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Aiken Council OKs ordinance to sell Hotel Aiken property; developer talks, public concern follow
Summary
City council voted unanimously to approve first-reading ordinance to sell multiple downtown parcels tied to the Hotel Aiken redevelopment. Council and city staff described a national marketing process and active negotiations with the Oliver Group; residents raised questions about appraisals, historic protections and parking.
Aiken City Council on Monday voted unanimously to accept an ordinance authorizing the sale of several downtown parcels connected to the long-vacant Hotel Aiken, moving the city into negotiated sale and due diligence with a private developer.
The ordinance covers property in the 200 block of Richland Avenue West, the 100 block of Lawrence Street Southwest, and the 100 block of Newberry Street Southwest. City staff said the properties were marketed nationally by Colliers and that the city is now in contract negotiations with the Oliver Group, a Nashville-based developer.
Why it matters: The Hotel Aiken site sits in the center of downtown and has been the subject of years of debate, legal actions and stalled redevelopment efforts. City leaders said the sale is an effort to return the block to active use, preserve key historic structures and attract lodging and other downtown amenities that could support local research and university partnerships.
City presentation and marketing history City Manager Stewart Biennbaum and staff described a multi-month national marketing campaign led by Colliers. The presentation traced the process: Colliers issued a marketing teaser in July 2024, launched a Hotel Aiken website and distributed due-diligence materials, solicited proposals with a Dec. 23, 2024 deadline, interviewed six proposers and shortlisted two for follow-up. The city held an executive session in June to authorize contract negotiations with the Oliver Group.
Mister Tapp, the staff lead on the marketing effort, told council Colliers attended national hospitality investment forums in New York and personally contacted several hundred hospitality and multifamily recipients. He said the city received six proposals—five hotel concepts and one residential concept—and ultimately advanced the Oliver Group into negotiations.
Public reaction: appraisal, price and preservation concerns Dozens of residents and business owners spoke during public comment, reflecting a mix of support for redevelopment and anger over prior decisions. Several speakers asked for clearer accounting of costs the city has incurred since purchasing the properties and questioned how the $9.5 million purchase price in 2021 relates to subsequent appraisals and the current marketing value.
Don Moniak, who said he has followed the matter closely, referenced the city’s documents and the appraisal language stating some buildings were eligible for the National Register while other parcels may be put to their highest-and-best-use as redevelopment. He noted the appraisal listed one prior offer of $5 million for the portfolio.
Robert Branson asked for clarification on the original purchase price and total public expenditures; city staff responded that legal costs are approximately $230,000 as of the most recent calculation and that the city’s prior decisions reflected a long-range development objective.
Historic buildings and demolition limits City staff told council the city’s RFQ required adaptive reuse of historically significant structures where possible. During discussion staff and several council members said the McGee Building and other named structures were considered for protection and adaptive reuse; they said the motor court / Holly House building is the parcel most likely to be removed if necessary to accommodate a parking solution. The city emphasized that any demolition or major change would still require design-review board approval.
Parking and project scope The sale and redevelopment discussions also included a conversation about parking. Staff and the developer team flagged parking as one of the top questions from developers; they said options include an on-site parking structure on a parcel that could be used for that purpose or converting portions of the Newberry Street aisle into spaces, though converting a public right-of-way was not favored. The city said $200,000 in the proposed agreement is an illustrative design/deposit item to move the project through early design and that ownership/operation of any parking structure would be clarified in later contract stages.
Developer outreach and next steps Council was told Oliver Group remains in due diligence; staff emphasized this is not a concluded sale and that the developer can withdraw if due diligence uncovers problems. The developer will host two public information sessions at Newberry Hall: Sept. 29 from 5–7 p.m. and Sept. 30 from noon–2 p.m., staff said.
Council action Council moved to accept the ordinance to sell the listed properties and voted unanimously to advance the item, sending the sale into contract negotiation and continuing due diligence.
What’s next If negotiations conclude, the developer must complete design-review and other approvals before demolition or construction. Staff said the city will provide further opportunities for public review as design materials become available.
