Aiken Commits $2M for Hotel Aiken Work, Approves Downtown Parking Structure

Aiken City Council voted 6-1 on Nov. 10, authorizing City Manager Stuart Bedenbaugh to draft an agreement with Oliver Hospitality. This commits up to $2 million to go toward stabilization work at Hotel Aiken and construction of a downtown parking structure. Councilmember Andrea Gregory cast the sole vote against it.

The development agreement follows an October decision where the council approved a purchase-and-sale agreement transferring the hotel and adjacent properties to the Nashville-based hotel group for $2.5 million. 

Bedenbaugh said the $2 million would be reallocated from projects that came in under budget after being funded by the plutonium settlement between the state of South Carolina and the U.S. Government. The money will be earmarked as $400,000 for repair damage to prevent further deterioration, $800,000 to improve the hotel courtyard off Bee Lane, $300,000 to cover exterior improvements along three streets, another $300,000 to an electrical transformer and utilities, and $200,000 for design work.

The agreement states the redevelopment will result in private investment of over $40 million. More than 50 full-time jobs will be created. The ordinance describes the project as the preservation of a building "long in need of reintegration into the fabric of City life" and the addition of housing in the downtown area.

The parking deck will be built by the developer but paid for by the city. Bedenbaugh estimated the construction cost at $7.5 million. The city would pay for the cost plus a developer's fee of 12%.

The five-level structure will span 89,670 square feet between Newberry Street and Bee Lane, where Warneke Cleaners now sits. It will have about 211 parking spaces. Up to 90 spaces would be set aside for hotel guests.

The agreement provides a permanent easement. Fifteen parking spaces in front of the hotel on Richland Avenue will be reserved for valet parking, guest loading, and hotel approach operations. The city will also provide a 50% rebate on all permits, licenses, and utility impact fees.