Land swap for convention hotel in uptown Charlotte raises questions about subsidies and more
Local tourism executives like the idea of adding one or more hotels next to the convention center — but only if those hotels come without public incentives.
Last week, Charlotte City Council approved a land swap involving property on South Caldwell Street controlled by the Charlotte Regional Visitors Authority. In return, the visitors authority will take control of an 0.7-acre site on South College Street next to the Charlotte Convention Center — a prime spot for what’s been speculated as a possible site for convention hotels.
The property is part of a larger, 2.3-acre site owned by Duke Energy Corp.. A partnership called 401 South College Street LLC, previously identified as Millennium Venture Capital, is in the process of buying it from the utility company. The swap is contingent on the larger land sale being executed, according to the visitors authority.
401 South College Street plans a mixed-use project on the remaining 1.6 acres.
Peer cities including Austin, Indianapolis, Kansas City and Nashville have used taxpayer funding to help pay for convention hotels in the past decade, typically through hospitality industry-generated tax revenue. The visitors authority made a similar proposal five years ago, but it fizzled. Major convention hotels of 800 to 1,000 rooms often command public subsidies equal to 30% to 35% of construction costs.
Vinay Patel, a visitors authority board member and principal of locally based SREE Hotels, told CBJ that he and other industry executives oppose subsidies for convention hotels.
“This 1,000-room hotel has been on so many people’s 2020, 2030, 2040, 2050 plan,” Patel said. “My thing is, if somebody can show a (return on investment) on making it happen, then they will build it themselves.”
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