Barry Abramson, the consultant hired to examine the proposal, said he has helped reduce the initial request from $6.3 million in grants and incentives to between $3 million and $4 million, partly by nixing the notion that the DDA would provide offsite parking for the hotel’s exclusive use. Initially developers even asked for four boat slips for the use of overnight hotel guests. That was also nixed.
While Abramson immediately said no to some of the proposals and helped reduce the amount of the grant, he is still in the process of negotiating some of the tax incentives.
Widewaters has asked the DDA to waive about $50,000 in permit fees, as well as freezing its taxes.
Abramson warned DDA members that the tax abatements will mean the Bradenton Community Redevelopment Agency will lose money on the project in the initial years. Revenues from tax increment financing would not start coming in until 2018. Abramson said the agreement will mean a “net negative” in tax increment financing revenues through 2017, estimating that the out-of-pocket costs to the CRA would be about $130,000 from 2014 to 2017.
Annual revenues would increase to $30,000 and more from 2018 to 2022, he said. In 2022, the CRA would begin seeing significant gains from the TIF revenues, when it would begin collecting $100,000 a year. After initially losing about $500,000 in the first 10 years, he said the CRA could expect about $1.9 million in tax increment financing revenues over 30 years.
But, Abramson predicted, the refurbished hotel would help revitalize downtown. The project would retain the historical elements of the Mediterranean Revival building that was constructed in 1925. It would also include meeting and event space, and is expected to attract 50,000 people a year.
“The property in its current state is an eyesore and a very visible one, depressing the image of downtown,” Abramson said.
If the hotel succeeds, that could help raise property values downtown and translate into about $8,000 a year in additional TIF revenues, based on a formula of visitors spending about $1.2 million in restaurants downtown.
“It’s an attractive project, no question,” Abramson said
“They know how to operate a hotel like this,” he added. “There’s not a lot of experience in historic rehabilitation or public-private partnerships. But I feel confident they will do a good job.”
The historic building has been empty since a developer bought it in 2005 to develop it into condominiums. The developers gutted the building from the second floor up before the building went into foreclosure. It has been boarded up since 2009.
Widewaters bought the property from the bank in a foreclosure sale. It is currently assessed at $1.65 million.
The Widewaters Group is a Syracuse, N.Y.-based company with more than $1.1 billion in development projects and acquisitions. The company’s emphasis is on hotel, retail and office development.
Long said the company chose the Hampton Inn flag because it has a “loyal following and is perfectly targeted to the business and leisure travelers.”
“It will be one of the nicest Hampton Inns you will ever see,” Long promised the authority.
John L. Tennison, Widewaters’ historical architectural consultant, said the company is committed to historic preservation, particularly for the building’s facade, lobby and dining room.
The company has developed and acquired more than 20 hotels under the Hilton and Marriott brands. It also owns two Starwood Hotels.
The Downtown Development Authority will discuss the project at its April 12 work session.
From www.bradenton.com
