Tag Archives: Fire Protection

The City’s Management of the Hotel Aiken:  All “Reasonable Measures” taken to ensure safety, except inspections and alarms. 

In a July 26,  2022 letter to the Historic Aiken Foundation (HAF), Aiken Municipal Development Chair (AMDC) Keith Wood attributed a slowdown in the “tireless” work to “find a suitable permanent solution that would elmininate any and all” fire risks associated with the Hotel Aiken and surrounding properties to three week old litigation involving the HAF and eight other plaintiffs. (1) 

The AMDC bought the Hotel Aiken and six other properties for $9.5 million in November, 2021, and intends to demolish its investments and remake the area into a complex of new apartments, parking garage, hotel, retail, and conference center. Apparently, litigation filed eight months after the purchase is a cause for an absence of fire inspections and an alarm system. 

Wood’s letter was in response to a July 22, 2022 letter from the HAF requesting specific maintenance and safety measures by the AMDC due to a concern “that adverse conditions at the hotel lead to further deterioration of its condition.”

Sapling-sized tree in the second story window above Beyond Bijou. This sapling was in the window in November 2021 when the AMDC bought the property, and is still there today.

The letter named six specific actions ranging from monthly inspections to fire monitoring and sealing of hatches and other access points; and asked the AMDC to “remove debris around the exterior of the building both for safety and to improve the general character of the area.” 

In his response,  Mr. Wood committed to no changes from the status quo and assured the HAF that “all reasonable measures are in place to ensure” the integrity and security of the Hotel Aiken.  He then proceeded to falsely infer ownership of the existing fire detection system, failed to acknowledge an unauthorized intrusion into hotel last week, and implied a part-time caretaker constitutes a full-time fire watch. The AMDC’s confident demeanor is  further undermined by the fact that no fire inspections have occurred since the commission purchased the building. 

Wood did not comment on the HAF’s request for monthly fire inspection system. According to Aiken Public Safety records, the last inspection by the City of Aiken was on February 17, 2021; and a freedom of information act (FOIA) request for all fire inspections since March 2, 2021 yielded no documents. March 2, 2021; Aiken Public Safety fire marshalls conducted three thorough inspections between early 2019 and February of 2021. 

Click image to view full size

The existing fire detection system involves more than 100 heat detectors. It was installed by ADS Security for the previous owner, Historic Hospitality, LLC (Agent: Neel Shah) to meet criteria for city approval of an interior demolition permit issued in 2018. While describing the system as a “robust set of smoke, heat, and fire sensors placed throughout the structure,” Wood failed to acknowledge the system was in place when the AMDC bought the property and signed a contract with ADS to continue the system.  The commission is only paying $65 a month for the basic service and has not incurred any installation charges. 

The hotel “fire watch” involves a single “APS Cadet” who receives free rent from the AMDC in return for the following work services: 

  • General public safety and fire watch works; 
  • to monitor the area of the adjacent city properties on a regular basis and report any suspicious activity to public safety for further investigation; 
  • other duties as assigned.  (3) 

The fire watch/caretaker is not assigned to assist with cleanup behind that hotel that contributes to a blighted appearance the AMDC is chartered to address. City of Aiken officials will not respond to specific questions pertaining to the percentage of time the property caretaker is on site, or to what other duties have been assigned. 

The extent to which an APS fire cadet, who is also being trained elsewhere on critical emergency response procedures, is monitoring the area “on a regular basis” is unknown, as city officials have not responded to such questions.  It is now known that it is clearly not regular enough to prevent unauthorized intruders from entering the hotel. 

While Mr. Wood did not cite any recent intrusions, AMDC Executive Director Tim O’Briant has acknowledged an intrusion last week, just a few days after HAF President Linda Johnson reported “the gate in the rear chain link fence was wide open.” The intrusion was noted only after the fact during a “routine security check by staff.” 

As a result, “an additional intrusion security is being added to the contract with design of the sensor layout taking place this week and installation in the near future.” However, in Mr. Wood’s version of events, any time the rear gate was open “an authorized key holder is present on the property.” 

So Wood provided no reason for the AMDC to engage ADS Security to “add motion and intrusion alarms to the system;” while O’Briant admitted that a break-in was the reason. 


But the saddest part of this story is that the AMDC loves to tout Aiken’s Economic Master Plan when it is convenient to do so. The plan (2) was prepared by the AECOM Corporation (Now part of Amentum, Mr. Wood’s employer) and adopted by City Council in March, 2021, about the same time that Project Pascalis began mostly in secrecy. In the plan that commissioners love to cite and discuss is this passage: 

“Aiken also has the unique challenge of preserving its notable historic architecture, while making room for new growth, so the City will need to partner with the Historic Aiken Foundation and other stakeholders to ensure that the downtown’s charming historic character is preserved, while also encouraging new growth and development and higher densities where appropriate.”

Yet, the Historic Aiken Foundation has never been invited to an AMDC meeting, and this week the AMDC chair stiff-armed the concerns of the foundation and chose antagonism over cooperation. 

________________

(1) 7/22 letter from HAF to AMDC : https://aikenchronicles.com/wp-content/uploads/2022/07/HAF-to-AMDC-072222.pdf

7/26 letter from AMDC to HAF: https://aikenchronicles.com/wp-content/uploads/2022/07/AMDC-to-HAF-072622.pdf

July 5th Lawsuit: 

(2)

Hotel Aiken rear lot
HEADER IMAGE: Rear lot of Hotel Aiken, May 2022. (Photo courtesy of Jacob Ellis)

Barely Insured: The City of Aiken’s Management of the Historic Hotel Aiken

Recently obtained documents reveal the City of Aiken has declared no insurance value for the historic Hotel Aiken, and is paying an annual insurance premium of only $441 on the hotel. (1) The City of Aiken has provided no reason for the decision to leave the hotel nearly uninsured. 

Hotel Aiken: No Value, Barely Insured 

The City of Aiken’s Municipal Development Commission (AMDC) purchased seven properties at a cost of $9.5 million in early November, 2021. The purchase was funded by a bond issuance approved by Aiken City Council three months earlier. (2). Two of the properties, the Hotel Aiken and the adjacent Holley House Motel, were vacant at the time of the purchase. The combined purchase price for these two properties was $4.25 million. 

The properties form a substantial portion of the proposed, but evolving, demolition and redevelopment endeavor in downtown Aiken called Project Pascalis.  The project is promoted and led by the AMDC, which was formed in 2019 and has no prior, largescale institutional development experience. 

After the original developer GAC, LLC (agent: Weldon Wyatt) exited from the project in May, 2021 for unknown reasons, the AMDC eventually selected RPM Development Partners, LLC (agent: Ray Massey) as its replacement in December 2021.  The AMDC signed a conditional purchase and sale (PSA) agreement for the seven properties, pending a final master cost-sharing and development agreement. That PSA remains confidential and exempt from a Freedom of Information Act request. The AMDC has stated that it will offer “a discounted price for the property upon which they will build the hotel and apartments.” (3) 

A request for proposals (RFP) leading up to RPM’s selection occurred in May, 2021 and was not publicly advertised as required by South Carolina Community Development laws. A legal advertisement for RFP’s was placed ten days after the selection of RPM. As a result, the legitimacy of RPM’s status as the developer has been challenged in court. (4)

The Hotel Aiken was placed on the city’s historic register in 2018. The designation remains despite the city’s Design Review Board (DRB) approval on March 1, 2022 of a demolition application from RPM for the hotel and the adjacent building titled 106 Laurens St, SW. The permission to demolish, approved by a vote of 6-1, is conditional, and demolition will not occur until RPM has a final agreement to purchase the property, has a final master agreement with the AMDC, and final designs are approved by the DRB.

In a document titled “Property Schedule,” attached to the first page of the property declarations portion of the city’s property insurance policy, no value is assigned to the Hotel Aiken. This zero value was assigned months prior to the demolition application being filed. 

The annual insurance premium for the hotel is only $441, less than the premium for the average 1200 square foot home. The total insurance value is only $284,060, even though in 2021 the Aiken County Assessor appraised the market value of the land at $562,000 and the hotel improvements at $987,000 for a total appraised market value of $1.549 million. 

Another way of looking at the value of the Hotel Aiken is by examining the offers the AMDC received in 2021. According to a redacted review of bidders (5) involved in the May, 2021 RFP process, one developer was rejected for only offering $1 million for the hotel property, described in the review as a “deeply discouted (sic) price.” 

In contrast, the adjacent Holley House motel, which is also vacant and part of the Project Pascalis demolition zone, has an assigned value of  $2.25 million and an annual policy payment of $3493. Every other building in the demolition zone also has an insurance value matching the AMDC’s purchase prices. (See Property Declarations Table). 

When asked about the lack of insurance value for the Hotel Aiken, city officials declined to comment. The question as to why the AMDC spent more than $2 million on land and improvements, describe a $1 million offer as a “deeply discounted” value, and then chose not to insure the improvements against fire or other losses also remains unanswered. 

____________________

Coming Soon: Part 2: Less Protected: A before and after comparison of fire protection programs for downtown AMDC properties.

____________________

(1) A Freedom of Information Act (FOIA) request was filed on July 11, 2022. The request was for: 

“Copies of the Property and Building Insurance Policies for the following AMDC owned properties 121-21-09-001: 106 Laurens St 121-21-09-002 : Hotel Aiken 121-21-08-001 Holley House 121-21-08-002: Taj Restaurant + 121-21-08-003: Old Johnson Drug Store 121-21-08-004: Warneke Cleaners 121-21-08-004: Newberry Hall. These commercial property and building insurance policies should be readily on hand and retrievable within fifteen minutes.”

The City of Aiken responded on July 18 with a $16 charge for 1.25 hours of search and retrieval labor. After receiving payment on July 18th, the city waited until July 21st to release three documents: 

File name Document Description
insuranceinfo.pdf The Property Declarations page and the “property schedule.” 
Property Schedule – Pascalis Project.pdfA January 19, 2022 table of insurance values
SCMIRF-Property Coverage Contract 2022.pdfThe City’s Insurance Policy for city property. 

The insurance policy is titled “SOUTH CAROLINA MUNICIPAL INSURANCE and RISK FINANCING FUND COVERAGE CONTRACT 2022.” 

Only a portion of this document, the “property declarations” chapter, was provided in the FOIA response. The city claims that the remaining portions do not apply to AMDC owned properties. Chapters detailing coverage declarations for liability, crime, and casualty coverage were considered unrelated to the request for entire insurance policies. 

The issue is presently under appeal to Aiken City Manager Stuart Bedenbaugh. 

The documents are are available at: 

Hotel Aiken Fire Information – https://drive.google.com/file/d/1krYZVK5MrOVDOGxr_cAWzUpdyBhSmhJk/view?usp=sharing

Hotel Aiken et al property declarations – https://drive.google.com/file/d/1LGsW1ZOpzCD7vimEoEnepygtmQ2kf4nh/view?usp=sharing

Hotel Aiken et al and city insurance policy – https://drive.google.com/file/d/1Y29OaSyUmtBmUheZ-iq3BfME7_JM4kHs/view?usp=sharing

(2) A table showing the seven properties, the purchase values, and the county’s assessed values, can be viewed at: https://i0.wp.com/aikenchronicles.com/wp-content/uploads/2022/07/d117f8c8-47de-42c9-b18e-c928155e1e07.jpeg?ssl=1

“A Timeline for Project Pascalis” can be viewed at: https://aikenchronicles.com/2022/06/29/a-project-pascalis-timeline/

(3) https://aikenmdc.org/2022/05/16/just-the-facts-why-pascalis-how-do-we-pay-for-it/

(4) A lawsuit filed on July 5, 2022 challenging nearly all aspects of the Project Pascalis proceedings can be found at: 

https://publicindex.sccourts.org/Aiken/PublicIndex/PIImageDisplay.aspx?ctagency=02002&doctype=D&docid=1657032061451-750&HKey=1225510198105101819811411111368116736686988811779851011126650118568710782105981141011085499115100111699969

(5) https://aikenmdc.org/wp-content/uploads/2022/03/Pascalis-offers-comparison_Redacted.pdf