The Aurora City Council approved Tuesday a developer’s plan to rehab the historic Galena Hotel in downtown Aurora into over 20 micro-unit apartments, which is a new concept for the city.
Developer Fernando Barrera, an East Side Aurora native and Aurora Central Catholic High School graduate, plans to convert the building at 116 W. Galena Blvd. 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.
The former hotel has sat vacant since 2020, and Barrera first purchased the building in 2023.
The Galena Hotel building was first constructed in 1862, making it one of the oldest in the city. It was previously owned by E.D. Huntoon, a one-time board member of the town of Aurora, and was known as Huntoon House, the finest hotel in Aurora, according to past reporting.
At Tuesday’s City Council meeting, Aurora aldermen voted 10-1 without any discussion to approve the plan and a special zoning designation for the project, called a Conditional Use Planned Development. Ald. John Laesch, at-large, voted against the project while Ald. Ron Woerman, at-large, recused himself due to a conflict of interest.
Five units are planned for the building’s downstairs, with the lobby also being converted into an apartment. The second and third floors would each hold seven units, and the fourth floor would hold two larger units.
The interior of the building is planned to be reconfigured, but the center stairwell corridors, which a staff report about the project called “the building’s most significant and intact pubic spaces,” are set to be restored.
The only major changes to the building would be a new addition on the back that will hold an elevator for residents, which could only be accessed from inside the building, and a new stairwell also on the back of the building, according to past reporting.
The developer has worked with both the city and the state Historic Preservation Office, along with others, to make sure that the additions have little impact on the historic building since Barrera plans to use historic preservation tax credits for the project, city staff previously said.
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.
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, staff previously said.
Barrera told the Aurora City Council’s Building, Zoning and Economic Development Committee earlier this month that the plan is to target working-class professionals to live in the units, and all the leases would be for a minimum of 12 months.
The units will not have dedicated parking spaces. Instead, those who live in the apartments will need to get permits to park long-term in city lots, staff previously said.
The Aurora City Council approved last September a $1.3 million incentive for the micro-unit project at the historic hotel, according to previous reporting. These funds are set to come from the city’s tax on gaming
Barrera said at the time that he is 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 the tax increment financing, or TIF, district that was created for the historic Hobbs Building project across Galena Boulevard. 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 because of the TIF district, according to past reporting.
City officials previously estimated that the building’s property taxes would increase from about $4,000 a year to between roughly $20,000 and $25,000 when the project is completed.
rsmith@chicagotribune.com
