Rome City Manager John Bennett said specific architectural site plans for the project could not be completed in time to seal the deal Friday.
“We couldn’t get all of the plans to the attorneys, and the attorneys in Atlanta wanted to review what (City Attorney) Andy (Davis) did, and there just wasn’t enough time to get all of that done,” Bennett said.
Duke Hospitality has agreed to pay the city $400,000 for the 1.54 acre parcel on West Third Street where the hotel will be constructed and has already put $10,000 down. After the deal closes and Duke obtains its construction loan, the company will pay the city another $15,000 in cash.
Rome has agreed to Tax Allocation District financing for the remaining $375,000. The TAD redevelopment tool dedicates to a project the property tax increases that came about because of the project.
Samson Developers — owned by Rome businessman David Doss — spearheaded the hotel deal but sold its interest in what was a 2.14-acre site to Duke Hospitality in exchange for $75,000 and 0.60 of an acre on the site.
The project covers nearly half of a 4.4-acre parcel city officials put together around the former Rome-Floyd Parks and Recreation Authority headquarters. Rome paid a total of $1,825,000 for the three adjacent tracts: Just Sports and Tennis at 296 W. Third St., owned by Steve Grissett; Dempsey Auction at 302 W. Third St.; and 322 W. Third St., owned by Patsy Ingram.
Samson still maintains an option to buy the remaining acreage for $1.4 million.
Bennett said the property was never viewed as a money-maker, although he expects to recover expenses over the long term through the generation of taxes and other revenue related to use of the property.
The city assembled the parcel in order to control the type of redevelopment that would go into the riverfront property across from the downtown district.