The historic former Galena Hotel in downtown Aurora could soon hold over 20 micro-unit apartments, which is a new concept for the city.
The building at 116 W. Galena Blvd. was constructed in 1862, making it one of the oldest in the city. It has been vacant since 2020 but was purchased in 2023 by developer Fernando Barrera, an East Side Aurora native and Aurora Central Catholic High School graduate, who plans to renovate the building into apartments ranging in size from 260 square feet to 550 square feet to be priced from $1,050 per month to $1,350 per month.
On Wednesday, the City Council Building, Zoning and Economic Development Committee recommended approval of Barrera’s plans for the former hotel, along with a special zoning designation for the project, called a Conditional Use Planned Development.
The plans and the zoning designation are now set to go before the City Council Committee of the Whole on Tuesday before being sent to the Aurora City Council for final approval.
The building’s downstairs is planned to have five units, with the building’s lobby also converted into an apartment, according to a staff report included with Wednesday’s meeting agenda. The second and third floors would each hold seven units, while the fourth floor would hold two larger units, city staff said in the report.
The interior of the building is planned to be reconfigured, but the center stairwell corridors, which the staff report calls “the building’s most significant and intact pubic spaces,” are set to be restored.
The only major change to the building would be a new addition on the back of the building that will hold an elevator for residents, which would only be accessible from inside the building, along with a new stairwell also on the back of the building, according to Jill Morgan, a senior planner with the city of Aurora.
She told the Building, Zoning and Economic Development Committee that the developer has worked with both the city and the state Historic Preservation Office, along with others, to make sure that the additions have “minimal impact on the historic building,” because Barrera plans to use historic preservation tax credits for the project.
City staff also worked with Barrera early in the planning process to better understand micro-units, since it is a new concept for the city, Morgan said.
Information provided to the city showed that the micro-units are affordable for those who want to live in urban areas, provide convenient access to jobs and amenities, typically have a higher occupancy rate than other types of apartments, rent at higher prices per square footage than other units, are sustainable and will fill an untapped market within the city, in addition to preserving a historic building, she said.
Barrera told the committee on Wednesday that it will be targeting working-class professionals to live in the units, and all the leases would be for a minimum of 12 months.
Ald. Carl Franco, 5th Ward, questioned the prices of the units, saying that for just a few hundred dollars more a month, someone could get a significantly bigger apartment. Barrera said that, while the rent may look pricey when comparing dollars to square footage, the apartments will have the cheapest base rent in downtown Aurora, so it will be “affordable in a sense” for working professionals.
“You guys do your research and stuff like that, I just was kind of surprised,” Franco said about the prices.
In his experience, most people looking for an apartment in or around downtown Aurora are looking for a studio apartment or a one-bedroom apartment, and the concept for the micro-units came from that, according to Barrera. He said the concept works because of the square footage of the units and the location of the project.
Residents of the apartments would likely need to park in city lots, Barrera said. According to Morgan, the city does have overnight parking available through permits.
Ald. Bill Donnell, 4th Ward, said he believes it is important to find some parking for the project even though downtown projects do not require it.
Ald. Patty Smith, 8th Ward, suggested a permit that would allow people to park overnight on the street similar to how it is done in Chicago, if parking ends up being something those residents need.
“This is going to be just the first of others that we could have this issue with long-term,” she said.
Also, once the Hollywood Casino moves out of downtown to its new spot near the Chicago Premium Outlets mall near Interstate 88, there will be more parking available downtown, Morgan said.
The Aurora City Council previously approved a $1.3 million incentive for the micro-unit project at the historic hotel, funds which will come from the city’s tax on gaming, according to previous reporting.
At that time, Barrera was planning to primarily finance the project, which is set to cost a total of $6.65 million, through the sale of historic tax credits, which the building is eligible to receive because it’s on the National Register of Historic Places and in Aurora’s Riveredge Redevelopment Zone.
The building is also in a tax increment financing, or TIF, district — the same one that was created for the historic Hobbs Building project across Galena Boulevard. So, Barrera will get back 80% of the difference between the building’s current property tax and the future property tax from after the project is completed, according to past reporting.
City officials previously estimated that the building’s property taxes would increase from about $4,000 a year to between about $20,000 and $25,000.
rsmith@chicagotribune.com
