Developing: Grove Arcade struggling to make payments to city of Asheville: ongoing maintenance issues a financial drain on historic building

Jason Sandford May 18, 2010

Jason Sandford is a reporter, writer, blogger and photographer interested in all things Asheville.

Asheville City Council is meeting tonight and getting an update on the finances of the historic Grove Arcade. The city sunk a ton of taxpayer money into the building to renovate it and get it up and running. Now it sounds like the arcade is really struggling.

Mountain Xpress reporter David Forbes is tweeting from the Asheville City Council meeting, and here’s what I’ve seen so far. This story will certainly be followed.

Grove Arcade’s struggling to make payments on renovation debts to city, despite nearly $1mil a year in rents

City staff: part of issues due to arcade’s ongoing maintenance problems, incl need for new roof

Econ dev head Sam Powers: Grove Arcade “just not able to pay its debt service” to city

City staff recommending allowing sales/property tax revenue from Grove Arcade to be used on debt

Grove Arcade rep:”We don’t make a profit” all $ goes to maintenance, debt

Grove board mem Robby Russell: “we have some concern” about ability to meet debt, maintenance

Grove Board Mem Russ Martin: Arcade “best deal the city’s ever gotten,” should look at helping w debt

Council mem Gordon Smith: “Probably end up” helping arcade, but wants to know what other options available

Davis: Due to city obligations, “we don’t really have a lot of choices” have to help Arcade w debt in some fashion

Jason Sandford

Jason Sandford is a reporter, writer, blogger and photographer interested in all things Asheville.

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2 Comments

Asheville Dweller June 1, 2010

You dont want chains stores so what about Wild Wing, Doc Chey’s, or Mellow Mushroom . . Oh wait those are ok, stop being a hypicrite.

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craggybender May 19, 2010

Ash,
I don’t condone bringing chain stores or big companies to downtown Aville. Downtown is what it is today because of the unique shops, restaurants and small town-like business that keep people coming. However, it’s inevitable that these big guys are going to be here, probably sooner than we think. So, if the Grove Arcade is struggling, why don’t they keep all the big dogs in one pound instead of letting them run rampant around the downtown area? Let the Gap or Banana Republic or Victoria’s Secret or whoever is eventually going to be in town go into the Arcade? They’re the only ones who can really afford the rent there anyway and then the Arcade won’t see as much turnover. They won’t stay away – look at Urban Outfitters, Jersey Mike’s, Jimmy Johns – they’re here and they’re multiplying. It will give the tourists a destination and maybe I don’t have to walk by the front door of the Gap when I go get a slice at Barley’s.

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