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Arcade buyers' previous restoration projects delight local officials

By Joanne Huist Smith

Staff Writer

Friday, March 13, 2009

DAYTON — Board members of Friends of the Dayton Arcade glowed Thursday, March 12, after witnessing the purchase of the five-building complex downtown by developers focused on historic restoration.

"I am so excited. I'm almost speechless," board member Joanne Granzow said. "They already have a lot of friends in Dayton."

Gunther Berg and Wendell Strutz drove seven hours from their homes in Plymouth, Wis., to attend the Montgomery County Sheriff's tax lien sale to have the chance to purchase a property they have sought for about six months.

The two discovered the interconnecting 1902-era buildings for sale on the online auction site eBay. They were high bidders during the eBay auction at $700,000, but former owner Tony Staub of Brownfield Charities, said he turned down their offer hoping to get $3 million from the sale for his charity. Thursday, he was resigned to the sale.

"Money isn't everything," he said.

Strutz said their first task will be to stabilize the buildings, including replacing broken panes in the glass-domed rotunda, 70 feet high and 90 feet in diameter.

"It's a very unique building," Berg said. "It will be a significant amount of money we have to invest."

Restoring several of the apartments on the upper floor of the Arcade also will be a priority, so the two will have places to stay during the restoration.

Sandy Gudorf, president of the Downtown Dayton Partnership, said she's worked with a number of developers over the years with visions for the Arcade that haven't materialized.

She believes the community will support Berg and Strutz if their plan — and funding — comes together.

"We'll wait and see what happens over the next 30 days," she said. "I'm sure if they buy it, they'll be in it for the long haul."

U.S. Rep. Mike Turner, R-Centerville, said this could be a great opportunity for Dayton if the partners bring resources and commitment to the restoration.

"Obviously we're very hopeful they can demonstrate the resources and ability to undertake an Arcade development," said Turner, a former mayor of Dayton.

Work in Wisconsin

Berg's company, AIM Engineering LLC, held a ribbon-cutting in June on a restored circa 1900, two-story in downtown Plymouth. He recently purchased a second building nearby and restoration is just getting underway.

"The first building Berg did in Plymouth turned out to be a phenomenal piece of work," Plymouth Mayor Donald Polhman said. "I would say you are very fortunate in Dayton to have Gunther Berg at work in your community."

The mayor said the developer tackles projects with an Old World approach.

"He basically goes down to the bare walls and starts on curing any problems, then he upgrades. He researches the historical architecture to make it true to the original," Polhman said. "He doesn't skimp. We were very pleased in Plymouth."

Strutz, president of Strutz Financial LLC, an accounting/finance/IT consulting firm, renovated a smaller building in downtown Plymouth facing the Mullett River. The owner-occupied building officially opened in February.

"We have been told in Plymouth that we need to capitalize on the river," said Lisa Hurley, executive director of the Plymouth Chamber of Commerce. "It's amazing what he has done with that building. The fact that it faces the Mullett adds to the overall renovation of downtown."

History of the Dayton Arcade

1902 Dayton businessmen E. J. Barney and Michael J. Gibbons begin construction on the Dayton Arcade downtown between Third and Fourth streets.

1904 The Arcade opens on March 4 in the heart of Dayton's Central business district at a cost of $2 million. The space originally was used as a farmer's market with housing on the upper floors.

1975 The Arcade is placed on the National Register of Historic Places.

1976 Arcade Square Ltd., a limited partnership, announces plans to redevelop the arcade.

1980 The Arcade reopens with six shops after a $14 million renovation. Comedian Phyllis Diller is the star shopper at the event. By December, there are 33 merchants operating in the retail center.

1990 The Arcade is purchased by Danis properties.

1991 The complex closes due to funding issues and few shoppers.

1992-93 The Arcade opens for Holly Days sales at Thanksgiving and Christmas.

2004 Tom Danis sells the complex to Brownfield Charities for $1.

2009 Gunther Berg and Wendell J. Strutz of Plymouth, Wis., buy the Arcade at a Montgomery County Sheriff's tax lien sale.

Contact this reporter at (937) 225-2000 or josmith@DaytonDailyNews.com.

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