HARRISONBURG, Va. (WHSV) -- The City of Harrisonburg has decided to not help fund the Hotel Madison project.
Under the initial proposal, a hotel and conference center would have been built on JMU land. The developer, dpM Partners, would have paid $30 million to build the hotel and the JMU Foundation would have paid $10 million for construction of the conference center.
The city would eventually pay back the Foundation for the Conference Center through annual grants, based only on revenues generated from the hotel and conference center, according to minutes from the June 10 city council meeting.
Earlier on Tuesday, Harrisonburg Vice-Mayor Charles Chenault, a city councilman, who was in favor of the project, said he couldn't detail exactly what was happening with the project; however, he did say it appeared the project was not moving forward. He also said more information should be released Tuesday afternoon.
Here is the statement released by the city on Tuesday afternoon:
"Over the past months, representatives from the City of Harrisonburg have been working with James Madison University (JMU), the JMU Foundation and a private developer under the auspices of the Virginia Public Private Partnership Act on a proposed project to locate a hotel and conference center in the area of downtown Harrisonburg. This was an unsolicited proposal, as allowed by the Act, that was of interest to both the City and James Madison University. Unfortunately, the financing component of the project was not able to be worked out in a manner that made the project viable for the participation of the City and the JMU Foundation. City Council wishes to thank JMU, the JMU Foundation and dpM Partners for their diligent work on what was an exciting and innovative project concept."
Whether or not the project will continue is unknown at this time.
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