Published December 1, 1998 | December 1998 issue
The Androy Hotel in Hibbing was renovated in 1994 and 1995 into commercial space and low-income housing for seniors. (Photo courtesy of the U.S. Bancorp CDC)
The Androy Hotel was originally established as a grand hotel in 1921. Located in Hibbing, the four-story building has been a landmark on northern Minnesota's Iron Range for three-quarters of a century.
Like many hotels of the era, it eventually fell into disrepair before closing in the late 1970s. Now, U.S. Bancorp Community Development Corporation (CDC) owns a 99 percent interest in the property, which has come back to life as a mixed-use development.
In 1994 and 1995, Brighton Development Corporation of Minneapolis renovated the Androy Hotel into commercial space and low-income housing for seniors.
The first-floor commercial space includes 2,000 square feet of office space; 5,000 square feet used as a banquet facility; and 3,000 square feet used as a community room for senior residents. The commercial space includes a large lobby and sitting area, as well as a meeting room with kitchen facilities. The commercial space features much of the hotel's original architectural detail, including terrazzo floors.
The top three floors of the former hotel were renovated into 49 one- and two-bedroom apartments for low-income seniors.
Investors received both historic tax credits and low-income housing tax credits for the renovation, which were used to provide equity for the project.
Financing consisted of an equity contribution from the U.S. Bancorp CDC, bridge financing from U.S. Bank N.A., a first mortgage through TCF Bank Minnesota and a second mortgage using Community Development Block Grant funds.
Jane Kaiser is the assistant vice president at the U.S. Bancorp Community Development Corporation in St. Paul.