Dewberry Hotel: Difference between revisions

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The [[Landmark Hotel]] is a partially constructed building on the [[Downtown Mall]], proposed as a nine-story, 100-room luxury hotel. The firm Dewberry Capital of Atlanta won the shell of the building at an auction in June 2012 and plans to complete the structure. <ref name="dewberry" /> On January 14, 2014, the Charlottesville Planning Commission voted 7-0 to require Dewberry to secure the property and to require a structural integrity report to be completed within ninety days. <ref name="jan14">{{cite-progress|title=Charlottesville officials set Planning Commission date on Landmark|url=http://www.dailyprogress.com/news/charlottesville-officials-set-planning-commission-date-on-landmark/article_f82fc794-5e1f-11e3-ae25-001a4bcf6878.html|author=Staff reports|pageno=|printdate=December 5, 2013|publishdate=December 5, 2013|accessdate=December 6, 2013|cturl=}}</ref> <ref name="c-ville-update" >{{cite-cville|title=Landmark’s last stand? More security, structural reports called for|url=http://www.c-ville.com/landmarks-last-stand-more-security-structural-reports-called-for/#.Ut_8zdIo7IU|author=Graelyn Brashear|pageno=|printno=|printdate=January 22, 2014|publishdate=January 22, 2014|accessdate=January 22, 2013}}</ref>
The [[Landmark Hotel]] is a partially constructed building on the [[Downtown Mall]], proposed as a nine-story, 100-room luxury hotel.  
Construction was abandoned in January 2009.  


The firm [[Dewberry Capital of Atlanta]] won the shell of the building at an auction in June 2012 and plans to complete the structure. <ref name="dewberry" /> No plans have been filed with the city to continue.


==History==
==History==
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The Landmark was the creation of entrepreneur [[Halsey Minor]]. <ref name=hookgroundbreaking>[http://www.readthehook.com/blog/index.php/2008/03/11/danielson-minor-break-ground-on-landmark/ Danielson, Minor break ground on ‘Landmark’] Dave McNair, [[The Hook]], March 11 2008, retrieved 26 Aug 2009.</ref> The idea was to build a $30 million, nine-story luxury boutique hotel.  
The Landmark was the creation of entrepreneur [[Halsey Minor]]. <ref name=hookgroundbreaking>[http://www.readthehook.com/blog/index.php/2008/03/11/danielson-minor-break-ground-on-landmark/ Danielson, Minor break ground on ‘Landmark’] Dave McNair, [[The Hook]], March 11 2008, retrieved 26 Aug 2009.</ref> The idea was to build a $30 million, nine-story luxury boutique hotel.  


The construction site is a former bank building that was owned by Wachovia after it purchased Central Fidelity.
===Before Minor===


Prior owners of the project included [[Lee Danielson]] and [[Oliver Kuttner]], and other names used for the project in the past are '''The Beacon-Charlottesville''' and '''Hotel Charlottesville'''<ref name=hookbeacon>[http://www.readthehook.com/stories/2007/03/01/ONARCH-0609-B.rtf.aspx ONARCHITECTURE- Bright idea: Danielson's Beacon's back in town], Dave McNair, [[The Hook]], March 1, 2007,  retrieved 26 Aug 2009.</ref>.
The construction site is a former bank building that was owned by Wachovia after it purchased Central Fidelity. {{fact}} Prior owners of the project included [[Lee Danielson]] and [[Oliver Kuttner]], and other names used for the project in the past had been '''The Beacon-Charlottesville''' and '''Hotel Charlottesville'''. <ref name=hookbeacon>[http://www.readthehook.com/stories/2007/03/01/ONARCH-0609-B.rtf.aspx ONARCHITECTURE- Bright idea: Danielson's Beacon's back in town], Dave McNair, [[The Hook]], March 1, 2007,  retrieved 26 Aug 2009.</ref>
At groundbreaking on March 11, 2008, the opening was scheduled for July 2009. <ref name=nbcgroundbreaking>[http://www.nbc29.com/Global/story.asp?S=7998148 New Details about New Luxury Hotel], Joanna Shrewsbury, NBC 29, March 11 2008, retrieved 26 Aug 2009.</ref><ref name=hookgroundbreaking/>


Financing controversy threatened the project as early as November 2008, and Silverton Bank, the project's lender, eventually was subject of a bank failure<ref name=hookfinancing>[http://www.readthehook.com/blog/index.php/2009/05/01/landmark-letdown-hotel-projects-lender-folds/ Landmark letdown: Hotel project’s lender folds], Lindsay Barnes, [[The Hook]], May 1 2009, retrieved 26 Aug 2009.</ref>.
===Initial troubles surface soon after groundbreaking===


Lee Danielson was the developer of the project until Minor fired him in December 2008<ref name=dpdanielsonsacked>[http://www2.dailyprogress.com/cdp/news/local/article/landmark_hotel_developer_fired/32451/ Landmark Hotel developer fired] Brian McNeill, [[Daily Progress]], December 6, 2008, retrieved 26 Aug 2009.</ref>.
Groundbreaking for the Landmark on March 11, 2008 and the opening was scheduled for July 2009. <ref name=nbcgroundbreaking>[http://www.nbc29.com/Global/story.asp?S=7998148 New Details about New Luxury Hotel], Joanna Shrewsbury, NBC 29, March 11 2008, retrieved 26 Aug 2009.</ref><ref name=hookgroundbreaking/>


==Abandoned structure==
However, the project's financing was called into question as early as November 2008. That's when project lender Silverton Bank failed. <ref name=hookfinancing>[http://www.readthehook.com/blog/index.php/2009/05/01/landmark-letdown-hotel-projects-lender-folds/ Landmark letdown: Hotel project’s lender folds], Lindsay Barnes, [[The Hook]], May 1 2009, retrieved 26 Aug 2009.</ref>
 
Minor fired developer [[Lee Danielson]] in December 2008. <ref name=dpdanielsonsacked>[http://www2.dailyprogress.com/cdp/news/local/article/landmark_hotel_developer_fired/32451/ Landmark Hotel developer fired] Brian McNeill, [[Daily Progress]], December 6, 2008, retrieved 26 Aug 2009.</ref> The pair went to court.


Construction stopped in January of 2009.
Construction stopped in January of 2009.
===Court battle===


On August 25, 2010, Judge Edward L. Hogshire signed an arbitration order in which Danielson agreed to pay $4.2 million in damages and $2.2 million in attorneys' fees to Minor. Danielson misrepresented the costs of building the hotel.  
On August 25, 2010, Judge Edward L. Hogshire signed an arbitration order in which Danielson agreed to pay $4.2 million in damages and $2.2 million in attorneys' fees to Minor. Danielson misrepresented the costs of building the hotel.  


Also in August 2010, Minor announced he would file a suit against the Federal Deposit Insurance Corporation claiming the federal agency is directly responsible for the stall in the hotel's construction<ref>"FDIC Abuse in Charlottesville | Change.org." Web. 03 Aug. 2010. <http://www.savecharlottesville.com/>.</ref>.
Also in August 2010, Minor announced he would file a suit against the Federal Deposit Insurance Corporation claiming the federal agency was  directly responsible for the stall in the hotel's construction. <ref>"FDIC Abuse in Charlottesville | Change.org." Web. 03 Aug. 2010. <http://www.savecharlottesville.com/>.</ref>


On September 1, 2010, Minor filed for Chapter 11 bankruptcy<ref>{{cite-cville|author=Chianzi, Chiara|title=C-Ville: Development - Landmark Hotel Owner Files for Chapter 11 Bankruptcy|publishdate=7 Sept. 2010|accessdate=08 Sept. 2010|url=http://www.c-ville.com/index.php?cat=141404064435450&ShowArticle_ID=11800309100517102}}</ref>.
On September 1, 2010, Minor filed for Chapter 11 bankruptcy. <ref>{{cite-cville|author=Chianzi, Chiara|title=C-Ville: Development - Landmark Hotel Owner Files for Chapter 11 Bankruptcy|publishdate=7 Sept. 2010|accessdate=November 3, 2014|url=http://www.c-ville.com/Landmark_Hotel_owner_files_for_Chapter_11_bankruptcy/}</ref>


The Charlottesville government refused to provide financial assistance to complete the hotel, unlike the development assistance provided to the [[Omni Hotel]] in the 1970s.<ref name=cityhelp>{{cite web|author=Henry Graff|work=NBC29.com|Publisher=[[WVIR]]|title=Minor Asks City for Help with Landmark Hotel|url=http://www.nbc29.com/story/15258800/minor-asks-city-for-help-with-landmark-hotel|publishdate=Aug 12, 2011}}</ref>
The Charlottesville government refused to provide financial assistance to complete the hotel, unlike the development assistance provided to the [[Omni Hotel]] in the 1970s. <ref name=cityhelp>{{cite web|author=Henry Graff|work=NBC29.com|Publisher=[[WVIR]]|title=Minor Asks City for Help with Landmark Hotel|url=http://www.nbc29.com/story/15258800/minor-asks-city-for-help-with-landmark-hotel|publishdate=Aug 12, 2011}}</ref>


Minor is represented by DLA Piper<ref>. {{cite-progress|author=Kates, Tasha|title=Judge Confirms Award in Heated Landmark Hotel Battle|publishdate= 25 Aug. 2010|accessdate=26 Aug. 2010|url=http://www2.dailyprogress.com/news/2010/aug/25/judge-confirms-award-heated-landmark-hotel-battle-ar-473414/}}.</ref>
Danielson lost to Minor. <ref> {{cite-progress|author=Kates, Tasha|title=Judge Confirms Award in Heated Landmark Hotel Battle|publishdate= 25 Aug. 2010|accessdate=26 Aug. 2010|url=http://www2.dailyprogress.com/news/2010/aug/25/judge-confirms-award-heated-landmark-hotel-battle-ar-473414/}}.</ref>


==New owner==
===Project taken from Minor===


In January 2011, a Georgia court awarded the project to [[Specialty Finance Group]] following a long legal dispute. <ref name="20110121-progress">{{cite-progress|title=Minor: 'Travesty of justice' on Landmark ruling|url=http://www2.dailyprogress.com/news/2011/jan/21/minor-travesty-justice-landmark-ruling-ar-789742/|author=|pageno=|printdate=January 21, 2011|publishdate=January 21, 2011|accessdate=January 24, 2011|cturl=}}</ref>
In January 2011, a Georgia court awarded the project to [[Specialty Finance Group]] following a long legal dispute. <ref name="20110121-progress">{{cite-progress|title=Minor: 'Travesty of justice' on Landmark ruling|url=http://www2.dailyprogress.com/news/2011/jan/21/minor-travesty-justice-landmark-ruling-ar-789742/|author=|pageno=|printdate=January 21, 2011|publishdate=January 21, 2011|accessdate=January 24, 2011|cturl=}}</ref>
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===Auction===
===Auction===
On June 18, 2012, three companies bid on the property. They are Deerfield Square Associates, J.B. McKimmon and TRT Holdings, Inc. <ref name="auction">{{cite-progress|title=Three bidders for Landmark Hotel emerge|url=http://www2.dailyprogress.com/business/2012/jun/14/three-bidders-landmark-hotel-emerge-ar-1988780/|author=Samantha Koon|pageno=|printdate=June 14, 2012|publishdate=June 14, 2012|accessdate=June 15, 2012|cturl=}}</ref>
On June 18, 2012, three companies bid on the property. They were  Deerfield Square Associates, J.B. McKimmon and TRT Holdings, Inc. <ref name="auction">{{cite-progress|title=Three bidders for Landmark Hotel emerge|url=http://www2.dailyprogress.com/business/2012/jun/14/three-bidders-landmark-hotel-emerge-ar-1988780/|author=Samantha Koon|pageno=|printdate=June 14, 2012|publishdate=June 14, 2012|accessdate=June 15, 2012|cturl=}}</ref> Each submitted an opening bid of at least $3 million and a $200,000 cash deposit.  
Each has submitted an opening bid of at least $3 million and a $200,000 cash deposit. Danielson submitted a bid but it was rejected because of an inability to guarantee to pay.  
 
Danielson submitted a bid but he was rejected because of an inability to guarantee to pay.  


Dewberry Capital, associated with Deerfield Square Associates, won the auction with a $6.25 million bid. <ref name="dewberry">{{cite web|title=Dewberry Capital Wins Landmark Hotel for $6.25 M|url=http://www.nbc29.com/story/18815432/dewberry-capital-wins-landmark-hotel-for-625-m|author=Matt Telhelm|work=|publisher= NBC29 News|location=|publishdate=June 18, 2012|accessdate=June 18, 2012}}</ref>
[[Dewberry Capital]], associated with Deerfield Square Associates, won the auction with a $6.25 million bid. <ref name="dewberry">{{cite web|title=Dewberry Capital Wins Landmark Hotel for $6.25 M|url=http://www.nbc29.com/story/18815432/dewberry-capital-wins-landmark-hotel-for-625-m|author=Matt Telhelm|work=|publisher= NBC29 News|location=|publishdate=June 18, 2012|accessdate=June 18, 2012}}</ref>


==Spot blight==
===Spot blight===
After nearly four years of being abandoned, the city of Charlottesville served Dewberry with a letter requesting he secure the property following grafitti. Dewberry responded by saying he had done enough. However, the city is still forcing him to appear before the planning commission on January 14, 2013, to explain his plans. Dewberry has stated he will complete the project after another hotel is completed in Charleston, South Carolina. <ref name="jan14" />
After nearly four years of being abandoned, the city of Charlottesville served Dewberry with a letter requesting he secure the property following grafitti. Dewberry responded by saying he had done enough. However, the city is still forcing him to appear before the planning commission on January 14, 2013, to explain his plans. Dewberry has stated he will complete the project after another hotel is completed in Charleston, South Carolina. <ref name="jan14" />


On January 14, 2014, Dewberry failed to appear before the Planning Commission. The Commission voted 7-0 to require him to secure the building and provide a report on the structural integrity of the unfinished building. <ref name="c-ville-update" />
On January 14, 2014, the Charlottesville Planning Commission voted 7-0 to require Dewberry to secure the property and to require a structural integrity report to be completed within ninety days. <ref name="jan14">{{cite-progress|title=Charlottesville officials set Planning Commission date on Landmark|url=http://www.dailyprogress.com/news/charlottesville-officials-set-planning-commission-date-on-landmark/article_f82fc794-5e1f-11e3-ae25-001a4bcf6878.html|author=Staff reports|pageno=|printdate=December 5, 2013|publishdate=December 5, 2013|accessdate=December 6, 2013|cturl=}}</ref> <ref name="c-ville-update" >{{cite-cville|title=Landmark’s last stand? More security, structural reports called for|url=http://www.c-ville.com/landmarks-last-stand-more-security-structural-reports-called-for/#.Ut_8zdIo7IU|author=Graelyn Brashear|pageno=|printno=|printdate=January 22, 2014|publishdate=January 22, 2014|accessdate=January 22, 2013}}</ref>




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*June 18, 2012: Auction in U.S. District Court won by Dewberry Capital
*June 18, 2012: Auction in U.S. District Court won by Dewberry Capital
*January 14, 2014: Planning Commission votes 7-0 to require building to be secured, structural report
*January 14, 2014: Planning Commission votes 7-0 to require building to be secured, structural report


==References==
==References==

Revision as of 13:58, 3 November 2014

The Landmark Hotel is a partially constructed building on the Downtown Mall, proposed as a nine-story, 100-room luxury hotel. Construction was abandoned in January 2009.

The firm Dewberry Capital of Atlanta won the shell of the building at an auction in June 2012 and plans to complete the structure. [1] No plans have been filed with the city to continue.

History

The Landmark was the creation of entrepreneur Halsey Minor. [2] The idea was to build a $30 million, nine-story luxury boutique hotel.

Before Minor

The construction site is a former bank building that was owned by Wachovia after it purchased Central Fidelity. [citation needed] Prior owners of the project included Lee Danielson and Oliver Kuttner, and other names used for the project in the past had been The Beacon-Charlottesville and Hotel Charlottesville. [3]

Initial troubles surface soon after groundbreaking

Groundbreaking for the Landmark on March 11, 2008 and the opening was scheduled for July 2009. [4][2]

However, the project's financing was called into question as early as November 2008. That's when project lender Silverton Bank failed. [5]

Minor fired developer Lee Danielson in December 2008. [6] The pair went to court.

Construction stopped in January of 2009.

Court battle

On August 25, 2010, Judge Edward L. Hogshire signed an arbitration order in which Danielson agreed to pay $4.2 million in damages and $2.2 million in attorneys' fees to Minor. Danielson misrepresented the costs of building the hotel.

Also in August 2010, Minor announced he would file a suit against the Federal Deposit Insurance Corporation claiming the federal agency was directly responsible for the stall in the hotel's construction. [7]

On September 1, 2010, Minor filed for Chapter 11 bankruptcy. [8]

The Charlottesville government refused to provide financial assistance to complete the hotel, unlike the development assistance provided to the Omni Hotel in the 1970s. [9]

Danielson lost to Minor. [10]

Project taken from Minor

In January 2011, a Georgia court awarded the project to Specialty Finance Group following a long legal dispute. [11]

On December 5, 2011, a Charlottesville Circuit Court judge ruled that the first debt that Minor must repay is more than $128,000 in back taxes to the city of Charlottesville. Next, Minor must pay Clancy & Theys Construction, other construction firms and then Specialty Finance Group. [12]

Auction

On June 18, 2012, three companies bid on the property. They were Deerfield Square Associates, J.B. McKimmon and TRT Holdings, Inc. [13] Each submitted an opening bid of at least $3 million and a $200,000 cash deposit.

Danielson submitted a bid but he was rejected because of an inability to guarantee to pay.

Dewberry Capital, associated with Deerfield Square Associates, won the auction with a $6.25 million bid. [1]

Spot blight

After nearly four years of being abandoned, the city of Charlottesville served Dewberry with a letter requesting he secure the property following grafitti. Dewberry responded by saying he had done enough. However, the city is still forcing him to appear before the planning commission on January 14, 2013, to explain his plans. Dewberry has stated he will complete the project after another hotel is completed in Charleston, South Carolina. [14]

On January 14, 2014, the Charlottesville Planning Commission voted 7-0 to require Dewberry to secure the property and to require a structural integrity report to be completed within ninety days. [14] [15]


Approvals

The Charlottesville Board of Architectural Review approved the plans on February 20, 2008[3].

BAR granted conditional permission to tear down the black granite façade in October 2008[16].

Map

Coordinates:Erioll world.svg.png 38°01′48″N 78°28′51″W / 38.030127°N 78.480761°W / 38.030127; -78.480761

Timeline

  • November 15, 2007: Minor Family Hotels LLC and Hotel Charlottesville LLC enter into a development agreement
  • April 19-23, 2010: Parties hold arbitration meetings at which 8 witnesses testify and thousands of documents are introduced into the record[17]
  • August 25, 2010: Judge Hogshire signs the arbitration award
  • January 19, 2011: Fulton County State Court in Georgia awards assets of project to Specialty Finance Group [11]
  • June 18, 2012: Auction in U.S. District Court won by Dewberry Capital
  • January 14, 2014: Planning Commission votes 7-0 to require building to be secured, structural report


References

  1. 1.0 1.1 Web. Dewberry Capital Wins Landmark Hotel for $6.25 M, Matt Telhelm, NBC29 News, June 18, 2012, retrieved June 18, 2012.
  2. 2.0 2.1 Danielson, Minor break ground on ‘Landmark’ Dave McNair, The Hook, March 11 2008, retrieved 26 Aug 2009.
  3. 3.0 3.1 ONARCHITECTURE- Bright idea: Danielson's Beacon's back in town, Dave McNair, The Hook, March 1, 2007, retrieved 26 Aug 2009.
  4. New Details about New Luxury Hotel, Joanna Shrewsbury, NBC 29, March 11 2008, retrieved 26 Aug 2009.
  5. Landmark letdown: Hotel project’s lender folds, Lindsay Barnes, The Hook, May 1 2009, retrieved 26 Aug 2009.
  6. Landmark Hotel developer fired Brian McNeill, Daily Progress, December 6, 2008, retrieved 26 Aug 2009.
  7. "FDIC Abuse in Charlottesville | Change.org." Web. 03 Aug. 2010. <http://www.savecharlottesville.com/>.
  8. {{cite-cville|author=Chianzi, Chiara|title=C-Ville: Development - Landmark Hotel Owner Files for Chapter 11 Bankruptcy|publishdate=7 Sept. 2010|accessdate=November 3, 2014|url=http://www.c-ville.com/Landmark_Hotel_owner_files_for_Chapter_11_bankruptcy/}
  9. Web. Minor Asks City for Help with Landmark Hotel, Henry Graff, NBC29.com, Aug 12, 2011
  10. Web. Judge Confirms Award in Heated Landmark Hotel Battle, Kates, Tasha, Daily Progress, Lee Enterprises, 25 Aug. 2010, retrieved 26 Aug. 2010..
  11. 11.0 11.1 Web. Minor: 'Travesty of justice' on Landmark ruling, Daily Progress, Lee Enterprises, January 21, 2011, retrieved January 24, 2011.
  12. Web. http://www2.dailyprogress.com/business/2011/dec/07/judge-prioritizes-minors-landmark-debts-ar-1527954/, Samantha Koon, Daily Progress, Lee Enterprises, December 7, 2011, retrieved December 8, 2011.
  13. Web. Three bidders for Landmark Hotel emerge, Samantha Koon, Daily Progress, Lee Enterprises, June 14, 2012, retrieved June 15, 2012.
  14. 14.0 14.1 Web. Charlottesville officials set Planning Commission date on Landmark, Staff reports, Daily Progress, Lee Enterprises, December 5, 2013, retrieved December 6, 2013.
  15. Web. Landmark’s last stand? More security, structural reports called for, Graelyn Brashear, C-VILLE Weekly, Portico Publications, January 22, 2014, retrieved January 22, 2013. Print. January 22, 2014 .
  16. Landmark Hotel developer given permission to take down black granite facade, Sean Tubbs, Charlottesville Tomorrow, October 22, 2008, retreived 26 Aug. 2009
  17. Shumener, Betty M., Henry H. Oh, and John D. Spurling. "Re: Minor Family Hotels, LLC vs Hotel Charlottesville." Letter to C. Connor Crook, Esquire, Boyle, Bain, Reback & Slayton. 28 June 2010. Charlottesville Tomorrow's Document Archive. Web. 2 July 2010. <http://www.cvilletomorrow.org/docs/ftp://cvilletomorrow@www.cvilletomorrow.org/httpdocs/docs/20100628-Landmark-Arbitration-Letter.pdf>

External links