636253019957898821-ashbrd-01-24-2017-act-1-a005-2017-01-23-img-embassy-suites.jpg-1-1-lih525cq-l960998779-img-embassy-suites.jpg-1-1-lih525cq(Asheville Citizen-Times)  The city and a Raleigh development company spent nearly half a million dollars in a legal fight over the construction of a downtown hotel, according city records and the company, Parks Hospitality Group. The city ultimately lost the battle to stop the construction of the Embassy Suites at 192 Haywood St., with the NC Supreme Court ruling April 3 that PHG had the right to a building permit.

A public records request by PHG confirmed by the Citizen Times showed the city spent $212,925 from August 2018 to April 6 of this year. Most of the money went to Poyner Spruill, a law firm with offices in Charlotte, Raleigh, Rocky Mount and Southern Pines. A small portion, $7,515, went to expenses such as filing fees and legal research, city staff said.

PHG President Shaunak Patel said his company spent $245,000.  In statements on April 3 and May 11 Patel called the fight a waste of private and public funds. He attacked Mayor Esther Manheimer, saying it was she who “misled” the City Council into appealing the case and to decline a $4.1 million settlement offer.

Manheimer on May 11 said the council understood there would be a cost. Money spent on the city’s legal fees would have been enough to cover pay and benefits of three new police officers.

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