Aiken council approves sale of downtown parcel to Oliver Hospitality, setting stage for Hotel Aiken redevelopment

The Aiken City Council on Oct. 13 voted to move forward with a negotiated purchase-and-sale agreement that would transfer downtown property to Oliver Hospitality Group and enable redevelopment of the Hotel Aiken site.

Staff summarized the agreement’s core terms: a $2,500,000 purchase price, a $50,000 earnest-money deposit at signing, a 120-day buyer inspection period (with a possible 60-day extension), and a closing no later than 30 days after the inspection period ends. The city would provide up to $200,000 toward design fees to be paid to the buyer at closing, and the sale is conditioned on negotiating a development agreement that addresses a parking garage and other project responsibilities. "The purchaser will have a 120 day inspection period," the staff summary said, and "the city will provide funds for design fees to the buyer, up to $200,000." (summary by Mr. Smith, staff.)

Council and the public spent more than an hour debating tradeoffs. Critics questioned earlier procurement choices and argued the city is selling the property for far less than past expenditures; one longtime resident said the prior purchase and related borrowing left the city with a multimillion-dollar shortfall. A public commenter urged the council to explain why developer names were not published in the review process and raised procurement concerns. In response, staff said the property was appraised at $2,500,000 and that the Colliers-led RFP process followed standard procurement practices and was open.

Supporters—including downtown business owners and representatives of the local chamber—said the project would revive a long-deteriorating landmark, bring overnight visitors and restaurants, and help downtown businesses. Kurt Hannah, a member of the Aiken Chamber board, told the council he supported the sale but noted the project still required due diligence and a development contract.

Council debate centered on parking and taxpayer exposure. Several councilmembers emphasized that redevelopment costs would be borne by the developer after purchase and that parts of any parking structure would be available to the public; one councilmember summarized: "The city taxpayers will not pay for the redevelopment of the property. The property will be paid for by the developer once they buy it." Opponents countered that the city could still shoulder long-term costs and that the placement and cost of a parking garage should be reconsidered to benefit all downtown stakeholders.

On the motion to proceed with the sale, Councilwoman Gregory voted no; the remaining members voted in favor and the motion passed. If the agreement advances, the next steps are negotiating a development agreement that spells out responsibilities for the proposed parking deck and return for public investment, and review and approval by the design review board required by the historic-overlay rules.

The sale vote was procedural approval of the purchase-and-sale agreement and does not itself authorize construction. The council’s approval advances the project to the contract stage, where final development-agreement terms, parking location and sizing (staff estimated under 200 spaces as a likely upper bound), and design-review approvals will be required before a developer may proceed.