Alabaster moves ahead with plans for hotel

Published 12:00 am Tuesday, March 21, 2006

The city of Alabaster took three steps closer to bringing a new hotel to Alabaster Monday night.

The council approved a development agreement with Oikon Inc., a hotel development company; approved the borrowing of $100,000 at a maximum rate of 8 percent interest from First Commercial Bank to pay for storm and sanitary sewer expenses to the proposed hotel; and authorized the city file a friendly validation lawsuit against itself.

Under the agreement, Oikon will develop a five-acre tract of land for a hotel and make improvements to five acres of land owned by the city.

The agreement concerns 10 acres the city owns behind the Colonial Promenade Shopping Center and Moe&8217;s Southwestern Grill.

Oikon has proposed to develop the land for a four-story, 60-to-120-room hotel.

The agreement requires the city to make the area accessible to the sewer system.

According to Greg Morris, who serves as city attorney, it is expected the cost for the city to place sewer line to the site along with other related expenses will be less than $60,000.

The council voted to file the &8220;friendly lawsuit&8221; against itself, Morris said, to &8220;make sure all legal requirements are met&8221; and that the actions are in compliance with the state constitution.

He said with the validation, the city can make sure all bases are covered before problems arise.

In other business, the council set a public hearing and will hold a special meeting Monday, March 27 at the municipal annex at 7:15 p.m. regarding bonds for a new city center.

The more than $2 million in bonds would be used to reimburse the city $1.8 million for land purchased from Maurice Rodgers. The property is located off Old Highway 31 on the opposite side of the mountain from Blockbuster Video.

A work session will follow the special meeting.

A public hearing on the annexation of about 160 acres for Green Dream Developments LLC off Highway 17 next to Fox Valley Farms Estates was continued until April 3. Landowners will have to petition for the action to go forward