City Councilmember Zack Matheny has asked for information on the status of the old Regency Inn and Suites at several City Council meetings.
It appears that Matheny received at least some of the information he has been requesting in the agenda packet for the Thursday, Oct. 27 work session.
According to the agenda packet, the old Regency Inn and Suites at 2701 North O. Henry Boulevard is vacant.
The agenda attachment states, “Property is currently held by Partnership Homes in vacant status pending resolution of the rehabilitation and re-use plans.”
It also states, “Total transition cost estimated to be $13.5 million.” The estimated cost is not much higher than the estimated cost in October 2021, which was $13.1 million.
In November 2021, the City Council agreed to make a deferred payment, no interest loan of $3 million to Partnership Homes to purchase the motel. The loan covered the $2.75 million cost for the land as well as $40,000 for repair and cleanup, $75,000 for architectural design, testing, surveying, attorney’s fees, inspection, insurance, a phase 1 environmental report and other expenses. It also included $100,000 payment to Partnership Homes as an administrative fee.
The plan was for Partnership Homes to spend an additional $10 million for the renovation. At the time the source of that $10 million was unclear, but it was said that Guilford County was expected to pay some of the cost to turn the old motel into a permanent supportive housing facility for the chronically homeless.
Before the $3 million loan was approved, City Councilmember Marikay Abuzuaiter questioned the cost of the upfit, which was estimated to be about $150,000 per room. Councilmembers also questioned the advisability of allocating $3 million for a $13 million project when the source of the other $10 million was unknown.
In March of this year, Partnership Homes submitted a request to Guilford County for $6.5 million in American Rescue Plan money but has not received approval for the grant.
The agenda packet states, “Present – Conversion delayed due to lack of funding commitments.”