The Skeels Hotel was a decrepit residential hotel on Monterey in Downtown Morgan Hill. The initial concept was to retain the building and remodel it, but a preliminary analysis showed that the building was not worth saving.

The ultimate design was to include 10 residential units and commercial space. An accessible residential unit was also included downstairs to eliminate the need for an elevator. The new two story building became the center of Redevelopment in the Downtown, creating a 10,000 square foot anchor of commercial and residential units. The project was the first Single Room Occupancy project in the South Bay and was constructed in 1992.

This mixed-use project included a steel structure allowing for clear vision into the retail spaces. The large retail area was designed for a picture framing shop, but also for the potential use of a restaurant. Twelve years after the project was completed, Ragoots Restaurant moved in to the commercial space with a minimum of reconstruction. The high ceilings and openness allowed for the contemporary look and feel that the successful restaurant is known for. At the same time, the exterior was updated with a new color pallet and awnings.