City Council Expresses Frustration With Hacienda Redevelopment

After a heated discussion about the Hacienda Hotel’s potential redevelopment, the City Council consented at a work session Tuesday to wait as long as 30 days for regulators to weigh in on a proposed expansion of the historic building.

City Manager John Schneiger also got the green light to address other issues related to a draft agreement to convert the shuttered Hacienda into a modern hotel. The agreement outlines the terms and conditions city staff would like to see in a formal deal.

In October, city staff proposed ultimately transferring the deed to the Hacienda Hotel to its potential developer, Community Development Partners, with conditions.

First, the developer would need to rehabilitate and expand the downtown landmark and provide or find financing for the project. Once the work necessary to open the Hacienda as a midscale hotel was completed, the city would transfer the deed to the property and the land on which it sits to the developer.

Work on the site would include:

• Renovation and refurbishment of the interior of the building
• Construction of a tower to up the rooms to 93 and house related amenities
• Restoration of the building exterior

The transfer would come at no purchase cost to the developer, according to the draft agreement. The agreement calls for the city to get a residual from the profits raised by the hotel developer or operator. 

The agreement calls for the creation of deadlines and would pave the way for a formal development agreement that would need to be approved.

Community Development Partners didn’t respond to the proposal by the city’s deadline of Dec. 1.

Schneiger said a sticking point for Community Development Partners is a proposal that they stabilize the building,which is deteriorating, during negotiations. 

An obstacle for the developer is also receiving feedback on what direction they can expand the hotel into, according to Schneiger.

The city learned in August that a proposed expansion north into a section of Sims Park could put the project into conflict with a city ordinance affecting that section.

So, the alternatives are to go north but with added height to stay out of that section of the park, east into Bank Street and the Gloria Swanson Parking Lot or west, into a different section of Sims Park. 

The westward expansion would put the project on a path toward “Super Playground,” which would need to be removed. The idea has provoked concern from residents. Some commented on a related to the project.

Since the building is on the National Register of Historic Places, the expansion needs approval from the state Office of Historic Preservation and federal Department of the Interior Park Service Bureau, according to Schneiger.

The city has received word that the state Office of Historic Preservation said a westward expansion “may possibly be acceptable” and expansion in the north or east “would most likely not be acceptable,” according to Schneiger. Final say is the responsibility of the Department of the Interior, he said.

Councilwomen Ginny Miller and Judy DeBella Thomas expressed concern about whether Community Development Partners can guarantee financing for the project.

“They haven’t been able to for years,” Miller said.

If they can’t, “Why are we still spinning our wheels?” DeBella said.  

Tom Kohler, an Orlando-based consultant who has been assisting the city on redevelopment issues, said that developers usually can’t get financing unless they have an agreement. 

Schneiger said that another developer would “not be easy” to find. 

However, he said that “in his mind,” the city’s dealings with the developer over several years has been a “one-way street,” with most of the burden falling on the city.  

He said that CDP has been told there is an “impatience factor” on the city’s side in getting the project moving.

A previous agreement with the developer has expired. Schneiger said that this recent proposal amounts to less than has been offered in the past. Schneiger said that all the developer seems to have paid for is a market feasibility study.

“I don’t feel they’ve really done anything,” said Mayor Bob Consalvo.

The City Council addressed other redevelopment issues at the meeting. here's some of what you missed.

• The Council gave the green light for city staff to request credentials of potential developers of the First Baptist Church site. The city's Strategic Redevelopment Action Plan calls for sale of the property, on which the church stood before it was razed after the city purchased it. The plan recommends residential development there. 
• The City Council agreed to the idea of providing streetscaping for the Main Street Landing development. The city will use as much as $200,000 in Penny for Pasco funds for the project, which will include property in the public right-of-way and the private Main Street Landing property. The formal approval will come at Tuesday's regular city council meeting.