The city of Paducah may soon extend a hotel developer’s right of first refusal agreement on a vacant downtown property, where a nursing facility used to be.
Earlier this week, the Paducah City Commission introduced an ordinance to amend and extend the city’s agreement with Paducah Riverfront Hotel, LP, regarding the city-owned property at 501 N. Third St.
It’s scheduled for a vote at the Aug. 11 meeting.
The developer owns Holiday Inn Paducah Riverfront, a 123-room hotel near the Paducah-McCracken County Convention & Expo Center. The vacant site is adjacent to the Holiday Inn and floodwall. The site was home to the former Paducah Care and Rehabilitation Center, which was demolished.
During the meeting, City Manager Jim Arndt explained the ordinance extends the agreement by two years and it would expire July 15, 2022. It keeps a $300,000 purchase price and allows for more flexibility in the type of accommodations that could be developed, which meeting documents described as an “upscale full-service hotel” or a “unique and luxury boutique hotel” with luxury retail shops restricted to the first floor.
According to meeting documents, the city entered a right of first refusal agreement in November 2015 as part of a larger project to develop the downtown riverfront. It featured an option to purchase or lease three tracts at 501 N. Third St. for future development. The agreement term expired in mid-July.
“This is LinGate (Hospitality), who owns the Holiday Inn,” Arndt said, during the meeting.
“They also have, of course, local investors involved with the project — for the Holiday Inn portion of it. They approached ... the mayor, and the mayor and I talked to them a few weeks ago and they have already signed this, so they are interested in the project.”
In her remarks, Mayor Brandi Harless said that was an “exciting” phone call to get and described it as a good opportunity for the community once again.
“Jim and I got on the call and they’re definitely brainstorming about their opportunities and their growth, and they recognize that there is a little bit of a pause right now in the market,” she said.
“But they want the opportunity two years from now, when we’re all hoping that the market’s going to come back and bounce back, when we can see some of this potential executed.”
The Sun reached out to LinGate Hospitality on Friday, but did not hear back for comment.