Could new downtown hotel and office towers boost the Raleigh Convention Center?
The Raleigh City Council unanimously approved the first steps Tuesday toward redeveloping two parking lots into a hotel with over 500 rooms and an adjacent office and residential tower.
Citing a “once-in-a-lifetime” opportunity to turn prime downtown space into hotel, office and residential space, the City Manager’s Office recommended the city start seeking developers for the hotel.
The hotel and tower would be located on a city-owned 2.5 acre parcel on Fayetteville and West Lenoir streets across from the Raleigh Convention Center and the Duke Energy Center for the Performing Arts.
The city manager’s office hired commercial real estate agency JLL to aid the process. Their report argues for more hotel space to help the convention center attract events bigger than the nearby 401-room Marriott and 175-room Residence Inn can accommodate.
“The Raleigh Convention Center will struggle to maintain existing levels of events and attendance unless appropriate hotel development occurs,” City Manager Jim Greene said. “The lack of hotels in downtown around the convention center is an issue for general tourism in the downtown area and for economic development.”
The recommendation says having a convention center headquarters hotel and tower with on-site, underground parking would help serve millions of annual visitors to downtown, increase residential and retail space downtown and help recruit a major anchor tenant.
“I really believe this is our oceanfront property,” Greene said, pointing out that the development could expand Fayetteville Street and the visibility of the street’s urban core.
The report notes the City Council and Wake County Board of Commissioners approved $30 million in hospitality tax money for the convention center last year to help develop the hotel.
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JLL executive vice president Tony Peterman said the next step is to identify and vet developers for the high-profile project, which will also include input from community members and designated stakeholders.
The process, Peterman said, is meant to find development teams that can “design it, cost it, and get it built.”
The site is already zoned for building up to 40 stories, according to the project’s presentation to the council.
“The big piece of that is their ability to invest their own funds and raise the capital needed from others, so we’re looking for that combined with creative ideas for this specific project,” Peterman said.
The city manager and JLL will send a request out to developers on Monday, Jan. 27.
“I want to emphasize we’re looking for great design,” said Mayor Mary-Ann Baldwin. “We own these sites, so we have to have some say. People are coming from all over the world, and that’s what they’re going to see, so let’s make it all it can be.”
Council member David Cox said he hopes the process will include the possibility of affordable housing.
This story was originally published January 21, 2020 at 5:54 PM.
