Future plans for site detailed
ZELIENOPLE — The sale of the Kaufman House could be completed early this coming week.
If that occurs, it could be turned into a boutique hotel with about 20 rooms and a restaurant. But it would not be open until 2016.
Several dozen officials from around Butler County convened Friday at the Butler County Tourism and Convention Bureau office in Zelienople to talk about the future of the historic landmark on Main Street.
Plans emerged this week that the Butler County Tourism Foundation is partnering with Butler County Community College and another agency to reopen the Kaufman House, which has been closed since a fire in the building in late 2011.
If the project comes to fruition, it would rejuvenate the business and turn it into a hotel. It would also include a coffee shop and lounge.
In addition, BC3 would use the restaurant of the Kaufman House as a training ground for its hospitality management program, which typically has about 30 students enrolled per semester.
The restaurant would also be open to the public for specialty cooking classes run by BC3.
However, the plan is in its infancy and there are still a number of grants to write and funds to secure, according to tourism President Jack Cohen.
The project is expected to cost about $2.5 million, Cohen said. The Butler County Redevelopment Authority already is expected to apply for two grants from the state.
The deadline to apply for one of those grants is this coming Friday.
While the building will have an educational component when it reopens, the tourism foundation intends to hire a management company to operate the property as a for-profit entity.
Also released Friday was the news that Zelienople officials are working to build a 150-space parking lot behind the building. Currently, there are only about 30 parking spots allocated for the Kaufman House.
Speaking at the news conference, Zelienople Manager Don Pepe said the rejuvenated Kaufman House and the new parking lot are “key components” to a revitalization effort under way in the borough.
Pepe, who spoke with excitement about the proposal, said it could help change the town from a “sleepy community” into a vibrant hub for business and commerce.“Quite frankly, you might not recognize what Zelienople is going to look like in the next 5 to 10 years,” Pepe said. “And that isn't necessarily a bad thing.”He called the proposal “one of the most interesting and complicated projects I've ever seen,” but added he's confident it will come to fruition with so many people involved.Perry O'Malley, the executive director of the redevelopment authority, said that “there's no good thing about a vacant building,” which is why he's so excited for the project and why he is trying to find funds for it.“Great ideas, we have a lot,” he said. “But the money has to be there.”Ken Pilarski, the man who's owned the Kaufman House for three decades, said he still gets about five telephone calls per day from people asking when his business would reopen.Despite the building being closed and unoccupied, Pilarski never changed its phone number in the hopes that it would one day reopen.Its popularity has never diminished, he said, which is perhaps the biggest reason why the business needs to reopen.“This has to happen,” he said.However, he will not be involved with the plan.The county redevelopment authority will be the developer of the project, according to O'Malley, who spoke Friday morning at an authority hearing on the first grant proposal. That hearing was at the authority's office in Butler.O'Malley pointed out the boutique nature of the hotel will make it a different destination to stay than neighboring hotels.“Boutique hotels are a little more upscale and well managed,” he said, adding the prices of those hotels are often around $200 a night.The Kaufman House's guest rooms haven't been used since the early 1970s. When re-opened, it will feature up to 19 guest rooms that will be decorated in historically appropriate furnishings and finishes. All of the electrical and plumbing elements will be replaced.The estimated value of the building is $500,000 for the purpose of pursuing grants, but the final sale cost is dependent on an appraisal.“We're not going to spend more than the fair market value,” O'Malley said.A main draw for the building is that is comes with a state liquor license.The redevelopment authority estimates an additional $2 million will be needed for renovations.O'Malley said a market study will be done to determine how much of the project can be paid for with a mortgage.“At some point we need to know how much revenue the project can generate so we can know how much debt it can afford to carry,” O'Malley said.But the development team hopes much of the renovations can be paid for by grants.The first grant the authority will apply for is $500,000 from the state's Keystone Communities Anchor Building Program. The grant application deadline is Friday.The authority would receive the grant from the state and then loan it to the tourism foundation.O'Malley said the money would then be paid back through financing options.“It's structured so that we'll eventually get that money back,” O'Malley said. “Then that money goes back into a revolving loan fund for other programs.”The authority also will attempt to get $500,000 from the state's Growing Greener II Main Street and Downtown Redevelopment program and $1 million through the state's Redevelopment Assistance Capital Program.BC3 can contribute a $50,000 Perkins Grant for kitchen equipment.O'Malley said the tourism foundation came to the authority because of its expertise on getting grants.“You have to have a history and a track record to do this,” he said. “The state doesn't just hand money out.”Until details of the project become clearer, the tourism foundation plans to enter into a two-year option to buy agreement with Pilarski.Under that, Pilarski would have the right to sell the property as long as the tourism foundation is given first right to match the offer.“If the private sector wants to step up and buy it, then we'll walk away,” O'Malley said. “Our belief is the private sector is not interested.”
