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Hotel plans continue, with different restaurant

Mountain Messenger by Mountain Messenger
May 3, 2018
in Local Stories
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Photo by Meg Hibbert
Spartan Development LLC’s Dan Friesland, left, and Alan Criss answer questions after updating Salem City Council on plans for the Staybridge Suites hotel next to the Salem Civic Center.

Groundbreaking for the Staybridge Suites hotel on the Salem Civic Center grounds has been put off for a few weeks in order not to conflict with Salem Fair parking. And when the associated restaurant opens, it will be a different one than initially announced.

Salem City Council learned of the changes Monday night, during a work session preceding the council meeting.

Spartan Development LLC partners Dan Friesland of Salem and financier Alan Criss assured Councilmembers the project is coming along.

“We’ll be busting clods by October,” Friesland said. “My confidence level is 95 percent sure,” he added.

“The Staybridge hotel is probably the best option,” compared to a Holiday Inn or other large chains, “because we will be able to offer extended stay,” Friesland told Mayor Randy Foley and Councilmembers Bill Jones, James Martin and Jim Chisom. Member Jane Johnson was away Monday.

The hotel is planned to have 95 rooms.

The restaurant originally announced for the venture, Brunos, will not be a part of the development. Instead, “It is possible it could be a craft brewery that is so hot in this area right now,” Friesland said.

He did not elaborate on why Brunos, which is at Smith Mountain Lake, is not coming.

Earlier this year the Economic Development Authority agreed to an arrangement that makes it possible for Spartan Development to borrow up to $1.3 million from Salem.

The loan will allow developers to borrow funds that could offset operating costs for the hotel the first year.

Spartan Development would pay an annual interest rate of 9 percent, according to EDA terms. Developers would have to pay for expenses first, and then submit their receipts to the city for reimbursement.

Salem City Council voted in September 2016 to sell the 6.75-acre tract at Boulevard and Texas Street. Selling price was $100 per acre to get the project going.

Spartan Development’s Friesland and Criss say they expect to invest $10 million. They expect to add dozens of additional jobs.

Friesland and Criss both agreed personally to guarantee to repay the money.

In other matters before Salem City Council Monday night, Council heard a presentation by Salem School Board Chairman David Preston on the $46.5-million school budget.

The budget is 3.6 percent higher than the current fiscal year’s budget, primarily due to an increase of almost 100 in student enrollment, Preston said, and an increase in local funds budgeted by the city. State funds to local school systems are based on Average Daily Membership, or number of students.

Although the Salem School Board approved the schools’ budget on March 27, it will be altered once the Virginia General Assembly approves the final state budget and school funds in it.

Preston said all school employees would get 2-1/2 percent raises.

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