The Clarendon Hotel Challenge

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?

We particularly look forward to hearing from those of you that have experience redeveloping historic properties in small cities across the country!