A Madison developer is proposing a massive redevelopment of the Edgewater Hotel, offering to turn the venerable but faded landmark on Lake Mendota into a destination that would “reshape the city” as the Overture Center and Monona Terrace did.

The $107 million project, which developer Robert Dunn said aims to reinvent the Edgewater as “Madison’s living room,” has put a twinkle in some people’s eyes — and is raising the eyebrows of others.

“It’s going to be wonderful for the neighborhood and the city,” said Harvey Wendel, president of the nearby Pinckney Street Condominiums, one of dozens of area residents and officials with whom Dunn has shared preliminary plans for the project.

Mayor Dave Cieslewicz has also declared himself a supporter, “no question about it,” but acknowledged the project faces many hurdles.

“There’s a long road ahead of us,” he said.

Dunn, president of Hammes Co., is proposing to restore the Art Moderne style of the original Edgewater, built in 1948, while building a landscaped public plaza atop the 1973 addition that would offer sweeping views of Lake Mendota and a grand staircase cascading to the waterfront and piers.

The most prominent part of the project is an 11-story hotel addition, built in a neo-classical style, on the north end of the property.

The project would have 228 rooms, 364 parking spaces, fine dining, casual restaurants and a bar — including a revival of the memorable Rigadoon Room — a spa, fitness center, pool and a large inside space overlooking the lake that could be used for concerts, lectures, films, weddings and other events.

Dunn, a Madison native whose parents were married at the Edgewater, said he intends to build on the storied history of the hotel, which has hosted Elvis Presley, Bob Hope, Bob Marley, Indira Gandhi, George H.W. Bush and other notables. The hotel is also special to generations of people who attended weddings and parties, met for dinner or drinks, or worked there.

“It’s a lot more than a hotel,” he said. “We’re trying to take an asset that’s aged and put it on a course for the next 100 years.”

How it benefits Madison

Scott Faulkner, Edgewater president and general manager, will stay with the hotel, which has been operated by his family at 666 Wisconsin Ave. since it opened in 1948, Dunn said. Faulkner’s father, Augie, managed the hotel when it opened and owned it from 1963 until his death in 1996. The Faulkner family now owns two-thirds of the property, and neighboring National Guardian Life Insurance owns the rest.

Dunn, who is near closing on buying the property for an undisclosed price, estimated the redevelopment would bring more than 900 construction jobs and 500 permanent jobs once the revived hotel opens. The company estimates the hotel would generate $54 million in direct and indirect spending in Madison and the surrounding area annually, while public coffers would get more than $20 million a year in property taxes and other revenue.

The development will be privately financed, but Hammes will seek city tax incremental financing (TIF) support for public elements including the terrace, stairway and parking, he said. Dunn declined to reveal the size of the TIF request, but Ald. Mike Verveer said it may exceed $5 million.

The project, in a historic district near the UW campus, is in a direct line from Lake Mendota to the state Capitol and Monona Terrace on the other side of the Isthmus.

“This is a project that in many ways can reshape the city,” said Dunn, whose company has handled dozens of major developments locally and around the globe including the Kohl Center in Madison, Lambeau Field in Green Bay, and the new New York Giants-Jets football stadium.

Concerns expressed

Hammes spent months quietly seeking support from political and business leaders in the neighborhood, adjusting and refining plans along the way.

But the approach has disturbed some, who say Hammes selectively shared information and hasn’t resolved concerns about the height of the proposed tower, the effect on the nearby Mansion Hill Historic District, the view of Lake Mendota — protected by city ordinance — and traffic, noise and parking concerns.

Alds. Bridget Maniaci, whose 2nd district contains the Edgewater, and Verveer, whose 4th district abuts the area, said there is much to like in the proposal but it has created tensions among neighbors.

The developer even organized a neighborhood group — the Mansion Hill Neighborhood Coalition — as an alternative to the existing neighborhood association, Verveer said.

“They’ve done the most superb job of rounding up support for the project behind the scenes that I’ve ever seen,” said Verveer, who has mixed emotions about the proposal. But “I think it’s been too messy and too slick for Hammes’ own good.”

The proposal is supported by Downtown Madison Inc., the Wisconsin Alumni Association, nearby First United Methodist Church and several neighborhood leaders.

“It takes real advantage of this beautiful spot and creates all these appealing public spaces,” DMI President Susan Schmitz said.

Tower too tall

But Capitol Neighborhoods Inc. and the Mansion Hill Neighborhood Association are troubled by parts of the plan.

The hotel tower far exceeds the 50-foot height limit for the historic district. The public plaza would spoil views of the lake from Wisconsin Avenue and Langdon Street. And the development would generate too much traffic and noise, said resident and landlord Fred Mohs, a member of a neighborhood steering committee studying the project.

In terms of rooms, the hotel would be the city’s fourth largest. Marcus Corp. recently proposed a 275-room hotel on the Madison Municipal Building block but has not submitted a formal plan.

Ledell Zellers, former president of Capitol Neighborhoods and a steering committee member, called Dunn’s maneuvering behind the scenes “disheartening” and said the project could harm the neighborhood by inspiring owners to let properties decline so they can be demolished for big buildings.

Leigh Richardson, president of the Madison Trust for Historic Preservation, shares many of the same concerns but has taken no formal position.

225 meetings held

Dunn said he respects the critics but disagrees with them. Hammes has had frequent communication with neighbors and others, holding 225 meetings with a broad spectrum of residents and groups, he said.

“We’ve not only been inclusive, we’ve gone to extraordinary effort to be inclusive,” he said.

The hotel tower comes up to the maximum height allowed by city and state law to preserve the view of the Capitol dome, but the building is just 28 feet taller than the one next door, Dunn said. He said the company reduced the tower’s mass and moved it to preserve the view of the lake from Wisconsin Avenue in response to neighborhood concerns.

Noise and traffic concerns also are being addressed, and the hotel will provide more parking per room than any other in Madison, he said.

The project, he said, will produce revenue to improve a neighborhood in which only 3 percent of the housing is owner-occupied and more than half of the properties are blighted.

Cieslewicz applauded the added hotel rooms, access to the waterfront and other offerings.

“There are so many benefits to the city as a whole and so many potential benefits to the neighborhood itself,” he said. “There’s so much good that can come from it.”

Plan to be submitted

Dunn will submit formal plans next month, which will trigger reviews by city committees and ultimately the City Council. He said he believes the community will embrace the project.

The Edgewater — which has 107 rooms and features the upscale Admiralty dining room and Cove Lounge, the seasonal outdoor Pier Cafe and meeting space — was once the city’s premier hotel but has lost its luster, he said.

A simple renovation was impractical, he said. By expanding the hotel, the Edgewater will be able to offer things “that don’t exist anyplace else” locally and maximize the site’s potential as a public place — Lake Mendota’s answer to Monona Terrace, he said.

It’s the same approach Hammes used to expand and develop Lambeau Field to make it a year-round attraction, coupling tradition with new public spaces and amenities. The stadium, which once mainly hosted about 10 football games annually, last year hosted 687 events, he said.

If the project is approved, Dunn hopes to start construction next year and finish it in early 2012.

“He’s going to do something here that I and the family could not do,” Faulkner said. “He’s going to leave a legacy here. I just wish my father were here to see it.”