Will Salisbury get new downtown hotel and convention center? Here's latest update
Salisbury City Council and developer Mentis Capital Partners could have an agreement as soon as Monday, April 8, over the contested Parking Lot 10 space slated for a hotel and convention center.
During the open work session on Monday, March 25, an agreement was in the works for the lot located near the Wicomico County Courthouse in which $4 million in state funds for a hotel and convention center were previously approved. Since then, that sum has been the subject of some speculation, as the total might change. According to Nick Simpson, founder and CEO of the development company, they would not move forward with the project should the amount be reduced.
"These funds are critical to making the hotel and (other developments) happen or they won't happen. We're sitting here at a point when we're getting tight on deadlines, and it feels like we're at a point of contention. We just need to know we're getting the money from the state," said Nick Simpson of Mentis Capital Partners.
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Simpson added they currently have agreements with hotel partners in place that also stipulate moving forward with the development at the original $4 million number. Anything less than that, Simpson contended, will not be enough to cover costs.
"If that funding doesn't go through in its entirety, this project will not go forward. If this funding is changed or reduced, we won't invest in this project anymore. I can't do it in good faith as I won't be able to get it to the finish line," Simpson said.
As part of the conditions for the funds, the entire amount for the grant can only go to this specific construction. Otherwise, the city would have to get back to the state to provide an explanation.
"These funds were originally approved under Gov. Larry Hogan and again under Gov. Wes Moore along with the Eastern Shore delegation for this hotel and convention center," said Salisbury City Council President D'Shawn Doughty. "The mayor needs clarity about those funds being used for architectural and design elements as well, so that is where his hesitation is right now. I have heard it from many different partners of the state that we cannot use these funds for anything else other than Lot 10 redevelopment."
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Change in state law gives Salisbury leeway on hotel projects
In 2021, the city sought a change in state legislation to create a Hotel and Residential Incentive Zone Horizon that provided an extension of tax credits that, at the time, only applied to commercial developments. After garnering support at the state level, it can now be applied to housing and hotels as well.
Salisbury has already shown its capability to host large-scale events like the National Folk Festival, regional sporting events and university-related programming. A conservative economic impact for the project, former Mayor Jake Day noted in 2023, could be upwards of $150 million to $200 million annually.
The estimated valuation, according to regional economic data, of the region's yearly metro economy is $25 billion.
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This article originally appeared on Salisbury Daily Times: Salisbury hotel and convention center plan: Here's the latest update
