Crookston’s Wayne Hotel on the Road to Reuse

The following article regarding a purchase agreement for Crookston’s Wayne Hotel indicates that the structure may be headed for reuse. Saint Paul’s MetroPlains Development has offered to purchase the Wayne Hotel and rehabilitate the structure.

The Wayne Hotel was listed on the Preservation Alliance of Minnesota’s 2006 Ten Most Endangered Historic Properties List.

Crookston Daily Times article
By Mike Christopherson, Managing Editor
Published: Monday, June 18, 2007 1:49 PM CDT
Article link: http://www.crookstontimes.com/articles/2007/06/18/news/19news3.txt

CDA agrees to Wayne Hotel purchase agreement, role is only as a conduit to speed up grant proposal

“Concluding that this is probably the last, best chance to save the historic Wayne Hotel building from the wrecking ball, the Crookston Development Authority board of directors has agreed to intervene in the sale of the property from Polk County to Metro Plains Development of the Twin Cities.

Getting the tax-forfeited property off the county’s hands and under Metro Plains control is no easy process, and with the developer seeking a large grant from USDA Rural Development, the CDA board voted unanimously Friday in favor of a draft purchase agreement that will never actually involve the CDA holding the title to the building. The county will convey the property to the CDA, but the paperwork will be withheld from the state until Metro Plains takes over ownership of the property.

The agreement has gone through many revisions, CDA Executive Director Dale Umlauf said, because the CDA insists on not “exposing” itself at all if the project to develop the building into apartments falls through. The sale price of $500 is the strongest indication of the CDA’s interest in only serving as a conduit to speed things along, added City Administrator Aaron Parrish.

The maximum loan the USDA will grant for a single project is $1 million, and $25 million is awarded nationally each year, Umlauf said. But on the plus side, he added, Minnesota projects typically are presented very well and as a result about 20 percent of the $25 million is awarded to Minnesota initiatives. With Metro Plains having a track record of successfully completing other projects with USDA money, Umlauf said the USDA likes working with the developer.

“If the grant goes through, the chances of a project being completed become quite good,” he said, adding that Metro Plains officials have said that the Wayne Hotel isn’t in as bad of shape as some other buildings they’ve rehabbed. “To me, this is by far the best chance we have to make something happen with that building, so I think we need to do whatever we can to help without exposing ourselves unnecessarily.”

Each draft of the purchase agreement has included language changes that limit the CDA’s exposure. A timeline stretching out to 2008 has been sped up, to 2007, Parrish said, “because we don’t want the due diligence to stretch that long.” In addition, language removes any CDA liability if unforeseen asbestos issues or things like hidden fuel tanks underground turn up, Umlauf added.

“There’s no reason for us to lean out there,” he said.

“In general, this is pretty advantageous, our rights are pretty much preserved in the latest version (of the agreement),” Parrish explained.

Polk County officials are appreciative as well, Umlauf said, especially if it helps them avoid the cost and headache of demolishing the structure.

“We have to make our best attempt possible to make it happen, and if it doesn’t, we tried our best,” he said, adding that the areas legislative contingent in Washington, D.C. has said they will do whatever they can to help secure the grant. “They know private financing won’t cut it.”