Two years after the former Thayer building was purchased by Renewal Development, the historic building is being prepared to re-open as a bed-and-breakfast.
The Annandale Planning Commission will consider a request for a conditional use permit and a zoning text amendment to allow the business on Tuesday evening, Feb. 28.
Paul Bertelson of Renewal Development said last week that the bed-and-breakfast could open sometime in April, though the date will be influenced by a number of factors, including several inspections that still must be done and the hiring of an undetermined number of staff.
"Part of it depends on having the appropriate staff to operate it and whether they’re up to speed and ready to go," he said.
Renewal Development purchased the building for $85,000 in January of 2015, according to county records. That purchase of the 1895 structure, which had been vacant since 2011, was followed by a number of renovations, including painting inside and out, repair of the balconies, general cleaning, and re-starting the heat and plumbing systems.
A finishing touch included moving beds and furniture into the 12 rooms available for guests for staging purposes. The building also includes a full commercial kitchen, bar space and dining room.
When contacted about the renovations last winter Bertelson did not put a price on the effort, but said it had been "substantial."
In January of 2016 the building was listed for sale, though no price was specified, and Bertelson said the idea was to either find an owner-operator to purchase it or, preferably, to attract an operator who would work under Renewal Development’s ownership.
That option has not yet materialized, however, so Bertelson said Renewal Development would begin operations and is no longer looking to sell at present. The building had been listed for $299,000 at various real estate outlets in January.
"We’ve had some people look at it and express interest. Our desire was to see somebody get it up and operating, and at this point we’ve decided, let’s just operate it ourselves," he said.
At least part of the thought process, he added, is to demonstrate the practicality of such a business at that location and increase its value for potential buyers or operators.
"It hadn’t been operated for a number of years and the bank (that owned the building prior to Renewal Development) really didn’t provide any numbers on past operations, so it’s harder for people to create a pro forma budget," said Bertelson. "So our hope is that when we possibly have a sale in the future we’ll be able to provide them with financials.
That will help them make a good decision about purchasing the property."
Renewal Development owns dozens of properties around the metro, and Bertelson said he was confident that opening the bed-and-breakfast was a sound business decision.
"We have a number of other motel properties and hospitality properties and we’re feeling like Annandale would probably support the property being a bed-and-breakfast type of property again, so we’re looking forward to offering that," he said.
While Annandale is a seasonal destination for many lake residents, Bertelson said the plan is to operate the venture year-round rather than seasonally.
Some additional activity at the building could be visible soon as the rest of the furnishings are added.
"We’re excited to get it open again and have a chance to serve the community," he said.
Thayer history
The Thayer was the first building in Annandale to have gas lights and electricity. A board walk connected the hotel with Annandale’s train depot before Highway 55 was built.
Gus and Caroline Thayer built the hotel when they were offered land and operating capital from the Soo Line Railroad. In 1920 Gus Thayer sold the hotel.
In the following years the hotel deteriorated and was used mostly for inexpensive housing. It came up for sale in 1976 and, fearing that a new owner would continue to operate it as a cheap hotel, the city of Annandale purchased the property. The city’s plan was to purchase the hotel and offer it for re-sale, but it ended up being community-owned property for the next six years.
In 1978 the building was placed on the National Registry of Historic Places, but by that time the hotel was seriously deteriorated, with the roof leaking so badly there was standing water on all three floors and the porches for which the building was noted sagging nearly to the point of collapse.
With the community split on whether to raze the building or to preserve it for its historical significance, a legal battle ensued over the future of the hotel.
Just one week before its scheduled demolition, the preservationists won the fight and the city began seeking proposals from developers for the restoration and use of the property. When none came forward, then-Mayor Wally Houle led a group of businessmen and investors who purchased the hotel and began restoring it in September of 1984.
By late spring of 1985, the $550,000 project was complete and the business re-opened under its previous name, the Thayer Hotel.
In 1993 Sharon Gammell purchased the hotel and completed further restoration, opening it as an 11-room bed-and-breakfast using the names Thayer Inn and Thayer’s Historic Bed ‘n Breakfast. She claimed to have spent $3.8 million in the remodeling effort.
Gammell eventually sold the hotel to her friend, Katherine Owens, in 2006, though she continued to operate it as before. Owens told the Advocate that she had purchased the hotel to aid Gammell and prevent a bank takeover. She claimed there was an understanding that Gammell would make monthly lease payments as well as pay property taxes, but that Gammell never followed through on her end of the bargain.
In 2011 Owens finally evicted Gammell from the building, which was left vacant.
In 2012 the building was put back on the market at a price of $199,000. While there was interest from prospective buyers, no viable offers were forthcoming, and in March of 2013 the building’s furnishings were auctioned off. Later in the year, with the price dropping to $174,900, Owens negotiated out of her mortgage with Quantum Servicing in Tampa, Florida.