Columbia planned sale to luxury hotelier before officials took $10K trip
Plans to sell a Columbia city property to a luxury developer were well underway when city leaders took a five-figure trip to an out-of-state hotel, documents obtained by The State show.
The city of Columbia spent close to $10,000 at a luxury Kessler hotel in Savannah before signing a deal to sell city-owned property to the same hotelier.
Columbia City Council Dec. 16 unanimously approved a deal to sell Washington Square at the corner of Main and Washington streets downtown to Kessler Enterprise for $2.9 million. Kessler promises to invest $70 million into the site to build a Grand Bohemian hotel, which would be Columbia’s first 4-star luxury hotel.
The deal drew criticism from some, including local hotelier Rick Patel who said he offered the city $5 million for the property. Critics have also claimed that Kessler “wined and dined” city leaders to cinch the property deal. Council members and city staff have denied that claim.
Columbia City Manager Teresa Wilson previously told The State that the retreat was meant as an opportunity for City Council members to see a Kessler hotel in action.
But it appears that the deal to sell Washington Square to Kessler was already well underway by the time council members arrived at the Dec. 7-8 Savannah “retreat,” according to documents The State received through a public records request.
A term sheet between the city and Kessler dated Dec. 8 – the same day as the city’s Savannah retreat – outlined in great detail the description of the property deal, the timeline for due diligence, and even the timeline for when city council would vote on the matter, identifying Dec. 16 as the first city council meeting where the property deal would be voted on.
That term sheet also outlined incentives Kessler expects to receive from the city, including up to a 50% tax abatement for 10 years and renovations to the Washington Street parking garage, which the city will pay for.
Columbia spent $9,143 on the Savannah trip to the Kessler site. That bill included rooms for 19 people, including Mayor Daniel Rickenmann and Councilman Ed McDowell, in addition to 17 members of city staff – one of whom was listed on the bill as a “no show.” That total also included $2,000 for a private chauffeur service between Columbia and Savannah.
Council members Peter Brown and Tyler Bailey did not stay overnight and arrived to the retreat Monday, Dec. 8.
Columbia’s Kessler vision
Kessler operates luxury hotels across the country, with a particular focus on the southeast. Their Grand Bohemian brand promises to be “more than a hotel,” but a cultural and entertainment experience. The hotel chain puts on annual Christmas markets themed around similar markets in Salzburg, Austria, for example. Beyond the Christmas market, the hotel also promised to include a museum-quality art installation and new retail options.
The extras included in the Grand Bohemian model were what ultimately convinced city leaders it was worth selling the property to Kessler, despite receiving offers for more money. Because the city listed the property through a private broker, it was not legally obligated to choose the lowest bidder.
“We’re looking at this actually from less of a local view as well. We’re looking at things from a regional, national view of how we move Columbia forward,” Councilman Brown previously told The State, adding “this isn’t about being wined and dined,” but about establishing a “very sought after” company in the capital city.
The city listed Washington Square for sale along with a property at the corner of Bull and Taylor streets in early October, with the intention that the properties would be redeveloped into a hotel and apartments and/or retail space.
City leaders first shared their intention to offload several city-owned properties during a December 2023 press conference held to announce plans for a new police headquarters at the former Aflac office building on Laurel Street. During that press conference, Columbia leaders said they plan to sell 13 city-owned properties including 1 Justice Square and the police department’s Metro Region Headquarters at 1800 Main St.
Washington Square and the Taylor and Bull streets properties were the first to be listed.
