Salisbury moving forward with redevelopment of Empire Hotel

Published 12:10 am Friday, October 4, 2024

SALISBURY — The Salisbury City Council took a step forward in ending the decades-long saga surrounding the Empire Hotel by approving several pieces of the project, including an ordinance establishing infrastructure-reimbursement agreements that would be provided to the developer and a resolution authorizing the city manager to execute several documents moving the project forward.

“I’ll kick this off tonight and remind the council, the Empire Project was something that you discussed with me two-and-a-half years ago in my interview as a priority. It’s a priority in your strategic plan. I’ve heard many say that it’s been a priority for 10 years, 20 years, more, so it’s been out there a long time and I’m excited that this item is on the agenda tonight. It did not occur overnight and it did not occur without partnership,” said City Manager Jim Greene Jr.

The Empire, located in the 200 block of South Main Street across from City Hall, officially opened in the 1850s as the Boyden House, named after original owner L. L. Boyden. The building then underwent renovations under the direction of Colonel Oliver Wendall Spencer around the turn of the century and was reborn as The Central Hotel and finally the Empire Hotel. Articles from a time when the hotel was still in operation painted it as the epitome of the Roaring ‘20s during that era, with a lively ballroom that made it the center of high society. It was eventually transformed into its final state a decade later, with many of the rooms being converted into apartments and temporary housing. The Empire would remain that way until it closed in 1963.

The Empire was owned by the Jonestown-based Ragdale family for most of the 1900s. Between its closure in 1963 and the purchase of the building by Downtown Salisbury, Inc. in 2007, the building was marketed as part of an N.C. Department of Commerce pilot project to attract commercial development in the 1980s, underwent multiple facelifts and has been the subject of countless redevelopment discussions.

After DSI bought the property, it had multiple plans in the works that ultimately ended just short of coming to fruition. In 2020, the organization issued another request for proposals for developers, which eventually led to Brett Krueger, a Charlotte-based developer with multiple boutique hotels and condos on his resumé, being picked. Krueger then brought local developer Josh Barnhardt on board.

“But for years, even decades, the Empire Hotel has been the most talked about building in downtown Salisbury. City councils have dreamed of its resurrection. Preservationists have drooled over its possibilities. The recent Downtown Master Plan makes its redevelopment a major goal,” wrote long-time Salisbury Post reporter Mark Wineka in an article from 2001, when DSI was looking into purchasing the property.

Krueger and Barnhardt’s current plans include:

  • Two two-story row houses in Efird’s section
  • Seven full-floor homes in Efird’s section
  • A retail space facing Main Street in Efird’s section
  • Three retail spaces in the Empire Hotel section
  • 37 hotel rooms on the second and third floors of the hotel section
  • Nine apartments on the first floor of the hotel section
  • A grand ballroom on the second floor of the hotel section
  • A steakhouse on the ground floor of the Montgomery Ward section
  • 20 apartments on the second and third floors of the Montgomery Ward section
  • A spa or meeting space in the basement of the Montgomery Ward section

The members of the city council voted unanimously to approve the ordinance, the resolution and an amendment to the Downtown Salisbury Capital Improvement Plan to include the infrastructure required for the Empire Row Homes. The reimbursement agreement would provide the developer with the lower of 50 percent of the costs or $200,000 for public infrastructure constructed or reconstructed as part of the Empire Row Homes project, including sidewalks, water and sewer, stormwater and any plantings or street trees.

The votes on Tuesday were the result of a development plan that Krueger and Barnhardt to develop in 2021. Barnhardt is listed as the manager of Empire Row, which is the buyer of the property according to the proposed purchase agreement.

The first portion of the project to have the concrete details of redevelopment hammered out was the Efird’s section of the building, which encompasses the 15,000 sq. ft. on the West Bank Street side of the building. The documents approved include a $125,000 purchase agreement for that section and a $100,000 option to purchase and $310,000 purchase price on the Empire Hotel section.

City Attorney Graham Corriher said that the option to purchase agreement includes a requirement that the developer begin construction on the Empire Row Homes as soon as possible, including beginning demolition and submitting a schematic plan within 60 days of closing and completing construction within 24 months of closing.

“The Efird Building development is fully-financed, fully-baked and ready to start construction. One of the requirements that you’ll see is they are required to start construction immediately, get some dirt moving. They’re excited to do that, we’re excited to do that and the city is ready to see that happen,” said Corriher.

Corriher said that the idea of implementing timeline requirements on the option to purchase contract for both the development of the Empire Row Homes and the planning for the Empire Hotel was to allow the developer to “get started on what we can get started on” as soon as possible, and then have them work simultaneously on phase one, the rowhomes, and the plans for phase two, the hotel.

The timelines stipulated in the contracts were developed in tandem with Barnhardt and Kreuger so that the city could see the project completed as soon as possible without the developers having to resort to shortcuts, said Corriher.

“Congratulations, this has been a long haul and I’ve been on council for so many years. This is a day to celebrate,” said Mayor Karen Alexander after the three unanimous votes of approval.

DSI, who owned the building, approved the documents during its Sept. 24 board meeting.

“This project marks a significant step in bringing new life to our downtown. By restoring this landmark, we’re not only preserving our heritage but also creating opportunities for growth, innovation, and community development. We’re excited to see this project move forward and proud to be part of its transformation,” said DSI Chairperson Tonyan Schofield in a subsequent release from the city.