A project to turn the C.P. Klein mansion on the corner of Fourth and Walnut streets into a fine dining restaurant is back on, after some successful brainstorming to make the financing work.

Developers Norm and Jan Kraus gave the council an update at its meeting Monday night. Things looked bleak for the restaurant recently with financing problems that were forcing the city to begin considering other options for the historic building’s reuse.

The Krauses told the council Monday that they had worked out their financing to go ahead with the project. They are opting to phase renovations to the building, holding off on the addition of an elevator to the third floor.

“It swung us from being down 10 percent to being up 15 percent,” Norm Kraus said.

Without the elevator, the third floor, which the Krauses have envisioned as banquet space, will be unusable.

City Administrator Matt Podhradsky said that the third floor has always been a difficult reuse, but was encouraged that the Krauses were ready to move forward at last.
“We think this is a great project to help promote downtown,” he said.

“I’m very excited to hear this,” said Mayor Gary Van Eyll. “Now when? When? When?”

“For the first time in a long time, we’re excited to hear that question,” Norm responded.

Once the Krauses and their financiers finish up some paperwork, they anticipate they can begin work in the next 30 to 60 days with construction work lasting four to five months.

“So we’re looking at November,” said Jan Kraus. “Though it’s a little scary to open around Thanksgiving/Christmas.”

Former Best Buy executive Bob McGrath has signed on to help the Krauses with marketing in the coming months. “I was excited by this opportunity,” he said. “I always thought there was a need.”

There will be no changes to the original agreement between the city and the Krauses. A perpetual historic preservation easement will be placed on the building and the city will have first right of refusal to repurchase should the restaurant cease to operate.

“It is an important part of our history,“ Van Eyll told the Krauses. “We are trusting you with that.”