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Hoteliers may sue over Ole Asheboro project

Sunday, January 24, 2010
(Updated 5:26 pm)

GREENSBORO — Controversy over a proposed downtown hotel intensified Saturday as project skeptics raised the possibility of a lawsuit against local government and hotel supporters considered a protest march against the doubters.

Local businessmen and hoteliers Dennis Quaintance and Mike Weaver alerted Greensboro and Guilford County officials late last week they’ll sue if both governments don’t release a variety of public records involving the Ole Asheboro Hotel project and the stimulus-program financing behind it.

Meanwhile, backers of the hotel — including Guilford Board of Education member Deena Hayes — are mulling a march Feb. 1 outside the new International Civil Rights Center & Museum to protest Quaintance and Weaver’s questioning of the project, saying it has racial overtones.

Not so, Quaintance said.

“As citizens, we just expect transparency from local government and that hasn’t been the case here,” Quaintance said of the hotel project. “We’re not mad at anyone. We’re not out to get anyone ... We just want the records from city and county government to be out in the daylight. We want to know the stimulus programs are being administered properly.”

The multimillion-dollar project, backed by ownership groups from Greensboro and elsewhere, would be partly paid for with special bonds for “recovery zones” included in last year’s federal stimulus act.

The bonds are funded privately, so local taxpayers would not be on the hook if the project failed, at least not directly.

But the hotel’s qualification for the stimulus program required approval from both the Greensboro City Council and the Guilford County Board of Commissioners, which gave their approval recently in separate votes. Some members of both boards now say they were not fully informed before the votes.

Hayes, who also is a member of the museum’s board of directors, said discussion about a demonstration of some sort began Friday. The march’s theme would be linked to Quaintance and Weaver’s ownership of the Proximity and O.Henry hotels which, she said, are benefitting from the museum’s opening.

“This is very symbolic of what the whole movement is about,” she said of the potential march and the museum’s history. She added that she has heard widespread support for a demonstration during the museum’s opening week.

The museum will be formally opened Feb. 1 on the 50th anniversary of the day four African-American students from N.C. A&T began a sit-in at what was then the F.W. Woolworth lunch counter, at the time reserved for white customers only.

The 1960 protest, which ultimately succeeded in changing the store’s policy, is a seminal event in the national civil rights movement.

Weaver said he learned about the potential march in a conversation Friday with Melvin “Skip” Alston, chairman of the county Board of Commissioners, one of the museum’s founders and a real estate broker in the Ole Asheboro Hotel project.

“He (Alston) said, 'I’m really concerned about the effect your opposition to the stimulus funding, or your questioning of it, might have on the civil rights museum,” Weaver said. “I said, 'I don’t understand.’ And he said, 'There are a bunch of citizens who are talking about a civil rights march in front of the museum.’”

“I said, 'You’ve got to be kidding.’ And he said, 'You can stop it (the march).’”

Alston said a protest rally at the museum opening would be bad for downtown and the city as a whole, so “I said why don’t you just have it at our hotel?” Weaver said.

Efforts to reach Alston for comment Saturday were unsuccessful.

Weaver said the potential march has not dissuaded him from questioning the funding of the eight-story, 200-room luxury hotel proposed at Davie Street and February One Place.

He and Quaintance both said their skepticism is fueled by knowledge of the hotel industry, the murky nature of information about the project made public so far, and concerns about the damage it could do to downtown’s recovery if it were to fail.

Hayes said the fact that the hotel would be a for-profit venture in which individuals stand to make money does not negate the fact that minority interests are being overlooked by critics. For example, owners would include the Ole Asheboro Neighborhood Association, representing a primarily African-American neighborhood heavily involved in plans for an earlier version of the luxury hotel at a different location.

Hayes said the entire Ole Asheboro neighborhood stands to benefit from the revised, relocated project. Critics are simply looking to maintain the power of a few families and monopoly interests, she said.

Weaver and his family’s charitable foundation have been key supporters of the museum project, which stalled for years after the Woolworth store closed in 1993 and it was first discussed by Alston and several others as a potential museum.

During the 1960s, Weaver was among the first Greensboro property owners to integrate his rental complexes. He has been honored by the local chapter of the National Conference for Community and Justice for his efforts in that and other actions against bigotry.

Greensboro City Attorney Terry Wood said the city received a letter midweek from the local Hagan Davis law firm, requesting a large amount of information on behalf of Weaver and Quaintance within a day. On Thursday, their lawyer, D. Beth Langley, filed a petition in Guilford Superior Court to file suit in the matter within several weeks.

Wood said city government is still trying to respond to the initial letter.

The amount of information requested was too much to pull together before the court

filing, but “we’ll give them whatever they’re entitled to,” Wood said.

Hayes said a decision about the protest march could be made today.

 

Contact Taft Wireback at 373-7100 or taft.wireback@news-record.com

 

Contact J. Brian Ewing at 373-7351 or brian.ewing@news-record.com

 

 

 

Comments

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jackhartjj

January 24, 2010 - 7:36 am EST

Sounds like some folks want to look into what the city and county councils should have done to start with!
And how in the world hayes thinks this is a racial matter is beyond me!
And did I not read that the location for this is not in the Ole Ashboro neighborhood anyway, if that is the case, why are they involved?
And for skippy to be concerned that a protest might hurt the opening of his and earlipoo's museum, It would have opened years and years ago, and much nicer to boot had they bowed out years ago!

RealTruth

January 24, 2010 - 8:26 am EST

Okay...let's get this straight. (1) Mike Weaver and Dennis Quaintance are two of the smartest construction/investment/hotel guys in the business. No one can dispute that. (2) Skip Alston and Earl Jones (along with the Pulpit Forum) are notorious for doing shady deals and misusing funds and misleading citizens. No one can dispute that. (3) Andy Scott misled (lied) to the City Council and Skip Alston lied to the County Commissioners. (4) The CRM would have NEVER been completed if the Weaver Foundation had not stepped in, taken charge of the accounting of the funds and given millions of dollars. (5) Skip Alston and his band of thieves exploit the African American community to bully the citizens of Greensboro and cry "race" every time they don't get their way. (6) NOW, when the stink is so strong the entire City smells like manure, Skip gets one of his cronies to play the race card and they turn around and bite the hand that fed them!
SUMMARY - If a high end hotel would thrive in downtown Greensboro, Mike Weaver and Dennis Quaintance would have already build it!

JGALT

January 24, 2010 - 9:25 am EST

Excellent summation. All discussion around this project has been everything but the business plan or suitability. When those legitimate questions are brought to the forefront, racism is cried. The response simply should have been here is the project, here are the numbers.You can't march for cashflow. Mike Weaver and Dennis Quaintance should let them sqwak, be confident they must have struck a nerve and comments of racism are wildly irresponsible. There should be a section in the new Civil Rights Museum devoted to opportunistic, tactical racial blackmail, in situations lacking in racial injustice.

intrigued

January 24, 2010 - 9:16 am EST

Also, keep in mind that as the real estate broker for the hotel project, Skip Alston stands to receive a very large commission if the deal goes through, which if anything is unethical because he controls how the county voted on the federal stimulus funding, as well as the money for a potential parking garage. Thank you Mike Weaver and Dennis Quaintance for standing up to these bullies and making sure the people of Greensboro and Guilford County are not being taken for a ride.

bottechia

January 24, 2010 - 9:34 am EST

If stimulus money is being used for "recovery zones" and Ole Asheboro Neighborhood Association is benefiting how does this work when the project is being built outside the neighborhood?

gogso

January 24, 2010 - 9:48 am EST

Ole Asheboro Neighborhood got the shaft when after being lured in with promises of jobs and funds only to be kicked to the curb so Bridgett Chisolm and Skip Alston could save their personal financial gain by moving to another location that had more promise to make the project a reality. Even they could figure out the Lee St. location (by the way, adjacent to Ole Asheboro neighborhood) would not fly! And a failed project anywhere would not benefit Ole Asheboro at all. They were clearly taken advatange of. Maybe they should consider marching and protesting in front of Skip's office on East Market and Deena Hayes' place of employment or her house!

rogerwx

January 24, 2010 - 9:37 am EST

Deena Hayes is as bigoted an individual as holds any office in Guil. Co. Whoa, let's allow for some discussion of that We should give consideration to Diane Bellamy-Small now that Goldie Wells is out of office.

gogso

January 24, 2010 - 9:41 am EST

To say Mike Weaver is a racist is unbelieveable. Weaver and Quaintance are raising questions beacuse they know construction and the hotel business. NONE of the players involved with the Downtown project have ANY hotel experience. And them Deena Hayes wants to throw in the suit has "racial overtone." That comment itself has racial overtones!

Mike Weaver and the Weaver Foundation has an excellent track record on working to improve race relations in Greensboro. Skip Moore, President of the Weaver Foundation, stepped in and SAVED the Civil Rights Museum. The Foundation put money into the project. Weaver Foundation was behind the formation (and funding) of Tapestry Dinners, a series of small dinners of folks from all races & walks of life to come together, improve race relations and build stronger relationships in the community. How can you say their motives are racist? They are asking business questions and have the right to do so. The downtown hotel IS NOT financially feasable! The studies prove that it will not.

It is becoming more apparent there are individuals more interested in their own financial gain through commissions and developer fees and they will do whatever needed to lead them to "SHOW ME THE MONEY!" It is also apparent they don't want people like Mike Weaver to continue pushing our community towards better race relations because if we all unite Skip and Deena will not have the "racist" card to play to ramrod bad business decisions on our community for their personal gain.

Today's article just set race relations back 20 years and what a shame just before the opening of the CRM. And the ones setting race relations back are the ones sitting on the board of the International Civil Rights Museum. WHAT A JOKE!!!!!

Let them march. Let them protest. That will only prove the downtown hotel is a polictial ploy, a fleecing of America and makes no BUSINESS sense al all.

tuffi

January 24, 2010 - 9:47 am EST

I fail to see how asking for information has anything to do with racism! Ms Hayes is trying to start something to make a name for herself. Hope she doesn't manage to make a mockery of the opening of the Museum. She is going to look pretty stupid if she dilutes the opening, and the reason for the opening, with a bunch of nonsense.

intrigued

January 24, 2010 - 10:33 pm EST

Ms. Hayes also stands to benefit financially as a member of the Ole Asheboro Neighborhood Association, which still has a stake even after the project was moved. Not sure how that happened, but wait, Ms. Hayes and Ms. Chisholm are longtime friends - see the connection - always follow the money.

jackhartjj

January 24, 2010 - 11:20 pm EST

I also see where one of the contractors is hayes live-in-boyfriend. As the Church Lady used to say, "How convenient!"

jstevenh1952

January 24, 2010 - 9:59 am EST

IT IS ALL ABOUT THE MONEY PEOPLE! Throw race cards, embarrass politicians do what ever you can to GET THE MONEY! If you think for one moment that any of the parties to this morass are interested in anything but the MONEY you are being fooled.

Greensboro cannot support anything close to what they are sugesting, much less downtown. I know, we looked at buying in this area and the research we did determined that a facility downtown would generate a maximum of an average daily room rate of 115.00. That's it, no more, nada, zippo! This is a devloper pushing a pocketbook agenda at the expense of the taxpayers. Do the math folks. If it was feasible, it would have already been done. Quit being played for fools!

Go ahead, build it! We'll buy it in seven to ten years for 40 cents on the dollar.

nclawkid

January 24, 2010 - 10:12 am EST

I've been pretty supportive of this hotel, and I don't see what Deena Hayes is talking about.

"He and Quaintance both said their skepticism is fueled by knowledge of the hotel industry, the murky nature of information about the project made public so far, and concerns about the damage it could do to downtown’s recovery if it were to fail."

Right! I suppose it doesn't have anything to do with the fact that this hotel would be a direct competitor with their hotels.

intrigued

January 24, 2010 - 10:25 am EST

Of course the fact that this hotel could be a competitor has something to do with it - they are businessmen. Maybe at one time they wanted to put a hotel downtown and did not receive this preferential treatment. Or maybe they did do a study and it showed a project of this type is not feasible. But to think this is the only reason is not to know what Mike Weaver and his family, as well as Dennis Quaintance, have done for people of all races, socio-economic status, religions, etc. of Greensboro for decades. There is nothing wrong with making sure local, state and federal funds are being spent appropriately, and the fact that they are being threatened because of it is telling and should warrant even more scrutiny of this project.

citywatcher

January 24, 2010 - 10:32 am EST

Dennis also had the opportunity to use the bonds to build a downtown hotel. From what im hearing, just before this proposed project was announced Dennis was mulling the idea of a small downtown hotel himself. Why is it ok for him to build a downtown hotel and nobody else? Sounds like sour grapes because someelse beat him to the punch.

intrigued

January 24, 2010 - 10:38 am EST

I'm not arguing against the fact that this inquiry involves, not necessarily sour grapes, but a bit of business maneuvering. But the way this has been handled from the beginning, and with Skip Alston standing to benefit personally while also controlling votes on whether the funding is approved is wrong, and regardless of why Weaver and Quaintance are bringing the suit, I'm glad someone is shedding light on how it will come to fruition. If everything has been done openly and correctly, then why threaten to protest? And why ruin the opening of something all people of Greensboro should be proud of to threaten them to back off? It stink - plain and simple.

citywatcher

January 24, 2010 - 7:46 pm EST

You realize Skip Alston step out of the room and did not vote on this. He knew it was a conflict of interest. And so what if he makes money out of the deal.

intrigued

January 24, 2010 - 9:50 pm EST

So what if he makes money on a deal that he has inserted himself into after getting inside information as the head of the county commissioners, and most likely, though I'm not privvy to the closed door discussions of this group, pushed other commissioners to vote for the federal stimulus funding? Regardless of whether he stepped out, he still has influence over the outcome. He is setting the project up to get the federal and local funds and then turning around and getting a huge commission check out of the deal. If you'd like similar situations to educate yourself on why this is wrong- oh, take a look at Jim Black, Ruffin Poole, Mike Easley, Meg Scott Phipps, Thomas Wright - they also benefited financially from their positions in government and oh dear - some of them now in federal prison and others probably heading there soon.

JGALT

January 24, 2010 - 10:27 am EST

Who do you think would be the better competitor? Proven, successful operators investing private capital or inexperienced, non-operators seeking subsidy and stupid money, who are embarassed by their lack of a business plan.

hugh

January 24, 2010 - 10:27 am EST

Deana Hayes threatens to create a disturbance over citizens requesting the city/county government comply with the law and wants to do so on Greensboro's biggest day in decades, the opening of the Civil Rights Museum.

Misplaced priorities, incompetence, and smells of cover up. Oh, wait, I just described City Government, never mind.

holland4

January 24, 2010 - 10:48 am EST

City staff members are so far up the behinds of local race-baiters it's pathetic. And the Council is left in the dark most of the time.

RealTruth

January 24, 2010 - 11:17 am EST

It also makes the CC look like a bunch of idiots and if that is not corrected, it most certainly will continue.

newkid

January 24, 2010 - 11:11 am EST

Now I really DO think its time to have the state attorney general appoint a special prosecutor to investigate the deal behind this project. When the proponents start throwing the race card on the table as a defense of a financially questionable project, you know something is being covered up. And to accuse Dennis Quaintance, one of the most ethical businesspeople in the region (perhaps the nation) is just beyond rational belief.

RealTruth

January 24, 2010 - 11:26 am EST

Let's take this a step further. It is a fact that Andy Scott "mislead" (lied) to the City Council and his job should hang in the balance for that alone! So, just on that fact alone, let's see which City Council member has the guts to call for a motion to rescind the previous vote. If this is done, THEN we will see which CC members will do the right thing. It will back the dishonest (Perkins, Kee and TDBS) into a corner and we will see them in the light of day. Come on, Danny, Mary, Trudy or Nancy let's see what you're made of. Put your campaign promises of transparency on the line and show the citizens of Greensboro that YOU meant what you said.

One other thing...for Skip Alston to threaten Mike Weaver is one of the stupidest maneuvers Skip has ever done! Mike and the Weaver Foundation probably saved him from going to jail for misuse of funds in the beginning of the CRM. Weaver and Skip Moore (along with others) SAVED this project and now Skip Alston is threatening Mike? Skip, we knew you were pathetic, but this is a new low for you!

jeaniegnc

January 24, 2010 - 11:23 am EST

It seems the citizens of Greensboro owe these two men a great deal of gratitude for asking the city to provide this information. It also seems that these two men are doing what we elected our city council to do. Instead they decide to wimp out and let things ride. They know they received incorrect information before they voted but they still let the vote stand when they were given the opportunity to rescind it or change it. Most of these council members ran on a platform of transparency but it appears they have amnesia or very short memories.

AirDoc

January 24, 2010 - 1:42 pm EST

Well said Jean. It also seems possible that certain special-interest somebodys might be looking for a reason to have a little PR attention-drawing protest march to break in their museum.....and this sadly is the best they can do. With that threat being hurled over such an unrelated cause, it sure seems possible. How sad.

Gemini

January 24, 2010 - 1:20 pm EST

Doth protest too much Deena Hayes! Maybe this is to take the heat off the fact that her School Board's policies allowed a rapist to transfer from Page to Southwest where he could victimize another student.

truthteller

January 24, 2010 - 1:39 pm EST

It is ironic that the Civil Rights Museum would be at the center of a controversy instigated by people associated with the museum who want to deny the civil rights of Dennis Quaintance and Mike Weaver to review the public records of the Ole Asheboro Hotel project. Wow! Talk about being hypcritical!

The Civil Rights Movement is an affirmation of the constitutional rights of ALL people. People such as Deena Hayes and Skip Alston are trying to hijack the movement in an effort to further their own personal agenda.

gsoagt

January 24, 2010 - 3:09 pm EST

Having been a travel agent for major corporations in this city for over 20 years, I can attest that the studies saying that a downtown hotel would fail are true. Currently there is only one major hotel downtown and very rarely (i.e. Furniture Market) is that hotel filled anywhere near capacity. If a downtown hotel were feasible, QW would have built one there years ago. Corporations fill hotels, not tourists. Downtown only has one major corporation and it is no longer owned locally. As others have said, using the "race card" is obscene! This is about someone lining their pockets. How many of you knew that before he got into politics, Earl Jones was an Art Teacher in Randolph County who disappeared in the middle of one school year with no explanation? I guess swindling the citizens was much more lucrative.

yoelroy

January 24, 2010 - 4:35 pm EST

i certainly don't think that weaver and quaintance's request for the public records is racially motivated. rather, it's simply a pathetic attempt to block a project that they both know will have the potential to present stiff competition for both of their signature properties...........the o'henry and proximity. but does anyone really think that either of them would ever admit to such?? if they were so concerned about the health of downtown, then why weren't they willing to take the risk?? " the market just isn't quite there yet" is just lame. being the savvy, business entrepreneurs that they are, they had to know that eventually---with the foundation that has already been built in the center city--- the market would be there and that the first major hotel development in the heart of the city would essentially close the door to other potential hoteliers for at the very least, a few years___remember the old adage "you snooze, you lose." i think in hindsight, both weaver and quaintance are wishing they had been the first to make the commitment for a large scale---at least by greensboro standards-- hotel development in the core and now that they've wasted that opportunity, they want to make sure that other potential developers/investors are deprived of the opportunity for a lucrative business endeavor. as long as weaver and quaintance aren't investing their dollars in the project, then what harm could a little honest competion possisbly do to them?? after all, isn't it the major premise of what capitalism is built upon?? a little competition would only make weaver and quaintance stay at the top of their game, right?? the thought of a real "urban" design for the project in the center city is truly refreshing/exciting and long overdue but a little scary for the likes of a weaver and quaintance who prefer who prefer to stay within their comfort zone design/feel taken straight out of "suburban design 101." such a project would certainly dim the brilliance of their o'henry and proximity stars. weaver and quaintance need to stop their "we care too much" sentinment/hypocricy and face the facts: they had their chance and they passed on it. so stop all of the whining, there are already way too many c.a.v.e.(citizens against virtually everything) people residing in the g'boro. it's finally time to collectively usher in a new era of reasoning/vision and learn how to filter out the constant, annoying, anti-progressive tactics of the loud, local naysayers who have proudly dominated the civic decision making landscape for so long. if greensboro sincerely wants downtown to become that longed for "living room" for peoples from all walks of life to live, work, and play, then it will see weaver and quaintance's threat for what it really is: a self-serving ploy to to block competition. enough is enough!!!!!!!

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