Another Downtown Galesburg property faces demolition. Owner won’t respond

St. Mary's Square in Galesburg

Another downtown Galesburg landmark is facing the wrecking ball.

The City Council on Monday will be asked to consider moving forward with the demolition process of the dilapidated former St. Mary’s Hospital, most recently St. Mary’s Square Living Center property located at 239 S. Cherry St.

According to city administration, the property has seen a significant increase in criminal activity over the last year. Large sections of copper pipe have been removed by trespassers, and Galesburg Police have responded to 33 calls to the property and have made multiple arrests.

After an inspection of the property the city building Inspector sent the required 15-day notification to the listed owner of the property requesting compliance. No contact has been made.

Demolition Notice for 239 S. Cherry St. by WGIL Radio on Scribd

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Kartrina Zhong, who oversees KXZ Properties LLC of Provo, Utah, is the owner of the property. She had presented 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.

Taxes unpaid, basement flooded, facade crumbling

The agenda item notes there have been four administrative adjudication cases in the prior six months for property maintenance and board-up orders that have resulted in $5,750 in unpaid fines and fees.

The city is spending around $500 to $1,000 every two weeks in board up fees to try to secure the property. The city’s Board up contractor has welded multiple metal doors shut to try and curtail some of the issues.

There has been no water service to the property since August of 2014. There are several upper story openings that allow weather infiltration, the building has five feet of standing water in the basement due to nonfunctioning sump pumps, large pieces of limestone façade are coming loose and falling off.

Steve Gugliotta, director of Community Development for the City of Galesburg, told WGIL in October fiscal year 2022 property taxes payable in 2023 have not yet been paid.

Demo costs could reach $1 million

St. Mary's Square

Demolition costs are estimated to be $750,000 to $1 million.

Earlier this year, the city completed demolition of two other blighted downtown properties — the former Broadview Inn & Suites hotel on the Public Square and most recently the Harrington Home at 91 W. Simmons St.

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.

The request before Council on Monday is to approve moving forward with the demolition process. If approved, the following steps need to be taken:

  • A title search will be conducted and if it is found that there are any other parties with ownership interest, staff will send additional notices.
  • If there are no responses, the City Legal Department will pursue all necessary steps to obtain an order for demolition.
  • Once an order is received, staff will order an asbestos inspection on the property.
  • Staff will request utilities to be terminated at the property
  • Staff will contract with a design firm to draft demolition specs and put the property out for bid.
  • Bids will be taken to City Council for approval.
  • The selected demolition contractor schedules the demolition.
  • Once the demolition is complete the City will lien the property and foreclose on the lien.

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.

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