This is the first in a periodic series of blog posts that asks EDD members and our regular blog readers to give their input on a real-world economic development issue.
This week’s economic development challenge involves a small city in Ohio that purchased a historic hotel, the Clarendon Hotel, in its downtown with the hope of finding a private developer to renovate the property as a hotel and restaurant. The city has not been able to find anyone willing to make the upfront investment, and is now considering redeveloping and operating the property itself, until a private buyer can be found, which they believe will take about three years. The city plans to redevelop and operate the Clarendon Hotel through a Community Improvement Corporation (CIC) and a Limited Liability Corporation (LLC).
- Do you know of any examples where something like this has been done – where a municipality, through vehicles like CICs and LLCs, has developed and operated a business for a number of years?
- Are there any alternative approaches the City could take to redevelop this property that you would recommend?
- What organizations and resources might aid the City in fulfilling their desire to redevelop the Clarendon Hotel?