‘No doubt’ for Waukegan Artspace

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The nine-story Karcher Hotel building in Waukegan would be transformed into 36 artist lofts under the plan by nonprofit Artspace Projects Inc. | Ryan Pagelow~Sun-Times Media

Updated: January 25, 2011 2:40AM

WAUKEGAN — Colin Hamilton says he’s aware of the doubt in the air as Artspace Inc. moves forward with its plan to renovate a building that’s been vacant for more than 26 years.

“I’ve heard skepticism out there — ‘Is it going to happen? Is it going to happen?’” Hamilton, Artspace’s vice president of creative capital, said at a Lake County Bar Association event targeting the final $424,340 needed from private sources for the $12.5 million proposal.

“We have never gotten taxpayer (support) and failed to finish a project. I stand here with no doubt that this is going to work,” said Hamilton, adding at one point that “we would love to be under construction this summer. We think that’s realistic, and that would allow us to be open a year from now.”

Artspace, a Minneapolis-based nonprofit that has completed 27 renovation projects in 17 U.S. cities since 1979, has already teamed with the city, state and federal government to secure a mix of public dollars for the Karcher plan.

The biggest chunk was committed last fall by the Illinois Housing Development Authority, which approved $9.23 million in low-income tax credit funds. In April 2010, the city agreed to provide a $550,000 grant from downtown redevelopment sales tax revenue, along with $1.7 million in tax-increment financing over 20 years.

The Artspace plan calls for 36 live/work units for artists and their families on floors two through nine, with the ground floor featuring 2,400 square feet of commercial space. The Karcher has been empty since a December 1984 fire that killed eight residents of what was then transient housing.

Jane Waller, chair of the Waukegan Cultural Arts Steering Committee, said Friday that between 125 and 150 county attorneys and guests attended Wednesday’s kick-off of the private-capital campaign, and some money started coming forward. While she said it was “too early to tell” how much was collected last week, she added that “we’re very optimistic” about wrapping up the capital campaign this spring.

“We want to have the money in place by late spring, hopefully by May,” Waller said.

Hamilton told Wednesday’s gathering that while there is no true deadline to raise the private funds, which represent around 5 percent of the overall budget, “funding can change at any time.” He added that any risk would be mitigated if all financing is in place and the project’s closing takes place this spring.

Among other details revealed on Wednesday, Hamilton said Waukegan Artspace Lofts has already fielded 350 inquiries from regional artists, 40 percent of whom have lived in Waukegan or live there now. Half of the applicants are between 31 and 50, 72 percent of them have bachelor’s degrees and 22 percent have families.

Waukegan Main Street board president Mary Clare Jakes also told the crowd that Chicago-based Pepper Construction Co. is the likely general contractor on the project because of past collaboration with Artspace, but she added that “there is a real commitment from Artspace to subcontract as much as they can” from local sources.

For more information on the fund-raising effort and the project itself, visit www.artspacewaukegan.org.