WATERLOO -- It is August, but a major downtown renovation project is starting to snowball at East Fourth and Lafayette streets.

Downtown developer Chuck Orr and his son, Dan, are well into the next phase of their $3 million renovation of the Haffa and Fowler buildings.

Long-time residents will recall the Haffa building as the former New York Fashion storefront, and the Fowler building, built in 1884 as home to the Fowler Mercantile Co. It was the location of Larry's Clothes from the late 1950s through the early '80s.

The Orrs are renovating the buildings for first-floor commercial space, and upper-level apartments, artists' studios and commercial space -- in effect, an art colony of sorts for local artists.

The Haffa building, now home to Classic Kitchen & Bath and Evan Kaiulani Fine Art and Framing, is full, with six upstairs apartments. Work is well under way in the Fowler Building, and prospective residential and commercial tenants have expressed interest in about half the space there.

Work on the Fowler building began in January and should be complete by next year, Orr said. Like the Haffa building, the Fowler building is being restored in compliance with historic preservation guidelines under the National Trust for Historic Preservation. When complete it will be listed on the National Register of Historic Places.

The white paint which covered the building for years is being removed to expose the brick exterior, and the brickwork and windows are being restored.

"Right now, we're just trying to get some final design work on the second floor," said Chuck Orr, who previously restored buildings in the 600 block of Sycamore Street, where his family lives.

"We've got a lot of interest in the (second floor) studio apartments, and we've already got some interest in the apartments on the third floor," he said. Spaces range from 900 to 1,200 square feet, with full utilities, energy efficiency improvements, handicap accessibility and some off-street parking available, either in a nearby lot or the East Fifth Street parking ramp.

"I've had some interest in the first floor," he added, which was most recently the location of the Tequila Bar. "At least two commercial businesses have expressed interest in coming downtown. One possibility might be an eatery. The lower level might become an art gallery and some classrooms."

Paul Mead of Mead Construction of New Hartford is the general contractor, as was the case on the Haffa building.

Interest in the Fowler building has spread through the local art community, the Orrs said.

"This is all going to be tied into an expanded phase of the Fowler project, which is going to encompass the buildings on Sycamore Street," at 616-618-624 Sycamore, previously the location of Antique Galleries and adjacent storefronts. "We're going to rehab the inside of those buildings and that's going to become an upscale advanced ceramics art studio where ceramicists from around the country and even maybe around the world will be invited in to teach classes," Chuck Orr said.

It will offer advanced training for those who may have taken classes at the Waterloo Center for the Arts or the Hearst Center for the Arts in Cedar Falls, Dan Orr said.

It will also include renovation and restoration of the second floor ballroom of those storefronts, where the 1940s-era Brown Derby nightclub was located. It was also once home to the Waterloo Elks Club. Chuck Orr and his family live in renovated space on the third level.

The Orrs secured state and federal historic preservation tax credits to finance the Haffa and Fowler building renovations. More will be sought through Main Street Waterloo for the next phase at the properties on Sycamore, Orr said.

Eventually, the Orrs said, a downtown arts festival may be possible. The Fowler and Haffa project also complement a "streetscape" plan for downtown being developed by the city.

"We really have some very valuable resources in downtown Waterloo the people elsewhere pay a real premium for, and we ought to take advantage of those lessons," Chuck Orr said of downtown's potential.

More information about the project may be obtained by contacting the Orrs at (319) 240-0308.

Contact Pat Kinney at (319) 291-1484 or Pat.Kinney@wcfcourier.com