DANVILLE -- News that the owner of the Harwal Hotel, with a newly formed charitable organization, is planning to turn his "uninhabitable" building into housing for homeless veterans came as a surprise to city officials.

Eric Williams -- Harwal owner and Soldiers From Above spokesman and vice president -- plans to make the four-story brick building at 101 W. Harrison St. into a 42-unit transitional living center, with the purpose to "house homeless veterans, male and female, and provide food, clothing, counseling, fellowship, job training and placement and case management."

The renovated facility would house about 40 homeless military veterans, according to the group's website, which also states the building is under renovation and scheduled to open this summer.

Williams is the last registered owner of the Harwal, which was declared uninhabitable by the city in 2007.

According to the Illinois attorney general's website, Soldiers From Above registered as a charitable organization on Jan. 26, 2011. The group lists its address as 101 W. Harrison St., Suite 3, Danville -- the same address as the vacant Harwal. The group lists assets of $1,650 as of Jan. 31.

In January 2006, the building operated as transitional housing. Williams had received a five-year contract beginning in 2005 for $37,500 to house paroled sex offenders. At the time, he told The News-Gazette that he would use that income to secure a $500,000 loan to renovate the building. However, because Illinois Department of Corrections guidelines were not being met, the department removed several sex offenders from the site and ended the contract.

When electricity to the building was cut off in the summer of 2007, the city deemed it uninhabitable for health and safety code violations, and the building has been empty since then. The city has fined Williams multiple times for exterior code violations, including missing or broken windows.

City Corporate Counsel David Wesner said Thursday that the city has several pending court cases against Williams involving code violations and vacant-building fines, in both Vermilion County Circuit Court and Danville Municipal Court.

Wesner stated in a December 2009 interview that the outstanding fines totaled more than $35,000.

In addition to the fines, Williams has not paid 2008 or 2009 property taxes on the building, according to the Vermilion County clerk's office.

"Organizers will still have to have a plan for the building that fits zoning requirements for its location and have the financing appropriate to meet all requirements," said John Heckler, Danville public development director. "If they do, that would be great."

Williams has spoken often about improvements he has made to the Harwal and plans for renovation.

In February 2006, Williams installed a security camera and new lighting when the facility housed parolees. At that time, he said he had applied for a $500,000 loan to make improvements.

In November 2006, Williams told The News-Gazette that he would use income from his Corrections Department contract to secure a $500,000 loan from a Chicago bank. His plans included fencing in the property and repairing the exterior after "years of neglect."

In December 2006, workers were on site painting woodwork and boarding up empty windows because of a city order. For several months, the temporary work satisfied the city and the building remained open.

In April 2007, Williams was given more time to make permanent repairs. "We've already complied with everything," Williams said of the temporary repairs. "Our whole goal is to fix the building regardless." He also told The News-Gazette he was still waiting on financing to repair the building.

In summer of 2007, the electricity was shut off and the city ordered the building closed. The then-managers told The News-Gazette that when it rained, water dripped through the first-floor ceiling.

In August 2007, Natu Bhakta told The News-Gazette that he sold the Harwal to Williams in 2002 on contract and that Williams still owed between $8,000 and $9,000. Bhakta said he had no plans to repossess.

In March 2009, Williams said he was securing a loan to renovate the building and provide housing for low-income people, but the city's "harassment" made it difficult to get financing. "I just want to fix the building," Williams said at that time. "I bought it in existing condition. I'm the only one who has ever tried to fix it."

In December 2009, Williams allowed the city to inspect the building's interior, with the idea of identifying what code violations needed to be fixed. "All I've wanted to do is put the building back together," he said.