Land purchase finalized to build downtown Raleigh hotel
Posted February 18, 2014
Raleigh, N.C. — The sale of land that will be used to build a downtown Raleigh hotel was approved by the city council Tuesday.
Summit Hospitality Group, Ltd. will pay the city $1.73 million for land to build an 11-story Marriott Residence Inn on South Salisbury Street between South Street and Lenoir Street. The hotel will provide an additional 140 to 154 rooms within walking distance of the Raleigh Convention Center.
Summit has negotiated with the city since 2012.
"The agreement requires close of the land purchase within 420 days from execution of the contract, site work to begin within 450 days from execution of the contract, and construction to be completed within 900 days from contract execution," said a statement from the city. "Should the developer not meet the statutory private sale requirements for construction of the hotel, the maximum obligation of the City to repurchase the site would be the actual sales price of $1,730,000, regardless of the value of the improvements constructed by Summit at that time."
A separate parking agreement is under negotiation, which will reserve a number of parking spaces located in a city-owned parking deck for use by the hotel.