Charleston’s Medical District Hotel Project Faces Zoning Obstacle
A long-planned hotel in Charleston’s medical district is hitting a zoning obstacle and is set to be brought before the local zoning board to address a technical issue. The property, situated on 200-210 Spring Street, had earlier received zoning clearance as a 152-unit accommodation in 2019. However, the approval came with a condition – the project developer, in agreement with the Westside Neighborhood Association, was required to allocate 17 units for long-term rental (30 days or longer).
Financing Issues Leading to Zoning Revisit
The project aims to remove the condition that enforces a set number of long-term rental units. According to property owner Jeffery Roberts of JJR Development, the decision was influenced by the challenges in sourcing funds for the development. Because the project includes both short- and long-term rentals, potential lenders are finding it difficult to evaluate the risk and categorize it as either a hotel or multifamily project.
However, Roberts assured that the revision in the zoning condition won’t affect the availability of long-term rooms. The primary reason is to make the project more appealing to a broader range of financing sources.
Fulfilling Demand and Community Expectations
Roberts believes that there is a substantial demand for long-term accommodation around the project’s location, particularly due to its proximity to the Medical University of South Carolina. The project’s potential clientele includes corporate travelers, post-docs, medical residents, and travel nurses who require extended stay options.
Moreover, it has been indicated that JJR Development is open to partnership opportunities but remains committed to staying on as the project developer. The desired changes in zoning conditions are set for consideration on 20th August.
MUSC’s Expansion and Potential Impact
Further strengthening the need for long-term stay facilities in the area, the Medical University of South Carolina’s board voted on 10th August to purchase the adjacent 11.5-acre peninsula campus from Roper Hospital. This acquisition, set to complete by 2029, will likely increase the demand for accommodations catering to longer stays.
Conclusion
The revision of the zoning condition, if approved, could pave the way for the project’s successful completion, delivering a much-needed mix of short- and long-term accommodation facilities in Charleston’s medical district. The proposed changes demonstrate the project’s adaptability in navigating zoning and financing challenges while meeting the community’s needs and expectations.
