Developer plans spring start for 18th Street hotel construction
Developer Mike Mouron said people will be able to see visible signs of construction for a new hotel on 18th Street South next spring, and it should open for business in fall 2020.
Mouron bought properties along the east side of 18th Street South, the former homes of Hatfield Auto, Little Professor Bookstore and Wolf Camera, in 2016. His original plans for a standalone hotel were stalled in 2017 and much of 2018 due to construction costs.
However, negotiations with the city have produced an incentives package for Mouron to develop not only the hotel, but also at least 10,000 square feet of retail surrounding the hotel property.
Mouron said via phone on Dec. 6 that the centerpiece of his plan is a 129-room Curio by Hilton high-end hotel, operating under the name Valley Hotel. There will be a restaurant on the main floor of the hotel.
He said he thinks the Valley Hotel will have “flair and cache” that exceeds any other hotel in the Birmingham area.
Work on the property, at the corner of 18th Street South and 28th Avenue South, will begin near the start of the year, though Mouron said visible construction, such as pouring the foundation slab, will likely happen around April 2019.
At the same time, the city is planning to begin work to realign lanes and add parking, sidewalks and landscaping to 18th Street in 2019. Mouron said he wants to wait until all construction on the road is complete before opening his hotel.
Renovations on the Wolf Camera building, which is still standing, will likely be done concurrently with the hotel construction. However, Mouron said the completion of that building would also wait until the hotel opens.
Mouron said he has 140 parking spaces reserved for the hotel, plus an additional lot he purchased for auxiliary parking. The lots will be patrolled to make sure only guests and shoppers are parking there, and Mouron said he has an agreement that all hotel and retail employees will park in the deck underneath Rosewood Hall, to keep more space available for visitors.
Per his agreement with the city, Mouron said he has five years to develop 10,000 to 15,000 square feet of new retail, so he's “going to do it judiciously” in terms of any additional property purchases and confirming tenants.
Mouron did not have a start date for construction on the retail portion of the project.
The on-site parking and location in Homewood is expected to be a draw for potential tenants, and Mouron said he plans to favor local or small regional companies to stay consistent with the "charm" of the downtown area.
“So I’m bullish as to the interest that will be generated,” he said.
In total, Mouron said he plans to invest $50 million in new construction on 18th Street. In return, the city has agreed to abate 75 percent of new lodging tax revenue from the hotel for up to $10 million or 20 years, whichever comes first.
Mouron is working with Robins & Morton as general contractor, Bounds & Gillespie as architects, Hoar Program Management, Kelly Landscape Architects, Looney & Associates interior design and Valor Hospitality for hotel management.