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.

Chapelboro.com does not charge subscription fees, and you can directly support our efforts in local journalism here. Want more of what you see on Chapelboro? Let us bring free local news and community information to you by signing up for our newsletter.

Related Stories
‹
OWASA's Extensive West Rosemary Street Project Begins on Nov. 3. Here Are The Details
OWASA plans to begin its construction Monday, Oct. 20 to replace a water main on Rosemary Street in downtown Chapel Hill.
Chapel Hill Approves Rezoning for Greene Tract Site, Hears Next Steps for Development
The Chapel Hill Town Council is making progress on developing the Greene Tract, meeting in June to rezone part of the site. 
Chapel Hill Discusses LUMO Rewrite Delay, Debates the Level of Public Feedback
The Chapel Hill Town Council recently heard an update on its Land Use Management Ordinance (LUMO) rewrite, which is now behind schedule.
Chapel Hill Prepares for No Right on Red Rule to Go Into Effect at Select Intersections
An ordinance prohibiting turning right on red at several intersections in Chapel Hill will go into effect on October 31. The Chapel Hill Town Council passed the ordinance during its meeting on October 2, two years after a similar ordinance had previously discussed and pulled from the council’s agenda. The town’s Transportation and Connectivity Advisory […]
Chapel Hill Town Council Discusses Hiring Process for New Town Manager
Chapel Hill’s Town Council discussed the expectations and competencies officials will be looking for when selecting a new town manager at Wednesday night’s meeting. Current town manager Roger Stancil announced in November that he will retire in the fall of this year after 12 years of service. President and founder of Developmental Associates Stephen Straus […]
Chapel Hill Officials Approve Redevelopment Guide for West Rosemary Street
After nearly a year of planning and deliberation, the Chapel Hill Town Council has approved a comprehensive guide for developers seeking to build along West Rosemary Street. Speaking in her capacity as a municipal senior planner, Rae Buckley explained that the guide is intended to address the desires of both residents and developers. “The recognition […]
Chapel Hill Moving Forward with Plans for New Fire Station, Affordable Housing Development
The Town of Chapel Hill is “moving ahead” with plans to build a new Fire Station 4 and make room for an affordable housing development, both at the intersection of Weaver Dairy Road Extension and Martin Luther King Jr. Boulevard, according to a release shared Thursday. The current Fire Station 4 is more than 40 […]
Chapel Hill Shares LUMO Draft, Which Could Reshape Development Standards and Housing Types
After nearly a decade since Chapel Hill first launched plans to rewrite its land use management ordinance, or LUMO, a draft has arrived.
Blue Sky Robotics Expanding Chapel Hill Headquarters, Moving to Rosemary Street
Blue Sky Robotics, which has been headquartered in downtown Chapel Hill since its founding in 2023, will be moving to the Innovate Carolina Junction building at 136 East Rosemary Street. The company is currently located in the Hill Commercial Building on 142 East Franklin Street. In a presentation to the Chapel Hill Town Council Wednesday […]
No Tax Increases and Increased Spending Featured in Chapel Hill Staff's Proposed FY27 Budget
Following a year with improved revenues and a new town manager at the helm, the Town of Chapel Hill may go into the next fiscal year without a tax increase or significant cuts.
›