Floridays Hotel Plan Selected For Palm Avenue

After more than a year of developers lining up to be chosen to build a hotel beside the Palm Avenue Parking Garage, Floridays Development will get its chance.

The City Commission unanimously agreed to sell a lot at 1289 N. Palm Ave. for $2.5 million, providing for a $1.3 million after the city kicks in up to $1.2 million for right-of-way and offsite improvements.

Developer Angus Rogers said he hopes the hotel can be a "driver of renourishing that area of downtown."

Mayor Suzanne Atwell said it's the right fit for Sarasota and downtown.

"Not to be funny, but Mr. Rogers, it's a wonderful day in the neighorhood," Atwell said. 

The $40 million hotel is being touted as a "boutique hotel" which is industry terms for an independent, four-star luxry or a second-tier hotel.

The in 2011, and then the city opted to do an invitation to negotiate and received two proposals—the Floridays boutique hotel and an Embassy Suites from Jebco Ventures.

A lot of work still needs to be done before construction can begin in March 2014 for the hotel, said Steve Stancel, chief planner for the City of Sarasota. It could open by December 2014.

Floridays now has 60 days to conduct due diligence and to make sure the property is suitable for a hotel in addition to placing money in certain escrow funds. On Jan. 7, a parking space agreement will be provided to lease 120 to 140 spaces in the 743-space Palm Avenue garage to the hotel, plus valet spaces, Stancel said, and a redevelopment agreement detailing what improvements the city will make will be presented at that commission meeting as well.

What's held this up for so long is a combination of lawsuits having the developers prove its abilities to finance the project in an agreeable way, as Floridays first opted for a credit-tenant lease plan where it would buy the property, lease it to the city, then have the city sublease it to Floridays.

Those issues have been cleared up and the contract covers the city in a variety of scenarios of the plan goes awry, said City Attorney Robert Fournier.

Floridays also has to submit a site plan for approval within six months and then submit building permit applications no more than six months after applying for site plan approval, according to city documents.

There are a few major changes since the original proposal.

Floridays proposed in December original plan to offer to upgrade and manage the city-owned Lido Beach pool and parking, but that was not included in Monday's contract. The hotel also in December proposed to operate and manage the Palm Avenue Parking Garage and lease and manage retail spaces in the garage. Since that original proposal in December, Biter Enterpises now manages the retail space where restauranteur Steve Seidensticker will open a concept restaurant called Louie's Modern Restaurant.

The Floridays plan calls for:

• an “authentic and unique lifestyle hotel” with 150 to 200 rooms;
• up to 12,000 square feet of “state of the art meeting space” that includes a 6,000 to 8,000-square-foot ballroom;
• full service spa;
• restaurant and lounge;
• pedestrian bridge connecting hotel to parking garage on Level 2
• 24-hour hotel business center; and
• up to 40,000 square feet of condominium apartments — for rent or purchase depending on marking demand.

The rooms would include iPod docking stations, poster art, large HDTVs, upscale bathroom, complimentary high speed Internet and wireless access, and nightly turndown service with TCHO chocolates and a mini bar.

Floridays is no stranger to Sarasota and to hotels.

The company built the Grande Riviera on Golden Gate Point, the Sarasota Bay Club and in Orlando has the Floridays Orlando Resort, which is an independant resort.

What will the Sarasota hotel be?

"It'll be below Ritz-Carlton and above the Hyatt," Rogers said.

Floridays also has 30 days to close on the sale of the Passerat Parcel at 1255 N. Palm Ave., which is where Coco Palm Gallery Art & Antiques sits today, and had placed a letter in its plan that the parcel's owner, Paul Passerat would be open to selling the property to Floridays.

Because Floridays has an agreement with Passerat to acquire the parcel, that heavily factored in the staff's recommendation to have Floridays to buy the city parcel, Stancel said.

The hotel is required to use Suncoast Work Force to hire local workers as a first priority for construction jobs, according to the contract.