City Council approved the $250,000 economic development loan requested by the new owners of Wittel Dorm, MHW LLC, who plan on converting the building into a 41-room boutique hotel. The loan is interest-free and is to be paid back in a one-time installment in 10 years.
In a letter sent to the Council, Brian and Kim Wirth, who own and operate MHW, said they plan on using the loan to offset some of the costs of constructing adequate parking for the hotel. The Wirths have also purchased the adjacent lot on South Gay Street and will use the area behind the existing house as parking for guests.
The letter also said they have aimed to remain "true to the character and history of the building" and have sought out Auburn graduates and residents to assist in capturing the essence of the town's history.
"We are not a real estate investment firm but two individuals working this project for our family and the community," the Wirths wrote in their letter.
A representative for the Wirths said on Tuesday that the family is moving to Auburn within the year and will manage the hotel themselves.
Approval of the loan required unanimous consent. Ward 7 Councilman Gene Dulaney abstained from the vote.
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