The Aiken City Council on Oct. 13 approved a purchase-and-sale agreement to sell several downtown parcels connected to the Hotel Aiken redevelopment to Oliver Hospitality Group for a negotiated price of $2,500,000.

City staff told the council the agreement includes a $50,000 earnest-money deposit, a 120-day inspection period (subject to a 60-day extension), and a closing deadline no later than 30 days after the inspection period ends. The city will pay up to $200,000 in design fees to the buyer at closing; the buyer may terminate the agreement for any reason during the inspection period.

The sale is the first major contractual step toward a larger development process that will include a separate development agreement and design-review approvals. City staff said the purchase-and-sale agreement also conditions closing on negotiation of a final development contract for a parking garage and on the buyer obtaining any incentives it deems necessary to complete the project.

"The buyer may determine to terminate the agreement for any reason or no reason at all during the inspection period," the council was told, citing the negotiating memo prepared by attorney Gary Pope.

Why it matters: The parcels sit in the heart of Aiken's downtown. Council members and residents debated whether a parking structure — anticipated to be under 200 spaces — should be located in the core block and whether the city should shoulder costs associated with it. Supporters said the renovation and hotel would bring visitors, dinner and retail traffic and economic activity; opponents warned the city could be asked to fund a garage that primarily benefits a single developer and questioned long-term taxpayer value.

Details of the agreement and debate

City staff recounted the property's recent history: the Aiken Municipal Development Corporation purchased the parcels in late 2021 using general-obligation bond proceeds, later transferring ownership to the city after earlier procurement efforts were restarted. Colliers International marketed the properties and recommended Oliver Hospitality after six proposals. An appraisal obtained earlier this year valued the balance of the property at $2,500,000, which set the negotiating baseline.

Key contract terms reported to council:
- Purchase price: $2,500,000 (appraisal cited by staff).
- Earnest money: $50,000 on signing.
- Inspection period: 120 days, with a possible 60-day extension for approvals such as design-review board action.
- Closing: no later than 30 days after inspection period ends.
- City design fees: up to $200,000 paid to the buyer at closing.
- Conditions to closing: negotiation of a final development agreement for a parking garage and buyer attainment of its desired incentives.

Public comment at the hearing mixed praise and criticism. Supporters — including representatives of the Aiken Chamber and downtown business owners — urged the council to move forward, saying the hotel and parking capacity are vital to attract visitors and sustain businesses. Opponents cautioned that the city should not unduly subsidize a parking garage in the downtown core and asked that any public investment benefit the broader downtown and multiple property owners.

Council action

Councilman Giordo moved to approve the purchase-and-sale ordinance and Councilwoman Bridal seconded the motion. The council voted to approve the agreement; Councilwoman Gregory recorded a vote in opposition, and the motion carried.

Next steps

If the council’s approval tonight stands, staff will negotiate a final development agreement that will specify responsibilities for construction, costs and ownership related to any parking structure. The project will require design-review board approvals because the properties are in the city’s historic overlay; staff said the Planning Commission is not expected to be involved. Final construction and financing remain the developer’s responsibility.

The sale closes only after the inspection period and after required approvals are obtained, meaning the transaction and construction timeline remain contingent on the steps outlined in the purchase-and-sale and upcoming development agreement.