RALEIGH, N.C. (WNCN) – The City of Raleigh is reviving plans to bring a new hotel and apartment tower downtown. City staff are putting out a call to developers who may be interested in developing the two plots of land.
During a work session on Tuesday, staff informed the city the pieces of land are now valued at $32.4 million.
Prior to the pandemic, city staff were working with consulting firm JLL to develop a plan to bring the new developments downtown.
The City released a Request for Interest to see what kind of interest there was from hoteliers to develop on the site. When the pandemic hit, that process was canceled.
The City currently owns the two properties.
Both are currently surface parking lots situated across from the Duke Energy Center for the Performing Arts. To the northwest of the lots is the Convention Center.
The hope is to develop the lot closest to the Convention Center into a 500-room, full service hotel. Updated materials from the city show the city wants to bring in a national, upscale brand.
The goal of the hotel is generate more than five million additional visitors a year by 2028. Research by city staff and consultant found the city has lost an estimated $102 million in economic impact from event planners who choose to go to other cities for their large events due to Raleigh’s hotel packages.
A new residential and retail tower could accommodate the growing interest in downtown living. While originally planned as an office tower, the city now wants the second lot to be primarily residential with some retail.
Still up for discussion is whether to create a plaza between the properties or keep it a street. Creating a plaza would allow for underground parking, according to city staff at Tuesday’s meeting.
“I had suggested we look at a plaza but I have since talked to staff in the planning department and others, who suggested the street, so I want to revisit that,” said Mayor Mary-Anne Baldwin.
The city’s consulting firm is planning an open house with interested developers in New York this summer. They expect to hear proposals from developers early next year.