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| website = https://dewberrycharlottesville.com/ <!--Registration Expiration Date: 2020-08-30-->
| website = https://dewberrycharlottesville.com/ <!--Registration Expiration Date: 2020-08-30-->
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'''The Laramore''' (formerly known as The Dewberry Hotel, The [[Landmark Hotel]], [[The Beacon-Charlottesville]] and [[Hotel Charlottesville]]) is an unfinished hotel on Charlottesville's [[Downtown Mall]] on a site previously occupied by Central Fidelity Bank. Located at [[201 East Water Street]], the reinforced concrete structure remains incomplete -- lacking windows, elevators, balcony railings and most basic services -- since 2009. Currently owned by [[John Dewberry]], the list of previous owners of the project include [[Lee Danielson]], [[Oliver Kuttner]] and [[Halsey Minor]].<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>
'''Dewberry Living''' (formerly known as the Laramore, The Dewberry Hotel, The [[Landmark Hotel]], The Beacon-Charlottesville and Hotel Charlottesville) is an unfinished hotel on Charlottesville's [[Downtown Mall]] on a site previously occupied by Central Fidelity Bank. Located at [[201 East Water Street]], the reinforced concrete structure remains incomplete -- lacking windows, elevators, balcony railings and most basic services -- since [[2009]].  
 
Currently owned by [[Dewberry Capital]], the list of previous owners of the project include [[Lee Danielson]], [[Oliver Kuttner]] and [[Halsey Minor]]. <ref name="hookbeacon">{{cite-hook|title=ONARCHITECTURE- Bright idea: Danielson's Beacon's back in town|url=http://www.readthehook.com/85433/onarchitecture-bright-idea-danielsons-beacons-back-town|author=Dave McNair|pageno=|printno=0609|printdate=March 1, 2007|publishdate=March 1, 2007|accessdate=March 21, 2022}}</ref>
 
In late 2019, Charlottesville sought to inspect the structural integrity of the building and sent a certified letter to Dewberry. <ref>{{cite-progress|title=Charlottesville planning to inspect structural integrity of Dewberry building|url=https://www.dailyprogress.com/news/local/charlottesville-planning-to-inspect-structural-integrity-of-dewberry-building/article_53524711-cadf-5f22-8424-8eafc0152e44.html|author=Nolan Stout|pageno=A1|printdate=January 18, 2020|publishdate=January 18, 2020|accessdate=January 19, 2020}}</ref>
 
The Friends of Cville Downtown wrapped a mural around the skeleton in late February 2022. <ref>{{cite-progress|title=Dewberry building beautified, but fate stays murky|url=https://dailyprogress.com/news/landmark-hotel-developer-fired/article_d6a0a80a-bdf2-5730-89a6-f9e5bb2721ee.html|author=Ginny Bixby|pageno=|printdate=|publishdate=February 28, 2022|accessdate=March 21, 2022}}</ref>


== History ==
== History ==


=== Early History ===
===Minor era===
The Landmark Hotel was envisioned as a nine-story, 100-room luxury boutique hotel. [[Lee Danielson]] originally purchased the property in 2000, and after several failed attempts to build a hotel partnered with [[Halsey Minor]] in 2007 to fund construction.<ref name="abcd">{{cite web|title=An eyesore, a hazard and a millionaire|url=https://abcdmag.com/2019/09/10/an-eyesore-a-hazard-and-a-millionaire/|author=Spencer Philps|work=News Article|publisher=abcd magazone|location=Charlottesville, VA|publishdate=Sept 10, 2019|accessdate=Sept 15, 2019}}</ref> On March 11, 2008, a groundbreaking ceremony was held. At a cost of around $30 million, the initial plan was to have the hotel open by July 2009.<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><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>
The Landmark Hotel was envisioned as a nine-story, 100-room luxury boutique hotel. [[Lee Danielson]] originally purchased the property in [[2000]], and after several failed attempts to build a hotel partnered with [[Halsey Minor]] in 2007 to fund construction.<ref name="abcd">{{cite web|title=An eyesore, a hazard and a millionaire|url=https://abcdmag.com/2019/09/10/an-eyesore-a-hazard-and-a-millionaire/|author=Spencer Philps|work=News Article|publisher=abcd magazone|location=Charlottesville, VA|publishdate=Sept 10, 2019|accessdate=Sept 15, 2019}}</ref>  


=== Financial Trouble and Legal Dispute ===
On [[March 11]], [[2008]], a groundbreaking ceremony was held. At a cost of around $30 million, the initial plan was to have the hotel open by July 2009. <ref>{{cite-hook|title=Danielson, Minor break ground on ‘Landmark’|url=http://www.readthehook.com/76357/danielson-minor-break-ground-8216landmark8217|author=Davie McNair|pageno=|printno=|printdate=|publishdate=March 11, 2008|accessdate=March 21, 2022}}</ref>
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> Construction stopped in January of 2009. The pair went to court. Donald H. Kent of Richmond-based arbitration firm The McCammon Group ruled that Danielson misrepresented the construction costs –- including hiding the fact that the restaurant wasn't included in the budget.<ref>{{cite-Hook|author=Spencer, Hawes|title=Danielson trumped: Minor wins in Landmark Hotel arbitration |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> The arbitrator awarded  $4.2 million in damages, and attorney's fees of $2.24 million.
<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> {{deadlink}}


On September 1, 2010, Minor filed for Chapter 11 bankruptcy. <ref><nowiki>{{cite-cville|author=Chianzi, Chiara|title=C-Ville: Development - Landmark Hotel Owner Files for Chapter 11 Bankruptcy|publishdate=10 July 2010|accessdate=October 5, 2016|url=</nowiki>http://www.readthehook.com/67187/danielson-trumped-minor-wins-landmark-hotel-arbitration}</ref> The filing stayed all pending lawsuits which by then included the suit between Danielson and Minor, the FDIC lawsuit against Minor, and lawsuits against Minor filed by Merrill Lynch, Sotheby's, and Christies.<ref>{{cite web |url=http://www.readthehook.com/72269/landmark-showdown-minor-danielson-begin-court-fight |title=Landmark showdown: Minor, Danielson begin court fight |newspaper=The Hook |publishdate=March 13, 2019|author=Lindsay Barnes III |accessdate= October 25, 2015}}</ref> The welter of lawsuits that followed the collapse of the project included a Federal Deposit Insurance Corporation ("FDIC") suit against Silverton Bank (which the FDIC was forced to take over and later dissolve), and another FDIC lawsuit against Minor for having defaulted on a $10.5 million Silverton loan.<ref>{{cite web |url=http://www.c-ville.com/FDIC_sues_bank_that_financed_Landmark_Hotel/#.Vi1jbrwydKg |title=FDIC sues bank that financed Landmark Hotel - C-VILLE WeeklyC-VILLE Weekly |newspaper=C-ville.com |publishdate=August 24, 2011  |author=Chiara Canzi |accessdate= October 25, 2015}}</ref>
====City approvals====
===Project taken from Minor===
The Charlottesville [[Board of Architectural Review]] approved construction plans on [[February 20]], [[2008]]. <ref name="hookbeacon" />. BAR granted conditional permission to tear down the black granite façade in October 2008. <ref>{{cite web|title=Landmark Hotel developer given permission to take down black granite facade|url=https://www.cvilletomorrow.org/articles/bar_landmark/|author=Sean Tubbs|work=News Article|publisher=Charlottesville Tomorrow|location=|publishdate=October 22, 2008|accessdate=March 21, 2022}}</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> In January 2011, a Georgia court awarded the project to [[Specialty Finance Group]] following the 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> 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.<ref name="koon">{{cite-progress|title=http://www2.dailyprogress.com/business/2011/dec/07/judge-prioritizes-minors-landmark-debts-ar-1527954/|url=http://www2.dailyprogress.com/business/2011/dec/07/judge-prioritizes-minors-landmark-debts-ar-1527954/|author=Samantha Koon|pageno=|printdate=December 7, 2011|publishdate=December 7, 2011|accessdate=December 8, 2011|cturl=}}</ref>


=== Auction ===
Since the city caps buildings at 101 feet, the height of the Wachovia Bank across the street, nine-stories was as tall as the developers could take the hotel by-right.
On June 18, 2012, three companies bid on the property, each submitting an opening bid of at least $3 million and a $200,000 cash deposit.<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> Danielson submitted a bid but he was rejected because of an inability to guarantee to pay. [[Dewberry Capital]], a John K. Dewberry firm associated with Deerfield Square Associates, won the building shell with a $6.25 million bid at auction with plans to complete the structure.<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> Planning was expected to continue on the site after a Dewberry hotel was opened in Charleston, South Carolina in the summer of 2016.<ref>{{cite-cville|title=Atlanta developer snaps up Landmark for $6.25 million|url=http://www.c-ville.com/atlanta_developer_buys_landmark/#.VsW2OfkrJhE|author=Graelyn Brashear|pageno=|printno=|printdate=|publishdate=|accessdate=February 18, 2016}}</ref><ref>{{cite web|title=Charleston’s Dewberry Hotel rolls out more rooms|url=http://www.postandcourier.com/20160904/160909836/charlestons-dewberry-hotel-rolls-out-more-rooms|author=Dave Munday|work=|publisher=Charleston Post and Courier|location=|publishdate=September 4, 2016|accessdate=September 5, 2016}}</ref>


=== Future Plans ===
==== Financial Trouble and Legal Dispute ====
No progress has been made on construction since the purchase. In 2017, [[Dewberry Capital of Atlanta]], submitted design plans to resume construction and expanding the number of rooms to 112.<ref>{{cite web|title=Dewberry plans for Landmark hotel to go before review panel|url=http://www.cvilletomorrow.org/news/article/27370-dewberry-plans-for-landmark-hotel/|author=Sean Tubbs|work=News Article|publisher=Charlottesville Tomorrow|location=|publishdate=June 3, 2017|accessdate=June 9, 2017}}</ref> In 2019, Dewberry updated its website with new plans to turn the structure into a luxury apartment building called The Laramore.<ref name=":0">{{Cite-progress|url=https://www.dailyprogress.com/news/local/city/website-shows-dewberry-planning-luxury-apartments-not-hotel-on-downtown/article_ee0e4aee-8fae-11e9-9f93-27cb58633ef5.html|title=Website shows Dewberry planning luxury apartments, not hotel, on Downtown Mall|author=Nolan Stout|publishdate=June 15, 2019|accessdate=2019-06-15}}</ref>
However, the project's financing was called into question as early as November 2008 when project lender, Silverton Bank, failed. <ref name="hookfinancing">{{cite-hook|title=Landmark letdown: Hotel project's lender folds|url=http://www.readthehook.com/71610/landmark-letdown-hotel-projects-lender-folds|author=Lindsay Barnes III|pageno=|printno=0818|printdate=May 7, 2009|publishdate=May 1, 2009|accessdate=March 21, 2022}}</ref>
==City Council Actions==
The Charlottesville City Council directed staff in January 2016 to pursue legal action to either force construction or to force public acquisition through eminent domain, but no action has been taken as of {{as of|2019|9|15|lc=on}}.<ref>{{cite-progress|title=Council requests action plan on Landmark from city manager|url=http://www.dailyprogress.com/news/local/council-requests-action-plan-on-landmark-from-city-manager/article_f06af264-bf8d-11e5-b12b-bfc332a cc51a.html|author=Chris Suarez|pageno=|printdate=January 20, 2016|publishdate=January 20, 2016|accessdate=February 18, 2016}}</ref><ref>{{cite web|title=City Council Passes Resolution Regarding Landmark Hotel Property|url=http://www.cvilletomorrow.org/news/article/22831-city-council-passes-resolution-regarding-landmark-/|author=|work=Press Release|publisher=City of Charlottesville|location=|publishdate=|accessdate=December 27, 2016}}</ref>  


In July of 2016, the Charleston’s Dewberry hotel opened.<ref>{{Cite web|url=https://www.historichotels.org/hotels-resorts/the-dewberry-charleston/history.php|title=The Dewberry: History|last=|first=|publishdate=|website=|archive-url=|archive-date=|dead-url=|accessdate=}}</ref> The eight-story, 155-room property opened in a former federal office building in downtown Charleston, NC.<ref>https://www.postandcourier.com/business/charleston-s-dewberry-hotel-claims-m-losses-over-rooftop-rulings/article_c6202bcc-644b-11e8-a221-533cdc70c152.html</ref> The question remains whether Dewberry is still seeking to develop the building. In 2018, his planners were working with city officials on the design, which includes activating Second Street. <ref name="bar2018">{{cite web|title=Design panel approves additional height for Dewberry Hotel|url=http://www.cvilletomorrow.org/news/article/30240-design-panel-approves-additional-height-for-dewber/|author=Sean Tubbs|work=News Article|publisher=Charlottesville Tomorrow|location=|publishdate=March 23, 2018|accessdate=April 4, 2018}}</ref> The project is dormant {{as of|2019|9|15|lc=on}}. <ref>{{cite-progress|title=City faces limited options as Dewberry project progress stagnant|url=https://www.dailyprogress.com/news/local/city-faces-limited-options-as-dewberry-project-progress-stagnant/article_8ccfbc46-cf37-11e8-91b4-d798b86eaf0f.html|author=Nolan Stout|pageno=|printdate=|publishdate=October 13, 2018|accessdate=October 30, 2018}}</ref>
Minor fired developer [[Lee Danielson]] in December 2008. Construction stopped in January of 2009. The pair went to court. Donald H. Kent of Richmond-based arbitration firm The McCammon Group ruled that Danielson misrepresented the construction costs –- including hiding the fact that the restaurant wasn't included in the budget. The arbitrator awarded  $4.2 million in damages, and attorney's fees of $2.24 million. <ref name="dpdanielsonsacked">{{cite-progress-mg|title=Landmark Hotel developer fired|url=https://dailyprogress.com/news/landmark-hotel-developer-fired/article_d6a0a80a-bdf2-5730-89a6-f9e5bb2721ee.html|author=Brian McNeill|pageno=|printdate=December 6, 2008|publishdate=December 6, 2008|accessdate=March 21, 2022}}</ref> <ref>{{cite-hook|title=Danielson trumped: Minor wins in Landmark hotel arbitration|url=http://www.readthehook.com/67187/danielson-trumped-minor-wins-landmark-hotel-arbitration|author=Hawes Spencer|pageno=|printno=0927|printdate=July 8, 2010|publishdate=July 1, 2010|accessdate=March 21, 2022}}</ref>
 
The welter of lawsuits that followed the collapse of the project included a Federal Deposit Insurance Corporation ("FDIC") suit against Silverton Bank (which the FDIC was forced to take over and later dissolve), and another FDIC lawsuit against Minor for having defaulted on a $10.5 million Silverton loan.<ref>{{cite web |url=http://www.c-ville.com/FDIC_sues_bank_that_financed_Landmark_Hotel/#.Vi1jbrwydKg |title=FDIC sues bank that financed Landmark Hotel - C-VILLE WeeklyC-VILLE Weekly |newspaper=C-ville.com |publishdate=August 24, 2011  |author=Chiara Canzi |accessdate= October 25, 2015}}</ref> On [[September 1]], [[2010]], Minor filed for Chapter 11 bankruptcy. The filing stayed all pending lawsuits which by then included the suit between Danielson and Minor, the FDIC lawsuit against Minor, and lawsuits against Minor filed by Merrill Lynch, Sotheby's, and Christies. <ref>{{cite-hook|title=Landmark showdown: Minor, Danielson begin court fight|url=http://www.readthehook.com/72269/landmark-showdown-minor-danielson-begin-court-fight|author=Lindsay Barnes III|pageno=|printno=0811|printdate=March 13, 2009|publishdate=March 19, 2009|accessdate=March 21, 2022}}</ref> <ref>{{cite-cville|title=Landmark Hotel owner files for Chapter 11 bankruptcy|url=https://www.c-ville.com/Landmark_Hotel_owner_files_for_Chapter_11_bankruptcy/|author=Chiara Canzi|pageno=|printno=|printdate=|publishdate=September 7, 2010|accessdate=March 21, 2022}}</ref>


===Landmark Hotel performance agreement===
====Project taken from Minor====
Essentially, with the City Council's approval of this agreement, the developer would promise to expedite construction and abide by several other terms and the city would give the developer more than $1 million in annual tax rebates over the course of 10 years.<ref>https://www.dailyprogress.com/news/local/landmark-hotel-agreement-inches-closer-with-new-terms/article_98926f02-f39b-11e6-9f08-9381e5d8466a.html</ref><ref>http://charlottesville.granicus.com/DocumentViewer.php?file=charlottesville_25227329d12297ed7b8a2103d6110fd5.pdf</ref>
In January 2011, a Georgia court awarded the project to [[Specialty Finance Group]] following the long legal dispute.<ref name="20110121-progress">{{cite-progress-mg|title=Minor: 'Travesty of justice' on Landmark ruling|url=https://dailyprogress.com/news/minor-travesty-of-justice-on-landmark-ruling/article_3eb04296-e71d-5f1a-a020-48474a0d7e5f.html|author=Staff Reports|pageno=|printdate=January 21, 2011|publishdate=January 21, 2011|accessdate=March 21, 2022|cturl=}}</ref>  


::The project was expected to exceed $20 million dollars in capital investment and create approximately 100 jobs.  Once completed and operational the hotel project was expected to generate $800,000–$950,000 in annual City tax revenue, this included real property taxes, personal property taxes, sales taxes, meals taxes, lodging taxes, BPOL and utility taxes.
On [[December 5]], [[2011]], a Charlottesville Circuit Court judge ruled that the first debt that Minor had to repay was more than $128,000 in back taxes to the city of Charlottesville. Next, Minor was to pay Clancy & Theys Construction, other construction firms and then Specialty Finance Group. <ref name="koon">{{cite-progress-mg|title=Judge prioritizes Minor's Landmark debts|url=https://dailyprogress.com/business/judge-prioritizes-minors-landmark-debts/article_2d647e0a-3822-5133-9840-74c9e7d72657.html|author=Samantha Koon|pageno=|printdate=December 7, 2011|publishdate=December 7, 2011|accessdate=March 21, 2022|cturl=}}</ref>


After discussion and considerable negotiation, (by the end of 2016) City staff and Dewberry Capital were in basic agreement on components of the proposed agreement:  
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=https://web.archive.org/web/20110927215730/http://www.nbc29.com/story/15258800/minor-asks-city-for-help-with-landmark-hotel|publishdate=Aug 12, 2011|accessdate=March 21, 2022}}</ref>


*City would agree to lease 75 City owned parking spaces in the Water Street Parking Garage for an initial term of 5 years.


::(At that time, the project was expected to exceed $20 million dollars in capital investment and create approximately 100 jobs. Once completed and operational the hotel project was expected to generate $800,000 –$950,000 in annual City tax revenue.)
==== Auction ====
On [[June 18]], [[2012]], three companies bid on the property, each submitting an opening bid of at least $3 million and a $200,000 cash deposit.<ref name="auction">{{cite-progress-mg|title=Three bidders for Landmark Hotel emerge|url=https://dailyprogress.com/business/three-bidders-for-landmark-hotel-emerge/article_260fd34b-55a2-5397-a288-b651940b81f8.html|author=Samantha Koon|pageno=|printdate=June 14, 2012|publishdate=June 14, 2012|accessdate=June 18, 2021|cturl=}}</ref> Danielson submitted a bid but he was rejected because of an inability to guarantee to pay.  


*The City would agree to provide a performance grant (initial estimated amount was $110,000) to the developer, based on the real estate tax generated by the project for ten years. Base value in 2017 was $6,642,500.
===Dewberry era===


::(In order to trigger the ''performance grant'' the project must receive a certificate of occupancy and generate in year one a minimum of $150,000 in lodging tax receipts. In year two the minimum is increased to $225,000 and in years three–ten to $300,000. The developer was also required make a minimum capital investment of $20 million in the construction of the project.)
[[Dewberry Capital]], a John K. Dewberry firm associated with Deerfield Square Associates, won the building shell with a $6.25 million bid at auction with plans to complete the structure.<ref name="dewberry">{{cite web|title=Dewberry Capital Wins Landmark Hotel for $6.25 M|https://web.archive.org/web/20120623044249/https://www.nbc29.com/story/18815432/dewberry-capital-wins-landmark-hotel-for-625-m/|author=Matt Telhelm|work=|publisher= NBC29 News (via Internet Archive|location=|publishdate=June 18, 2012|accessdate=November 16, 2021}}</ref> <ref>{{cite-cville|title=Atlanta developer snaps up Landmark for $6.25 million|url=http://www.c-ville.com/atlanta_developer_buys_landmark/#.VsW2OfkrJhE|author=Graelyn Brashear|pageno=|printno=|printdate=|publishdate=|accessdate=November 16, 2021}}</ref>


On March 6, 2017, during the [[2017-2018 City Council | City Council's]] regular meeting, City Staff sought direction from council as to whether to pursue this performance agreement by proceeding to draft the necessary agreements and schedule future Council action.
Planning was expected to continue on the site after a Dewberry hotel was opened in Charleston, South Carolina in the summer of [[2016]]. <ref>{{cite web|title=Charleston’s Dewberry Hotel rolls out more rooms|url=http://www.postandcourier.com/20160904/160909836/charlestons-dewberry-hotel-rolls-out-more-rooms|author=Dave Munday|work=|publisher=Charleston Post and Courier|location=|publishdate=September 4, 2016|accessdate=September 5, 2016}}</ref>


{{clear}}
In 2017, [[Dewberry Capital of Atlanta]], submitted design plans to resume construction and expanding the number of rooms to 112.<ref>{{cite web|title=Dewberry plans for Landmark hotel to go before review panel|url=http://www.cvilletomorrow.org/news/article/27370-dewberry-plans-for-landmark-hotel/|author=Sean Tubbs|work=News Article|publisher=Charlottesville Tomorrow|location=|publishdate=June 3, 2017|accessdate=June 9, 2017}}</ref>


===City approvals===
In 2019, Dewberry updated its website with new plans to turn the structure into a luxury apartment building called The Laramore.<ref name=":0">{{Cite-progress|url=https://www.dailyprogress.com/news/local/city/website-shows-dewberry-planning-luxury-apartments-not-hotel-on-downtown/article_ee0e4aee-8fae-11e9-9f93-27cb58633ef5.html|title=Website shows Dewberry planning luxury apartments, not hotel, on Downtown Mall|author=Nolan Stout|publishdate=June 15, 2019|accessdate=2019-06-15}}</ref>
The Charlottesville [[Board of Architectural Review]] approved construction plans on February 20, 2008<ref name="hookbeacon" />. BAR granted conditional permission to tear down the black granite façade in October 2008<ref name="ctfacade">[http://cvilletomorrow.typepad.com/charlottesville_tomorrow_/2008/10/bar_landmark.html Landmark Hotel developer given permission to take down black granite facade], [[Sean Tubbs]], [[Charlottesville Tomorrow]], October 22, 2008, retreived 26 Aug. 2009</ref>.  Because of a quirk in Virginia law these original 2008 approvals would remain in effect, and stay valid until 2017.<ref>In response to the 2008-09 recession when construction financing suddenly dried up, developers persuaded the Virginia legislature [https://vacode.org/15.2-2209.1/ to extend all existing plat and plan approvals until 2017.]</ref>  


(Since the city caps buildings at 101 feet, the height of the Wachovia Bank across the street, nine-stories was as tall as the developers could take the hotel by-right.)
====City Council Actions====
The Charlottesville City Council directed staff in January 2016 to pursue legal action to either force construction or to force public acquisition through eminent domain, but no action has been taken as of {{as of|2019|9|15|lc=on}}.<ref>{{cite-progress|title=Council requests action plan on Landmark from city manager|url=http://www.dailyprogress.com/news/local/council-requests-action-plan-on-landmark-from-city-manager/article_f06af264-bf8d-11e5-b12b-bfc332acc51a.html|author=Chris Suarez|pageno=|printdate=January 20, 2016|publishdate=January 20, 2016|accessdate=February 18, 2016}}</ref><ref>{{cite web|title=City Council Passes Resolution Regarding Landmark Hotel Property|url=https://www.cvilletomorrow.org/articles/city-council-passes-resolution-regarding-landmark|author=|work=Press Release|publisher=City of Charlottesville|location=|publishdate=|accessdate=December 27, 2016}}</ref>


===Spot blight===
====Spot blight====
After nearly four years of being abandoned, Charlottesville officials served Dewberry in the fall of 2013 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>  
After nearly four years of being abandoned, Charlottesville officials served Dewberry in the fall of 2013 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>  
====Charleston Dewberry opens====


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> However, the project may not open until spring 2016. <ref name="eater">{{cite web|title=Ryan Casey Joins The Dewberry and Other New Details on the Upcoming Hotel [Updated]|url=http://charleston.eater.com/2015/11/13/9728168/the-dewberry-citrus-club-bar-henriettas-restaurant|author=Erin Perkins|work=|publisher=|location=|publishdate=November 13, 2015|accessdate=November 16, 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> However, the project may not open until spring 2016. <ref name="eater">{{cite web|title=Ryan Casey Joins The Dewberry and Other New Details on the Upcoming Hotel [Updated]|url=http://charleston.eater.com/2015/11/13/9728168/the-dewberry-citrus-club-bar-henriettas-restaurant|author=Erin Perkins|work=|publisher=|location=|publishdate=November 13, 2015|accessdate=November 16, 2015}}</ref>


===The Dewberry Charleston and other projects===
====The Dewberry Charleston and other projects====
'''The Dewberry Charleston''' hotel opened in June of 2016. Atlanta-based real estate developer and part-time Charleston resident John K. Dewberry, purchased the abandoned seven-story structure in early 2008. The city of Charleston approved renovation plans in early 2010. In November 2014 construction started on redevelopment of the former L. Mendel Rivers Federal Building that built in 1964 to house various government agencies. The building closed in 1999 after sustaining damage from Hurricane Floyd. <ref>{{cite web|title=Dewberry more: Charleston, SC’s new hotel superstar|url=https://nypost.com/2017/06/26/dewberry-more-charleston-scs-new-hotel-superstar/|author=Christian Gollayan|work=News Article|publisher=New York Post|location=|publishdate=June 26, 2018|accessdate=December 30, 2018}}</ref>
'''The Dewberry Charleston''' hotel opened in June of 2016. Atlanta-based real estate developer and part-time Charleston resident John K. Dewberry, purchased the abandoned seven-story structure in early 2008. The city of Charleston approved renovation plans in early 2010. In November 2014 construction started on redevelopment of the former L. Mendel Rivers Federal Building that built in 1964 to house various government agencies. The building closed in 1999 after sustaining damage from Hurricane Floyd. <ref>{{cite web|title=Dewberry more: Charleston, SC’s new hotel superstar|url=https://nypost.com/2017/06/26/dewberry-more-charleston-scs-new-hotel-superstar/|author=Christian Gollayan|work=News Article|publisher=New York Post|location=|publishdate=June 26, 2018|accessdate=December 30, 2018}}</ref>


In 2003, after several years of negotiations, the GSA and City of Charleston developed a Memorandum of Understanding (MOU) in which that the city would construct a new building for GSA and, in exchange, the City of Charleston would take control of the Rives Building. The GSA building project was to proceed in the summer of 2003. The MOU was set to expire February 10, 2007 if the City of Charleston and the GSA could not reach an agreement. <ref>{{cite web|title=
In 2003, after several years of negotiations, the GSA and City of Charleston developed a Memorandum of Understanding (MOU) in which that the city would construct a new building for GSA and, in exchange, the City of Charleston would take control of the Rives Building. The GSA building project was to proceed in the summer of 2003. The MOU was set to expire February 10, 2007 if the City of Charleston and the GSA could not reach an agreement. <ref>{{cite web|title=
Status of the L. Mendel Rivers Federal Building Exchange|url=https://www.gao.gov/products/GAO-03-816R|author=|work=|publisher=General Accounting Office|location=|publishdate=June 26, 2003|accessdate=December 30, 2018}}</ref> In January 2008, Dewberry submitted the high bid for the vacant office property in an online auction for $15 million in a government auction. Dewberry's firm has developed the Dorchester Square retail center in North Charleston. It later bought Cross Creek Square at Folly Road and Maybank Highway on James Island and rebuilt the Bi-Lo shopping complex at Ben Sawyer Boulevard and Rifle Range Road in Mount Pleasant, North Carolina. <ref>{{cite web|title=Developer buys Mendel Rivers|url=https://www.postandcourier.com/business/developer-buys-mendel-rivers/article_04aaf23b-cc06-5c85-b5ad-3ccd7ec6a988.html|author=John McDermott|work=News Article|publisher=Charleston Post and Courier|location=Charleston, South Carolina|publishdate=January 21, 2008|accessdate=December 30, 2018}}</ref> <ref>{{cite web|title=The Dewberry Charleston by StudioDewberry/Reggie Gibson Architects|url=https://www.architecturalrecord.com/articles/13322-the-dewberry-charleston-by-studiodewberryreggie-gibson-architects|author=Beth Broome|work=News Article|publisher=Architectural Record|location=|publishdate=April 1, 2018|accessdate=December 30, 2018}}</ref>
Status of the L. Mendel Rivers Federal Building Exchange|url=https://www.gao.gov/products/GAO-03-816R|author=|work=|publisher=General Accounting Office|location=|publishdate=June 26, 2003|accessdate=December 30, 2018}}</ref> In January 2008, Dewberry submitted the high bid for the vacant office property in an online auction for $15 million in a government auction. Dewberry's firm has developed the Dorchester Square retail center in North Charleston. It later bought Cross Creek Square at Folly Road and Maybank Highway on James Island and rebuilt the Bi-Lo shopping complex at Ben Sawyer Boulevard and Rifle Range Road in Mount Pleasant, North Carolina. <ref>{{cite web|title=Developer buys Mendel Rivers|url=https://www.postandcourier.com/business/developer-buys-mendel-rivers/article_04aaf23b-cc06-5c85-b5ad-3ccd7ec6a988.html|author=John McDermott|work=News Article|publisher=Charleston Post and Courier|location=Charleston, South Carolina|publishdate=January 21, 2008|accessdate=December 30, 2018}}</ref> <ref>{{cite web|title=The Dewberry Charleston by StudioDewberry/Reggie Gibson Architects|url=https://www.architecturalrecord.com/articles/13322-the-dewberry-charleston-by-studiodewberryreggie-gibson-architects|author=Beth Broome|work=News Article|publisher=Architectural Record|location=|publishdate=April 1, 2018|accessdate=December 30, 2018}}</ref>
In July of 2016, the Charleston’s Dewberry hotel opened.<ref>{{Cite web|url=https://www.historichotels.org/hotels-resorts/the-dewberry-charleston/history.php|title=The Dewberry: History|last=|first=|publishdate=|website=|archive-url=|archive-date=|dead-url=|accessdate=}}</ref> The eight-story, 155-room property opened in a former federal office building in downtown Charleston, NC.<ref>https://www.postandcourier.com/business/charleston-s-dewberry-hotel-claims-m-losses-over-rooftop-rulings/article_c6202bcc-644b-11e8-a221-533cdc70c152.html</ref> The question remains whether Dewberry is still seeking to develop the building. In 2018, his planners were working with city officials on the design, which includes activating Second Street. <ref name="bar2018">{{cite web|title=Design panel approves additional height for Dewberry Hotel|url=http://www.cvilletomorrow.org/news/article/30240-design-panel-approves-additional-height-for-dewber/|author=Sean Tubbs|work=News Article|publisher=Charlottesville Tomorrow|location=|publishdate=March 23, 2018|accessdate=April 4, 2018}}</ref> The project is dormant {{as of|2019|9|15|lc=on}}. <ref>{{cite-progress|title=City faces limited options as Dewberry project progress stagnant|url=https://www.dailyprogress.com/news/local/city-faces-limited-options-as-dewberry-project-progress-stagnant/article_8ccfbc46-cf37-11e8-91b4-d798b86eaf0f.html|author=Nolan Stout|pageno=|printdate=|publishdate=October 13, 2018|accessdate=October 30, 2018}}</ref>
====Inaction====


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 or even later. <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 or even later. <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>
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In 2018, it was reported that the site has become a major source of rats on the Downtown Mall <ref>{{Cite web|url=http://www.c-ville.com/mall-rats-does-the-downtown-mall-have-a-rodent-problem/|title=Mall rats: Does the Downtown Mall have a rodent problem?|last=|first=|publishdate=|website=CVille|archive-url=|archive-date=|dead-url=|accessdate=}}</ref>
In 2018, it was reported that the site has become a major source of rats on the Downtown Mall <ref>{{Cite web|url=http://www.c-ville.com/mall-rats-does-the-downtown-mall-have-a-rodent-problem/|title=Mall rats: Does the Downtown Mall have a rodent problem?|last=|first=|publishdate=|website=CVille|archive-url=|archive-date=|dead-url=|accessdate=}}</ref>


=== Water Street Parking Garage lease ===
====Landmark Hotel performance agreement====
On [[November 20]], [[2017]], [[City Council]] voted 3-2 to approve a 40-year lease of 75 spaces on the top floor of the Water Street Parking Garage.<ref name=":1">{{Agenda-citycouncil|newid=59495|when=November 20, 2017|accessdate=2019-06-15}}</ref><ref name=":2">{{Cite web|url=https://www.cvilletomorrow.org/articles/water-street-parking-dewberry-leases|title=Divided Council votes to subsidize parking spaces for Dewberry Hotel|last=Sean Tubbs|first=|publishdate=November 22, 2017|publisher=Charlottesville Tomorrow|archive-url=|archive-date=|dead-url=|accessdate=2019-06-15}}</ref> Rent was to be $40,000 for the first year, equivalent to under $45/space/month, then rise to $60,000 in the second year, $80,000 in years 3-5, with adjustments every 5 years thereafter. The lease was terminated by Dewberry on [[March 1]], [[2019]].<ref name=":0" />
Essentially, with the City Council's approval of this agreement, the developer would promise to expedite construction and abide by several other terms and the city would give the developer more than $1 million in annual tax rebates over the course of 10 years.<ref>https://www.dailyprogress.com/news/local/landmark-hotel-agreement-inches-closer-with-new-terms/article_98926f02-f39b-11e6-9f08-9381e5d8466a.html</ref><ref>http://charlottesville.granicus.com/DocumentViewer.php?file=charlottesville_25227329d12297ed7b8a2103d6110fd5.pdf</ref>
 
::The project was expected to exceed $20 million dollars in capital investment and create approximately 100 jobs.  Once completed and operational the hotel project was expected to generate $800,000–$950,000 in annual City tax revenue, this included real property taxes, personal property taxes, sales taxes, meals taxes, lodging taxes, BPOL and utility taxes.
 
After discussion and considerable negotiation, (by the end of 2016) City staff and Dewberry Capital were in basic agreement on components of the proposed agreement:
 
*City would agree to lease 75 City owned parking spaces in the Water Street Parking Garage for an initial term of 5 years.
 
::(At that time, the project was expected to exceed $20 million dollars in capital investment and create approximately 100 jobs. Once completed and operational the hotel project was expected to generate $800,000 –$950,000 in annual City tax revenue.)
 
*The City would agree to provide a performance grant (initial estimated amount was $110,000) to the developer, based on the real estate tax generated by the project for ten years. Base value in 2017 was $6,642,500.  


==Map==
::(In order to trigger the ''performance grant'' the project must receive a certificate of occupancy and generate in year one a minimum of $150,000 in lodging tax receipts. In year two the minimum is increased to $225,000 and in years three–ten to $300,000. The developer was also required make a minimum capital investment of $20 million in the construction of the project.)
<!--Insert lat/long coordinates in both templates below -->
{{Coord|38.030127|N|78.480761|W|display=title}}
{{map
|lat=38.030127
|lng=-78.480761
|zoom=14
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image:https://www.openstreetmap.org/note/new#map=19/38.03000/-78.48082&layers=N
==Timeline==


*November 15, 2007: Minor Family Hotels LLC and Hotel Charlottesville LLC enter into a development agreement
On March 6, 2017, during the [[2017-2018 City Council | City Council's]] regular meeting, City Staff sought direction from council as to whether to pursue this performance agreement by proceeding to draft the necessary agreements and schedule future Council action.
*April 19-23, 2010: Parties hold arbitration meetings at which 8 witnesses testify and thousands of documents are introduced into the record<ref>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></ref>
*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 <ref name="20110121-progress" />
*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 19, 2016: Council directs staff to prepare for legal action to either force construction or to force public acquisition through eminent domain.<ref>{{cite-progress|title=Council requests action plan on Landmark from city manager|url=http://www.dailyprogress.com/news/local/council-requests-action-plan-on-landmark-from-city-manager/article_f06af264-bf8d-11e5-b12b-bfc332a cc51a.html|author=Chris Suarez|pageno=|printdate=January 20, 2016|publishdate=January 20, 2016|accessdate=February 18, 2016}}</ref>
*June 20, 2017: Dewberry's plans go before the [[Board of Architectural Review]]


* September 2017: Dewberry estimated that his new five-star hotel, which he plans to name ''The Charlottesville Dewberry'', will generate $13 million for the city over the course of 10 years.
{{clear}}
* [[November 20]], [[2017]]: [[City Council]] votes 3-2 to approve a 40-year lease of 75 spaces on the top floor of the [[Water Street Parking Garage]].<ref name=":1" /><ref name=":2" /> Kristin Szakos and Wes Bellamy opposed the motion.
* December 18, 2017: City Council votes 3-2 to deny a performance agreement for a tax abatement equal to 50% of the incremental real estate tax.<ref>{{Agenda-citycouncil|newid=59701|when=December 18, 2017|accessdate=2019-10-02}}</ref> [[Bob Fenwick]] voted against the proposal, despite voting to approve the parking lease the previous month.<ref>{{Cite-progress|url=https://www.dailyprogress.com/news/local/council-votes-down-incentive-plan-for-unfinished-hotel/article_94674f6a-e46d-11e7-a00c-5fd0ef895e0f.html|title=Council votes down incentive plan for unfinished hotel|author=Chris Suarez|publishdate=December 18, 2017|accessdate=2019-10-02}}</ref> 


*March 20, 2018: BAR grants approval of new massing and height <ref name="bar2018" />
==== Water Street Parking Garage lease ====
*[[March 1]], [[2019]]: Dewberry terminates its lease for spaces in the Water Street Parking Garage.  
On [[November 20]], [[2017]], [[City Council]] voted 3-2 to approve a 40-year lease of 75 spaces on the top floor of the Water Street Parking Garage.<ref name=":1">{{Agenda-citycouncil|newid=59495|when=November 20, 2017|accessdate=2019-06-15}}</ref><ref name=":2">{{Cite web|url=https://www.cvilletomorrow.org/articles/water-street-parking-dewberry-leases|title=Divided Council votes to subsidize parking spaces for Dewberry Hotel|last=Sean Tubbs|first=|publishdate=November 22, 2017|publisher=Charlottesville Tomorrow|archive-url=|archive-date=|dead-url=|accessdate=2019-06-15}}</ref> Rent was to be $40,000 for the first year, equivalent to under $45/space/month, then rise to $60,000 in the second year, $80,000 in years 3-5, with adjustments every 5 years thereafter. The lease was terminated by Dewberry on [[March 1]], [[2019]].<ref name=":0" />
 
==Timeline==
*[[November 15]], [[2007]] &ndash; Minor Family Hotels LLC and Hotel Charlottesville LLC enter into a development agreement {{fact}}
*April 19-23, 2010 &ndash; Parties hold arbitration meetings at which 8 witnesses testify and thousands of documents are introduced into the record<ref>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></ref> {{deadlink}}
*[[August 25]], [[2010]] &ndash; Judge Hogshire signs the arbitration award
*[[January 19]], [[2011]] &ndash; Fulton County State Court in Georgia awards assets of project to Specialty Finance Group <ref name="20110121-progress" />
*[[June 18]], [[2012]] &ndash; Auction in U.S. District Court won by Dewberry Capital <ref name="dewberry" />
*[[January 14]], [[2014]] &ndash; Planning Commission votes 7-0 to determine that the structure is blighted. Staff proposed two remediation plans: the first would add fencing & security cameras, authorize police entry, and remove graffiti, while the second would require demolition of the partially-constructed building. The commission recommended Option 1, adding requirements for structural evaluations within 90 days and then every four months thereafter.<ref name="jan14" /><ref name="c-ville-update" /><ref>{{Minutes-cityplanning|newid=32636|when=January 14, 2014|accessdate=2020-03-02}}</ref>
*[[February 18]], [[2014]] &ndash; Council votes to defer a decision on the blight remediation plan after [[Jim Tolbert]] reports a draft agreement is being negotiated.<ref>{{Minutes-citycouncil|newid=|when=February 18, 2014|accessdate=2020-03-02|url=http://weblink.charlottesville.org/Public/0/edoc/732387/20140218Feb18.pdf}}</ref><ref>{{Agenda-citycouncil|newid=28442|when=February 18, 2014|accessdate=2020-03-02}}</ref>
*[[April 7]], [[2014]] &ndash; Council appropriates $102,506.39 to new sidewalks. The funds were recovered earlier in 2014 from completion bonds posted to guarantee promised pedestrian improvements on 2nd St E. An additional $8,500 was paid to the bankruptcy trustee.<ref>{{Agenda-citycouncil|newid=29037|when=April 7, 2014|accessdate=2020-03-02}}</ref>
*[[January 19]], [[2016]] &ndash; Council directs staff to prepare for legal action to either force construction or to force public acquisition through eminent domain.<ref>{{cite-progress|title=Council requests action plan on Landmark from city manager|url=https://www.dailyprogress.com/news/local/council-requests-action-plan-on-landmark-from-city-manager/article_f06af264-bf8d-11e5-b12b-bfc332acc51a.html|author=Chris Suarez|pageno=|printdate=January 20, 2016|publishdate=January 20, 2016|accessdate=February 18, 2016}}</ref>
*[[June 20]], [[2017]] &ndash; Dewberry's plans go before the [[Board of Architectural Review]]
* September 2017 &ndash; Dewberry estimated that his new five-star hotel, which he plans to name ''The Charlottesville Dewberry'', will generate $13 million for the city over the course of 10 years.
* [[November 20]], [[2017]] &ndash; [[City Council]] votes 3-2 to approve a 40-year lease of 75 spaces on the top floor of the [[Water Street Parking Garage]].<ref name=":1" /><ref name=":2" /> [[Kristin Szakos]] and [[Wes Bellamy]] opposed the motion.
* [[December 18]], [[2017]] &ndash; City Council votes 3-2 to deny a performance agreement for a tax abatement equal to 50% of the incremental real estate tax.<ref>{{Agenda-citycouncil|newid=59701|when=December 18, 2017|accessdate=2019-10-02}}</ref> [[Bob Fenwick]] voted against the proposal, despite voting to approve the parking lease the previous month.<ref>{{Cite-progress|url=https://www.dailyprogress.com/news/local/council-votes-down-incentive-plan-for-unfinished-hotel/article_94674f6a-e46d-11e7-a00c-5fd0ef895e0f.html|title=Council votes down incentive plan for unfinished hotel|author=Chris Suarez|publishdate=December 18, 2017|accessdate=2019-10-02}}</ref> <ref>{{cite web|title=Staff report for Dewberry performance agreement|url=https://cvillepedia.org/File:20171218-dewberry-agreement.pdf|author=|work=|publisher=City of Charlottesville|location=|publishdate=December 18, 2017|accessdate=June 30, 2021}}</ref>
*[[March 20]], [[2018]] &ndash; BAR grants approval of new massing and height <ref name="bar2018" /><ref>{{Minutes-bar|newid=61716|when=March 20, 2018|accessdate=2020-03-02}}</ref>
*[[March 1]], [[2019]] &ndash; Dewberry terminates its lease for spaces in the Water Street Parking Garage.  
*Sometime in 2019 &ndash; Dewberry Capital's website is revised to name the project The Laramore and lists it as luxury apartments.
*[[January 14]], [[2020]] &ndash;  [[Daily Progress]] reports the project's name is now Dewberry Living. <ref>{{cite-progress|title=Long-languishing Downtown Mall building gets new name — again|url=https://www.dailyprogress.com/news/local/long-languishing-downtown-mall-building-gets-new-name-again/article_3a95675b-1cd8-5e5a-b294-337db8b91405.html|author=Nolan Stout|pageno=A3|printdate=January 13, 2020|publishdate=January 13, 2020|accessdate=January 15, 2020}}</ref>
*[[February 28]], [[2022]] &ndash; [[Friends of Downtown Cville]] unveil mural around the unfinished skeleton <ref>{{cite-progress|title=Dewberry building beautified, but fate stays murky|url=https://dailyprogress.com/news/local/govt-and-politics/dewberry-building-beautified-but-fate-stays-murky/article_8fc0af82-98f1-11ec-bc30-b7cebb104977.html|author=Ginny Bixby|pageno=|printdate=March 1, 2022|publishdate=February 28, 2022|accessdate=March 5, 2022}}</ref>


==Images==
==Images==
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==External links==
==External links==
*[http://thelandmarkhotel.blogspot.com/ Landmark Hotel construction blog]
*[http://thelandmarkhotel.blogspot.com/ Landmark Hotel construction blog]
*[http://www.cvillepedia.org/mediawiki/index.php/File:20140114-CPC-Landmark-Materials.pdf Materials for the Charlottesville Planning Commission's hearing on Landmark Hotel spot blight at the January 14, 2014 meeting]
*[http://www.cvillepedia.org/mediawiki/index.php/File:20140114-CPC-Landmark-Materials.pdf Materials for the Charlottesville Planning Commission's hearing on Landmark Hotel spot blight at the January 14, 2014 meeting]
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[[Category: Downtown Mall businesses]]
[[Category: Downtown Mall businesses]]
[[Category:Lodging]]
[[Category:Lodging]]
<references />
[[Category: Companies that have filed for Chapter 11 bankruptcy]]

Latest revision as of 09:26, 21 March 2022

The Dewberry Hotel
20141025-landmark.jpg
The Dewberry Hotel (unfinished), ca. 2014

201 East Water Street
Development Firm Dewberry Capital of Atlanta
Developer Contact John K. Dewberry

Dewberry Living (formerly known as the Laramore, The Dewberry Hotel, The Landmark Hotel, The Beacon-Charlottesville and Hotel Charlottesville) is an unfinished hotel on Charlottesville's Downtown Mall on a site previously occupied by Central Fidelity Bank. Located at 201 East Water Street, the reinforced concrete structure remains incomplete -- lacking windows, elevators, balcony railings and most basic services -- since 2009.

Currently owned by Dewberry Capital, the list of previous owners of the project include Lee Danielson, Oliver Kuttner and Halsey Minor. [1]

In late 2019, Charlottesville sought to inspect the structural integrity of the building and sent a certified letter to Dewberry. [2]

The Friends of Cville Downtown wrapped a mural around the skeleton in late February 2022. [3]

History

Minor era

The Landmark Hotel was envisioned as a nine-story, 100-room luxury boutique hotel. Lee Danielson originally purchased the property in 2000, and after several failed attempts to build a hotel partnered with Halsey Minor in 2007 to fund construction.[4]

On March 11, 2008, a groundbreaking ceremony was held. At a cost of around $30 million, the initial plan was to have the hotel open by July 2009. [5] [6][dead link]

City approvals

The Charlottesville Board of Architectural Review approved construction plans on February 20, 2008. [1]. BAR granted conditional permission to tear down the black granite façade in October 2008. [7]

Since the city caps buildings at 101 feet, the height of the Wachovia Bank across the street, nine-stories was as tall as the developers could take the hotel by-right.

Financial Trouble and Legal Dispute

However, the project's financing was called into question as early as November 2008 when project lender, Silverton Bank, failed. [8]

Minor fired developer Lee Danielson in December 2008. Construction stopped in January of 2009. The pair went to court. Donald H. Kent of Richmond-based arbitration firm The McCammon Group ruled that Danielson misrepresented the construction costs –- including hiding the fact that the restaurant wasn't included in the budget. The arbitrator awarded $4.2 million in damages, and attorney's fees of $2.24 million. [9] [10]

The welter of lawsuits that followed the collapse of the project included a Federal Deposit Insurance Corporation ("FDIC") suit against Silverton Bank (which the FDIC was forced to take over and later dissolve), and another FDIC lawsuit against Minor for having defaulted on a $10.5 million Silverton loan.[11] On September 1, 2010, Minor filed for Chapter 11 bankruptcy. The filing stayed all pending lawsuits which by then included the suit between Danielson and Minor, the FDIC lawsuit against Minor, and lawsuits against Minor filed by Merrill Lynch, Sotheby's, and Christies. [12] [13]

Project taken from Minor

In January 2011, a Georgia court awarded the project to Specialty Finance Group following the long legal dispute.[14]

On December 5, 2011, a Charlottesville Circuit Court judge ruled that the first debt that Minor had to repay was more than $128,000 in back taxes to the city of Charlottesville. Next, Minor was to pay Clancy & Theys Construction, other construction firms and then Specialty Finance Group. [15]

The Charlottesville government refused to provide financial assistance to complete the hotel, unlike the development assistance provided to the Omni Hotel in the 1970s. [16]


Auction

On June 18, 2012, three companies bid on the property, each submitting an opening bid of at least $3 million and a $200,000 cash deposit.[17] Danielson submitted a bid but he was rejected because of an inability to guarantee to pay.

Dewberry era

Dewberry Capital, a John K. Dewberry firm associated with Deerfield Square Associates, won the building shell with a $6.25 million bid at auction with plans to complete the structure.[18] [19]

Planning was expected to continue on the site after a Dewberry hotel was opened in Charleston, South Carolina in the summer of 2016. [20]

In 2017, Dewberry Capital of Atlanta, submitted design plans to resume construction and expanding the number of rooms to 112.[21]

In 2019, Dewberry updated its website with new plans to turn the structure into a luxury apartment building called The Laramore.[22]

City Council Actions

The Charlottesville City Council directed staff in January 2016 to pursue legal action to either force construction or to force public acquisition through eminent domain, but no action has been taken as of as of September 15, 2019.[23][24]

Spot blight

After nearly four years of being abandoned, Charlottesville officials served Dewberry in the fall of 2013 with a letter requesting he secure the property against vandalism and grafitti. Dewberry responded by saying he had done enough.[25]

Charleston Dewberry opens

Dewberry has stated he will complete the project after another hotel is completed in Charleston, South Carolina.[26] 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. [27] However, the project may not open until spring 2016. [28]

The Dewberry Charleston and other projects

The Dewberry Charleston hotel opened in June of 2016. Atlanta-based real estate developer and part-time Charleston resident John K. Dewberry, purchased the abandoned seven-story structure in early 2008. The city of Charleston approved renovation plans in early 2010. In November 2014 construction started on redevelopment of the former L. Mendel Rivers Federal Building that built in 1964 to house various government agencies. The building closed in 1999 after sustaining damage from Hurricane Floyd. [29]

In 2003, after several years of negotiations, the GSA and City of Charleston developed a Memorandum of Understanding (MOU) in which that the city would construct a new building for GSA and, in exchange, the City of Charleston would take control of the Rives Building. The GSA building project was to proceed in the summer of 2003. The MOU was set to expire February 10, 2007 if the City of Charleston and the GSA could not reach an agreement. [30] In January 2008, Dewberry submitted the high bid for the vacant office property in an online auction for $15 million in a government auction. Dewberry's firm has developed the Dorchester Square retail center in North Charleston. It later bought Cross Creek Square at Folly Road and Maybank Highway on James Island and rebuilt the Bi-Lo shopping complex at Ben Sawyer Boulevard and Rifle Range Road in Mount Pleasant, North Carolina. [31] [32]

In July of 2016, the Charleston’s Dewberry hotel opened.[33] The eight-story, 155-room property opened in a former federal office building in downtown Charleston, NC.[34] The question remains whether Dewberry is still seeking to develop the building. In 2018, his planners were working with city officials on the design, which includes activating Second Street. [35] The project is dormant as of September 15, 2019. [36]

Inaction

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.[26][37] 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 or even later. [38]

In 2018, it was reported that the site has become a major source of rats on the Downtown Mall [39]

Landmark Hotel performance agreement

Essentially, with the City Council's approval of this agreement, the developer would promise to expedite construction and abide by several other terms and the city would give the developer more than $1 million in annual tax rebates over the course of 10 years.[40][41]

The project was expected to exceed $20 million dollars in capital investment and create approximately 100 jobs. Once completed and operational the hotel project was expected to generate $800,000–$950,000 in annual City tax revenue, this included real property taxes, personal property taxes, sales taxes, meals taxes, lodging taxes, BPOL and utility taxes.

After discussion and considerable negotiation, (by the end of 2016) City staff and Dewberry Capital were in basic agreement on components of the proposed agreement:

  • City would agree to lease 75 City owned parking spaces in the Water Street Parking Garage for an initial term of 5 years.
(At that time, the project was expected to exceed $20 million dollars in capital investment and create approximately 100 jobs. Once completed and operational the hotel project was expected to generate $800,000 –$950,000 in annual City tax revenue.)
  • The City would agree to provide a performance grant (initial estimated amount was $110,000) to the developer, based on the real estate tax generated by the project for ten years. Base value in 2017 was $6,642,500.
(In order to trigger the performance grant the project must receive a certificate of occupancy and generate in year one a minimum of $150,000 in lodging tax receipts. In year two the minimum is increased to $225,000 and in years three–ten to $300,000. The developer was also required make a minimum capital investment of $20 million in the construction of the project.)

On March 6, 2017, during the City Council's regular meeting, City Staff sought direction from council as to whether to pursue this performance agreement by proceeding to draft the necessary agreements and schedule future Council action.

Water Street Parking Garage lease

On November 20, 2017, City Council voted 3-2 to approve a 40-year lease of 75 spaces on the top floor of the Water Street Parking Garage.[42][43] Rent was to be $40,000 for the first year, equivalent to under $45/space/month, then rise to $60,000 in the second year, $80,000 in years 3-5, with adjustments every 5 years thereafter. The lease was terminated by Dewberry on March 1, 2019.[22]

Timeline

  • November 15, 2007 – Minor Family Hotels LLC and Hotel Charlottesville LLC enter into a development agreement [citation needed]
  • April 19-23, 2010 – Parties hold arbitration meetings at which 8 witnesses testify and thousands of documents are introduced into the record[44][dead link]
  • 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 [14]
  • June 18, 2012 – Auction in U.S. District Court won by Dewberry Capital [18]
  • January 14, 2014 – Planning Commission votes 7-0 to determine that the structure is blighted. Staff proposed two remediation plans: the first would add fencing & security cameras, authorize police entry, and remove graffiti, while the second would require demolition of the partially-constructed building. The commission recommended Option 1, adding requirements for structural evaluations within 90 days and then every four months thereafter.[26][37][45]
  • February 18, 2014 – Council votes to defer a decision on the blight remediation plan after Jim Tolbert reports a draft agreement is being negotiated.[46][47]
  • April 7, 2014 – Council appropriates $102,506.39 to new sidewalks. The funds were recovered earlier in 2014 from completion bonds posted to guarantee promised pedestrian improvements on 2nd St E. An additional $8,500 was paid to the bankruptcy trustee.[48]
  • January 19, 2016 – Council directs staff to prepare for legal action to either force construction or to force public acquisition through eminent domain.[49]
  • June 20, 2017 – Dewberry's plans go before the Board of Architectural Review
  • September 2017 – Dewberry estimated that his new five-star hotel, which he plans to name The Charlottesville Dewberry, will generate $13 million for the city over the course of 10 years.
  • November 20, 2017City Council votes 3-2 to approve a 40-year lease of 75 spaces on the top floor of the Water Street Parking Garage.[42][43] Kristin Szakos and Wes Bellamy opposed the motion.
  • December 18, 2017 – City Council votes 3-2 to deny a performance agreement for a tax abatement equal to 50% of the incremental real estate tax.[50] Bob Fenwick voted against the proposal, despite voting to approve the parking lease the previous month.[51] [52]
  • March 20, 2018 – BAR grants approval of new massing and height [35][53]
  • March 1, 2019 – Dewberry terminates its lease for spaces in the Water Street Parking Garage.
  • Sometime in 2019 – Dewberry Capital's website is revised to name the project The Laramore and lists it as luxury apartments.
  • January 14, 2020Daily Progress reports the project's name is now Dewberry Living. [54]
  • February 28, 2022Friends of Downtown Cville unveil mural around the unfinished skeleton [55]

Images

References

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  3. Web. Dewberry building beautified, but fate stays murky, Ginny Bixby, Daily Progress, Lee Enterprises, February 28, 2022, retrieved March 21, 2022.
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  41. http://charlottesville.granicus.com/DocumentViewer.php?file=charlottesville_25227329d12297ed7b8a2103d6110fd5.pdf
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External links