A construction agreement deadline has been extended for a downtown hotel Morehead to January of 2022.
City council called a special meeting to discuss a resolution amending the development agreement between Luckett and Farley Development, LLC, the city, the county and the Downtown Morehead Redevelopment Tax Increment Financing (TIF) District Special Fund Board to extend the deadline for a construction agreement for a hotel. The resolution was unanimously passed.
“Basically, what we are doing here is he [the developer] has asked for an extension force majeure, which is in every contract, because of the pandemic and everything got held up,” said Glen Teager, a member of city council.
The resolution pertains to the parking lot behind the Morehead Conference Center that was deeded to Luckett and Farley in 2019 with the hope that a new hotel and parking garage would be built there.
The extension request was made by Luckett and Farley during the February 24, 2021 TIF meeting.
The resolution was originally to be discussed during the regular March city council meeting, but Teager felt there were too many questions about the resolution to move forward and requested the special meeting.
After meeting with the developer, both Teager and attorney James Parsons felt their questions were answered though no changes were made to the resolution.
A new obligation was also added in the resolution that requires the developer to have started architectural and engineering design for the hotel by May 1, 2021.
The resolution is expected to be discussed during the Rowan County Fiscal Court meeting next week.