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NEWS

Proposed luxury hotel might relocate to center city

Tuesday, December 29, 2009
(Updated 1:55 pm)

— A proposed luxury hotel for South Elm Street might move closer to the heart of downtown, city leaders said Monday.

The Ole Asheboro Neighborhood Association and developer Urban Hotel Group proposed using 2.8 acres of redevelopment property at South Elm and Lee streets for the project. The $1.1 million sale of the land is scheduled to go to the City Council for approval next week.

Now, the developer is considering three other locations and may have an agreement on one by Wednesday, said Melvin “Skip” Alston, chairman of the Guilford County Commissioners and the real estate broker for the project.

One possible location could be the city-owned McGee Street parking lot, city leaders said Monday.

Some City Council members said moving the proposed hotel closer to the heart of downtown might make it more palatable.

“It’s probably not a bad idea. I think it might be more viable there,” Councilman Jim Kee said.

Since midyear, developer Bridget Chisholm has been working with the neighborhood association on the seven-story, 200-room hotel project and an accompanying parking deck to be built with city and county funds.

If it’s built, the project would be financed through a combination of bonds available under the federal stimulus package, and the neighborhood association would get a cut of the hotel profits.

Proponents of the project asked the Greensboro Redevelopment Commission to give part of its 12-acre South Elm Street redevelopment area to the hotel.

The commission agreed to sell the property in a 3-2 vote.

But some City Council members — who must also approve the sale — were skeptical about whether the redevelopment land was the right place for the project.

“If we were to invest in a parking deck, I don’t think it would be the best investment to have it down there,” Councilman Zack Matheny said.

Alston did not reveal the alternate locations being considered. But Greensboro officials said the developer has looked at the city parking lot, four blocks north of the redevelopment area.

“You have to pull it up closer to the center of town if you are going to do it,” Councilman Robbie Perkins said. “You don’t see something like that on the outskirts of your downtown.”

Moving the hotel to a new location might also satisfy some redevelopment commission and City Council members who are concerned that the proposed hotel might weaken the overall redevelopment plans for the location.

The city planned to hire a master developer to build housing, retail and office space on the redevelopment land. The master plan never called for a hotel.

Barbara “B” Akins, president of the Ole Asheboro Neighborhood Association, referred all questions to Chisholm and Alston on Monday.

Alston said that even if the location of the proposed hotel changes, the neighborhood association would be a partner in the venture.

Contact Amanda Lehmert at 373-7075 or amanda.lehmert@news-record.com

Staff writer Richard M. Barron contributed to this story.

Accompanying Photos

Photo Caption: An artist’s rendering from mid-2009 shows the proposed hotel project.

Comments

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glenwoodresident

December 28, 2009 - 5:53 pm EST

McGee Street parking lot? Is this the same parking lot where the city gave some spaces away so a restaurant could have extra seating? The same one that city planners said they were looking at developing a parking deck to relieve the parking problems down town? The same one that within the last week or so was mentioned as a site for a park deck, but dismissed because with the new jail being build their wasn't enough parking down town now? I have a great idea..lets use up all the parking areas down town, build a nice big lot at Lee and Elm Street, charge $10.00 bucks to park like the coliseum, force people to use the center city green way to walk to their destinations, clip them for another $1.00 as a greenway fee, and use to the money to build a pool for swim events.

luvdowntowngso

December 28, 2009 - 6:44 pm EST

The above is a typical knee jerk reaction by someone who has no clue what they are talking about! Parking deck dismissed? What the heck are you talking about? Nothing with regards to "proposed" parking decks has been dismissed or finalized. One was proposed for the jail area and one for Elm and McGee along with others. My guess is they are talking about a hotel/deck combo. Good idea, since the city was going to chip in for the deck at the Lee St. location anyway. Think before you post "glenwoodresident"! You are getting grief because of your cheap shots at the greenway and swim center. Get over it already and move on! One way may be to focus your energy on revitalizing the Glenwoood neighborhood!

piedmontheights

December 29, 2009 - 5:47 am EST

I think you need to check your snark-o-meter, luv. Mine went off at full power there.

Mick

December 29, 2009 - 7:59 am EST

Did it go off while reading "glenwood" post? Maybe your settings are off as well. I believe both qualify!

I dont get a new hotel downtown either. Parking decks I get but a $200/night hotel. I am not a downtowner in any way so I dont get a lot about it though.

Beachwalk

December 29, 2009 - 11:08 am EST

luvdowntowngso, if "nothing has been dismissed or finalized" then what glenwoodresident stated could very well be true. So why don't you think before you post.
And whether you like it or not, I and many other will continue to ditch the swim center, because the supporters of it lied about it from the start. I know and many others know it will be nothing but a big hole in the ground that the tax payers of Greensboro will continue to have to throw money into.

And if you don't like it then you can just get over it.

Norm*

December 28, 2009 - 6:24 pm EST

you know, Skip Alston, the real estate agent commissioner public official opportunist. Now, how are we going to squeeze in a new county school district office in on this???

Norm*

December 28, 2009 - 9:32 pm EST

Well, at least my lack of support of the special interest group's aquatic center didn't sway opinion on the quality and clarity of the mission of our combo-talented multi-tasking real estate commissioner opportunist. I before thou in all matters, no claim or oath of public service shall ever get in the way of profit.

capricorn7nc

December 28, 2009 - 11:10 pm EST

I want them to do something. Either way I think it would be a welcomed addition to Downtown. The South Elm St. redevelopment project is a project of expanding the downtown area, so the hotel will not be outside of that area. I like the idea of moving it closer to Center City, but I need them to get things done. Be more decisive and make some concrete decisions. Greensboro has a history of being argumentative about any new development, and we need to be more receptive to new development in this economy. This could be a chance for Greensboro to finally attract new businesses to the area, and give students a reason to stay in this area. We do not have anything to entice students who come here to learn a reason to stay. The Greenway and the Aquatic Center are nice, but they are not a boon to keeping people here that will add to the tax base. The more we fight development, the more we shoot ourselves in the foot when it comes to companies that want to locate here. I am not talking about hotels either. I am talking about high paying jobs in other industries that pass over us, because we fight development over anything we can think of. I would retire here, but being a student I do not see any kind of advancement opportunities here.

Mick

December 29, 2009 - 8:03 am EST

How does a new downtown hotel fit into that equation? Again I get a parking deck and something at the "new" Elm Street corner. Government funding, help, incentives aside I just dont get the hotel thing.

donegill

December 29, 2009 - 8:07 am EST

I am old enough to remember when we were young Jaycees and Jim Melvin was spearheading the proposed downtown convention center with hotel perched on top. Downtown revitalization was a major theme. How long ago was there a Radisson name? What will draw new people here, not just shift the same population from pre-existing properties? There are good event draws downtown now that regularly fill that garage and couthouse employees and citizens use significant space during regular business hours.

VALawyer

December 29, 2009 - 8:35 am EST

Does Greensboro really need more hotel space? What is it about the area that brings in that many tourists? I would think that the highest hotel occupancy times are around college graduation time which is from May to June. I also assume people stay here before going to NASCAR races in Martinsville twice a year. I'm sure the ACC tournament draws people as well. As long as it's all private money that is being used for this development then it's OK with me but it seems to be a huge gamble since there are so many hotels here especially in the West Wendover corridor.

marquisdepercin

December 29, 2009 - 8:47 am EST

If the marketplace will support a another fine hotel a great idea to move it closer to downtown. It wil bring more foot traffice, more spending to the downtown area. Imagine visters flocking to the closer museums, restaurants, shops etc. Another way to maintain a vibtant downtown and enhance the life of area residents.

GCS Parent

December 29, 2009 - 9:44 am EST

Another luxury hotel??? We have plenty of those now and I doubt they are rarely full. I would like to hear some of the statistics from the Marriott, Sheraton, or whatever it is downtown now. Are they overbooked enough to justify another high rent property? Whether it's stimulus money, bond money or monoploy money that builds it, the tax payers will foot the upkeep bill if it can't support itself.

Good Grief

December 29, 2009 - 11:16 am EST

Bingo.

Dogwood

December 29, 2009 - 4:27 pm EST

The Marriott Marquis Hotel in Times Square only costs a few dollars more than the proposed Greensboro downtown hotel. At least the NY hotel makes money. The piedmont hotel might when the debt is paid.

rebeldoll72

December 29, 2009 - 9:21 am EST

I feel that the government funded revitalization would best be suited for affordable housing in this location which, is facing the Urban Ministries Homeless Shelter. This is not a proper location for any luxury hotel for the type of customers who would patronize such an establishment.What I propose to "Skip" is this: take some of the now open land at the PTI and construct your luxury hotel there. The clientele will support it in this area, and the development will help to "fill up" some of the vacant land which has now been created. Unfornately, there isn't much we can do to revitalize the downtown area and draw the businesses in like some would hope to, so let's keep Greensboro attractive and give these construction funds a more appropriate location, in the new uptown area.

Oona

December 29, 2009 - 9:37 am EST

i agree- the hotel will be great for the local arts scene! also, a grocery store would be a wonderful addition to downtown and could help sell condos and apartments in the area. people move to a downtown area for convenience, charm (read: the preservation of old buildings) a sense of community and so that they don't have to drive everywhere. i believe we have the restaurant and nightclub area covered- so how about a "neighborhood market"? ex. : http://www.delucasmarket.com/index.php

d_random

December 29, 2009 - 8:04 pm EST

There is a high probably that Deep Roots market will move downtown.
http://www.news-record.com/content/2009/12/11/article/deep_roots_grocery...

citywatcher

December 29, 2009 - 10:21 am EST

wow this is really a great idea moving it closer to the core of downtown. Its also great to combine two plans (hotel and parking deck) I think this hotel is a more feasible project at the new location because the new site is at the heart of all the downtown action. Because of that, people will spend $200 a night there as oppose to a brown field site in a "questionable" area. The original plans call for a 7-story building but if the site location changes we could see something taller because the foot print of the McGee parking lot is small. The developer will have to go taller to accommodate 200 rooms. Not to mention there will be a parking deck on site. That would be great because downtown is long over due for a high-rise.

Bosco

December 29, 2009 - 4:41 pm EST

Hello, we already have a hotel / parking deck combo in the smack dabb heart of Downtown. Do either make a profit??

citywatcher

December 30, 2009 - 8:11 am EST

The difference is that this will be a luxury hotel....its a totally different product

tledford

December 29, 2009 - 11:35 am EST

Are the existing parking garages full after 5:00 pm on weekdays, and on weekends? Every time I go downtown on a weeknight or on a weekend, I usually have no problem finding parking on the street, and if for some reason I *do* choose to park in one of the garages, I don't recall *ever* having to go above the third or fourth level to find a spot.

Why is parking perceived as an issue when there are plenty of empty parking spaces?

Beachwalk

December 29, 2009 - 12:43 pm EST

Anyone who believes a $200 a night luxury hotel at the corner of Elm & Lee St. will be able to make money, I've got a yet-to-be built swiming pool that will bring in millions I'd like to sell.

newkid

December 29, 2009 - 12:43 pm EST

Three points about downtown development and this project:

1. We should not support building any new structures downtown until we start renovating the many vacant existing/abandoned buildings that dot the downtown landscape.
2. The hotel project's business model is financially flawed.
3. How can we build a new school system adminstrative headquarters while some of our schools need repair and renovation?

Jeramy

December 29, 2009 - 2:20 pm EST

How is it not a serious conflict of interest for Skip "The Crook" Alston to profit from this project that has public funding? Why is it that the N&R is so scared to talk about the coruption that surrounds soo many elected officials in the Triad.

Bosco

December 29, 2009 - 3:42 pm EST

Up to now there were only a few local, amature scam artist and an out of town con involved. But now with Skip on the scene, the real pros are starting to show up. He must smell that Gubm'nt money

gsoattorney

December 29, 2009 - 4:18 pm EST

What part of the simple math of this project do people (and perhaps the story writer) not get?

Here it is:

Government issues bonds, which taxpapers have to pay back. Government gets money when the bonds are sold.

Government gives (yes - that's right, gives) money raised from bond sales to "Friends" (aka developer, neighborhood association, realtor, and everyone else who has a piece of the LLC action, but who has not yet been identified).

Government may or may not also give land and other things to "Friends."

"Friends" build hotel and pocket lots of money.

Bigger fool (than taxpayer fool) undertakes to operate new hotel.

New hotel takes business from other hotels that were built by local citizens with their own money.

Then new hotel goes belly-up. Friends are long gone, but much richer. Taxpayers are poorer. People who built hotels with their own money are poorer.

Politicians get votes and campaign contributions from Friends.

Seriously, can this paper not dig and scratch? Follow the ownership, and the anticipated money trail! There is a story here but it has not been written yet.

If someone wanted to build a hotel downtown with their own money and needed only permits, and cooperation from the city I'd be all for it. If no one wants to do it it's a safe bet there is no money to be made, which means the project is nothing but a way to take money from the taxpayers and give it to politicans friends, and in a way that uses public money to compete with local businesses that actually invested their own money in the community.

That's unwise, just plain wrong, and probably corrupt.

Bosco

December 29, 2009 - 4:47 pm EST

You may leave out "probably". Skip may be as slick as Harry Reid. Will Kay approve?

d_random

December 29, 2009 - 8:08 pm EST

Yeah, enough of the softballs N&R.

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