Renovation work for a much-anticipated new downtown restaurant in Rocky Mount is slated to begin on the historic Carleton House property in the coming days.

Plans call for a June 1 opening of the new Four Seasons Restaurant and Conference Center at 215 N. Church St.

The project is being jump started with the help of a $250,000 state grant that will be used toward the estimated $1.1 million building renovation costs, as well as a financing agreement with N.C. Wesleyan College.

The new owners will make payments of about $3,000 a month to the college until permanent financing is secured to cover the $500,000 sales price.

“We’re financing it for 36 months,” said Tom Betts, a N.C. Wesleyan College trustee who negotiated the sale. “They will begin making monthly payments to us once the restaurant opens.”

Betts said the financing arrangement was designed to facilitate the sale. For several years, investors — including former basketball player Phil Ford — were interested in buying the property, but they couldn’t secure the financing.

“The credit markets are so tight,” Betts said.

Betts said the financing arrangement isn’t the best way to sell a property.

“But it was the only way we saw (to sell it) as far as the college is concerned,” Betts said. “We’re getting rid of a depreciating, deteriorating asset.”

The financing arrangement is a no-lose situation for the college, Betts said.

“Either we get a half a million (dollars) in 36 months, or get the property (back), which by then will have had a half a million (dollars) in improvements,” Betts said.

He also said that the college won’t be shelling out insurance and property maintenance expenses while the restaurant is open.

“There are lots of costs (to owning the building),” Betts said.

Betts said he hopes the restaurant is a success.

“I think if we can get the crime situation solved, and people feel comfortable about going downtown, I think there is a reasonable chance (the new owners) can be successful,” Betts said.

Toney Vaughan, Mildred Walker and Kochie Richardson purchased the building from the college in December with plans of renovating the property and opening an upscale restaurant, lounge and conference center.

Vaughan had operated the Four Seasons Restaurant & Catering in the Gold Rock community for 10 years, and most recently, in the Battleboro community. The restaurant closed two and-a-half years ago, but the catering business has continued.

Vaughan said Monday that the first repair is replacing a leaky roof.

“We have to wait on weather to break here,” he said.

Other renovations will include replacing air conditioning and refrigeration units, painting the building, developing a new banquet hall and installing new carpeting.

Plans call for initially opening 10 to 20 of the 70 hotel rooms.

“We’re testing the waters with rooms,” Vaughan said. “We’ll see how well it goes. If it goes well, we’ll proceed with that. If it doesn’t go well, we’re thinking (we’ll renovate the rooms) for office space.”

N.C. Wesleyan College used the Carleton House facility as dorm space for two years after the restaurant and hotel closed in February 2003 following more than 40 years of business.

Last Monday, the Rocky Mount City Council agreed Monday to administer a state economic development grant intended to create more than 20 jobs at a former downtown landmark.

The $250,000 N.C. Rural Economic Development Center grant will go toward the renovation work.

It requires a 100 percent match from the business owners and $8,200 of in-kind services from the city to administer the grant. If the owners fail to hit and maintain their stated job creation target of 21 full-time positions for at least six months, the grant contract stipulates that a percentage of the money will have to be repaid.

Rocky Mount Assistant City Manager Peter Varney said Monday the new downtown restaurant should attract customers from the nearby Imperial Centre for the Arts & Sciences and the Braswell Memorial Library.

“(The restaurant) would mean traffic (downtown) — people coming downtown to the restaurant, business activity associated with it,” Varney said.