The Charleston Marriott Town Center hotel appears set to stay in Charleston for decades, after Charleston Urban Renewal Authority board members agreed Wednesday to extend the hotel's lease for another 50 years.
Xenia Hotels, the Orlando, Florida-based company that owns the Marriott, is working through the new lease agreement with CURA. As part of the new agreement, the hotel's rent would increase by $10,000 a year, from $50,000 to $60,000, according to CURA Director Ron Butlin. CURA would also continue to collect 0.5 percent of the hotel's gross sales annually.
This would be the first change to the lease in more than 30 years, Butlin said. He said CURA is pleased with the agreement.
"The good news is that we will have the hotel here for as long as anyone can foresee," Butlin said.
The agreement is structured with additional possibilities for Xenia to extend its lease.
Also Wednesday, CURA board members voted to extend a development agreement with a company considering adding four new restaurants to Charleston's East End.
Fresh Capital Group, a Nashville-based commercial real estate development company, asked for a 90-day extension on their development agreement with CURA.
Fresh Capital says the building they're currently considering renovating, at 1601-1609 Washington St. E., has serious structural issues.
Butlin said there are no hard feelings toward Fresh Capital. "This makes complete sense. It's an old building, and that kind of thing happens," he said.
CURA has owned the long-vacant building, which sits at the southeast corner of Washington and Elizabeth streets, for three years.
Fresh Capital is also considering building a two-restaurant building in the 1300 block of Washington Street East on an empty lot CURA owns next to Rite-Aid, Butlin said.
Under the development agreement, Fresh Capital would pay $250,000 for 1601-1609 Washington St. E. and $350,000 for the property in the 1300 block.
CURA also voted to terminate a proposed contract to demolish one East End property.
In February developer Chris Sadd proposed demolishing a structure at 1212 Quarrier St. to build a new apartment building. Sadd told CURA he had trouble getting financing for the project. There was no official contract between CURA and Sadd.
Reach Ali Schmitz at ali.schmitz@wvgazettemail.com, 304-348-4843 or follow @SchmitzMedia on Twitter.