Politics & Government

Council Votes to Buy Old Kent Hotel

City will spend $735,000 plus closing costs to buy vacant downtown landmark

"This is huge."

That's how Kent City Councilwoman described council's vote Tuesday to buy the old Kent hotel for $735,000.

Tuesday's vote, the final action on council's behalf, brings the city that much closer to owning the vacant, five-story landmark downtown at the corner of DePeyster and East Main streets.

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Moments after council's unanimous vote, Dave Ruller signed the purchase agreement, which now must go to the building's owner, Gregg Vilk of Vilco, LLC.

"We need to get his signature," Ruller said.

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Kent Law Director Jim Silver said Vilk has agreed to the purchase price. Silver said the city could close on the property and get the deed as early as Friday. Council approved spending an additional $25,000 to cover closing costs, but Silver said he doesn't expect it will cost that much.

The money for the buy came from the city's general fund.

The sale marks the end of a decade of litigation between the city and the building's owners, as the purchase agreement includes an arrangement to settle all lawsuits involving the property. The first, filed by the city in 1999, was against the previous owner, Joseph Bujack, for failing to keep the property up to city building, health and safety codes. Vilk, who obtained the building from Bujack in 2004, sued the city in 2008 claiming its suit prevented him from selling or redeveloping the property.

Councilman John Kuhar called the purchase agreement a "step in the right direction" for the vacant landmark.

"I never thought I’d see the day when I would give this amount of money for that piece of real estate," Kuhar said. "But I’ve talked to a lot of people and I guess everybody feels the same way."

What comes next for the property is somewhat of a mystery.

Ruller said the city has no concrete plans for the property but can't afford to restore or redevelop it without a partner.

"Obviously our goal is to find somebody with the capacity and intention to put it into working order," he said. "We're working under the assumption the building is structurally sound enough to be restored. To some extent you could argue anything can be restored — just at what price."

Ruller said the city would be open to whatever deal structure would see the building restored and put to use, but he said it's too early to speculate on details as to whether the city would partner with a redeveloper on the property or simply sell it.

He said immediate plans include talking to past parties who have made offers on the property or shown an interest in buying it, including Acorn Alley developer Ron Burbick. Kent Wired reported Tuesday an anonymous source indicated Burbick has an interest in buying the building, but Burbick declined to comment.

"We will be (talking to Burbick) when it's in our ownership," Ruller said.

Councilwoman Tracy Wallach said the residents she's talked to are excited to see the building restored and redeveloped.

"Everybody who’s come up to talk to me about the hotel has not mentioned the price once," she said.

It's been more than 10 years since a business operated in the building, and its upper floors have been vacant for almost 40 years. Vilk recently gutted the interior by removing all the interior walls and fixtures, and he also did repair work to the roof and parts of the brick facade and removed the windows.

Council has been since at least January, the same month when valued it at more than $800,000.

The purchase price approved by council is close to the price paid for the former Car Parts Warehouse building just a few steps away from the old hotel. PARTA paid $775,000 for the former car parts store, which was .

Demolition is not out of the question, but it's not what the city wants to see happen to the building, Ruller said.

"Council's doing this with the intention of getting it restored," he said.


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