KNOXVILLE, Tenn. — A building more than a century old on East Jackson Avenue faces demolition after a Knoxville developer said crews found the building would not be salvageable for a $20 million project that includes condos, a short-term rental space, a bourbon lounge and a restaurant. The project is named "Excelsior."
The building at 115 E. Jackson Avenue is a "contributing historic structure" to the National Register of Historic Places' Southern Terminal and Warehouse Historic District, according to Knox Heritage. It said it was built around 1890 as the Knoxville branch of the Armour Packing Company.
The company started in California and eventually became the largest meatpacking company in the world. The company helped pioneer several slaughtering techniques and the use of waste products. It also helped pioneer the sale of canned meat before refrigeration was introduced, and meat was exported to Europe.
"Knox Heritage is concerned about the domino effect this type of project will have on the Old City’s historic fabric as the area grows in popularity alongside the development of the mixed-use stadium. While the building to be demolished is modest in size and design, the one-story brick warehouse is characteristic of the historic district’s unique qualities," Knox Heritage said in a statement online.
It also said that the building represents an area of Knoxville that became a wholesaling center for the East Tennessee region, demonstrating its prominence from the late 1870s through the 1930s.
It said it met several times with the building's owner, Jim Klonaris. He is a prominent developer in Knoxville having created restaurants and bars like The Press Room, Kefi and The Vault. He said that he worked on a total of seven other projects where he restored buildings.
"We met with Knox Heritage, back in December or November," he said. "We invited them into the building and our intent was to show them the challenges that we had, just to get their perspective on what we should do. We weren't trying to do something and hide it. We were being very proactive and saying, 'Look, we have a problem here. What do I do? I can't afford to renovate this building.'"
He said renovating the building would cost twice the amount it would for it to be demolished, and said that he expects the building to be demolished in mid-March.
"We'll do a whole history of the building and put it in photography form in the lobby area. We'll create an homage and its impact in the area," he said.
He also said they plan to reuse the wood in the building, and that some people already reached out about using the wood for themselves. He said that they are planning to give away the lumber, too.
The Excelsior project started in the spring of 2021 when the building was purchased. In the winter of 2021, a team of contractors and structural engineers recommended the building be completely demolished. Then, in the late spring of 2022, an environmental survey also found high amounts of asbestos that would need to be abated.
"We sat down with general contractors and engineers. Oh boy, the engineers. We were showing them ideas of what we wanted. And they came back unanimously, unfortunately, about 30 days later and said, 'Jim, you are never going to be able to renovate this building,'" said Klonaris.
Interior damage of 115 E. Jackson Avenue building
According to the project's website, some trusses are about the fail and some beams have already failed. It says that components of the building that were used to refrigerate meat later created moisture, which led to rot. It also says that the original façade of the building was replaced in the 20th century.
It also shows areas where bricks are crumbling, which would require many walls to be rebuilt and the smokestack removed. Inconsistent floor heights would also create accessibility issues, which would require ramps and lifts. Since the floors are mostly concrete, much of the building's interior would also need to be demolished for those changes, the website said.
"Five years ago, when we started construction on what's now known as Kefi, it was in the middle of a block where there was nothing," said Klonaris. "We kind of jumped out there. There was no such thing as a possible stadium back in those days. That wasn't even conversation."
The building is located across the street from Kefi, and he said he feels lucky to be able to buy it before the stadium project was approved.
He said he expects the building to have two condos on the roof, with around 26 short-term rental units with laundry rooms and kitchens that can host up to six people. He also expects to build a community room that anyone staying in the building can use.
The building will also include a "gentlemen's bourbon lounge" with a cigar room in the basement area and a steakhouse, he said.
"It's the biggest project I've ever done," he said.
He said he hopes to have enough construction drawings by the end of April to be able to present to the Design Review Board for approval. Once that happens, he said that he expects to start construction. He said the project can take up to two years to complete.
Knox Heritage's full statement about the building's upcoming demolition is available online.