By Lucky Kidd
HUTCHINSON, Kan. — The Hutchinson City Council has condemned the former Atrium Hotel and Convention Center on North Lorraine as unsafe and dangerous.
As part of the resolution the City Council adopted on Tuesday following a show cause hearing, owner Josiah Joseph was given 30 days to repair or demolish the property and post a cash bond covering demolition cost. An update hearing has also been set for Oct. 1.
Community Development Director Matt Williams reviewed the history of the property since it closed in December 2019, including the nine nuisance citations that have gone unpaid, some 350 police and fire calls to the property, and a June inspection during which extensive black mold was found in multiple rooms of the facility along with a substantial amount of trash and other debris.
Williams said the cost to demolish the Atrium could run as much as $2 million, and that would be the bond Joseph would have to post. In summation, he said the condition is such that demolition in his view is the only option.
Police Chief Brice Burlie reviewed the calls his officers have made to the property, including the case where four people were arrested after officers found two vehicles had been driven into the building as part of a theft attempt. He also told of another instance where underage drinking was taking place, and various squatters who were staying there.
Responses to the Atrium frequently involve between 10-15 officers, and at times upwards of 25-30 officers. The black mold and other problems are such that Chief Burlie has issued a standing order to his officers they are not to enter the building unless it’s a life and death situation. He closed by saying something needs to be done now before someone is killed, whether it be a member of the public or a first responder.
Hutchinson Fire Division Chief for Community Risk Reduction and Fire Marshal Michael Cain said to bring it to current fire codes would require extensive plans from architects and engineers. For starters, the existing fire sprinkler system was damaged in 2020 when a water line burst, and a company that specializes in retrofitting of fire safety systems he spoke with said it would take between $650,000 and $1.2 million to meet current code requirements. That doesn’t include the cost to update alarm systems.
Getting an engineer to even inspect the building in its current condition may be difficult due to the hazardous conditions now existing, citing the fact when the June inspection took place everyone entering had to done hazmat safety protection.
Interim building official Mike Post summed up the condition of the Atrium by saying it is a blight to the surrounding area. He said the building currently is in unsafe condition. There have been nine different cases where the city had to immediately address safety issues, which Joseph has to this point not paid invoices.
Joseph, who purchased the property in 2013 out of a bank foreclosure sale, told the council the conditions when he bought it were as bad as they are now. He then outlined the money he put into the property prior to its closure in December 2019.
Joseph contended the city is in large part responsible for the property’s condition, partly because it did not continue payments to him made under an agreement with prior owners related to the Convention Center that was part of the property. Shortly after, he acquired the property, he proposed a plan to replace the existing hotel, which the city never pursued.
Those funds were from a portion of the city’s transient guest tax that were dedicated to the convention center part of the property through an agreement with the entity that owned it at the time to reimburse them for construction of it, and once that was paid those funds would be used for continued maintenance.
City Attorney Paul Brown said that part of the agreement did not transfer to Joseph because he didn’t incur any construction cost. There was a later agreement with Joseph that provided for payments for improvements on the convention center, and that did cover HVAC system work, but nothing else was ever submitted.
In 2018 and 2019, there was a proposal for city to purchase the property, which eventually were dropped over conflicts over a sale price tied to a need for asbestos removal. Joseph said he’s been in the building several times over the past few months without any protection, and contended the black mold is isolated to a small area.
Joseph said the Convention Center part of the property is in “solid shape,” He also noted his company has built several hotels in Oklahoma City and Dallas, and said he was always open to pursue redevelopment of the site. He also contends the city has been willing to commit substantial sums of money to other projects, but not to him,
His current plan is to fence the entire building and keep the large convention space on the west side of the building which he would lease or sell it to different companies he says would be interested in the site and replace the hotel part with indoor and outdoor storage space.
Joseph also suggested the city could help with cleanup by assuming the cost to haul off debris from the property, similar to a proposal he made last month connected with a dilapidated hotel property in Salina that was rejected by the Salina City Commission. In Salina, he has a longer time frame to address its resolution to repair or demolish.
Council members questioned many of the statements Joseph made during his presentation, going as far as to claim he misrepresented multiple matters including a Paycheck Protection Program Application he had submitted in 2020 regardless of whether or not Joseph actually received funds from it. Councilman Jon Richardson also questioned whether the city would be a good business partner with Joseph.
The Council heard from several nearby property owners, including Ad Astra Radio President Chris Shank. The company’s Hutch Putt miniature golf course adjoins the Atrium on the north.
Shank re-stated several issues he raised in the meeting where the show cause order was made and also questioned, given the number of vacant commercial properties now in place, whether the kind of development Joseph is proposing would even be feasible. He added there’s been a lot of time for something to happen, but up to now nothing has.
Jackie Long shared that neighbors have been wanting something done there for years, as has the community at large. Long also praised Hutchinson Police for their response to the property, adding she has not reported things to police she could have out of concerns for their safety.
Lindsey Charles, (a resident in the North Lorraine neighborhood since 1969) voiced his concerns about people going to the property and then leaving the property “stoned” as they came down his street.
The Council vote to approve the resolution to repair or demolish was unanimous.
