Unswayed by passionate arguments from preservationists, the Winder City Council on Thursday night voted unanimously to reject $500,000 in federal funding for the restoration of the century-old Granite Hotel.
Mayor Chip Thompson and several council members said the city does not have the resources for the required local match for the project.
The federal strings attached to the deal would require the city to pay 58 percent of every invoice as the hotel is renovated. The government also set a 12-month deadline for the completion of the project.
Mike Rice, the chairman of the Winder Downtown Development Authority that owns the hotel property, also said he is concerned that the preliminary cost estimate for the project may be wrong.
If the cost were to exceed the initial $1.2 million estimate, the city government would have to cover out of the city's general operating fund more than the original $729,000 local match.
About 35 supporters of the hotel, most of them from the Barrow Preservation Society Inc., attended the meeting.
Some addressed the council before the vote, arguing that the investment in the hotel could spark a revival of the downtown area.
Others expressed their disappointment to the mayor and council after the meeting adjourned.


The whole downtown area is just not comfortable to be in. It feels so dead because there's no activity.
The only place that seems lively is the produce stand, and that's because the owner comes out to meet you when you pull up, and there always seems to be someone coming or going.
There has to be something that can be done to that space that would make Winder appealing to investors.
My memory on it is not great, but I remember when I went to the museum, the lady there told me they had a bunch of exhibits boxed up because they had no room.
Are there any interesting statues or large things in those boxes that could be made the centerpiece of a small park? I probably should have asked when I was there.
Make a history park--plaques and stuff--and turn part of the court into a museum. That courthouse is probably the nicest building here, and if the area around were made an attraction, Winder might just see some investment.
Business-wise, it's a great spot. We have a good BBQ place (even though I'm not so fond of what's on the TV), a thriving custom clothing business (http://www.amazinghippie.com/), and a few other businesses.
Turn that in to an attraction, make the parking all around there visible and inviting, and watch investors fall over each other to build stuff here.
I was saying that the part still standing (which seems to have been built within the last 30 years) is being sold as office space, and it's still unsold.
If we had a new hotel in Winder, who would stay in it?
The distance between Athens and Atlanta isn't enough to need to overnight here, and there are plenty of hotels in both cities.
I can't imagine a vacation planned around Fort Yargo. It would make more sense to plan it for Athens where all the attractions are, then plan a short drive to Winder if you had any desire to go to the park.
As it stands, there's a hundred restaurants if I'm coming back from Athens or other cities and want to eat out for supper, and every other thing I might have done in downtown Winder would already be done during the trip.
A park would at least be a reason to come to downtown Winder. If there were a park there, I know I would spend more money at the businesses. A half million people go to Fort Yargo every year (that's around 1,300 a day). So we know that a park will get people to come to the area.
We just need to get them to go a little bit north, and we know a nice park (and I mean nice--walking paths, benches, green space) can do that.
If nothing else, let's convince someone to open a bicycle shop downtown. We've got miles and miles of trails, and regular mountain biking events. It seems weird that we don't have a shop yet.