This week, Chapel Hill is resuming talks for a proposed hotel development in its downtown. 

With the proposal being located at the intersection of Rosemary Street and Columbia Street, the extended-stay hotel seeks to add life and vibrancy to the downtown corridor with 130 rooms, a rooftop bar, pocket park, and other amenities. The site currently consists of parking and commercial spaces and is near the Northside neighborhood. 

Rendering for the proposed hotel, located along West Rosemary Street. (Image via MHAworks.)

On Wednesday, April 15, the Town Council will hold a public hearing for a new incentive agreement with Chapel Hill Ventures LLC. If approved, the town would provide 90 discounted parking spaces in exchange for creating nearly three dozen full-time jobs and activating the dormant street corner. 

The incentive also aims to promote Chapel Hill’s economic development goals for diversifying the local economy, providing a new capital investment and bringing more traffic to local businesses. The plan aims to keep and potentially activate the former Chapel Hill Town Hall building, located at 100 West Rosemary Street and on the corner of the proposed site. Built in 1938, the building has also served as a police department, courthouse, and fire department.

Chapel Hill initially approved plans for the four-to-five story hotel in 2021, but the project has made few forward advances since due to “significant” cost-related disruptions, according to the town. Implementing feedback from the council at the time, changes made to the proposal during the former approval process included reducing the size of the building, providing a separation between the nearby residential homes, and reducing surface parking to encourage public transit use and pedestrian traffic downtown.

Those council members particularly praised the Rosemary-Columbia hotel for its location along the bus line and walkability to local food, shops, and UNC’s campus. The development also planned to complement many now-completed elements of the East Rosemary Redevelopment Project and the town’s vision for a downtown business district. That “innovation hub” adjacent to Franklin Street currently includes the East Rosemary Parking Deck and the Innovate Carolina Junction. 

The public hearing will take place at the Town Hall Council Chambers located at 405 M.L.K. Jr Blvd. The Chapel Hill Town Council meeting is slated to begin at 6 p.m. on Wednesday.

Featured image via MHAworks.


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