There isn't a forum in FT where you will not get this advice. You can read it over and over.
If you don't get the answer you want, hang up and dial again.
What they are doing is unfair. They may be within their rights, but it's not good public relations. I agree you may have to get a decision from a higher level.
And chicaloca453 is correct. There are cat 5 HI's in places where it is appropriate. This doesn't sound like a Hampton at some Interstate exit. Far more desirable location with comparable competing properties.
Good luck. Keep us informed.