207 Pine group looking to hand off Hotel Gordon project in downtown Albany

ALBANY — The fate of the downtown rejuvenation project at the site of the former Hotel Gordon building is up in the air for now, as the original developer is looking for a new company to come in and take it over.

Due to an illness to 207 Pine LLC principal Jason Benedict, work has been halted at the site, and the company has brought in one potential developer, with two other companies scheduled to look at the site, Albany City Attorney Nathan Davis said.

Originally, the project to renovate the historic building to a hotel and events center with the Marriott International brand was scheduled for completion in the summer of this year. The Gordon Hotel also was set to be the chain’s first black-operated facility.

In October, the Albany City Commission agreed to allow 207 Pine the opportunity through the end of this year to find another developer willing to take over the project.

“They brought down a group a couple of weeks ago,” Davis said. “We’ve heard there’s been a couple of other groups interested. The (first) group had a different plan, with all six floors as a hotel. We haven’t heard back on anything. They did send a whole team down.”

The 207 Pine development group paid $100,000 for the building, the city attorney said.

The city hoped to gain the value of the investment and occupancy of a prime downtown spot in the building that once housed the city’s Utilities Department, as well as the economic activity it would generate along with the aesthetic improvement of the downtown area.

If the company fails to fulfill its contractual requirements, there are potential penalties, Davis said. Without the contract in front of him, he said he could not provide details.

Based on past experience, Ward I Commissioner Jon Howard said the experience points to the need for the city to perhaps take another look at property acquisition. The Gordon building sits catty-cornered from the former Albany Herald building, which the city purchased with the hopes of attracting an apartment developer.

The city also purchased the former bank and YMCA building where its Utilities Department is now located, but the renovation project went greatly over budget, the commissioner said. Older downtown buildings also often have high costs for renovation due to the need for hazard mitigation for substances like asbestos previously used in construction and years of neglect.

“The city just needs to get out of real estate altogether,” Howard said. “We’ve got about 200 vacant lots because of the (2004) flood. I’ve also asked Nathan (Davis) about The Albany Herald building. I don’t think we did an adequate appraisal of that building.”

If 207 Gordon falls through, Ward IV Commissioner Chad Warbington said, it could open up a door for a different opportunity. That project was launched several years ago, and conditions may have changed.

A North Jackson Street condominium has proved successful, and that is one potential use for the building that could help meet the Downtown Master Plan goal of bringing more residential property downtown, he said.

“One-bedroom, two-bedroom condos seem to be what a lot of working professionals are looking for,” he said. “I would really like to evaluate what is really the best option going forward.

“Really, I think we need to sit down and decide what comes next.

“The hotel industry in general took a big beating from COVID. I don’t know if hoteliers are looking to make a big investment at this point.”

The 207 Pine group did not return a Friday call seeking comment on the status of the project.

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