Losing hotel bidder sues Columbia for Main Street deal public records
A local hotel developer who was passed over for a downtown property deal has sued the city of Columbia for records regarding that deal.
In December, Columbia City Council unanimously approved plans to sell the city-owned office building at 1136 Washington St., to luxury hotel developer Kessler Enterprise for $2.9 million. The company has promised to invest $70 million into the site to build a “Grand Bohemian,” Columbia’s first 4-star luxury hotel.
But the deal has drawn criticism from some, particularly Rick Patel, a local hotel builder who said he was passed over for the property sale despite offering the city $5 million for it – twice what Kessler will ultimately pay for the site.
Now, Patel has sued for city emails, contracts, invoices and other documents that could paint a picture of what led up to the city unanimously agreeing to the sale despite almost no public discussion prior to the deal.
Patel filed a public records request for an array of documents Dec. 18, two days after the city gave the Kessler deal initial approval. State law requires public bodies to respond to requests for public documents within 10 business days, and to supply the records within 30 business days if they exist and are not exempt from state rules.
Chris Kenney, Patel’s attorney, told The State that the city of Columbia did not respond to Patel’s request at all until Kenney filed a lawsuit over the matter Jan. 9. Now, a court has ordered the city to supply those records. Currently, the city has supplied half of the documents and is reviewing the other half, Kenney told The State.
Kenney couldn’t say what the result of receiving those records might be, but that he and his client would review the records before deciding what their next step could be.
The State has contacted the city of Columbia for more information.
Kessler deal was well underway before public vote
Columbia City Council approved the sale to Kessler Dec. 16, one week after city leaders spent $10,000 at a Kessler property in Savannah for a city retreat that Columbia City Manager Teresa Wilson has said was meant to give council members a chance to see a Kessler hotel in action.
The deal to sell Washington Square to Kessler was already well underway before council members even arrived in Savannah, according to a term sheet dated Dec. 8 outlining in detail the mechanics of the property sale.
Patel, who recently opened the Marriott Moxy hotel on Main Street, criticized the deal publicly at that Dec. 16 meeting.
“This is not right for the taxpayers of the city of Columbia, losing this kind of money,” Patel said at that meeting.
Kessler is buying the property for $2.9 million, but the city will kick back $400,000 in exchange for site upgrades, making the effective sale price $2.5 million. The city is also paying to rehab the property’s parking garage before handing it off to Kessler.
Patel has said he offered $5 million for the site. Wilson has said Patel’s offer was not the highest dollar amount. Leaders have also said they believe Kessler will bring something unique to Columbia.
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.
The properties were listed with private broker Trinity Partners, rather than listed through a public bidding process.
Wilson has previously defended her decision to list the properties through a private broker, saying it gave the city more flexibility to choose the best use for the site, rather than the highest dollar value offer.
