City of Shelby plans to purchase two historic properties
City Council members voted last week to approve the purchase of two historic Shelby buildings.
Council authorized the $850,000 purchase from the city's electric funds of the Hotel Charles on South Lafayette Street from BankOZK with the intention of attracting a developer who will turn it into a boutique hotel.
In a memo from City Attorney Jason Lunsford, he said the city previously secured grant funding from a program (Opportunity Appalachia) through the Appalachian Regional Commission to assist with this effort.
The city held a public hearing during its meeting last week before proceeding with the closing on the purchase of the property, which is expected to take place Thursday. No one spoke for or against the project.
City Manager Rick Howell said the city entered into an agreement with BankOZK for the historic preservation and economic development of the property.
Sara VanLear, project manager with the Development Finance Initiative, who has been assisting the city with the project, previously said the total development costs of the project is estimated at $13.5 million.
VanLear said the goal for the Hotel Charles is to add accommodations to uptown Shelby which will support arts, culture and visitor travel while preserving and reflecting the city's history, and the plan is for a developer to create a 5,000-square-foot food and beverage space on the first floor, around 38 hotel rooms and additional 3,000 square feet of retail opportunities.
Lunsford said during the meeting the city hopes to close on contract negotiations soon and "then work to transform the Hotel Charles with the bids that we receive."
Council voted unanimously to move ahead with the purchase.
Council also voted to allow the city to purchase a second historic Shelby property. A resolution was approved last week authorizing the purchase of Webbley, former home of NC Governor O. Max Gardner.
Howell said the city recently received a directed grant from the state for the purchase and renovation of the house, located on South Washington Street, of nearly $4 million.
"At this point in time, the city does not have an intended use," Howell said. "That has not been determined yet."
He said the UNC School of Government's Development Finance Initiative, which has assisted with the Hotel Charles project, has been asked to help identify that future use.
"Once it is restored, the city would place covenants on that property that would protect it in perpetuity in terms of its historic preservation," Howell said.
He said as the project proceeds, the public will have an opportunity to weigh in on the plans for the historic house, whether that is turning it into a bed and breakfast, a museum or some other use.
"The opportunity will be given to stakeholders," he said. "The city’s purpose is to determine what to do with the property once its restored."
A public hearing was held during the meeting to authorize the purchase of the property, but no one spoke for or against the project.
Lunsford said there is the potential for positive economic impact, including through jobs, and with the potential of selling the building once completed, bringing in tourism through a museum or the historic nature of the house, or other potential future uses.
Webbley, which has fallen into a state of disrepair over the years, was in foreclosure and went to auction last year, but no one bid on the house, and it has been listed for sale since then. Lunsford showed council a photo of what the home used to look like.
The property has an estimated purchase price of $450,000 with the funds coming out of the $3.9 million state grant.
This article originally appeared on The Shelby Star: City of Shelby plans to purchase two historic properties
