Catalytic economic development drives KM downtown boutique hotel
By Loretta Cozart
Kings Mountain City Manager Jim Palenick’s February 1 “Update with the City Manager” outlines plans for the new Cobblestone Hotel project at 200 E. Gold Street in downtown Kings Mountain. He started the presentation by sharing, “Let me tell you a little bit about that project and why that makes sense, what it is, and maybe more importantly, what it isn’t.”
He explained that it is necessary to bring more people downtown to experience economic growth, “Essentially, when we talk about how we help downtown thrive and prosper, there is one critically important thing that has to be in evidence, and that is you have to have significant numbers of actual residents.”
“So it’s important as we move forward to try to work to get some new development of urban-scale apartments and condominiums being built in and around downtown, some new apartments, particularly the ones that can be above the retail and commercial on some of the existing commercial buildings.”
He shared, “A downtown hotel can serve as a critical catalyst for revitalization and economic activity. It can and does bring large numbers of recurring overnight lodgers, and with them comes disposable income that they will then spend in immediate proximity to that lodging facility. And that’s the primary reason you want to see this downtown.”
Palenick explained that Cobblestone Hotel serves a small urban city niche market using a turnkey template model. The company normally engages SHG to manage its Cobblestone Hotels for efficiency, economies of scale, quality assurance, and consistency.
To test the feasibility of such a hotel here, Kings Mountain engaged Core Distinction Group in 2023 to do a study conducting separate demand generator interviews within local businesses and industries. From those interviews, it was determined that the project would be financially feasible, made sense, and should move forward.
So, what will the hotel look like? Palenick described it as a four-story tall hotel with 76 units. The three top floors would each have 24 units. The lower level would have four ADA-accessible units, an
See HOTEL, Page 5A
From Page 1A
indoor pool, a fitness center, an area for hospitality, and some small conference space back of the office in the lobby area. The total cost for this project would be $13.5 million in investment.
How would the hotel be financed? The City Manager states, “This investment is completely contemplated as privately owned and operated. It will only move forward if it is privately owned and operated for the long term.”
What other amenities will be available at Cobblestone Hotel? The hotel will include a first-floor Wissota Chophouse, a high-end destination steakhouse restaurant. There will also be indoor and outdoor dining spaces attached to that restaurant. Most Cobblestone Main St. Boutique-branded hotels are smaller, usually 64 units or fewer. This one would be larger because the feasibility study believes that it should be and that it can support that financially. It also typically doesn’t have a high-end steakhouse. However, in this case, the feasibility study suggested that it can and should support it.”
The general look of the hotel will be slightly different from that of other Cobblestone Hotels in other cities because it will have its own specific design for King’s Mountain. But the shared look is indicative of the design.
The Wissota Chophouse offers an intimate, comfortable, yet upscale atmosphere. It includes an exclusive dining area, which can be rented out to accommodate bigger parties. They can also be used for corporate meetings or special events, with a very nice, warm, welcoming atmosphere and a lot of brick and stone, typical of something you would expect in a high-end steakhouse restaurant.
In addition to the hotel and restaurant, the city plans to develop a new $4.2M, 150-space parking garage that will fully support the parking needs, using project financing. It would also be designed to have a foundation that would support additional levels in the future. City Manager Palenick explained how the project funding would work, “Basically, there will be fees for using the parking space. Those who use the hotel and the restaurant will have modest fees attached to them. The city could have modest fees attached to its use. More than anything, the city will be capturing the property tax and the occupancy taxes produced by the new hotel, which, together with the parking fees themselves, will fully cover the hotel’s debt service. The debt service is expected to be about $379,000 annually for 15 years.”
Palenick continued, “In that matrix, these taxes and fees would produce a little over $404,000 per year, fully covering the deck financing. As such, project financing, so no taxpayer funding is coming to pay for this., It is the project itself that is paying for it. Also, understand that any and all of the costs the city is putting in to help create the site and prepare it for sale to or partnership with the entity that will own and operate the hotel comes from something we call the Economic Development Fund.”
“The Economic Development Fund was funded exclusively by property taxes that have been captured from large industrial users who had gotten economic incentives, didn’t fully comply with those incentives, and the city captured the additional property taxes that they otherwise were going to get back and then put it into a separate segregated economic development Fund for use to catalyze additional economic development in the future.”
He shared, “It’s really about private investment, about finding a way to encourage, support, and ensure it happens. And then, to make it successful in a way that by controlling the narrative of it, the placement of it, and the type and the way that it happens, we can assure that it then has the kind of impact that we hope it will. And, of course, you don’t enter into this unless you know it’s highly feasible.
“That’s why you do in advance a very detailed, very complete, very thorough financial pro forma and feasibility analysis, both of which the city has completed, both of which have come forward and said this can and should be a very successful project. We know that, just in the kinds of things where Duke Energy has people come in regularly to get training, the folks at Albemarle come and go as professionals working with them in their mine setup, so many of the other things that are going to be going on attached to our entertainment district and casino in the future. Even when you look at the architects, engineers, and consultants, that alone will keep a hotel full for years on end.”
“So, we have no concern about that. The demand will be there; it’s just a matter of making the right product come at the right time and in the right place. So, we’re helping make that happen, and we think it’s important for this success in the community,” he concluded.
Kings Mountain City Manager Jim Palenick’s February 1 “Update with the City Manager” outlines plans for the new Cobblestone Hotel project at 200 E. Gold Street in downtown Kings Mountain. He started the presentation by sharing, “Let me tell you a little bit about that project and why that makes sense, what it is, and maybe more importantly, what it isn’t.”
He explained that it is necessary to bring more people downtown to experience economic growth, “Essentially, when we talk about how we help downtown thrive and prosper, there is one critically important thing that has to be in evidence, and that is you have to have significant numbers of actual residents.”
“So it’s important as we move forward to try to work to get some new development of urban-scale apartments and condominiums being built in and around downtown, some new apartments, particularly the ones that can be above the retail and commercial on some of the existing commercial buildings.”
He shared, “A downtown hotel can serve as a critical catalyst for revitalization and economic activity. It can and does bring large numbers of recurring overnight lodgers, and with them comes disposable income that they will then spend in immediate proximity to that lodging facility. And that’s the primary reason you want to see this downtown.”
Palenick explained that Cobblestone Hotel serves a small urban city niche market using a turnkey template model. The company normally engages SHG to manage its Cobblestone Hotels for efficiency, economies of scale, quality assurance, and consistency.
To test the feasibility of such a hotel here, Kings Mountain engaged Core Distinction Group in 2023 to do a study conducting separate demand generator interviews within local businesses and industries. From those interviews, it was determined that the project would be financially feasible, made sense, and should move forward.
So, what will the hotel look like? Palenick described it as a four-story tall hotel with 76 units. The three top floors would each have 24 units. The lower level would have four ADA-accessible units, an
See HOTEL, Page 5A
From Page 1A
indoor pool, a fitness center, an area for hospitality, and some small conference space back of the office in the lobby area. The total cost for this project would be $13.5 million in investment.
How would the hotel be financed? The City Manager states, “This investment is completely contemplated as privately owned and operated. It will only move forward if it is privately owned and operated for the long term.”
What other amenities will be available at Cobblestone Hotel? The hotel will include a first-floor Wissota Chophouse, a high-end destination steakhouse restaurant. There will also be indoor and outdoor dining spaces attached to that restaurant. Most Cobblestone Main St. Boutique-branded hotels are smaller, usually 64 units or fewer. This one would be larger because the feasibility study believes that it should be and that it can support that financially. It also typically doesn’t have a high-end steakhouse. However, in this case, the feasibility study suggested that it can and should support it.”
The general look of the hotel will be slightly different from that of other Cobblestone Hotels in other cities because it will have its own specific design for King’s Mountain. But the shared look is indicative of the design.
The Wissota Chophouse offers an intimate, comfortable, yet upscale atmosphere. It includes an exclusive dining area, which can be rented out to accommodate bigger parties. They can also be used for corporate meetings or special events, with a very nice, warm, welcoming atmosphere and a lot of brick and stone, typical of something you would expect in a high-end steakhouse restaurant.
In addition to the hotel and restaurant, the city plans to develop a new $4.2M, 150-space parking garage that will fully support the parking needs, using project financing. It would also be designed to have a foundation that would support additional levels in the future. City Manager Palenick explained how the project funding would work, “Basically, there will be fees for using the parking space. Those who use the hotel and the restaurant will have modest fees attached to them. The city could have modest fees attached to its use. More than anything, the city will be capturing the property tax and the occupancy taxes produced by the new hotel, which, together with the parking fees themselves, will fully cover the hotel’s debt service. The debt service is expected to be about $379,000 annually for 15 years.”
Palenick continued, “In that matrix, these taxes and fees would produce a little over $404,000 per year, fully covering the deck financing. As such, project financing, so no taxpayer funding is coming to pay for this., It is the project itself that is paying for it. Also, understand that any and all of the costs the city is putting in to help create the site and prepare it for sale to or partnership with the entity that will own and operate the hotel comes from something we call the Economic Development Fund.”
“The Economic Development Fund was funded exclusively by property taxes that have been captured from large industrial users who had gotten economic incentives, didn’t fully comply with those incentives, and the city captured the additional property taxes that they otherwise were going to get back and then put it into a separate segregated economic development Fund for use to catalyze additional economic development in the future.”
He shared, “It’s really about private investment, about finding a way to encourage, support, and ensure it happens. And then, to make it successful in a way that by controlling the narrative of it, the placement of it, and the type and the way that it happens, we can assure that it then has the kind of impact that we hope it will. And, of course, you don’t enter into this unless you know it’s highly feasible.
“That’s why you do in advance a very detailed, very complete, very thorough financial pro forma and feasibility analysis, both of which the city has completed, both of which have come forward and said this can and should be a very successful project. We know that, just in the kinds of things where Duke Energy has people come in regularly to get training, the folks at Albemarle come and go as professionals working with them in their mine setup, so many of the other things that are going to be going on attached to our entertainment district and casino in the future. Even when you look at the architects, engineers, and consultants, that alone will keep a hotel full for years on end.”
“So, we have no concern about that. The demand will be there; it’s just a matter of making the right product come at the right time and in the right place. So, we’re helping make that happen, and we think it’s important for this success in the community,” he concluded.




