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. Pedersen proposes to build a Cambria Suites hotel, the upscale brand of the Choice hotel chain, in partnership with CERES Enterprises, a well-established hotel owner and operator based in Ohio.
Pedersen Development Hotel Elevation with Original Submission - 1/6/17
Pedersen Development - Original Lot 3 Site Plan with Surface Parking
Initial Alternative Layouts for Lots 2 and 3 - 08/10/2017
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.
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