Will Elgin take over struggling Tower Building?

The foundation that oversees day-to-day operations of the 81-year-old Elgin Tower building in the city's downtown is trying to keep the landmark's lights on.

With about 60 percent occupancy at the building and continued financial difficulties, foundation members reached out to city officials last week for a short-term loan to help pay some bills in the next six to 12 months, but it appears unlikely that will happen.

Neal Pitcher, who serves on the three-member William R. Stickling Foundation board, said he talked with city leaders about possible assistance, from helping paying overdue utility bills to helping fund replacement of the 15-story building's manual elevators, which must become automated by state law by 2015.

But for any loan to be given, the city asked Pitcher and board member Tracy Rady to resign while the city would take over operation of the building, officials said. The board's third member, Councilman John Steffen, stepped down last week.

Pitcher said he and Rady wouldn't do the same, since the tower is run more efficiently with volunteers, and the foundation is only “a few tenants away from being firmly in the black.” But should a number of tenants leave, he said it's likely the foundation would hand the building over to the city.

In the meantime, Pitcher and Rady will be looking for a third board member to replace Steffen. Pitcher said he is not upset Steffen resigned, and understands it was likely in his best interest due to his involvement with the city.

Steffen couldn't be reached for comment.

The building's unpaid taxes were purchased at auction by a third party, which has been done before, Pitcher said. He expects payments could be made in the summer, when there aren't heating costs, and thus more available funds.

He said the foundation does have enough money to make late water and electric bill payments.

Still, the building's financial state has remained the same for the past decade, as it's been significantly affected by businesses leaving, he said.

The Foot and Meyers law firm vacated its 6,000-square-foot second-floor office space to move to Geneva nine years ago; the David A. Noyes and Co. firm moved across the street two years ago; and a nursing recruitment firm folded 18 months ago, he said.

With those businesses went rent payments.

The two Elgin mayoral candidates expressed reservations about providing public funds for the building's operation.

“To give more money when there isn't a viable business plan doesn't make much sense. What's going to change?” Mayor Ed Schock said.

His opponent, Councilman David Kaptain, said he supports short-term assistance, but the city shouldn't take control of the building.

“Our track record in doing things like this is not particularly good. It's a little bit out of what we do as a city,” Kaptain said.

Councilman John Prigge said he would support the city providing short- or long-term assistance to the Tower Building.

“I'd be in favor of doing everything possible make sure that building did not slip into disrepair with sheets of plywood on the doors and windows,” Prigge said. “That building is downtown and it's Elgin.”

Elgin Tower building.

&bul; Opened in 1929 as Home Banks Building

&bul; Home National Bank closes by 1932, in middle of Great Depression

&bul; Over its 81-year history, building has housed doctor's offices, law firms, a Walgreens, restaurant and beauty shop

&bul; Current home to Downtown Neighborhood Association

&bul; Tower building has had several owners – preservationist William Stickling was last owner, and his foundation has operated the building since his death in 1999

&bul; Designated local landmark in 1998

&bul; Joined National Register of Historic Places in 2002

Sources: Mike Alft, Downtown Neighborhood Association, City of Elgin