Dewberry Hotel: Difference between revisions

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===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 against vandalism and grafitti. Dewberry responded by saying he had done enough.<ref>{{cite web |url=http://www.c-ville.com/developer-dewberry-fires-back-over-citys-demands-to-secure-former-landmark-site/#.ViwEcbwydKg |title=Developer Dewberry fires back over city's demands to secure former Landmark siteC-VILLE Weekly |newspaper=C-ville.com |publishdate=Ocotber 30, 2013  |author=Graelyn Brashear |accessdate= October 24, 2015}}</ref> Dewberry has stated he will complete the project after another hotel is completed in Charleston, South Carolina. <ref name="jan14" /> That project is redevelopment of the former L. Mendel Rivers Federal Building into a 155-room hotel. That is expected to be open between December 2015 and February 2016. <ref>{{cite web|title=The Fat Radish's Ben Towill will develop new hotel restaurant|url=http://www.charlestoncitypaper.com/Eat/archives/2015/04/13/the-fat-radishs-ben-towill-will-develop-new-hotel-restaurant|author=Kinsey Gidick|work=|publisher=Charleston City Paper|location=|publishdate=April 13, 2015|accessdate=April 14, 2015}}</ref>
After nearly four years of being abandoned, in the Fall of 2013 the city of Charlottesville served Dewberry with a letter requesting he secure the property against vandalism and grafitti. Dewberry responded by saying he had done enough.<ref>{{cite web |url=http://www.c-ville.com/developer-dewberry-fires-back-over-citys-demands-to-secure-former-landmark-site/#.ViwEcbwydKg |title=Developer Dewberry fires back over city's demands to secure former Landmark siteC-VILLE Weekly |newspaper=C-ville.com |publishdate=Ocotber 30, 2013  |author=Graelyn Brashear |accessdate= October 24, 2015}}</ref> Dewberry has stated he will complete the project after another hotel is completed in Charleston, South Carolina. <ref name="jan14" /> That project is redevelopment of the former L. Mendel Rivers Federal Building into a 155-room hotel. That is expected to be open between December 2015 and February 2016. <ref>{{cite web|title=The Fat Radish's Ben Towill will develop new hotel restaurant|url=http://www.charlestoncitypaper.com/Eat/archives/2015/04/13/the-fat-radishs-ben-towill-will-develop-new-hotel-restaurant|author=Kinsey Gidick|work=|publisher=Charleston City Paper|location=|publishdate=April 13, 2015|accessdate=April 14, 2015}}</ref>


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>  In response, Dewberry secured the building with plywood barriers, installed a taller fence and blocked open stairwells-- but no progress on new construction is expected until at least 2016.<ref>{{cite web |url=http://www.dailyprogress.com/news/local/construction-on-landmark-hotel-might-not-resume-till/article_ceeaa776-e633-11e4-b41e-73bd4205a9aa.html |title=Construction on Landmark Hotel might not resume till 2016 - The Daily Progress: Local |newspaper=Dailyprogress.com |publishdate=April 18, 2105  |author=Chris Suarez |accessdate= October 24, 2015}}</ref>
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>  In response, Dewberry secured the building with plywood barriers, installed a taller fence and blocked open stairwells-- but no progress on new construction is expected until at least 2016.<ref>{{cite web |url=http://www.dailyprogress.com/news/local/construction-on-landmark-hotel-might-not-resume-till/article_ceeaa776-e633-11e4-b41e-73bd4205a9aa.html |title=Construction on Landmark Hotel might not resume till 2016 - The Daily Progress: Local |newspaper=Dailyprogress.com |publishdate=April 18, 2105  |author=Chris Suarez |accessdate= October 24, 2015}}</ref>

Revision as of 18:27, 24 October 2015

Skeleton of the Landmark Hotel

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]

Approvals

The Charlottesville Board of Architectural Review approved construction plans on February 20, 2008[3]. BAR granted conditional permission to tear down the black granite façade in October 2008[4].

Initial troubles surface soon after groundbreaking

Groundbreaking for the Landmark on March 11, 2008 and the opening was scheduled for July 2009. [5][2]

However, the project's financing was called into question as early as November 2008. That's when project lender Silverton Bank failed. [6]

Minor fired developer Lee Danielson in December 2008. [7] 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. The arbitrator found that Danielson had misrepresented the costs of building the hotel.[8]

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. [9]

On September 1, 2010, Minor filed for Chapter 11 bankruptcy. [10]

The Charlottesville government refused to provide financial assistance to complete the hotel, unlike the development assistance provided to the Omni Hotel in the 1970s. [11]

Project taken from Minor

In January 2011, a Georgia court awarded the project to Specialty Finance Group following a long legal dispute. [12]

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. [13]

Auction

On June 18, 2012, three companies bid on the property. They were Deerfield Square Associates, J.B. McKimmon and TRT Holdings, Inc. [14] 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, in the Fall of 2013 the city of Charlottesville served Dewberry with a letter requesting he secure the property against vandalism and grafitti. Dewberry responded by saying he had done enough.[15] Dewberry has stated he will complete the project after another hotel is completed in Charleston, South Carolina. [16] That project is redevelopment of the former L. Mendel Rivers Federal Building into a 155-room hotel. That is expected to be open between December 2015 and February 2016. [17]

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.[16][18] In response, Dewberry secured the building with plywood barriers, installed a taller fence and blocked open stairwells-- but no progress on new construction is expected until at least 2016.[19]

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[20]
  • 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 [12]
  • 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. Landmark Hotel developer given permission to take down black granite facade, Sean Tubbs, Charlottesville Tomorrow, October 22, 2008, retreived 26 Aug. 2009
  5. New Details about New Luxury Hotel, Joanna Shrewsbury, NBC 29, March 11 2008, retrieved 26 Aug 2009.
  6. Landmark letdown: Hotel project’s lender folds, Lindsay Barnes, The Hook, May 1 2009, retrieved 26 Aug 2009.
  7. Landmark Hotel developer fired Brian McNeill, Daily Progress, December 6, 2008, retrieved 26 Aug 2009.
  8. Web. Judge Confirms Award in Heated Landmark Hotel Battle, Kates, Tasha, Daily Progress, Lee Enterprises, 25 Aug. 2010, retrieved 26 Aug. 2010..
  9. "FDIC Abuse in Charlottesville | Change.org." Web. 03 Aug. 2010. <http://www.savecharlottesville.com/>.
  10. {{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/}
  11. Web. Minor Asks City for Help with Landmark Hotel, Henry Graff, NBC29.com, Aug 12, 2011
  12. 12.0 12.1 Web. Minor: 'Travesty of justice' on Landmark ruling, Daily Progress, Lee Enterprises, January 21, 2011, retrieved January 24, 2011.
  13. 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.
  14. Web. Three bidders for Landmark Hotel emerge, Samantha Koon, Daily Progress, Lee Enterprises, June 14, 2012, retrieved June 15, 2012.
  15. Web. Developer Dewberry fires back over city's demands to secure former Landmark siteC-VILLE Weekly, Graelyn Brashear, Ocotber 30, 2013, retrieved October 24, 2015.
  16. 16.0 16.1 Web. Charlottesville officials set Planning Commission date on Landmark, Staff reports, Daily Progress, Lee Enterprises, December 5, 2013, retrieved December 6, 2013.
  17. Web. The Fat Radish's Ben Towill will develop new hotel restaurant, Kinsey Gidick, Charleston City Paper, April 13, 2015, retrieved April 14, 2015.
  18. 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 .
  19. Web. Construction on Landmark Hotel might not resume till 2016 - The Daily Progress: Local, Chris Suarez, April 18, 2105, retrieved October 24, 2015.
  20. 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