GREENSBORO — 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.
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