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Two key slices of land on High Point Road could soon become city property.

The City Council on Tuesday night will debate whether to buy the former Canada Dry building and Coliseum Inn for $5.3 million.

The city pursued the properties as a way to spruce up a blighted area of Greensboro. The city would level the motel and possibly use the former bottling plant as an expansion of the Greensboro Coliseum Complex.

Council members will have to consider how the city would pay for the property, whether this is a good time to buy and other issues.
Residents can offer their opinions at the public hearing Tuesday night.

If council approves the sale, the city would spend $2.1 million to buy the 126-room Coliseum Inn from the Khan family.

Area homeowners have complained about drug dealers and prostitutes in the area. The city would raze the low-priced hotel as a way to clean up crime. The land eventually would be sold to a developer.

Councilwoman Trudy Wade has been a proponent of cleaning up High Point Road. But she is concerned about city manager Mitchell Johnson’s plans to use economic development bond money to purchase the motel.

“If you are a public nuisance, I think we should check the nuisance abatement laws and use every extent of the law we can to close your establishment,” Wade said.

Wade said she does not want to set a precedent that the city will buy nuisance businesses.

Greensboro police have also stepped up law enforcement in the area, targeting prostitution and drug crime.

“The city may decide to remove the Coliseum Inn,” said Capt. Chris Walker. “We just have to be prepared and not turn our backs and say the problems have gone away.”

Closing the motel would also put some residents out on the streets.

The city staff have been working with nonprofits to determine how they can help low-income residents who call the hotel home, said Dyan Arkin with the department of housing and community development. Counselors may be provided to help residents find new housing.

The city has considered buying the Canada Dry property for the past three years. If council approves, Greensboro would buy the 10-acre site for $3.2 million.

The Canada Dry property is owned by Susan Robinson, wife of News & Record Editor John Robinson, and her brothers, W. Hardy Spence and Royall Spence III.

The property has environmental issues, stemming from petroleum storage tanks formerly located underground, according to county environmental health records.

Some contamination underground remains, according to records. But it does not pose a danger to human health, according to a notice signed by the current property owner.

Because of the environmental issues, the property cannot be used for homes or for a drinking water well. The land could be used for commercial purposes.

“It is only restricted to not having a residence or a day care or a school,” said Marc Isaacson, attorney for the owners. “It can be used for a restaurant or a hotel or a parking lot.”

If the state requires any environmental work, current owners — not the new owners — would be responsible for cleanup, according to state environmental officials and city leaders.

The city has not worked out details for how the property would be used.

The issue of whether to buy the properties might also come up Tuesday night. Councilman Mike Barber has asked his fellow council members to hold off on property purchases to save money during the economic crisis.

Council members will have to weigh costs against the potential for the area.

“I’m supporting trying to do something with High Point Road. It’s important that the city spend some money trying to turn that situation around,” said Councilman Robbie Perkins. “My concern is what it is doing to the neighbors.”

Contact Amanda Lehmert at 373-7075 or amanda.lehmert@news-record.com