths since the company walked away. The first battle was to get the building demolished. The city had an engineer evaluate the property in 2022, and it was clear that repairing it would cost more than demolition. We've been preparing financially for this over the past few years.

But even with the demolition, it's still not our property.

The second path is going through foreclosure to gain control of the site. After a lengthy battle, they agreed to the demolition, but they're now focusing on appealing the foreclosure. They likely want to maintain control of the site to sell it potentially, but they would have to cover the costs associated with the demolition, which adds up to around $10 million. We're not optimistic about recovering that money but are prepared to move forward.

Alycia Dioneda: What will happen to the items inside the hotel during the demolition?

Sonya Hoppes: First, I want to stress the importance of staying out of the building. The structure is hazardous, and the air inside is dangerous to breathe. It's painful to see videos of people exploring the site, knowing they're putting their health at risk.

As for salvaging items, we did consider it, but the process is complicated. There may still be some heavy-duty kitchen equipment or other items of value, but trying to salvage or auction them off properly would require extensive effort and documentation. It could also disqualify us from state or federal assistance, which we might pursue in the future. In the end, it wasn't worth it. Our priority is getting the building down safely and efficiently.

Alycia Dioneda: What are the next steps for the property once the building is demolished?

Sonya Hoppes: There are several steps to take before focusing on the future. Step one is tearing the building down, step two is gaining control of the property, and step three is deciding what the future holds. The site is a key entryway to our region, right off Exit 1 on I-90, leading to downtown Beloit, the ABC Supply Stadium, and the best farmers market in the state, in my opinion. This area has a lot of potential, and we absolutely will not let it get into the hands of someone who doesn't have our community's best interests at heart.

While we can't get too excited about what could be, as this process might extend beyond the current board, we are committed to ensuring that whatever happens at this site benefits the community. We want to take our time and ensure we do this right, with careful planning and support from the community.

Alycia Dioneda:  When can residents expect the demolition to start and finish?

Sonya Hoppes: We have to start in September. We hope the demolition, including asbestos removal, should take six to eight weeks. Unfortunately, some rooms are locked, and the people who've been sneaking in have made the asbestos situation more challenging. But the contractors will handle it. We aim to have the building substantially demolished by the end of the year. While we may not plant grass until the spring, the building will be gone by then. The building will be gone by the end of the year. That is what we are holding their feet to the fire on. We're holding to that deadline, and I think the community will be pleased to see progress being made.

Alycia Dioneda: Any final thoughts on this process?

Sonya Hoppes: It's been a long road, but we're committed to seeing this through. The Garden Hotel site has a lot of potential, and we want to make sure it's redeveloped in a way that benefits the entire community. We're grateful for the support and patience of our residents as we work through this process.

As South Beloit prepares to move forward, City Administrator Sonya Hoppes has emphasized that the demolition of the Garden Hotel is just the start of a broader plan to revitalize the area. She assured residents that the future of the site would be carefully managed, stating, "We're not just tearing down a building; we're paving the way for something better."