Every room at the Colonial Capitol Inn has been vacant since 2006, but a recent move by the property owner could substitute that empty hotel for an empty lot.
The City of Williamsburg’s Architectural Review Board voted July 8 to recommend the Planning Commission approve a request from Bluegreen Vacations Unlimited for a demolition permit on the Colonial Capitol Inn at 115 Penniman Road and an adjacent vacant building at 101 Penniman Road.
Bluegreen, a timeshare rental and development company based out of Boca Raton, Fla., owns both properties.
The demolition request is the latest action regarding the property that began nearly eight years ago. In May 2006, Williamsburg Hoteliers, the hotel’s owners since 1982, sold the property to Colonial Penniman, LLC for $3.37 million.
The day after the purchase, Colonial Penniman submitted a plan to the city for the construction of a 400-unit timeshare development on the land. The Williamsburg Planning Commission approved the plan in July 2006.
By October, Colonial Penniman had agreed in principle to sell the property, along with the approved timeshare site plan, to Bluegreen. A sanitary sewer agreement from Oct. 12, 2006 indicated the developers “intend[ed] to convey the properties to Bluegreen.” Bluegreen finalized the purchase of the property Oct. 20, 2006 for $10 million.
After completing the purchase, Bluegreen continued to explore building a 400-unit, 840-bedroom timeshare resort on the site. Since its approval in 2006, the development has stalled.
“Bluegreen is currently evaluating various strategic options in Williamsburg and has come to no firm decisions at this time,” said Terry Dodd, Bluegreen’s senior vice president of acquisitions and development.
Signs on the property suggest the company could be exploring a sale of the land. A web address listed on the signs directs visitors to Resortpropertysite.com, which includes a listing 115 Penniman Road priced at $12 million.
The property’s assessed value is currently $687,800 — $20,000 of which comes from structural improvements on the site — according to city records. According to City Assessor John Mattson, the difference between the property’s assessed value and sale price is due to a lack of comparable timeshare properties in Williamsburg.
Demolishing the hotel and selling the property would not preclude a future owner from acting on the existing timeshare site plan. The site plan is good until July 1, 2017, and could remain in effect after a sale, Deputy Planning Director Carolyn Murphy said.
Bluegreen is still pursuing a timeshare development, albeit on a different site. The ARB will consider the company’s plan to construct a three-building timeshare complex at 315 York St. at its meeting today, which begins at 6:30 p.m. in the Municipal Building on 401 Lafayette St.
In the meantime, the Colonial Capitol Inn remains vacant. Weeds have retaken much of the hotel’s front entrance. Garbage has collected in the hallways and lobby area. A chain-link fence surrounds the hotel and parking lot, which is occupied only by an industrial-sized trash can.
The Planning Commission will next review the demolition request, though a date for its consideration has not yet been set.
