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Village Hotel Development RFP/Q

City Council Approved Preferred Developer Mutual Release Agreement – July 16, 2018

Although both Pedersen and the City made considerable good faith efforts to arrive at a Development Agreement, the parties reached an impasse with respect to moving forward with the project.  The parties have mutually agreed to cease with the initiative to pursue the hotel and mixed use developments for either Lot 2 or 3 in The Village under the preferred developer agreement first entered into in February of 2017.  The mutual release agreement was approved by the City Council at its regular meeting of July 16, 2018.


City Issued Village Hotel Development RFP/Q - October 25, 2016
Pedersen Development Response to RFP/Q - January 6, 2017
Special Council Meeting Notice - February 13, 2017
Council Meeting Agenda - February 27, 2017


April 16, 2018 - Pedersen Development presents 88-100 room Hotel Concept on Lot 2 to City Council


City Council extends the due diligence period to consider the proposal for six months

                                                            St. Clair View


City of Grosse Pointe - Grosse Pointe Hotel Concept Design Materials - April 16, 2018

 Updated Hotel Development Plan    Pages 12-31      Updated Hotel Drawing Package Pages 1-6    Pages 7-16
                                      


Council Selects Development Team – March 2017 Update

In March, the City Council voted to work with Pedersen Development Company to determine the feasibility of building an upscale hotel and condo development in The Village. Pedersen was one of three groups, each with local ties, that submitted responses to the City’s request for proposals for a mixed-use development project featuring a hotel.  The six-month agreement will allow the City and Pedersen Development Company to explore the feasibility, financing, and design of the project.

The new development would be built on City-owned Lots 2 and 3, on the north side of Kercheval, areas that have been long targeted for development by the City’s approved downtown plan.  A hotel serving the Grosse Pointes, while addressing a community need, would also serve as a draw to Village businesses.  A 2016 study by Oxford Economics found that for every $150 spent on lodging, another $56 is spent on food and beverages outside the hotel, as well as $64 on retail and recreation.

Pedersen was the only one of the three firms that lined up a hotel partner and commissioned a professional hospitality market study. (Update 4/16/2018 - Currently, the Pedersen Development Co. is considering several branding options for the hotel and no selection has been made)  Pedersen Development intends to partner with CERES Enterprises, a well-established hotel owner and operator based in Ohio. 

Pedersen Development Hotel Elevation with Original Submission - 1/6/17 (design not approved)


Pedersen Development - Original Lot 3 Site Plan with Surface Parking


Initial Alternative Layouts for Lots 2 and 3 - 08/10/2017

Lot 2


Lot 3

Draft Parking Demand Study as of 8/10/17

Preliminary Parking Study Presentation - 9/12/17

City Council Extends Hotel Feasibility Period – October 2017 Update

 The City Council has extended until the end of the year the time allotted for the City to work with the developer selected earlier this year to explore the feasibility of a mixed-use development including a hotel on City Lots 2 and 3 in The Village, on the north side of Kercheval.  Earlier this year, the Council selected Pedersen Development from three developers as the best suited to work with to examine the feasibility of such a development.  This group originally proposed a 125 room Cambria Suites hotel, with a parking structure, condos and commercial space as part of a development across both City owned parking lots.  Over the last six months, Pedersen Development has examined several alternative scenarios that move the hotel onto Lot 2 instead of on Lot 3, in response to initial concerns from businesses. The first version of an alternative concept would involve building the hotel above a public parking structure.  More recently, Pedersen Development has been examining a scenario for a five-story development including a hotel on Lot 2, with no development on Lot 3.  The concepts are preliminary at this point.

The City also initiated a parking study to help ensure that there is sufficient parking for the new development and the existing businesses as alternative scenarios are discussed and evaluated.  Information about this study is available on the City website at www.grossepointecity.org.  There is also financial analysis, environmental study, construction phasing and impact planning yet to conclude.  Finally, a redevelopment agreement would need to be negotiated that includes all of the protections that would be required by the City for this type of major project, including a development fee to be paid by the developer.  The developer has regularly been meeting with business community stakeholders, and the project would also undergo substantial opportunity for public input, including public design charrettes to incorporate public input. The developer remains committed to developing a project that fits and is in keeping with the character of City and The Village. Even with all of the potential benefits and enhancements such a quality hotel could bring to the community, the project must also be financially sustainable without using tax dollars from residents as required by the City Council.

December 18, 2017 City Council Creates Ad Hoc Hotel Committee

The City Council approved this temporary working group “to provide guidance and definition for the development of a presentation of a hotel project at the April 16, 2018, City Council meeting.  The City Council also extended the preferred developer agreement on Lots 2 and 3 that the City entered into with Pedersen Development until the end of April 2018.

The goal of the committee is to provide guidance to the developer so Pedersen can present a project for Council to consider at its April 16 meeting.  The objective is to provide input to the developer on the parameters of a hotel project that the Committee feels may be suitable for the community.  At the January 8, 2018 meeting of the City Council, the following people were appointed to the Committee by the Council:  


Christopher Boettcher - Mayor  -   Donald Parthum, Council   -   Sheila Tomkowiak, Council
Andrew Martin - Chari of the Grosse Pointe DDA, Resident    -   David Katz, DDA Member, Resident
Dave Gilbert - Business/Property Owner, Marais Market & Cafe
Kasey Malley - President - Village Assoc., Business Owner, Small Favors
Lewis Gazoul - Real Estate Broker, Resident
Curt Pedersen - Developer

All of the ad hoc Hotel Committee meetings are public. The agendas and minutes will be posted below:

Agenda - Monday, January 22, 2018                Minutes - Monday, January 22, 2018

Agenda - Monday, January 29, 2018

 

April 16, 2018 - Pedersen Development presents 88-100 room Hotel Concept on Lot 2 to City Council

 City Council extends the due diligence period to consider the proposal for six months

                                                             St. Clair View


City of Grosse Pointe - Grosse Pointe Hotel Concept Design Materials - April 16, 2018

Updated Hotel Development Plan                    Updated Hotel Drawing Package - Pages 1-6    Pages 7-16

 

 

 

RELATED REFERENCE DOCUMENTS

 Grosse Pointe Market Study    Grosse Pointe Design Guidelines
 Master Plan    Village DDA


 


 

 

 

 

 

 

 

 


April 16, 2018 - Pedersen Development presents 4 story, 88 room Hotel Concept on Lot 2 to City Council

City Council extends the due diligence period to consider the proposal for six months