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Lancaster council approves purchase of old post office, accepts reservoir conveyance and backs hotel incentives

Lancaster City Council · October 23, 2024
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Summary

Council approved three major measures: buying the old post office and adjacent parking lot to advance downtown redevelopment, accepting conveyance of the 60-acre Lancaster Reservoir for future public recreation, and authorizing economic incentives for a proposed Hampton Inn; each measure passed by roll call.

Lancaster — The Lancaster City Council on a unanimous roll-call vote approved a package of actions that the mayor and city staff said will support downtown redevelopment, add a new public recreation asset and help a private hotel project move forward.

City staff presented Resolution 24-36 to authorize acquisition of the former post office at 301 and 305 South Main Street and the adjoining parking lot. Staff described plans to convert the building into a flexible event venue with catering kitchen and public plaza and estimated combined acquisition and building costs. The presentation identified restricted downtown-development funds and restricted hospitality funds as the sources for the purchase and associated improvements. The council approved the resolution by roll call (all members present voted yes).

Mayor Deveni framed the purchase as a way to “guide the type of development and style” downtown and to “move the downtown development and downtown revitalization forward,” saying new medical residency hires in Lancaster should help demand for housing and services.

The council also approved Resolution 24-37 to accept a conveyance of the Lancaster Reservoir from the Lancaster County Water and Sewer District. Staff said the parcel includes a 60-acre lake currently leased by the South Carolina Department of Natural Resources and that the county offered to transfer the property to the city at no purchase cost. A Phase I environmental assessment, the staff presentation said, found no recognized environmental concerns except for a former vehicle-maintenance oil source and documentation gaps related to a previously removed underground diesel storage tank; because of the missing documentation the site is listed as a potential environmental concern. Council members approved accepting the conveyance; staff noted that annexation would be required before the city could extend municipal services or make other land-use changes.

Council members also approved Resolution 24-40, which authorizes limited economic-development incentives for a planned four-story Hampton Inn proposed for 207 Highway 9 by Touchdown Hospitality and Oakley Hospitality. Staff said the developer requested waivers and reimbursements to cover the sewer-cap fee and installation of a lateral line and yard line (staff estimated the fee and installation at $11,200) and that the incentives would be paid from the restricted economic-development-incentive fund, with marketing costs from hospitality-tax revenue. Council members stressed the assistance would be conditional on engineering recommendations and fund availability; the resolution passed on a roll-call vote (all present voted yes).

Minor housekeeping items also passed: resolutions declaring certain fire-department equipment surplus and authorizing its disposal, and a donation of surplus fire materials to a Western North Carolina municipal agency; both measures were approved by roll call.

Next steps: staff will proceed with the property acquisition process for the post office site, begin coordination required for the reservoir conveyance (including environmental follow-up and annexation planning), and implement incentives for the hotel project only if engineering findings and available funds meet the conditions described by staff. The council entered executive session to discuss a personnel matter and returned with no action taken before adjourning.