Feb. 21–The largest hotel company in the county is considering building a downtown hotel and conference center at the site of the old Frederick News-Post building.
Plamondon Hospitality Partners, which owns Marriott hotels in the area, has entered into a tentative contract with Randall Family LLC to purchase the site, at 200 and 212 E. Patrick St., said Ted Gregory, chief financial officer at Randall Family LLC, which owns the News-Post.
The 2.6-acre site has been on the market since the News-Post moved its operations in 2008. Gregory said Thursday that he could not immediately share the asking price. In July, the state assessed the 200 address, listed at 41,127 square feet, at $1.3 million. In January, the state assessed the 212 address, listed at 0.9 acres, at $732,400.
The companies entered into the contract in spring 2013, Gregory said. Plamondon has about 90 days left of a study period during which it can cancel, he said.
Myron W. Randall Jr., president of Randall Family LLC, said the contract is not final until it is final.
“I don’t count chickens before they hatch,” Randall said.
Selling the property, where the News-Post operated for 40 years, would rid the company of a tax burden, he said.
The city of Frederick, business and community leaders have been studying for years how to bring a hotel and conference center to downtown. A committee appointed by Mayor Randy McClement found that a hotel with 200 rooms and 20,000 square feet of meeting space is needed downtown, and identified the six best sites this past summer.
After not discussing the project for more than six months, on Thursday the city put a request for proposals for the project on its website. The deadline for companies to submit a proposal is April 3.
The city has formally known about the contract between Randall Family LLC and Plamondon since January, said Richard Griffin, the city’s economic development director.
The city is hoping that the request for proposals will draw several submissions, Griffin said. It asks for companies who can partner with the owners of one of four identified sites, one of which is the News-Post site, to come forward. The other three sites are the 2.68-acre U.S. Postal Service site on East Patrick Street; a 1.7-acre site on East Street owned by the Wormald Cos.; and a 1.67-acre site on East Patrick Street owned by Douglas Development Corp.
Representatives from Plamondon declined to comment Thursday on the Randall Family LLC contract or whether the company is considering any other downtown sites for the hotel.
Griffin said the city is unaware of other partnerships that have formed thus far, but he hopes that others will come along so the city has an idea of all of the possibilities available.
McClement and the Board of Aldermen on Thursday approved paperwork for a $250,000 bond bill for the project the city has been awarded through a 2012 matching grant from the state.
The city has become involved in the project after realizing that any developer would need help with funding in order to provide a conference center of the size the city wants, Griffin said.
The city hired a real estate consultant firm, Jones Lang LaSalle, to study the best funding model for the project. In July, the company released its report, affirming what the city already estimated — there will be a funding gap of about $10 million to $12 million with the conference center and parking lot included in the project.
Along with the bond bill, the city has also requested an additional $250,000 grant from the state to cover some of the project’s initial costs. Any public funding would be used only for public projects, such as helping the developer provide the conference center space or parking, or make road improvements, Griffin said.
The committee studying the issue for the city recommended this past summer that the city move forward in fall 2013 with selecting a site and issuing a request for proposals in fall 2013. A developer was to be chosen by spring 2014, construction would begin in 2015 and the hotel would open in 2016.
Randall said Plamondon is now studying issues on the old News-Post property, such as rights of way.
The property is a hard one to develop, given that it is in the historic district, Randall said.
The company would be happy to see the downtown property be home to a downtown hotel and conference center, he said.
“I know it is something that a lot of people are looking for.”
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