Carol Johnson | Southern Indiana Business Report
PAOLI – In a county whose fortunes have been dramatically altered by historic preservation, one Orange County landmark has not been so fortunate.
But that could soon change thanks to a local effort dedicated to stabilizing and restoring a historic hotel on the Orange County Courthouse square.
Springs of Hope in Paoli is the new nonprofit organization that is working to revitalize the Mineral Springs Hotel. Dr. Sean Salés, Springs of Hope board president, said he began having conversations with people who cared about the building and the downtown last fall. When it became clear the commitment to save the hotel was there, steps were taken to form a nonprofit and meet with the hotel’s owner.
The organization purchased the hotel – built in 1896 – from previous owner Donna Dillard late last year. With an energetic board of directors, Springs of Hope is raising the estimated $5 million to $8 million needed for restoration.
The building is approaching now-or-never status. A storm in spring of 2025, tore off the roof off the building, and rain soaked the upper floors. That sense of urgency is driving Springs of Hope.
The first priority is a roof. Salés said a temporary roofing solution will be applied as soon as possible to prevent further damage until a permanent roof is designed by engineers and installed. Masonry restoration and temporary window protection are also priorities, with full restoration to follow as additional funding becomes available.
“Without a roof, we knew we would lose the building if something wasn’t done very quickly,” Salés said.
A structural engineer toured the building and assessed it as structurally sound with a solid foundation. A wood restoration expert also examined the interior and said that with some repairs, most of the woodwork is intact.
The group plans to pursue grants for the initial funding; Springs of Hope has applied for a READI 2.0 grant that addresses blight. The Town of Paoli has agreed to match the grant amount.
A grant writer working with the nonprofit is applying for grants and other revenue that could bring in $2 million to $3 million this year. The group’s business plan calls for turning the Mineral Springs into a boutique hotel with 25 guest rooms. The restored hotel will also have space for a full-service restaurant and two retail spaces.
Next steps are hiring an architectural firm, with three firms working on submitting proposals now, and engaging with local and regional partners to invest in the project.
A landmark on the brink of extinction
The Mineral Springs Hotel served as Paoli’s social and recreational center for decades. It had an opera house in the lobby, a billiard hall, ballroom, bowling alleys and served as a Greyhound bus stop. It was also the first building in Paoli to be electrified, and provided electricity to the Town Square using a steam-powered generator. A historical account of the hotel reports “600,000 bricks are in the wall, ten miles of water pipe, electric wires and stream pipe are used in the structure and 2,000 yards of carpet cover the floors.”
The hotel closed in 1958, and various businesses occupied the ground floor until recent years.
In 2025, the Mineral Springs Hotel landed on Indiana Landmarks 10 Most Endangered list, an annual list of historic sites on the brink of extinction, but still salvageable.
Springs of Hope’s plans are the first glimmers of hope for the hotel.
“Indiana Landmarks is elated that a local grass-roots effort has organized to purchase the hotel and develop a vision for the property as a small-scale boutique hotel. Indiana Landmarks, along with our affiliate group Saving Historic Orange County (SHOC) has been assisting the effort as it enters the pre-development stage of planning for stabilization and installation of a new roof to make the structure weather tight,” said Greg Sekula, Southern Regional Director for Indiana Landmarks. “Keeping the elements out is the first necessary step in securing a future for the property.”
Springs of Hope has submitted a grant request through Indiana Landmarks Endangered Places Grant Fund to assist with hiring an architect to help guide construction work, added Sekula.
The effort is generating excitement throughout the community.
“The Mineral Springs Hotel is one of Orange County’s most recognizable historic assets, and its presence on the square makes it central to Paoli’s identity. Seeing that building restored and repurposed would be a meaningful step toward revitalizing the square and creating new energy downtown,” said Skylar Whiteman, executive director of Orange County Economic Development Partnership. “When projects like this come together, with a clear plan and strong alignment with the community’s long-term vision, they can serve as a catalyst for additional investment, bring more people into the area, support small businesses, and enhance quality of place.”
“The restoration of this historic hotel is an exciting turning point for our beautiful downtown. It will bring new life and energy to the town square, celebrate our community’s story, and create a vibrant destination where people want to stay, shop, and explore,” said Chelsey Thomas, board member of Possibilities in Paoli, the town’s Main Street organization. “Projects like this spark momentum – fueling local businesses, attracting visitors, and driving lasting sustainability within our Main Street.”
‘We’re restoring community’
Salés moved to Paoli in 2018. He noticed the Mineral Springs Hotel his first day in Paoli because of its architectural beauty, and it frequently was on his mind.
As years passed, Salés, who practices family medicine at Southern Indiana Community Health Care, pondered what his role might be.
“I’m a person of faith and I began praying about whether this is something I should take on in addition to being a full-time doctor,” he said. “My question to myself was, ‘Am I going to be OK with myself if I didn’t try to save this building and it was torn down?’ And the answer was no.”
The scope and cost of the project are daunting, but Springs of Hope has faith that the resources will be provided throughout the process, and are confident in the plan and the resiliency of the town. In 2023, a tornado caused extensive damage to the downtown, including the courthouse, which has since been fully repaired and restored.
“The community has taken a big battering. Part of the reason we’re Springs of Hope is that we think the support will be there not just for the building but as a symbol of restoration, resilience and resurrection for the whole community,” he said. “If you take that building down, the square stops being the square.”
Online contributions can be made via the Springs of Hope crowdfunding platform on Zeffy. Those who want to support the project can contribute here.
