WILMINGTON, NC (WECT) - Wilmington City Council voted to terminate an agreement with Wilmington River Group to build a hotel next to the new convention center.
After failing to meet several deadlines, the group did not provide an adequate letter of credit or proof of financing to move forward, according to City Attorney Tom Pollard.
The Wilmington River Group had a deal to buy a piece of property next to the new convention center to build a Hotel Indigo. Construction of the hotel was expected to begin in August, but developers failed to meet any deadlines.
City council members say much of the center's success depends on a hotel.
"The Hilton is there and the Best Western is also there and they're within a short walk, but I think that to have a really functioning, successful convention center, meeting planners are going to look for a hotel right there, either attached or within a couple of feet of it," said council member Laura Padgett.
Council indicated they would meet with the convention center management firm in October to discuss what will happen next.
Despite city council members ending the Wilmington's contract with the Wilmington River Group, Pollard said the city will get to keep close to $200,000 worth of deposits the developer paid.
According to terms in the contract, the developer defaulted and the city has the right to keep the entire deposit.
"I think they of course were making efforts, but we prepared a lot of documents and attempted to close thing I think about at least three times and were just not able to do so," said Pollard.
According to Pollard, city council members would have to develop a new contract if they decide to give Wilmington River Group another chance to build the hotel because the original contract was terminated.