Asheville's Ramada Inn breaks ground on 113 units of permanent supportive housing

ASHEVILLE - The Ramada Inn conversion project is underway after a Dec. 13 groundbreaking, what will eventually transform the former motel into 113 units of permanent supportive housing for the city's homeless population.

The project is led by California-based, for-profit developer Shangri-La Industries, in partnership with another California based company and nonprofit Step Up, Inc.

“It’s a massive renovation," Andy Meyers, CEO of Shangri-La told the Citizen Times. "Ultimately, we’re going to take the Ramada Inn and make it look like an apartment building, versus a limited stay motel."

Previous coverage:

• Asheville Ramada Inn will move forward as permanent supportive housing after council vote

• Asheville's Ramada Inn shelter closes to homeless; 25 residents left without housing

• Look at Homeward Bound's Days Inn reno: How will it serve Asheville's homeless population?

• Asheville Council delays Deaverview Apartments vote; Ramada Inn renovation sees delays

With an anticipated occupancy date of August 2023, construction will officially begin in February, Meyers said.

Though city staff, the project team and other partners seemed in high spirits at the Dec. 13 event, huddled under the awning of a tent pitched in the Ramada parking lot at 148 River Ford Parkway in East Asheville, the project moving forward looks much different than what was first proposed.

In December 2021, the city made a quick pivot away from the purchase of East Asheville's Ramada Inn, which it intended to transform into a high-access homeless shelter, and authorized the assignment of its contract to purchase the property to Shangri-La.

At that same Dec. 14, 2021 meeting, the city also approved $1.5 million to fund the first three years of supportive services for the project.

Mayor Esther Manheimer was among those in attendance at the Dec. 13 groundbreaking, and said the Ramada represented another milestone toward the city's goal of ending homelessness.

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Until March 31, the motel spent a year functioning as a shelter. Among the shelter residents was Eric Hall, who became homeless in August 2020, something he said in previous Citizen Times reporting that he never expected. On move-out day at Ramada, Hall remained behind, asked to stay on as property manager through construction, a position that has now become permanent.

He took the podium at the groundbreaking, and gestured beyond the white walls of the tent, where the balcony of his room in the Ramada was just visible, strung with lights and cloth drapings.

"Welcome to my new home," he said. “I am so grateful not only to all of you that have come out here, but for the lives that are going to change because of Shangri-La development and Step Up Second Street.”

Nikki Reid, the city's director of community and economic development, said Hall's experience personifies her hope for the Ramada's future.

“Eric’s story is the story of possibility, that’s what we’re here to celebrate,” she said.

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'An opportunity to end homelessness'

In April, City Council voted 4-3 to waive reimbursements of $79,500 in due diligence costs that Shangri-La Industries had previously agreed to pay to the city.

Antanette Mosley, Kim Roney and Sage Turner voted against the motion.

Waiving the reimbursements was intended to help mitigate additional construction costs and real-estate closing delays. Though councilmembers were skeptical of such asks before the purchase had even been finalized, a desire for more permanent supportive housing won out.

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Reid said Dec. 13 she feels the relationship between Shangri-La, Step Up and the city has become a "great partnership," and she's proud of Shangri-La and Step Up's efforts to reach out to surrounding businesses and community members, working to ease concerns and build relationships among the neighborhood.

The motel was purchased by Shangri-La Industries, Inc., on Sept. 15 for $9.75 million. Shangri-La was initially intended to close on the property in early 2022, begin renovations and be ready for move-in by late 2022.

The project has been subject to a number of delays, including a federal environmental assessment required by the U.S. Department of Housing and Urban Development, but Reid said for a multi-million dollar real estate transaction of this scale, it was a great timeline.

Despite the HUD "curveball," as she called it, "I think we're pretty happy at the timing."

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This was echoed by Tod Lipka, Step Up’s president and CEO, during his speech at the groundbreaking.

"To see a project like this come to fruition in such a short time period is unprecedented," Lipka said. Like Hall, he gestured toward the motel. "This is the solution to chronic homelessness."

Reid noted the project's alignment with a similar model underway by Homeward Bound. The nonprofit is currently renovating a 2.95-acre property at 201 Tunnel Road at 201 Tunnel Road into 85 units of permanent supportive housing.

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Permanent supportive housing is an approach that provides permanent housing solutions and onsite service support to ensure success for its residents.

"That’s what is really amazing," Reid said. "Between Homeward Bound and this project, it’s a lot of units coming online to support chronic homelessness and, in this case of this project, also homeless veterans.”

Of the 113 units, which Meyers said will represent a mix of studios and one-bedrooms, 50 units will be dedicated to homeless veterans.

Besides the motel's structure itself, Meyers said the building is going to be almost entirely new — new plumbing and electrical, a new roof, floorings and lighting. Landscaping and grading work will be done on the motel's grounds, and additional updates to meet American with Disabilities Act requirements.

Plans also include common spaces, counseling rooms and a dog park, Meyers said.

“The most important thing is less the real estate transaction in this particular case, and really what this will mean to the community of Asheville," Meyers said.

Hall shared a similar optimism.

“We were all put inside this little fence we didn’t build, and we all became so much closer, than (we were) spread out all over town," Hall said of his time living in Ramada as it functioned as temporary shelter. "I know this place is going to get that back, and that’s what the city, I believe, needs.”

Sarah Honosky is the city government reporter for the Asheville Citizen Times, part of the USA TODAY Network. News Tips? Email shonosky@citizentimes.com or message on Twitter at @slhonosky.

This article originally appeared on Asheville Citizen Times: Asheville Ramada Inn breaks ground on 113-unit supportive housing