WV Press Association Report
CHARLESTON, W.Va. — Members of the West Virginia Senate will discuss on second reading Monday SB 657, which would allow the state to designate tourism development districts in West Virginia.
The bill allows the state to create the tourism development districts in conjunction with qualifying tourism development projects and tourism development expansion projects in municipalities with less than 2,000 residents in West Virginia. It would give the development office control and oversight of such districts.
Read the bill here: SB 657
Last week, Senate Government Organization Committee discussion of SB 657 centered on the bill’s overall impact and specifically the development of the Hill Top House Hotel in Harpers Ferry, which has been an issue since 2008, when the hotel was purchased for $10 million by developers SWaN Investors. SWaN closed the hotel, which was constructed in 1888, that year after structural issues were found. SWaN officials noted the eastern facing wall collapsed just months later.
SWaN Hill Top has proposed the creation of a $100 million plus, 129-room hotel overlooking the Potomac River and restoration of neighboring armory houses. In addition to meeting and conference space, the resort would feature food and beverage establishments and many other features.
See SWaN plans for the development: http://www.hilltophousehotel.com/
However, Harpers Ferry officials and SWaN Investors have had ongoing issues about the size and scope of the project, with both sides expressing support for a hotel but being unable to agree on plans or move forward.
Harper’s Ferry Mayor Wayne Bishop spoke to the Senate Government Organization Committee on Feb. 4, expressing his opposition to the bill. He called a public meeting in Harper’s Ferry on Saturday to discuss the Senate meeting.
Bishop said the bill isn’t necessary as Harper’s Ferry can handle oversight of the project.
See Bishop’s testimony to the Senate Government Organization Committee here: http://sg001-harmony.sliq.net/00289/Harmony/en/PowerBrowser/PowerBrowserV2/20200204/-1/44473
See the public meeting here:
During the Government Organization meeting, Senator Randy Smith, R-Tucker, questioned the Mayor about small town politics and personal issues holding up this project. Smith also ask about Harper’s Ferry’s resources to work with such project.
Bishop said there is support for the hotel but the issue is conveyance of public land for a private project. As for resources, Bishop said Harper’s Ferry has the expertise and resources available.
At the public meeting on Saturday in Harper’s Ferry, during which discussion became heated, Bishop expressed doubt that the state has the resources needed for this project.
Harper’s Ferry has less than 300 residents and there is support for both SWaN and town officials. The video of Saturday’s meeting documents the differing viewpoints as outlined by advertising, letters to the editor, letters to the legislators and websites for both positions.
Fred and Karen Schaufeld, partners in SWaN, say the conveyance of public land, which centers on street adjustments around the property, rights of way across the hotel property and “paper streets” on city maps, is just the latest effort to delay the project by town officials opposed to the SWaN development plans
Fred Schaufeld said despite numerous changes to get approval, the mayor and some members of council continue to develop new zoning and other issues as use as road blocks to stop the development.
Schaufeld said town officials’ limitations for the hotel would not allow the facility to be financially viable in today’s market or function as a year-round attraction and conference center. Schaufeld said the Hill Top House Hotel, or any such location in West Virginia, must attract business year-round to succeed, not just during the town’s tourism season.
Schaufeld, notes that a facilitator – Matt Ward – hired to help with the Hill Top House revitalization project, terminated his company’s relationship with the Town of Harpers Ferry. Ward expressed his “genuine concerns that certain local officials in Harpers Ferry have operated so inappropriately that it could cause substantial and lasting harm to the community. “… I withdraw because I have simply been unable to conduct any activities or perform any useful role …”
See Ward’s letter of resignation here: https://wvpress.org/?p=263599
In November 2019, SWaN was approved by West Virginia Development Office for $48.6 million in tourism development tax credits for the project.
Published reports note SWaN anticipates construction to begin in the third quarter of 2020, but the project is still pending review by Harpers Ferry leaders.
Schaufeld said the plan shouldn’t be this difficult, adding this is a “same use” issue as SWaN’s plan would upgrade the closed hotel.
Earlier this year, W.Va. State Sen. Patricia Rucker, R-Jefferson, during a press conference in Jefferson County to announce the bill to potentially assist with the building of the Hill Top House Hotel, said the bill will serve as a mechanism to assist municipalities in handling large economic development projects. Rucker said the bill addresses affected cities and municipalities of 2,000 citizens or less and development projects of $25 million or more.
“The delays experienced by the owners of the Hill Top are indicative of working with small municipalities,” Rucker said. “It has created large, unnecessary losses of revenue for Harpers Ferry and the county.”
She said that her proposed bill will provide regulatory certainty that investors need.
Sponsors of the bill, SB 657, and a companion bill in the House of Delegates, HB 4641, include numerous legislators from the Eastern Panhandle.
SB 657 is sponsored by Senators Patricia Rucker, R-Jefferson; Craig Blair, R-Berkeley; Charles Trump, R-Morgan; Sue Cline, R-Woyming; Dave Sypolt, R-Preston; Randy Smith, R-Tucker; and Rollan Roberts, R-Raleigh.
HB 4641 is sponsored by Delegates Eric Householder, R-Berkeley; Jason Barrett, D-Berkeley; Sammi Brown, D-Berkeley; Larry Kump, R-Berkeley; Tom Bibby, R-Berkeley; John Hardy, R-Berkeley; Paul Espinosa, R-Jefferson; Daryl Cowles, R-Morgan, Roger Hanshaw, R-Clay; and Diana Graves, R-Kanawha.
Eastern Panhandle legislators not listed as sponsors include Senator John Unger, D-Berkeley, and Delegates John Doyle, D-Jefferson, and S. Marshall Wilson, Independent.
