Controversial $18M Charlotte-Area Hotel Project Gets Rezoning Approval

A controversial $18M hotel project in the metro Charlotte town of Cornelius received rezoning approval this week to move forward, the Charlotte Business Journal reported

The Cornelius Town Board voted 3-2 during its Monday meeting to approve a request to rezone a vacant 6.3-acre parcel near the intersection of Sam Furr and Mayes roads in the Lake Norman area.

The request, made by local developer Jake Palillo from South Creek Construction, will shift the lot from rural preservation to conditional zoning. Once Palillo gets a permit, he can proceed with plans for a hotel project, referred to as “the Cornelius Inn” on the site, according to the CBJ. 

The 45K SF upscale hotel is slated to have two stories and 40 rooms, as well as seven rental cottages, a spa, a clubhouse, a pool and open green space.

The project has sparked heated local opposition since plans were revealed in March, with people citing concerns like increased traffic and land preservation. 

Last May, dozens of area residents spoke against the developer’s request for rezoning approval during a town board meeting, and in July, they voiced their opposition again at a Planning Board meeting. During the latter, a 5-3 vote recommended approval of the rezoning, Cornelius Today reported.

During the meeting Monday, residents specifically spoke out about how the Cornelius Inn project would cause heavy car traffic along the Sam Furr corridor and said the site was meant for rural preservation, the CBJ reported. Much of the opposition came from Davidson residents who live near the proposed site, Cornelius Today reported.

This isn’t the first time Charlotte-area residents have sided against Palillo. In September 2023, plans for his Lagoona Bay project in Huntersville were tossed following months of public protest.

But other citizens showed support for the hotel development, detailing the jobs it would create and the area’s need for hotels. Palillo reportedly said there is demand for a project like this in Lake Norman, especially for out-of-towners traveling for business, who probably usually opt to stay in Charlotte instead of spending in the Cornelius community. 

Board members who voted in favor of the rezoning reportedly said the project will have a low impact on the town and that it will expand the tax base. Commissioners Susan Johnson, Robert Carney and Scott Higgins voted in favor of the rezoning, while Commissioners Colin Furcht and Mike Osborne voted against it, according to Cornelius Today.

Palillo said his design team will need nine months to obtain a permit for the hotel project, and the subsequent construction is expected to take 14 to 15 months. The inn would be slated to open in mid-2028, according to the CBJ.

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