GREENSBORO — The city will consider selling 2.75 acres of a South Elm Street redevelopment area to the Ole Asheboro Neighborhood Association for a proposed luxury hotel project.
The city redevelopment commission, which owns about seven acres in the area at South Elm and Lee streets, planned to hire a master developer to build housing, retail and office space on the land.
The neighborhood association and a hotel developer have asked the commission instead to set aside a chunk of the property for a 200-room, $47 million hotel that would be partially financed by federal bonds.
On Monday, the city redevelopment commission agreed to set a public hearing for 3 p.m. Dec. 21 to consider selling the land.
Supporters of the project, including two City Council members, urged the commission to consider the hotel.
“I know this is a new vision,” Councilwoman Goldie Wells told the commission. “Greensboro can be a leader in showing how neighborhoods can partner with the city and partner with businesses to move us forward.”
Councilwoman T. Dianne Bellamy-Small also supports the hotel project.
Over the past few years, the city has bought up properties at the South Elm Street site, demolished existing buildings and started cleaning up contaminated soil.
In October, the commission decided to send out requests for proposals to hire a master developer for the location.
Last month, the commission reconsidered that decision at the urging of the hotel project supporters, who wanted to move quickly to take advantage of the special financing provided under the American Recovery and Reinvestment Act.
Since then, project planners have provided more details to city staff.
The proposed hotel would be built at South Elm and Lee streets and be seven stories tall.
It would include a restaurant, a lobby bar, a pool and 7,400 square feet of meeting space. Room rates would go for more than $200 a night.
An adjacent parking garage — proposed to be built with an $8 million subsidy from the city — would be two stories tall and hold 16,000 square feet of retail space.
The developers estimate the project would create 100 permanent jobs and 200 construction jobs.
A feasibility study written by a hospitality consultant group recommended recruiting the luxury hotel company InterContinental for the project.
“Right now, there is nothing there. It’s a brownfield,” said developer Bridget Chisholm. “What we are trying to do is bring smart development, smart business to an area that is disenfranchised.”
Dan Curry, the acting director for Greensboro Housing and Community Development, recommended further review of the project.
“This is a proposal that is well thought out in terms of this level of details. It’s got a lot of unique types of financing coming together,” Curry said. “It’s got the ability to be an anchor project ... that could attract other development.”
The city will need to have the property appraised to determine the sale price, Curry said. The redevelopment commission might also want a third party to conduct a market analysis for the proposed project, he said.
Some redevelopment commission members had concerns that selling off the corner of the property would diminish the value of the rest of the site and make it more difficult to attract a developer.
“I still prefer the master developer approach,” said commission member Bob Mays. “Nothing I have heard has changed my mind in that regard.”
Still, the commission agreed to set a hearing to consider selling the property and decided to put off looking for master developers for now.
Contact Amanda Lehmert at 373-7075 or amanda.lehmert@news-record.com
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