Good afternoon,
The New Castle County Council is moving toward a vote on buying the Sheraton South Hotel in the New Castle area for use as a service center and housing site for the homeless.
The purchase would be financed by federal CARES Act money, not property taxes. That perception persists among residents, spurred on by Facebook and other social media posts, a story from WDEL noted.
I will admit to not being a fan of the plan and became even less enthused when the county’s successful bid ended up in the neighborhood of $20 million.
In return, the county gets a lodging property that clings to an isolated patch of ground in a marshy area off Interstate 95.
The county is to be commended for trying to deal with homelessness, an issue that will worsen in the coming months and perhaps years as eviction restrictions go away, and the economy struggles to regain its mojo.
The current glut in hotel rooms and the precarious financial position of many properties has led other local governments to use CARES money to snap up hotels, often in urban locations. The problem here is a site with no open space and nothing within walking distance, not to mention a creek that is perenially at flood stage.
Simultaneously, those struggling with homelessness often end up in aging motels that dot the area and come with serious quality of life issues. The center would provide a central location for services that are now scattered among various entities and locations.
As for prospects of keeping a hotel at the site, the bidding that led to the nearly $20 million price tag showed that the other investors saw potential.
While the Sheraton underwent a costly renovation during the early months of the pandemic, questions remain about the “bones” outside the visible improvements.
As you might remember, the county blocked the hotel’s opening for years after finding that the original developers build a larger structure than the submitted plans.
One high cost to taxpayers and public schools will be the loss of property tax revenue from the hotel, and operating costs could come into play, although the feds have other funds that could come into play.
One can never predict how New Castle County will proceed when confronted with hot button issues, but signs seem to point toward a yes vote. – Doug Rainey, chief content officer.
