Weyland Ventures has informed the City of Paducah that due to construction market conditions, the downtown hotel portion of the City Block project is delayed.
The first phase of the City Block project included reenergizing the downtown Paducah block bounded by Second Street, Broadway, Water Street, and Jefferson through the rehabilitation of the public parking lot with green space and new parking and the construction of an 81-room boutique hotel along Jefferson Street with restaurant space and a roof-top bar. The newly laid parking area is on schedule to be completed shortly with contractor, Ray Black & Son, finishing the landscaping and lighting on the project. However, the hotel project is delayed.
Weyland Ventures CEO Mariah Weyland Gratz said, “We had planned to break ground on the construction of the new hotel by this time. Weyland Ventures is committed to a dynamic development in downtown Paducah; however, several elements have not fallen into place as we had planned. Over the past few months, we have been working through unforeseen issues with the foundation design for the hotel, significant increases in interest rates, rising construction costs, and difficulties in securing subcontractors. These issues have led to a loss in an initial financial commitment for the project. Weyland Ventures, as a strong, reputable company, is committed to the City Block project, and is working to determine a new path forward that leads to the same endpoint, a new boutique hotel for downtown Paducah.”
Mayor George Bray said, “We all understand the challenges associated with current construction projects including escalating costs, as well as an uncertain interest rate environment. Escalating construction costs are affecting other projects in our area as well, and these issues have posed challenges for the City Block project. The City of Paducah continues to work closely with Weyland to explore all options going forward.”
“From a public perspective, the enhanced downtown lot with green space, a public promenade, and improved parking is in its final construction stages. Local contractor, Ray Black & Son, mobilized at the end of January, and we have all been watching the improvements over the past few months. Plus, the gazebo corner and the parking along the Broadway side of the lot remain in place. Our downtown district draws visitors from miles around, and these new public amenities will be a welcome addition. We will continue to work diligently to ensure that the final project complements Paducah’s historic downtown and one of which we will all be proud,” added Bray.
For more information, visit City Block Project.