We’ve all been waiting for news on a range of downtown projects and no two have been more anticipated (ok, maybe the tower on the river) than the AJ and Vintage Cal (formerly known as Marble Alley II). There’s a little news on the former and more on the latter which leads indirectly to a valet parking issue and a ponderous problem for people parking in the downtown area.
To start with the AJ, long-time readers may remember the beginning of the journey—in 2015. That was when, then mayor, Tim Burchett suggested the sale of the AJ to generate money for the county and reduce its holdings. A sale followed the acceptance of a proposal from BNA Associates (who renovated, own, and operate the Hotel Oliver) in 2017 to develop the building as a mix of hotel and apartments. The global economy shifted around a bit in 2020 and 2021, market conditions changed, and the proposal shifted to apartments before the most recent decision to return the entire building to its original use as a hotel.
The school system didn’t begin its move until the summer of 2021 and didn’t complete the transfer for months afterward. Interest rates and inflation became obstacles; the new plans had to move through the architectural process. Financing had to be secured, and BNA had projects underway in other cities. Net result? We’ve all scratched our heads as the years have passed and speculation regarding the project, as well as some frustration. So, what’s up?
I spoke to both Matt Morelock, who is sort of a local point man for the project and whose focus will be music (there are three spots in the hotel which will likely feature music) who said he’s “ready to start throwing parties on this end!” He suggested I speak to Philip Welker, one of the principals in BNA.
Mr. Welker said they had been involved with many moving parts, but the time has come for this project, and progress is underway, though nothing is yet visible. Financing has been identified, and a new market study was completed this summer. A design team is currently working alongside MHM architects locally to complete the design process. A contractor is on board and final paperwork on financing is underway.
As for the parts we’ve all been waiting for, he said the hope is to start demo work in the next eight weeks or less and he indicated we’d all be able to see the evidence of construction outside the building just after the first of the year. One of the first signs will be closures of a lane of traffic around the hotel front and side which, hopefully won’t cause too much additional disruption given the closure of the Gay Street Bridge on that end of Gay Street has already reduced vehicular traffic. You’ll see the installation of a temporary exterior elevator which will allow work to begin this spring into summer.
The next project is Vintage Cal, formerly known as Marble Alley II, which has been in the conversation stages even longer than the AJ. Its design and use have shifted over the years, as well. As reported a year ago, current plans call for 167 new homes (apartments) over a small amount of retail space and additional office space. At the point of that last report, construction was anticipated in March 2025, which didn’t happen. Now? Earth has officially begun to move about the corner space at Union and State. I’m sure we’ll be sharing many more photographs as construction gets seriously underway.
Buzz Goss, developer for both Marble Alley and Vintage Cal reached out to say:
Vintage Cal represents the next step in downtown Knoxville’s evolution – an upscale, design-driven development that strengthens the streetscape and brings new life to the edge of the city’s main commercial corridor. For more than two decades, we’ve been deeply invested in the growth of this community, and this project continues that commitment. Every element of Vintage Cal was envisioned to feel connected to its surroundings – engaging the street, supporting local businesses, and creating spaces where people want to live, walk, and gather. It’s a community-driven project at its core, one that reflects Knoxville’s momentum and its enduring sense of place. We look forward to breaking ground before the end of the year.
But that project has prompted another wrinkle: Embassy Suites has used that parking lot as a primary location for its valet parking since it opened. With upwards of 100 cars parked there on a busy weekend, where were they to go now that construction has begun? The answer is the State Street Garage.
A few weeks ago, I learned from friends who pay monthly for parking in the garage that additional spaces had been marked as “Reserved” for Embassy Suites. The spaces are in addition to those already allocated to Hyatt Place and their addition came as a surprise to those with monthly contracts in the garage. The spaces are located closest to the entrances and exits (prime spots) and are reserved whereas others who pay for monthly parking do not have reserved spots. It underscores the tension between the wide range of constituencies needed parking downtown, including residents, hotel guests, workers, and the myriads of concert goers, diners, and other local and regional downtown guests. How to balance it all?
I reached out to Chip Barry, deputy chief of operations for the City, to learn more about how such decisions are made and how we plan to continue accommodating competing interests. He graciously responded with a lengthy email that answered at least some of the questions.
Here are the core parts of his response:
. . . We do have a valet parking policy established in 2016. Basically, anyone requesting the use public Right of Way for temporary or permanent valet parking permit must complete the application process, pay for the use of on-street parking, and must provide a contract or agreement for the parking of the vehicles in another location. Proof of insurance is required.
The first valet parking arrangement for a hotel was made with Hyatt Place 10 years ago. As you might expect, the hotel was seen as an economic driver for downtown and the renovation of the existing building for the hotel could not include on-site parking. The demand for parking downtown at the time was not the same as it is today. So, the City entered into a contract with Hyatt Place for valet parking at State Street Garage, the highest capacity garage owned by the City with nearly 1500 spaces now. The contract is with PBA who manages City garages and lots. Hyatt Place pays a monthly fee per space.
The Embassy Suites agreement was in discussions a few months ago at the same time Hyatt Place planned to reduce the number of spaces they needed per their contract. This reduction by Hyatt Place opened up 57 valet spaces for additional use. PBA and the City reviewed the parking demand and utilization at State Street Garage to assess the garage had capacity for the valet parking uses. Embassy Suites is paying the standard residential monthly rate per space at State Street garage.
For safety reasons, having all the valet on level two with an entrance and exit was best, rather than having multiple valet drivers on busy hotel days circling through the garage at the same time. Hotel guests are members of the public too and dedicated parking for the hotel guest vehicles is required by the hotel brands. There are 16 valet parking spaces in the lowest level of State Street Garage with an entrance off Central Ave. These are reserved for high top vehicle since the overhead clearance is higher on this level. The other side of the lowest level is reserved for monthly residential parkers who pay a premium since it is a gated parking location.
Valet parking fees collected for on-street parking and garage parking goes into the parking fund to support operating and maintenance costs. All parking revenue (on-street parking, off-street parking, and parking citation fees) goes into the Parking Fund. The revenue generated from parking services has never covered the operating and maintenance costs of parking. The parking budget is also supplemented with funds from the general fund.
At this point we would not allow more valet parking at State Street Garage due to the increase in residential parking requests. Other hotels downtown have on-site parking or have valet parking arrangements on private property, in some cases property by the same owner. It is my understanding that the hotels being constructed now have parking plans on private property.
PBA, with City approval, offers employee parking for businesses within the CBID for employee parking as available. We do not guarantee parking will be available in the closest garage. We also have the employee parking discount program for income qualified employees . . . There is a Valet Parking ordinance. It primarily regulates the use City right-of-way for on-street valet parking services. It does not have specifics about use of City parking garages since storage of the vehicles primarily occurs on private property.
While all signage has not been updated, Hyatt Place now has 103 reserved spaces while Embassy Suites holds 120, representing about 16% of spaces in the garage. Embassy Suites owner Alpesh Patel said, “The city negotiated a deal between us and Hyatt Place that provides ample parking for us at the State Street Garage.”
So, there you have it. That should complete our 15-year discussion regarding parking . . . Not. The topic is evergreen, the solutions forever elusive, and the various constituency groups never fully certain the city has gotten it right. Yeah, we’ll probably mention it again.