Family of entrepreneurs makes hospitality, brewery dreams a reality

When Karen and Court Conn refer to their ventures as a “family business,” they mean it.

The Springfield couple, who is at the helm of Conn Hospitality Group, heads a family unit with a strong tradition of entrepreneurship and community.

Conn Hospitality runs the Inn at 835, Conn’s Catering & Events and Obed & Isaac’s, Springfield’s first microbrewery and eatery.

But long before Obed & Isaac’s opened its doors, Roy Conn – Court’s father – was building a small business empire of his own. Roy first opened Roy’s Café in the 1940s, eventually running four restaurants in downtown Springfield. When the restaurant business slowed down in the 1970s and 1980s, Roy changed his focus to catering, the business through which Court and Karen met. Court worked for his father and Karen joined the business and later became a primary partner in 1986.

Since then, Conn Hospitality has continued to grow – and preservation has played a large role in their expansion. In the process of continuing to expand their business ventures, the Conns purchased the Lindsey house, which was built with the help of Abraham Lincoln.

But business hasn’t been without its bumps, especially when the Great Recession hit.

“During the Great Recession a lot of the lobbying business we rely on dropped,” Karen said of the reduction in business at the Inn at 835. “We also lost an awful lot of corporate and guest rooms. Everybody was in turmoil.”

Around this time, the Conns also bought another property downtown with the intention of opening another bed and breakfast; but the numbers weren’t adding up, and it became clear the business would not be feasible.

“All of our banking was through a bank that collapsed,” Curt said. “So we were sitting on an empty house, business was on a downturn and the bank collapsed. Any loans we had with the bank were sold to a receivership — and they would not renew any loans.”

Things carried on that way for months, until the Conns’ business loans came up for renewal. Since their bank was under receivership, the process stalled. The Conns were faced with a serious dilemma: come up with more than $1 million or go into foreclosure.

“We were down to the wire within a couple of weeks before foreclosure,” Karen said.

Fortunately, the situation resolved itself at the last minute, and the Conns were able to continue growing their business.

But long before the Great Recession, the Conns faced a monumental obstacle to business success. And that obstacle remains today: working with state and local governments.

On a local level, the building permit process was slow. It took the Conns six months to get their building permit from the city of Springfield for Obed & Isaac’s.

On top of that six months, the Conns had to jump through more hoops to get a liquor license for the microbrewery and restaurant.

“Our restaurant brewpub sits on Sixth and Jackson in downtown Springfield,” Karen said. “The brewery itself sits on the corner of Seventh and Jackson. But between the properties is a public alleyway. That public alleyway has been the biggest pain.

“If you’re in the restaurant and want to go to the brewery, you can’t carry open alcohol across that open alleyway. That created a significant delay in getting an occupancy permit and a liquor license for the beer garden. The city suggested getting a second liquor license, but then I’d be breaking a state law. If I obtained a separate liquor license outside the name of Obed & Isaac’s, I couldn’t sell my own beer.”

The city didn’t know what to do, so local officials reached out to the state. But the state didn’t know what to do either, the Conns said. This delay held them up three more weeks.

“We felt like we were running around in circles,” Karen said.

On top of permit struggles, the Conns have felt the effect of Illinois lawmakers failing to pay the state’s bills firsthand. They were paid at the end of October 2013 for a November 2012 event.

“And yet the state treats business owners like the bad guys,” Karen said. “But really, the problem is that every department of our business is over-regulated. We deal with the health department, the fire safety department. Every time you turn around there is some sort of inspection.”

Despite the ups and downs associated with doing business day-in and day-out, the Conns are in Illinois for the long haul. In the future, the Conns plan to open a coffee shop and want to start another microbrewery.

“It’s the community backing that keeps us motivated,” Karen said. “We talk about preservation and we do it. The community realizes the hoops we go through. They pat us on the back and we keep forging ahead.”