Rivers Building rezoning advances

The owners of the L. Mendel Rivers Federal Building have taken the first step toward getting the long-vacant building rezoned for a hotel.

They told city planners Thursday evening that they plan to renovate, rather than demolish, the 7-story building across from Marion Square.

The Rivers building was built in 1965 with high-quality materials, evident in its marble-and-brick facade, but it has been vacant since 1999, when water damage from Hurricane Floyd spread asbestos insulation inside the building.

Dewberry Capital Corp., of Atlanta, plans to leave the building's exterior largely as-is, which has pleased some preservationists and could also speed the project's path through the city's zoning, design and review process.

"We think it's one of the finest examples of modern architecture in Charleston," said project architect Reggie Gibson. "The greenest thing you can do is to use what's already there."

Euan McGlashan, executive vice president of hospitality for Dewberry Capital, said they plan to do extensive demolition and renovation work within the building and create there a 5-star, 120-room luxury hotel.

Dewberry Capital is headed by part-time Charleston resident John K. Dewberry, and is known in the greater Charleston area as an owner of shopping centers.

The company also is a big player in the Atlanta real estate market, known for ambitious downtown developments.

Charleston's Planning Commission voted 6-0 Thursday to include the Rivers building in the city's accommodation zone, which is the first step toward rezoning the property for hotel use. A special zoning exception also will be needed.

"I think we're all tired of seeing an empty building sitting there," said Planning Commission member Charles Karesh.

The accommodation zoning request was supported Thursday by city staff, the Mazyck-Wraggborough Garden District Neighborhood Association, and the Preservation Society of Charleston.

No one spoke in opposition.

However, Planning Commission Chairman Francis X. McCann sought assurances that the developers would do everything possible to make sure hotel-related traffic is diverted away from the residential neighborhood immediately behind the property.

Gibson and McGlashan assured him they would do so.

"I can assure you he (Dewberry) has no other intention than to make this world-class," McGlashan said.

The hotel plan follows years of efforts by the city of Charleston to acquire the building.

Under a 2003 deal with the federal General Services Administration, Charleston was to acquire the Rivers property in exchange for building a new federal courthouse offices on city-owned property.

The city hoped to redevelop the Rivers site with small hotels, shops and offices, a parking garage and some housing.

The deal with the GSA expired without being fulfilled, however. The city then tried to buy the building, offering $11.5 million, but the GSA decided the building was worth more and put it up for auction.

Dewberry Capital was the winning bidder, paying $15 million for the building and its 2.2 acres along Meeting, Charlotte and Henrietta streets.

Dewberry Capital is known locally for the 1992 development of the Dorchester Square shopping center in North Charleston. The company later bought Cross Creek Square at Folly Road and Maybank Highway on James Island, and it also redeveloped Mount Pleasant Square on Ben Sawyer Boulevard at Rifle Range Road.

McGlashan said the hotel project will move forward as quickly as the city's approval process allows.

He said that if all goes well, Dewberry Capital hopes to open the hotel in early 2012.