A look ahead: Luxury hotel project delayed due to high construction costs

The high-end hotel planned on 18th Street South has been delayed due to changes in anticipated construction costs.

Mike Mouron of Capstone Properties, who purchased the former Hatfield Auto, Little Professor book store and Wolf Camera properties in fall 2016, said in November that construction expenses had risen more quickly than expected and his company is trying to “get our arms around what the costs are.”

The plans for the property, approved in August, include a five-story Curio by Hilton luxury hotel and an adjacent day spa on the former site of Wolf Camera. There would be 211 private parking spaces split between the 18th Street properties and another lot Mouron purchased at the corner of 27th Avenue South and 18th Place South.

Additionally, Mouron has offered to the council a plan with additional greenspace and landscaping if the city completes its revitalization project on 18th Street. City Planner Vanessa McGrath said the city and ALDOT are supposed to begin engineering on the project this year, with construction possibly starting in 2018 as well.

Mouron said he and his team are working on revising their development plan for the hotel to the point where “it makes economic sense.” He is also working with a spa consultant out of Arizona, though he said the spa will be dependent on the construction of the hotel.

If the hotel development is financially viable, Mouron said he hopes to break ground in fall 2018, with the construction process taking about 14 months. “It will be later than I had hoped,” Mouron said.

There is a chance that the hotel will not make economic sense to construct, in which case Mouron said he will “drop back and do simple retail.” He said he would bring in regional or national tenants new to Homewood, and their exclusive parking would be a draw in that situation.

Mouron has also bought the 18th Street Oriental Rugs building, at 1808 29th Ave. S. The rug company had been located there for 27 years, owner Paige Drummond said, but vacated the building Dec. 31. Their new address is 1829 29th Ave. S.

Mouron said a lease has been signed for the building but the tenant was not yet ready to be announced.