July 16--DELAVAN -- An economic development grant means a hotel in downtown Delavan will become a reality this fall.
On Monday, the Delavan City Council approved an agreement between the city and the Wisconsin Economic Development Corporation that will give a private developer $200,000 to redo the old Delavan House Hotel.
"We're very excited," City Administrator Denise Pieroni said. "It will be really helpful in making the downtown a destination."
The Delavan House Hotel, 215 E. Walworth St., Delavan, is at the heart of the city's downtown. It has been empty since 2004.
Sanjay Patel of Best Hospitality bought the hotel in 2013 for $315,000. Best Hospitality is a family group that owns the Super 8 in Delavan and a number of other hotels in southern Wisconsin and Northern Illinois.
In December 2013, the city agreed to apply for grant funding with facade and other renovations to the building.
City officials hoped for $250,000, but were awarded $200,000, Pieroni said.
As part of the agreement with the city and the Wisconsin Economic Development Corporation, Patel and his partners in Best Hospitality will spend $955,000 renovating the building.
The agreement also requires Patel to use the first floor for retail outlets and a restaurant and floors two through five for guest rooms.
Patel hopes to open the hotel sometime this fall.