Sale Stopped:Wyndham Hotel Deal Now on the Rocks Due to Soil Contamination

November 26, 2015
By

A deal to sell and completely renovate the Wyndham Hotel has hit a snag this month and may not end up happening, according to sources and City Manager Tom Ambrosino.

“It’s run into a snag for environmental reasons,” said Ambrosino on Monday. “Everyone is trying to make it work notwithstanding this issue. Hopefully it will be overcome. It’s certainly in a holding pattern now. It’s not fault of any of the parties…but these environmental issues have a long life.”

Earlier this fall, XSS Group – which owns several other hotels in Chelsea – agreed to purchase the 15-year-old hotel and invest $9.8 million into updating it for a high-end customer base.

It would have been a joint venture with the current owners, WEDGE Group of Texas. The hotel was to close this month for renovations and remain closed until March 2016.

The City Council this fall approved a five-year Tax Incremental Financing (TIF) agreement for the new ownership configuration in order to preserve and increase the numbers of jobs at the hotel. Under the current ownership of WEDGE, community leaders have worried that the owners are having a hard time keeping up with the property.

Total new tax dollars projected for the City during the five-year TIF were just short of $250,000 – even with the tax break included.

Ambrosino said all is not lost and everyone is trying to keep the deal going.

“The hope right now is we can figure out how to move forward,” he said.

  • Mike

    This is a great news for Wyndham employee. From what I heard, the soil underneath Residence Inn is highly contaminated. I just don’t understand how come they are still allowed to operate with highly contaminated soil underneath the building.

  • windy

    So where is the dirty land? Should employee’s be working on this contaminated land? Why is no one giving any of us answers? Down the line am I going to be healthy?

  • Kiko

    Worried that the owners,wedge, are having a hard time keeping up with the property? Brian Stage, President of Wedge Hotels, told us “we made a ton of money” and that the hotel is making a fortune. So why is no money put back into the property? Because they are looking to sell the property and are not going to put a dime into it. Morale is so low because no one believes upper management at all. They were selling it and it fell through for now.

  • Wedgie

    As an employee of the Wyndham, I have heard rumors that the contamination resides on both sides.Regardless, are we all not concerned citizens and employees affected? Where is Erin Brockovich when you need her? I smell a class action lawsuit. Take ownership of this mess and clean it up so we don’t die an early death due to negligence.You could literally throw a rock from the Wyndham and hit the Residence Inn and vice versa. We should all come together for the sake of our health and demand answers as well as action. Post a comment on trip advisor to warn your guests of the contamination.I bet hitting these companies in their wallets will get results! We must unite to survive…..literally!
    CHELSEA STRONG =LIVE LONG!

  • johnny

    I couldn’t agree with Wedgie more. I am an employee of the Wyndham and someone needs to give us answers. The longer this goes without answers the more nervous I am for myself and my fellow employee’s. From what I understand this hotel was built on a junkyard about 15 years ago. Am I working right under contaminated land? No one told us? I had several relatives that passed away working around asbestos!!! I cant go to management for answers because Brian Stage is not to be trusted.


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