2
1/The Daily Tar Heel/Thursday, May 27, 1993
Doubletree to run troubled Carolina Inn
By Vicki Cheng
Staff Writer
Although the Carolina Inn is long
overdue forrenovations, University and
inn officials agree that the Southern
charm of the state-owned hotel should
be preserved when the University leases
it to a private company July 1.
Carolyn Elfland, associate vice chan
cellor of business and finance, said the
Carolina Inn would be leased to the
Doubletree Hotels Corporation, which
plans to add more than $9 million in
renovations.
She said the inn, built in 1924, had
kept its original plumbing and electrical
wiring systems, but they needed to be
updated. Doubletree must submit its
renovation plans through the Univer
sity so that there are no surprises when
the changes take place. “The University
wants to maintain the same sort of feel
ing (the hotel) has now,” she said.
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Patty Nowack, public relations coor
dinator for Doubletree, said the com
pany would continue to evaluate pos
sible changes in the inn. “Once they
determine what the market will call for,
they will map out a renovation plan,”
she said. Nowack added that she did not
know when the evaluation would be
completed.
Elfland said the inn was donated to
the University in the 1930s by the John
Sprunt Hill family, University benefac
tors. “The idea was that the profits would
support the libraries,” she said.
But by the 1980s, the hotel was los
ing money. “We started not being able
to manage it and break even,” she said.
In one year, the Carolina Inn lost
$300,000.
“You can’t run a business with the
state system,” Elfland said. “The pur
chasing and personnel guidelines make
it impossible to operate a hotel.”
The University ran into budget prob
lems that private-run hotels would not
have to deal with. Due to state regula
tions, the University had to supplement
the wages of every employee who
worked later than 5 p.m.
In addition, state employees are guar
anteed 40 hours of work per week. While
the state was required to pay the work
ers the full wage, many hotel employ
ees did not have a full work load. The
state ended up paying for more work
than could be given.
Elfland said the University attempted
to get exemptions from state guidelines
and looked into the possibility of setting
up a private corporation before decid
ing to lease the hotel to an existing
company.
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She said that during the renovation
stage, the company would get a per
centage of the gross profits, and the
University would get the net profit as
rent. She said she did not expect the
University to receive a lot of money
during this stage.
But after the fully-renovated hotel
has been in operation for five years, the
University will split the net profit with
the company.
“I hope in the end it will be a goodly
amount of money,” she said. The profits
will continue to support the libraries.
Sherman Riggsbee, general manager
of the Carolina Inn, said he hoped the
upcoming changes would make the ho
tel more competitive with modern-day
hotels.
“We are outdated,” he said. “The
rooms are old. But once we renovate, I
think we will gain a large market share.
We want to step into modem times.”
Two-thirds of the building is still
heated by radiators, Riggsbee said.
Many of the bathrooms are small, the
central air conditioning cannot be regu
lated by visitors in their individual
rooms, the closets are tiny and some of
the carpet is wearing down.
“But there’s something about being
here that gives you a special feeling,” he
said of the Carolina Inn, which contains
140 guest rooms and 13 suites as well as
a restaurant, a cafeteria, a lounge and
three ballrooms.
Despite the negative economic re
ports, the Carolina Inn is holding its
own, Riggsbee said. Revenues were up
by $20,000 in April and the total rev
enue for the year was up by more than 4
percent.
In addition, the quiet elegance of the
ballrooms continue to attract attention.
Four weddings were booked last week
end, and three or four are expected this
weekend, he said.
Also, an episode on television’s “The
Young Indiana Jones Chronicles,”
which aired about a month ago, was
shot in the inn’s Old Well Room.
Riggsbee said the ballroom, complete
with wooden balconies, a checkered
floor and an impressive golden chande
lier, was chosen because it brought to
mind the olden days of the grand hotel.
“There’s an air of the sophistication
and hospitality of the Old South,”
Riggsbee said. “(The hotel) needs a
face lift. Some physical things need to
be changed, but we want to keep that
rustic look.”
Trustees
from page 1
In addition, Copland said BOT Sec
retary Brenda Kirby told him two mem
bers of the board would not be able to
attend the June meeting, and that might
be another reason the board could not
vote until July.
Jordan said he was concerned about
issues other than the BCC as well.
He said he wanted to find a way to
increase the University’s funds through
soliciting more donations from private
citizens and alumni.
“One goal I think is most importance
is to maintain the physical integrity of
the institution,” Jordan said.
Soliciting private donations on a regu
lar basis rather than just during spe
cial fund-raising drives like the Bicen
tennial Campaign to improve and
maintain the quality of the University is
of crucial importance, Jordan said.
Jordan and Davis both were noted
donors to Gov. Hunt’s campaign and
the Democratic Party in 1992. Each
gave SB,OOO to the governor’s cam
paign, the maximum allowed contribu
tion.
Among those who are leaving the
board, only former Student Body Presi
dent and ex-officio BOT member John
Moody and trustee John Pope have
openly announced their opposition to a
free-standing BCC.
Of the new trustees, only ex-officio
member Copland has publicly commited
to supporting the BCC. The position of
the other new members is unknown.
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UNC to help town pay
NCAA celebration bill
By Rochelle Klaskin
Staff Writer
Chapel Hill soon will receive a
check from the University to help pay
for the costs incurred from the NCAA
championship celebration on Franklin
Street April 5.
Town Manager Cal Horton said the
University agreed to pay $1,500 to
replace five damaged trees and an
additional ssooto offset costs for paint
removal and extra security.
Wayne Jones, vice chancellor for
business and finance, said he reached
the agreement with Horton last month.
“We wanted to share in the other
costs,” Jones said. “We were looking
at the total cost”
According to a report issued by
Horton, the town’s cost for the cel
ebration totaled about $11,200, less
than the s2o,ooopreviously estimated
for clean-up.
nte total cost breaks do wn to $7,600
for overtime work by public works,
police, fire and transportation employ
ees and $3,600 for replacing damaged
trees, removing paint on Franklin
Street and hiring a security company.
The security company was hired to
prevent residents from entering the
Rosemary Street parking deck con
struction site, Jones said. He added
that the trees would be replaced in the
fall, after growing season.
Jones saidhe was not aware whether
the University paid the town for the
celebration following the 1982 NCAA
PHE
OC AP President G.I. Allison, pastor
of Mt. Bright Baptist Church, submit
ted a letter to Mayor Johnson immedi
ately before the town board meeting,
offering to provide legal counsel for the
town at no cost. “We made that offer
after (board members) cited the lack of
tax dollars as the reason why they would
choose not to fight it,” Allison said.
If OCAP does decide to try to fight
the case, Orange County Superior Court
Judge Gordon Battle will have to decide
if he will allow the group to represent
basketball championship.
Chapel Hill Town Council mem
bers said they were satisfied with the
agreement between the town and the
University, but that they were not sure
whether it set a precedent for future
University-related celebrations.
Council member Art Werner said
the University did what was appropri
ate.
“Since the University was not un
der any legal obligation, their contri
bution was probably reasonable.”
Werner added that he thought the
University would act the same way in
similar instances.
Mayor Ken Broun said he also was
content with the agreement “It was
very agreeable,” he said. “I was pleased
at the University’s cooperation.”
Horton said he could not predict
whether the University’s donation
would set a precedent for future con
tributions to the town.
“I hope we don’thave anything like
this happen again,” he said.
Jones said he thought future prob
lems should be handled on a case-by
case basis. “Some reasonable solution
would be available as long as both
sides are willing to participate in talk
ing in an amiable way,” he said.
Council member Joe Herzenberg
said he thought the University would
continue to act responsibly in local
issues.
“People will think (the University)
had a similar obligation,” he said “If
you don’t do it, you look bad.”
from page 1
the town in court.
Town board member Evelyn Lloyd
said OCAP should be allowed to fight
the case. “If they feel that strongly about
it, they have the right to do it.”
PHE owner Phil Harvey said OCAP
members had the right to express their
opinions about the case. “Everyone has
the right to have their views heard, to
picket, to write letters to the editor,” he
said. “However, they don’t have the
right to interfere with anyone else’s
lawful activity.”