A new chapter in the Thayer Hotel’s storied history began after Renewal Development purchased the property early this year.
Though it remains unclear exactly how the building will be used, Paul Bertelson of Renewal Development said the deteriorating exterior will receive a facelift this summer.
Bertelson, from Minneapolis, said he has kept an eye on the Thayer building from afar for the past 10 to 15 years. He has been familiar with the 1895 structure since its days as a hotel.
"My brother and I used to be in the motel business, and we had a number of small motels. We had looked at it at one time, and then just kind of followed it," he said by phone last week. "I guess I was just intrigued with the building. Quite honestly, we haven’t settled in on any specific plans yet for how we’re going to use it."
Various news outlets reported last year that Bertelson or companies he was connected to owned up to 38 rental properties around the Twin Cities area.
Bertelson became a controversial figure in February of 2014 after a fire at one of those units resulted in the death of five children, and other tenants came forward with complaints about poor maintenance.
Testimony was mixed on that count, however, with other tenants vouching for Bertelson’s reliability as a landlord.
According to a Star Tribune article in the wake of the fire, Bertelson was not considered a particularly problematic property owner by the city of Minneapolis, though 64 complaints had been made to the city regarding his properties over the past three years. About half of those complaints were minor violations, but there were also issues with mold, electricity not working and leaks from pipes, roofs and windows.
The Star Tribune noted that Bertelson had purchased dozens of homes in rough neighborhoods over the past 10 years, some for as little as $10,000, then rented them out to the poor.
A Minneapolis official told the Star Tribune that Bertelson was part of a group of landlords that didn’t do as much as possible to proactively maintain buildings, instead waiting until inspectors issued orders or tenants phoned in with complaints.
Restoration planned
In the case of the Thayer, however, Bertelson said action will be taken to restore the building.
"This summer we’ll be working to refurbish the outside of it, getting the place cleaned up," he said. "The inside has been maintained pretty well, but obviously the weather has impacted the siding on the outside. We also are meeting with a structural engineer to help us with plans for rebuilding some of the front that has settled, some of the balcony area. We’ll be looking at what we can do as far as rebuilding the porches in front."
Outdoor restoration work could begin as soon as June, and Bertelson said he is well aware of the Thayer’s significance in Annandale.
"It’s a sad thing with a building so front and center that it’s been vacant and unused for so many years. I think it’s a real resource to the community," he said.
The interior is vacant, but generally in good condition.
"There are some mechanical things we need to look at, but overall the rooms are in pretty good shape," said Bertelson.
Potential uses
The hotel is listed on the National Register of Historic Places, and Bertelson said he is currently looking into what restrictions that designation might place on the building’s use. Any interior remodeling plans are up in the air until those regulations are fully understood.
"We’re just in the very early stages of connecting with the historic people and finding out what we can and can’t do," said Bertelson. "We need to get a better feel for that and see how that meshes with the zoning and permitted use by the city."
While there are no firm plans for use at present, Bertelson said one option being considered includes small, one-bedroom or studio-type apartments on the upper levels and a restaurant on the main floor.
"We’re not necessarily looking at bringing it back as an operating hotel or bed and breakfast – but we haven’t ruled that out," said Bertelson.
Annandale City Administrator Kelly Hinnenkamp said the building is part of the Central Business District, which does allow residential uses on upper floors but requires a commercial use that excludes apartments on the ground level.
Bertelson said he does not have a firm timeline on when he wants the building up and running again.
Bertelson background
In addition to property management, Bertelson has a history of managing non-profit organizations.
In 1994 he started an organization called YouthWorks, which organizes mission trips for thousands of middle and high school students each year, according to Minnesota Public Radio.
He also started organizations called Mission Inn Minnesota and Urban Homeworks, which provide affordable housing for those in need.
After the deadly fire last year – where the tenant said the heat was not working in his duplex and space heaters and a stove were used for warmth after the heat was not fixed – Bertelson told Kare 11 news that the event was "the saddest day of my life" and that most of his tenants were low-income families that were often coming out of shelters. The official cause of the fire is undetermined.
MPR News reported in April of 2014 that a former tenant of the duplex where the fire occurred had sued Bertelson over financial malfeasance, and also over a poor electrical system that included sparking outlets that were not fixed despite requests.
While such a background could raise concern over the new caretaker of the Thayer building, Bertelson said he was unable to address the matter in depth due to legal and privacy concerns.
"There was a fire in the city in a property that we owned. It was a tragic kind of thing," he said. "I think that when something like that happens you want to cover as much as you can cover on it. Unfortunately, there are a lot of things that for legal and privacy reasons can’t be said. So that’s part of the issue of media wanting to get the whole story – unfortunately in this case it can’t. So I would just say there is a lot that is unsaid, and unfortunately can’t be talked about."
Bertelson also said that he plans to keep the Thayer maintained.
"We’ve already had meetings with the city administrator and chief of police," he said. "We intend to work closely with the city to make sure it’s a property that is responding to the needs of the community and will hopefully be the asset that it has been in the past."
City aware
Hinnenkamp said that when Bertelson made inquiries to the city about permits for work on the Thayer, the two sides came together for discussion.
"We did meet with him because it is a unique property. We just wanted to see what his plans were, what his intentions were for the property," she said. "He asked us a lot of different questions and we reviewed the code. He understands what he’s allowed to do."
In regard to Bertelson’s track record as a property owner, Hinnenkamp said the city is aware of past issues and has structures in place to address maintenance problems. Electrical wiring is inspected according to state guidelines, she said, while the city handles structural matters, including mechanical and plumbing systems.
"We’re not formulating an opinion of anything," she said. "However he decides to use the property, we’re going to enforce that it fits the code that it’s in, the district it’s in, and if not that it goes through the proper procedure (such as conditional use permits or variances). We have to enforce it. If we’re aware of potential liability of violations, we pay close attention. But I wouldn’t say we’re concerned (about Bertelson’s background). We just become more aware."
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