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NEWS

Greensboro officials felt pressure over hotel

Thursday, January 28, 2010
(Updated 4:08 pm)

GREENSBORO — Three Greensboro City Council members say Melvin “Skip” Alston threatened them with a recall election if they reconsidered federal bond financing eligibility for a luxury hotel in which he has a financial interest.

Mayor Bill Knight and Councilwoman Nancy Vaughan met with Alston, chairman of the Guilford County commissioners, last week on an unrelated issue.

After the meeting, Alston said the city’s black community was not happy with the new City Council.

Alston said there was concern that Knight, Vaughan and Councilman Danny Thompson — all elected in November — might try to undo approval for the proposed downtown hotel project, which has a 51 percent majority black ownership.

Alston, who brought together several of the key investors, is a broker on the deal.

On Wednesday, Alston said he didn’t mean to threaten the council members. He said he only mentioned the issue of a recall because it was raised during a discussion among residents in the Ole Asheboro neighborhood. That neighborhood association, which has a large percentage of minority residents, has an ownership stake in the hotel project.

“I just shared that with them. I didn’t call a meeting just to tell them that,” Alston said. “Nobody’s threatening them with any recall.”

Council members, meanwhile, say they have no plans to revisit the hotel issue and will let the project move forward for financial vetting at the state level. They said race did not play any part in their decision .

“If we can get things going and create jobs, it’s going to create opportunity for everybody,” Knight said. “I can’t subscribe to a notion that we are supporting one to the detriment of the other, as far as one side of town or white versus black.”

Alston said the mayor was bending to pressure from Dennis Quaintance and Mike Weaver , whose business group owns the upscale O. Henry and Proximity hotels in Greensboro and would be direct competitors with a new luxury hotel.

“(Alston) said to Bill, 'I know you didn’t get many votes in the black community and the black community doesn’t think you are supporting them,” Vaughan remembered Wednesday .

Alston said some voters “might be inclined to start a recall” election, Knight said. Under the city charter, City Council members can face a recall election for “cause, misfeasance, malfeasance, nonfeasance or a violation of the oath of office.”

Alston met Friday with Thompson and mentioned the possibility of a recall to him, Thompson said.

Knight and Vaughan claim Alston suggested there might be protests over the hotel issue to coincide with the opening of the International Civil Rights Center & Museum on Monday, while the Revs. Al Sharpton and Jesse Jackson are in town.

Knight said Alston suggested the mayor might not be invited to the museum opening.

Alston denies saying that. He said he talked Guilford County Board of Education member Deena Hayes out of organizing a protest march related to the hotel.

Hayes also is connected to the hotel. She lives with John Greene, a principal in the Urban Hotel Group, which is proposing the development.

Hayes did not return calls for comment.

“Clearly, there was talk about making this an issue to coincide with the opening of the civil rights museum, and I thought that was unfortunate,” Vaughan said. “To be threatened with Jesse Jackson and Al Sharpton — I don’t take kindly to that.”

Vaughan said she was offended by the remarks.

“It makes me angry. It makes me think that Deena and Skip are hypocrites,” Vaughan said. “I think that they are strong-arming us to try to endorse a project that they are personally going to make money on.”

Alston has refused to disclose how much money he stands to make from brokering the proposed hotel deal. He denies that he and Hayes have conflicting interests as they try to represent the concerns of the African American community and advance a project in which they both have an interest.

Alston said he didn’t mean any of his remarks as a threat. He was reacting to rumors he had heard that the mayor had a private dinner with Quaintance and Weaver, he said. Alston heard the mayor had promised the financing would be reconsidered at the City Council’s Feb. 2 meeting.

“Yes, I said that the African American community would not be happy about that,” Alston said. “And I don’t think they should be happy about the mayor of Greensboro promising to take care of white business interests in Greensboro at the expense of a majority African American owned hotel.”

Knight said he did meet with Quaintance and Weaver, but he didn’t make them any promises . “That’s absurd. That is absolutely absurd,” Knight said of Alston’s impression of the meetings.

Knight also met with hotel proponents Randall Kaplan and George House .

“I met with both sides,” Knight said. “I’m learning — as different issues come to the council — I am trying to do my homework. I feel like that is going to help me make objective decisions.”

Alston said the mayor and other council members have made the hotel a racial issue by seeking to protect existing, white-owned hotels.

“The mayor obviously doesn’t understand his job,” Alston said. “It’s not his job to prevent free enterprise. If I want to open up a new hot dog stand, is he going to try to stop me so I don’t compete with Yum-Yum?

“All we are asking is that this be a fair process,” Alston said. “It shouldn’t be based on the influence of Dennis Quaintance and Mike Weaver or on the influence of me or Deena Hayes. They should judge this hotel on its merits.”

 

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

 

Contact Joe Killian at 373-7023 or joe.killian @news-record.com

Accompanying Photos

File photo (News & Record)

Photo Caption: Melvin "Skip" Alston

Comments

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williag_1998

January 27, 2010 - 1:57 pm EST

Skip has got to go. He is precisely what is wrong in Greensboro right now. We'll never move forward as long as he has a leadership role in this town. We'll always be a "has been" town. Businesses will never want to locate here, and people will not want to live here when stuff like this continues to happen. Go away Skip!

edward0275

January 28, 2010 - 1:03 am EST

I no longer live in GSO. I live in High Point, but 2 blocks into Davidson County. Articles like this reinforce my belief that at least I made one good decision in my adult life.

Boatman

January 27, 2010 - 2:06 pm EST

There is now way this man should be involved with these decisions. If he stands to make money on the deal, he no longer represents the publics best interest. And the race card? Come on...................There's a kettle colored voice. Alston, separate your politics for personal business.

jeffreyhsykes

January 27, 2010 - 2:12 pm EST

Mr. Alston:

How is this for judging the project on its merits?

http://www.scribd.com/doc/25506692/HVS-1-18-10

"The developer’s projection of occupancy at the proposed hotel over the
first five years is highly unlikely to be achieved given the recent
occupancy levels achieved by the four hotels that will be primary
competitors of the proposed hotel."

"The 2009 HVS Hotel Valuation Index report issued in October 2009 lists
Greensboro (ranked 63) near the bottom of 65 cities in the U.S. for
projected changes in per-room value from 2006 to (Projected) 2013. Hotel
values in Greensboro are projected by HVS to fall -47.7% between 2006
and 2013."

Interested

January 28, 2010 - 6:29 am EST

Perhaps these numbers should be forwarded to the federal powers that be who will be making the decision as to whether the project deserves federal funds.

jstevenh1952

January 28, 2010 - 1:15 pm EST

This is exactly what I have been posting here since this plan was revealed. As part of a 3.5 billion dollar capital pool (known as REIT) we did an independent investment study to develop or acquire hotels in this area. The numbers aren't there. In fact this metro area ranked on the low end of the tier for capital expansion into the hotel and resorts sector. The numbers won't work folks. They just won't. Call it what you want, this or any other new hotel development in this metro will become a "white elephant".

Based on costs, facilities and amenities it would be darn near impossible to pull this off. I wouldn't take the risk.

JGALT

January 27, 2010 - 2:18 pm EST

It is time for Skip Alston to be removed from office. He is and has been a detriment to Greensboro and Guilford County. If there were no federal funds, or local subsidy involved in this and it was private capital, there would not be taxpayer interest. The racial threats and politics are defamatory and inappropriate. The News and Record needs to publish the business plan for this project. The numbers would show whether the project is viable and whether due diligence has been performed. If Skip and the others involved in this are convinced of the worthiness of this project, they should personally guarantee the debt.

In any event Alston needs to go. Greensboro and Guilford County deserve better leadership.

jeffreyhsykes

January 27, 2010 - 2:43 pm EST

The link provided above is to a consultant's report that finds the plan for the hotel is unrealistic. What else do we need to know?

http://www.scribd.com/doc/25506692/HVS-1-18-10

JGALT

January 27, 2010 - 4:03 pm EST

Good link. It looks like the project is unrealistic, would not service the debt and the timing could not be worse. I'm still trying to load the Urban Groups proposal to see who is counting on what and how much.

jeffreyhsykes

January 27, 2010 - 4:45 pm EST

I got the link from triadwatch.blogspot.com

Keith there does a lot of good work.

triadwatch

January 27, 2010 - 6:11 pm EST

thank you mr. sykes, you do great work as well

VALawyer

January 27, 2010 - 2:19 pm EST

What Alston is doing is really pathetic and cynical. I'm black and it's irritating to see him bring race into something that clearly benefits him and not the black community of Greensboro in general. It's dangerous to cry wolf all the time because when something that is actually racist and damaging to black people happens, no one takes the complainant seriously. He's just using the black community as a pawn. Alston is going to need more evidence than the fact that he's black to show that the council is being racist. If he wants federally financed bonds and if the council reverses the approval, he is free to seek other sources of funding to build the hotel. Alston: stop the cynical tactics. It disrespects people who actually are victims of racism.

CherylP25

January 27, 2010 - 2:55 pm EST

VALawyer, I wish there was a "like" button on your post.

kikablue

January 27, 2010 - 8:21 pm EST

VALawyer, thank you for your comment, you have said everything that needs to be said. I am so sick of people with their racisim,bigotry and playing the race cards. I say race cards, because it is not only one race that does this. The council members are supposed to have good moral character. The way Alston is going about it, is showing his lack of any.

MisVforShort

January 28, 2010 - 1:27 pm EST

I agree with you VA! Skip doesn't speak for me! Nor does he represent my feelings or thoughts about this projeect. How many empty hotels do we need to have in this city/county? I find it interesting that Skip cried racism when it came to support of the Civil Rights Museum and now its the same for this hotel... the one constant with each project is him and his "personal investments." It makes me sick. If I lived in his district I would get out there and do something to ensure that he never made it into another public office- so that he could never claim to speak on my behalf again. What good does he do for this city/community/county anyway?

hgals01

January 27, 2010 - 2:21 pm EST

We need to stop fighting about 1 hotel! We need to discuss through Free Enterprise to have several additional hotels and Fortune 500 companies for downtown. We need to grow Greensboro and attract companies and entrepreneurs for development. We need to lower all business taxes to create a great business climate here in Greensboro.

fisher

January 27, 2010 - 2:46 pm EST

Free enterprise isn't quite the same when one party has a $19M leg up on the rest of the field.

eduguytoo

January 27, 2010 - 11:57 pm EST

I think the basic point is valid. Remember that Greensboro once was "The Gateway City," with a vibrant downtown resplendent with several nice hotels (Clegg, O.Henry, King Cotton) where a steady clientele was assured. It was basically business that brought most folks here. If downtown Greensboro was a business mecca, then maybe a luxury hotel would have merit. Someone put out some figures the other day about the number of restaurants, theaters, galleries, stores, etc. there are in downtown Greensboro today. They are a nice draw for us locals. I personally go downtown to eat, attend a play, watch a parade, sing Christmas carols...even attend worship. I've never been compelled to stay in a hotel. The main downtown dynamic I can identify is the International Civil Rights Museum. Is it the drawing card that's going to consistently fill up 200 rooms at $200 a night? Why are "outsiders" going to flock to downtown Greensboro to stay in the present Marriott or the future Westin...or whatever the luxury place will be? For the nightlife? For the galleries? For the museums? I don't think so. As it was 80 to 100 years ago, the only rational reason would be principally for business. If the economy of this country rebounds and Greensboro returns to some semblance of its glory in terms of business, commerce, manufacturing, corporate clout...then, and only then would it make sense to build a luxury hotel. As I see it, we have a bunch of people putting the cart before the horse with the belief that the amalgamation will be capable of winning the Indianapolis 500.

Katbyrd

January 28, 2010 - 6:45 am EST

You people are missing the point. The point of this entire article is NOT about drawing business downtown, it's the bullying tactics of one man who has the mistaken idea that he runs this town. As VALawyer states above, he is using his own people, the African American (in his own words from TV) community as a pawn to further his own interests. Maybe he needs to add a pool or golf course to his mansion over on Vandalia??? Skip Alston is interested in himself and himself only. He is NOT concerned for the good of the African American community and if the voters in this town have any sense at all, he will be voted out pronto.

eduguytoo

January 28, 2010 - 1:10 pm EST

And you missed my point. I was responding to the comment that started this immediate string which had, as part of its content: "We need to grow Greensboro and attract companies and entrepreneurs for development. We need to lower all business taxes to create a great business climate here in Greensboro." A luxury hotel being built will NOT cause downtown to become instantly more vibrant nor will its mere existence assure success of the venture. Conversely, if significant corporate activity occurs downtown, it could, in time, spawn the need for a hotel. We once had lots of downtown hotels because there were lots of business reasons people stayed in them! Nobody built the Clegg, the O.Henry (the old one) or the King Cotton and said: "Gosh, this is a nice place. I sure hope somebody will stay here."

If we need to invest in anything, it's to lure more business (as in, companies that will provide JOBS) to the area...and most specifically to the downtown area. If you need it more concisely...I'm against the hotel because I'm confident that it's not needed and that in short order it will fail.

moonshadow

January 27, 2010 - 2:25 pm EST

I think the voters of Greensboro need to wise up and throw this bum out of office. His only interests are his own. He surely doesn't have the people's interest at heart.
VOTE HIM OUT!

tledford

January 27, 2010 - 3:30 pm EST

He serves the county, not Greensboro. Greensboro can't "throw him out," but it is time for him to resign, definitely.

Dogwood

January 27, 2010 - 2:29 pm EST

Please stop this madness. Monday is a day to celebrate. The day may be cold and icy due to weather. The honor due four brave men is paramount. Alston for 18 years has had more conspiracy theories than can be counted. Get over it Alston!

Oona

January 27, 2010 - 2:31 pm EST

wait...does this mean that they do have they option to reconsider? i thought it was a done deal

Oona

January 27, 2010 - 2:40 pm EST

this issue has nothing to do with race and everything to do with the need to conduct city and county business on the up and up. " civic transparency" as stated by the editor of the n&r. if we remove the term "race" from the discussion, perhaps we can resolve the issue and move forward. are you with me people?

Govgirl

January 27, 2010 - 2:48 pm EST

Oona - your question is deferred to Mr. Alston. He's conducted his entire career both public and private based on throwing down the race card any time he does not hear the answer desired. Until Mr. Alston can put his biased feelings aside and conduct himself as an experienced professional, expect more of the same. He has no problem using the community as his pawns to promote his own gain.

Oona

January 27, 2010 - 3:06 pm EST

my question is for everyone- and your last sentence infers the reason why- to move forward we all have to let that go

Govgirl

January 28, 2010 - 10:10 am EST

The "letting go" mentality is what keeps getting him re-elected. It's time for people to wake up and smell the coffee!

wscbd

January 27, 2010 - 2:43 pm EST

Skip's been a detriment to the entire community for so many years, but this is clearly something new. The man's off his freakin' rocker. He doesn't even care anymore. The man is absolutely bugnuts insane. We're talking about someone who many years ago called me a racist to my face during an intense verbal disagreement, in spite of the fact that my daughter's mother is black (and he knew this). And that argument had nothing to do with race; he was just accusing me of racism for the crime of disagreeing with a black man. He's gotta go, before he uses any more of his political will and influence to fill his pockets.

fisher

January 27, 2010 - 2:44 pm EST

Has TDBS said anything on the record about this?

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