Old Waukegan hotel to become artist haven, galleries, apartments

Construction is expected to start this summer on a project that will renovate a historic Waukegan landmark and open up housing and gallery space for artists.

The building, located on Washington Street across from the Lake County Courthouse, will also be home to commercial space.

“We're thrilled to think there will be an artist colony in downtown Waukegan,” said Jane Waller, a Waukegan resident who is on the local Artspace task force.

Waller, a Lake Forest attorney, said the $12.5 million Artspace project has been in the works for several years. However, it wasn't until fall 2010, that the final piece of funding was in place.

So far, a little more than $12 million for the project has been secured, with $10 million in the form of tax credits for low-income housing and historic preservation, said Colin Hamilton, vice president of creative capital for Artspace.

Waller said more funds have been committed by Lake County and the city of Waukegan.

The remainder, about $425,000, will be raised through private, philanthropic support, Hamilton said.

“I know that will come through,” he said. “It's going to happen. I feel very optimistic.”

Hamilton said that in Artspace's 30 years of experience, the organization has “never received a tax credit award and then not gone on to complete the project.”

Waller and fellow task force member Ennedy Rivera are excited about the project.

“I think it's going to bring life to the community,” said Rivera, a Waukegan attorney and former Waukegan resident. “It'll give the community a place to express itself.”

The Karcher Building once served as a 140-room hotel. Vacant since 1984, it is on the National Register of Historic Places.

Waller, who was recently inside the building, said it is in disrepair, with water leaking inside.

“But when you're in there, you can tell it's a building with good bones,” she said. “It's just really a lovely building.”

When Pepper Construction renovates the building, it will have 36 affordable apartment units for artists and their families, Waller said. She noted the living spaces will be set in the interior of the units, preserving natural lighting on the exterior portion for artists to do their work. The building will include studios and one-, two- or three-bedroom units.

These artists, Waller said, could include dancers, musicians, painters and writers.

Hamilton said he has no concerns about filling the residential portion of the building. He said Artspace has 1,000 units around the country and vacancies are rare.

He added that Artspace has already had preliminary conversations with potential commercial tenants, which could include a coffee shop and restaurant.

“The excitement is starting to build up,” he said.

If all goes as planned, the building could open in fall of 2012, Hamilton said.

To donate funds for the project or inquire about housing or commercial space, contact Hamilton at (612) 465-0248 or visit www.artspacewaukegan.org.