Demolition order approved for Garden Hotel in South Beloit

The court also awarded an additional $5,000 for the code violations for the period of Nov. 15, 2023 through the date of demolition of the building. The court also gave New Chapter Group 30 days to execute the demolition order.

South Beloit City Attorney Roxanne Sosnowski said if New Chapter Group fails to execute the demolition order within the 30-day period, the City of South Beloit then is allowed on the property and can arrange for demolition. The city then would charge New Chapter Group for the demolition cost.

She added, right now the property is scheduled for a sheriff’s sale in June when the demolition presumedly will be complete.

The saga of the long-vacant hotel began in March of 2019 when the hotel abruptly closed. In September of 2019 the Winnebago County Health Department condemned the property noting unsafe condition. The building had been plagued by flooding problems in its basement and it had to be boarded up by the city because there were frequent break-ins at the property.

The City of South Beloit file its complaint against New Chapter Group and its president, Dr. Zhanhai (Michael) Zhang, in August of 2022, calling for the demolition of the building.

The city also filed a foreclosure motion with the court for the property due to funds owned for sewer fees and funds the city spent on boarding up the property. The New Chapter Group agreed to the foreclosure order in February.

The foreclosure order allows a three-month redemption period, which allows the owners to avoid foreclosure if they can pay the amount South Beloit officials say they owe. The redemption period expires on June 13, Sosnowski said.

The demolition order stated the hotel building is “dangerous and unsafe” and “beyond repair.”

In Barch’s ruling, he notes evidence of extensive damage to the former hotel, both inside and outside, and notes city staff have had to continually board up windows and doors and mow grass on the property.

“As of the date of trial, the Garden Hotel is in a state of complete disrepair and ruin,” the document states. “Virtually all exterior windows and doors are covered with boards. The building is located at one of the busiest intersections of the city. It is unequivocally an eyesore. More importantly, the facility is not fit for human occupancy or future use of any kind. As a result of neglect, repeated vandalism and progressive deterioration, the interior of the building has suffered from years of flooding and exposure to the elements (rain, snow, cold). Most interior windows and doors, if not all, have been destroyed.”

A city engineer offered an estimate that the cost to repair and restore the building would be somewhere around $7 million.

Sosnowski said she believes the judge wanted to send a message to New Chapter Group, as well as other property owners, that they must be vigilent in maintaining property so there is not a danger presented to the public as is evident in this case.

South Beloit City Administrator Sonya Hoppes said the city staff already are preparing a bid package for demolition in case New Chapter Group does not comply with the timeline for demolition. She said the city has been budgeting funds for the possibility that the city would have to pay for demolition of the former hotel.

“It is hard to get an accurate account of what it would cost without actually getting inside the property to assess conditions,” she admitted.

She said initial estimates for demolition costs have run around $2 million.

Hoppes also said much of the credit for this positive outcome must go to Community Development Director Shawna Henthorn and City Attorney Roxanne Sosnowski who spent countless hours on this case. She also credited past and present city council members as well as current Mayor Tom Fitzgerald and former Mayor Ted Rehl.

Hoppes said this is a good day for South Beloit as the city now can get rid of an eyesore and hopefully look forward to selling the property to someone who will put it to productive use.

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