Baltimore City?s spending board agreed to sell the Recreation Pier in Fells Point on Wednesday for up to $2 million, clearing the way for the development of a 130-room waterfront hotel.
The city?s Board of Estimates approved the sale to Baltimore developer J. Joseph Clarke, president of J.J. Clarke Enterprises, three years after the city?s Department of Housing and Community Development picked Clarke to develop the property.
“It takes a long time to do these complex deals,” Clarke said Wednesday. “This is complex because it?s extremely expensive to fix the pier.”
Under the terms of the agreement, Clarke and partner H&S Properties Development will pay the city a $350,000 nonrefundable deposit.
The property has been appraised at $8.9 million, and if the developers? costs for rebuilding the pier exceed $6.9 million, the city couldreduce or eliminate the remaining $1.65 million owed on the property, Clarke said.
Clarke said it would cost $9 million to $10 million to rebuild the pier, which was built in 1914 and has many structural deficiencies.
After the pier is rebuilt, construction will begin on a $45 million Aloft hotel, one of the Starwood brand hotels.
“This will allow development to occur while making the pier accessible to the public,” said Mayor Sheila Dixon said. “It?s a major gain for the city in terms of tax revenues as well.”
The development is a private project and will not receive city money, but Clarke said he expects the hotel to benefit greatly from a waterfront location.
“Baltimore is a very good hotel market,” Clarke said. “Locating an Aloft brand hotel on a pier surrounded by water on three sides and within walking distance to some of the city?s best bars and restaurants, we think it?s going to do stand-up business.”
A new, trendy hotel is needed in Fells Point, which is home to Admiral Fell Inn and The Inn at Henderson?s Wharf, said Bob Aydukovic, vice president of the Downtown Partnership of Baltimore.
“The Rec Pier is one of the architectural gems of Baltimore,” Aydukovic said. “Bringing a new hotel to the area is nothing but good news for Fells Point.”
Staff Writer Stephen Janis contributed to this article.
