A former downtown Galesburg hospital is once again for sale despite the city starting the demolition process for the blighted property.
The original St. Mary’s Hospital located at 239 S. Cherry Street is on the market with an asking price of $2.2 million. The property most recently sold for $507,677 on Nov. 19, 2021.
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.
According to city administration, the property — most recently St. Mary’s Square Living Center — 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.
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.
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.
Council approves moving forward with demolition
The Galesburg City Council voted 7-0 Monday to move forward with the demolition process on the property. Demolition costs are estimated to be $750,000 to $1 million.
Steve Gugliotta, director of Community Development for the City of Galesburg, tells WGIL that his department discovered Monday via an internet search that the property was listed for sale.
“I did call the real estate broker yesterday and confirmed the property is in fact listed for sale and they are accepting offers,” Gugliotta said. “Staff informed the real estate broker of the Council meeting taking place (Monday) night and that we were in the very early stages of the demolition process.
“He was also informed the city has not received communication from the owner for some time and we have been using city resources boarding up the property, mowing, and picking up trash and debris on a consistent basis.”
Gugliotta said he told the real estate broker the city will continue moving through the demolition process. The Realtor, according to Gugliotta will keep the city abreast of offers for purchase and redevelopment of the property.
The developer had 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.
‘A prime redevelopment opportunity’
The marketing description on the online property listing reads:
Introducing St. Mary’s Square – a prime redevelopment opportunity located at 239 S Cherry Street in Galesburg, IL. This former Skilled Nursing Facility offers tremendous potential for a multi-family development. With a total of 2.7 acres and approximately 139,192 square feet of space, this property presents a unique value-add opportunity. Featuring 168 total resident rooms, including a Living Center and Boiler/Laundry Facility, St. Mary’s Square is ready for a new chapter. The property is currently 100% vacant, allowing for a blank canvas for investors to create a dynamic living space. The asphalt and concrete parking lot has space for a minimum of 45 vehicles, providing ample parking for residents. Located in an Enterprise Zone, this property offers tax benefits and incentives for future investors. Situated across the street from Knox College and downtown Galesburg, it boasts a prime location surrounded by amenities, ensuring a desirable living experience for future residents. Don’t miss the chance to transform this historic property into a thriving multi-family development.
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.