The Jefferson Inn has hit another bump on the recent road paved by new ownership since 2022. On Friday, Feb. 7, the Southern Pines Fire Department required the staff and occupants to vacate the building, deeming it unsafe due to code violations.

“Our fire department has to implement state safety requirements,” said Southern Pines Mayor Taylor Clement. “We hate when that interferes with local business, but safety has to come first.”

On January 23, after temperatures in the county reached lows of 17 degrees, the SPFD responded to a fire alarm at 150 W New Hampshire Ave. Fire department officials determined the alarm was triggered by a frozen pipe which burst in the sprinkler system that provides fire protection for The Jefferson Inn.

“It’s a sprinkler system that they’re required to have as a hotel, by law,” said Fire Chief Mike Cameron. “One of our Fire Marshals responded and provided verbal requirements of the fire code and the fact that the system is a required system.”

According to the North Carolina Building and Fire Prevention Codes, when a required protection system is out of service, local officials can mandate one of two actions: vacate the premises or perform a fire watch.

“Where a required fire protection system is out of service, the fire department and the code official shall be notified immediately, and where required by the code official, the building shall either be evacuated or an approved fire watch shall be provided for all occupants left unprotected by the shutdown until the fire protection system has been returned to service.”  – 2018 North Carolina State Building Code: Fire Prevention Code, Section 901.7

“The Southern Pines Fire Department tries to provide alternatives and temporary solutions so that businesses and customers are not inconvenienced, but remain safe,” said Cameron. “After conferring with The Jefferson Inn management, they were placed on fire watch, which requires them to provide constant monitoring and documentation to ensure that quick action is taken in the event of a fire.”

During a fire watch the location must be actively monitored by an individual physically present at all times. Following a full inspection of the premises on January 24, on-site management and staff were allowed to continue operation while performing the fire watch patrol daily and working toward repair of the sprinkler system.

“One of the benefits of small town administration is that we could work toward improvement over the last three weeks to delay closure,” said Clement. “Failure to meet requirements eventually led to today’s decision.”

The Jefferson Inn is managed by Hogan Hospitality Group, a west coast firm hired by Home Trust Bank to take over administration of the local team after The Carolina Experience and parent company Dilweg defaulted on a loan used to purchase the property. The bank initiated foreclosure proceedings leading to an auction of the parcel, including the building, on November 12. The bank submitted an unchallenged bid of $3.3 million at auction.

Following any foreclosure auction in North Carolina, there is a 10-day period where another bidder may submit a new bid on the property. On the tenth day, Dilweg submitted an upset bid and reset the 10-day period. According to a representative from the bank, Home Trust and Dilweg then began to renegotiate the terms of the loan, effectively halting the foreclosure process.

In a statement to The Pilot in mid-January, Anthony Dilweg, CEO of Dilweg and The Carolina Experience, said the company had made arrangements with the bank.

“We worked collaboratively with our lender to come to an agreement on the Jefferson Inn loan,” said Dilweg, “which provided us the opportunity to retain ownership and The Carolina Experience very much looks forward to continuing our commitment to serve the Southern Pines community and our guests.”

Though Dilweg has regained ownership, Hogan continues to manage the property, according to local operations manager Jesse Tutor. Hogan Hospitality and Dilweg would not return The Pilot’s request for comments regarding the closure of the hotel and the 1901 Lounge, its on-site bar.

Hogan contracts with Phoenix Fire Systems, but it has not kept current with invoice payments. For that reason, Phoenix has not made the necessary repairs to the sprinkler system.

Cameron said the system’s effectiveness during the recent fire at The Jefferson Inn on Dec. 19 demonstrates its importance. The property must remain on fire watch, even while closed for business, until the sprinkler system is repaired.

He added that standard procedure is for Phoenix to contact the Southern Pines Fire Department once the repairs have been completed.

“As soon as we receive confirmation of safety standards being met, we can respond quickly and ideally they’d be back up and running,” said Clement. “Our goal is to have safe, successful local businesses.”

Contact Frank Daniels IV at (910) 693-2486 or frank@pilot-radio.com.