An ambitious plan that would have brought a multi-million dollar development featuring office space, residential units and even a rooftop restaurant to a blighted downtown Galesburg property has apparently fallen apart.
Kartrina Zhong, who oversees KXZ Properties LLC of Provo, Utah, is the owner and developer behind the project that would have revitalized the former St. Mary’s Hospital and most recently St. Mary’s Square Living Center at 239 S. Cherry St.
City officials and the former architect and project manager tell WGIL this week that they don’t anticipate the project being completed.
“To our knowledge, that proposed project is not moving forward,” said Steve Gugliotta, director of Community Development for the City of Galesburg.
Additionally, Gugliotta said the city has issued numerous nuisance notices to KXZ Properties LLC for failing to maintain and secure the property. He added fiscal year 2022 property taxes payable in 2023 have not yet been paid.
Cody Basham of Klingner & Associates, the architect and project manager for Cherry Blossom Plaza, told WGIL in November 2022 that selective demolition could be done in Spring 2023, with construction for buildout of the tenant spaces and rooftops shortly thereafter. He said completion is tentatively planned for the summer or fall of 2023.
Basham also cautioned, “This is highly dependent on many factors since this is a large building/project.”
“I guess I would say with the long standstill, I don’t believe the project will move forward with its original intent.” — Cody Basham of Klingner & Associates, the architect and project manager for Cherry Blossom Plaza
Those unnamed factors have come into play.
This week, Basham said, “I guess I would say with the long standstill, I don’t believe the project will move forward with its original intent.”
The developer proposed a phased renovation of the entire building which would result in business/office uses on the first, second and third floors, high-end residential units on the fourth floor and a seasonal restaurant on the rooftop. The project would have been called Cherry Blossom Plaza.
Zhong — who was born in China, lived 10 years in Australia and went to college in Utah — has no previous ties to Galesburg. She acquired the former St. Mary’s Square site unseen via an online auction. KXZ Properties bought the property from Laureate St. Mary’s LLC for $507,677 on Nov. 19, 2021.
Knox County was interested in being a tenant
A year ago, Basham said KXZ Properties was currently working with an unnamed principle tenant that was looking to occupy the building. Jared Hawkinson, chairman of the Knox County Board, said this week the county had explored a deal last year that would have located office space in the former St. Mary’s Square.
“The county was interested in looking at what options that building and property could provide the county for office space, but it’s not something we’re moving forward with as of now,” Hawkinson said, noting lease costs were an issue.
“I was excited about the project, but I think it just turned out to be too expensive. It would have been a perfect spot, located right there next to the courthouse and downtown. It’s a shame because it’s such a prime location.”
Repeated attempts by WGIL to reach Zhong for comment have been unsuccessful.
Gugliotta said the city was communicating with the owner through a professional design firm and contractor the owner had hired, but those agreements have expired.
“The only communication we have now with the owner is when the city sends nuisance violation notices for trash/debris, weeds, board-ups, etc.” Gugliotta said.
The 139,192 square foot, two-building, five-story property currently features 168 resident rooms, a boiler and laundry facility and 45 parking stalls.
The city continues to issue nuisance notices, according to Gugliotta, who said there are some fines and associated abatement costs for boarding up and weed mowing that total to just more than $2,000.
Police respond to trespassers in property
According to Galesburg Police Department records, there were two calls reporting trespassing between August 2022 and November 2022 . The November resulted in finding four people.
GPD reports five calls for trespassing at the former St. Mary’s Square between May 2023 and August 2023 — noting in all situations, it was one of, or a combination of, the same four people.
Police officers continue to make periodic exterior checks of the property, and if openings are noticed, the city takes action to secure the building.
The property was the former longtime and original site of St. Mary’s Hospital, which traces its roots to 1909. St. Mary’s Square Living Center opened in September 1977 as a for-profit business and transitioned to a not-for-profit operation in 1979.
