Hotel developer to challenge Asheville council decision in court

ASHEVILLE - A Raleigh developer will go to court to challenge a City Council decision denying a permit to build an eight-story hotel downtown.

Shaunuk Patel, president of Parks Hospitality Group, said Wednesday in an afternoon email that his company has “every intent to push this project forward.”

Patel said they were disappointed with the council's decision Tuesday to deny the permit to build the $24 million 185-room Embassy Suites at 192 Haywood Street in the northwest of downtown.

"Last night, we were supported by some of the most respected professionals in the industry along with members of the community. We want to thank each one of them for coming out and supporting us," he said.

The council voted down the proposal 7-0. The denial was unusual in the middle of a $187 million construction boom that has seen a dozen large hotels built or planned from 2009-2018. But there has been public backlash against the lodging facilities that continues as the council enters an election year.

Patel said his company was "in talks with our counsel."

At Tuesday's hearing, Parks Hospitality was represented by Asheville attorney Bob Oast.

Earlier in the day, Oast, an attorney with McGuire, Wood and Bissette and the former city attorney, declined to comment.

Having been denied a conditional use permit, the next step would be appealing to Superior Court where a judge would hear evidence from the city and the developer. Parks would have to prove the hotel met seven standards required to get the permit.

The council still has to certify Tuesday's decision. After that, the developer will have 30 days to send a petition to a judge.

City Attorney Robin Currin declined to comment Wednesday afternoon on Parks' decision.

In 2015, Parks Hospitality bought the property, the former Buncombe County Sheriff's Office, for $4 million. That gave the company land on both sides of Haywood. Parks was in the process of building the $14 million seven-story Hyatt Place Hotel on the corner of Montford Avenue and Haywood.

That year public sentiment against hotels rose to a high point. Critics said hotels were changing downtown's character for the worse, paying poorly and straining the infrastructure.

The Hyatt opened in March. The company also applied to build the Embassy Suites with 5,000 square feet of conference space in the former sheriff's office spot.

The project got positive recommendations from city boards whose job it is to advise the council, including the city staff Technical Review Committee and the Planning and Zoning Commission. The Downtown Commission voted against the project because of a wall that was later removed from the design.

With the council, the project went through a quasi-judicial conditional use process, meaning it mirrors a court case in several aspects. Council members, for example, can't talk to developers or others about the development prior to the hearing, and they're supposed to make their decisions based only on information presented during the hearing. It is a process the council wants to get rid of in favor of a less restrictive procedure.

Council members had to come to their decision based on seven conditions, which included questions of whether the development endangered public health or safety, whether it was compatible with the natural and topographic features of the site and whether the project would comply with the city's smart growth and economic development plan.

Backing the hotel were the Asheville Area Chamber of Commerce, the Grove Arcade and former Vice Mayor Jan Davis. They said the hotel would contribute to the economy and boost the west side of downtown, parts of which have remained underutilized and even "blighted" despite the ongoing surge of tourism in other areas of the city center.

The council voted down the development on six of seven standards. They raised concerns over the high concentration of hotels — the project would have put three within 500 feet of each other, including two owned by Parks Hospitality. The elected officials also said they feared traffic jams.

"There is already queuing where you turn off of Montford and go to North French Broad (Avenue). It sometimes backs up all the way across the bridge," said Councilman Cecil Bothwell.

The biggest sticking point appeared to be parking. Council members said they were concerned the 200-space deck wouldn't accommodate guests and staff, as well as some Hyatt Place staff now parking on the site. Developers offered to build extra spaces at the expense of the city, but council members balked at the $17,000-per-space price tag.