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Developer challenges rival hotel

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Tuesday, May 13, 2008

AUBURN - Charging lapses in procedures and an excess of municipal authority, the developer behind the Hilton Garden Inn is challenging the city's permission of a rival hotel.

RiverWatch LLC, the development company headed by Lee Griswold that opened the Hilton in 2003, filed an appeal with Androscoggin County Superior Court on May 6, asking the court to invalidate the city's Planning Board approval for a new 110-room hotel at Great Falls on Turner Street.

The $12 million hotel, a Hampton Inn, is under development by Mullaney Hospitality Group and Great Falls Plaza Development Corp. The project received Planning Board approval April 8 after a marathon public hearing that started March 11, then was tabled to allow GFP Development to supply additional information. The public hearing reconvened on April 8, and the project was approved unanimously by the board.

"We are reviewing the complaint and formulating our response," said Laurie Smith, interim city manager. The complaint is with the city's attorneys at Bernstein and Shur.

Steve Myers, spokesman for GFP Development, said his company has also reviewed the complaint, which he called "frivolous and without merit."

"It's simply a stalling tactic," he said. "They are trying to prevent another hotel in downtown Auburn."

Myers said GFP has been performing design and engineering work on the site since the Planning Board granted its application for the hotel, which included plans for a municipal garage and bus station. He said he spoke with Bill Mullaney of the Long Island-based hospitality company, on Monday.

"We believe we'll both be going forward as planned," Myers said.

The complaint cited nine specific actions by the Planning Board that violated its customary procedures and authority. Among the charges are that it did not specifically waive setback requirements for the garage; failed to require an enclosure for roof-top mechanical equipment on the hotel; failed to require a statement from Mullaney attesting to its financial resources; and approved the project without a new traffic movement permit or proper conditions for loading zones and lights.

The complaint also said the board erred by allowing two members who were not present at the March 11 portion of the public hearing to vote on the application April 8, and other procedural missteps.

The complaint asks the court to invalidate the Planning Board's approval and instruct it to either deny the project's application or require that it be resubmitted.

"We are confident the city acted appropriately," Myers said of the allegations.

Smith said she believed the board followed its normal procedures in handling the application.

Planning Board members acknowledged during the nine hours of public hearing that it was an awkward situation, due in part to the city's status as a co-applicant in the project. GFP Development and Mullaney plan to build the hotel, while the city would build the 300-space municipal garage parallel to railroad tracks.

Many of the allegations made in the complaint were raised by RiverWatch attorney Elliott Epstein during the public hearing. Both sides are expected to file their responses within a month.


CLICK HERE To Show/Hide Discussion Thread - (6 Comments)
Comments
Posted By:formermayor at May 13, 2008 12:30 PM (Suggest Removal)
Competition is healthy and makes you a BETTER businessperson. Get on with life and may your business grow with fewer tears.

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Posted By:Matt at May 13, 2008 12:51 PM (Suggest Removal)
Competition is healthy as long as the rules don't favor one side over the other. Let this process work itself out and if it is determined the City did not/is not cutting corners or giving advantages to the new hotel then fine. If however, they are using municipal authority to further their own agenda then that is the opposite of competition. It's not like we haven't seen this before in L/A.... Bates Mill... CMCC becomes the Colisee, etc... good thing you're a "former" mayor with an attitude like that!

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Posted By:RICHARD H at May 13, 2008 6:46 PM (Suggest Removal)
Griswold should be worried...The Hampton Hotel will have a major impact on his hotel..Like the Hilton had on other hotels when it opened....what goes around...comes around...so true

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Posted By:dr. dosh at May 13, 2008 7:23 PM *'>(Suggest Removal)
Yeah , let the bidding wars begin . There's always http://www.doubletree.com hotels , also Alo'ha (=>*

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Posted By:clifford Drake at May 13, 2008 11:00 PM (Suggest Removal)
Poor Poor Herr Griswold he has made enough money let someone else have an oportunity to reap the rewards and I myself would prefer to stay at a Hampton Inn instead of the Overpriced lack of personality hotel such as the Hilton.The Hampton alwas has a great breakfast selection and it is free a benefit to those who lodge there The Hilton is overpriced and not a good deal Go Hampton

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Posted By:Vicar at May 14, 2008 6:50 AM (Suggest Removal)
Now Children, let's stop the squabbling! As a Hilton Honors Member, I know that that Hilton Garden Inn and the Hampton Inn are both members of the Hilton "Family". In many locations you have a Hampton Inn and at least one or moreof the other Hilton Hotels like: Hilton, Hilton Garden Inn, Homewood Suites, Hampton Inn...Competition is good as is price range selection for the traveler!

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