City staff is proposing that New Port Richey gift the deed to the to its potential developer after the developer expands and rehabilitates the shuttered landmark.
The proposal is offered in a draft written agreement that outlines the terms and conditions staff would like to see in a deal to convert the downtown building into a modern hotel.
In late October, the city sent the proposed agreement to Community Development Partners, the developer the city has been discussing the building’s redevelopment with for years.
City staff were waiting to hear back from the Georgia-based company on the proposal as of Tuesday, Nov. 8.
“We’re trying to flush out just how serious they are,” said City Manager John Schneiger on Tuesday.
The agreement would need to be signed off on by the developer and the city Community Redevelopment Agency, or CRA.
Construction on the Hacienda began in 1926. The building was completed as a hotel in 1927. The hotel closed its doors around 1985, reopening as an assisted living facility run by Gulf Coast Jewish Family Services shortly afterward.
The city Community Redevelopment Agency agreed to buy the 55-room Hacienda Hotel for a little more than $2.2 million in 2003. City staff proposed a public-private venture at the time.
The city leased the building to Gulf Coast Jewish Family Services from 2003 to 2006, when Jewish Family Services vacated the building. The Hacienda has been vacant since then.
The building, which is on the National Register of Historic Places, has deteriorated, said Schneiger and Development Director Lisa Fierce.
"We have some concerns about the condition it's in and thought it might be more attractive deeded," Fierce said.
The CRA has been reported to be $21 million in debt and is anticipated to be subsidized by the city general fund next year.
The agreement proposes deeding the 24,000-square-foot building, the .80 acre on which it sits and the improvements to the land to the developer, according to the agreement. The deed would be transferred at no purchase cost.
"It's just something we threw out as a potential carrot," Fierce said.
But first, the city staff, who worked with a consultant to draft the agreement, is proposing that the developer complete the rehabilitation and expansion needed to convert the Hacienda into a midscale hotel. The developer is responsible for financing or finding funding for the work under the proposed agreement, although the city can help look for financial assistance.
The 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 with related amenities
- Restoration of the building exterior
The site would be leased to the developer as the developer completed the work. Construction would be started within 12 months of a final development agreement and finished within 15 months of commencement.
The agreement proposes that the city and developer discuss and agree on a schedule of performance with specific milestones and a site plan. Parking could be on-site or agreed to in a separate contract with the city.
Schneiger said the agreement was a first step to get the project going and is an offer that he believes to be “realistic."
at EXACTLY the size it is. My only reservation with this plan is the proposed tower addition. Isn't there a guideline by which developers have to adhere to working on buildings listed with the historic registery? We have plenty of big hotels. The REASON folks would want to be staying in the Hacienda is BECAUSE of the historical content and nostalgic details, I suspect. I'd rather have a fully sold out small venue than an overbuild 1/2 empty one; but then, I'm not a developer. For inspiration, look at what Sarasota has done with the Powel Crosley estate. http://www.annamariaisland-longboatkey.com/crosley-estate/ This all said, I like the idea of reviving the Hacienda even if I don't care for all the details involved. I like that it would retain only the land currently on the deed. Perhaps, it's a step in the right direction, especially if the developer is familiar and ethical in the rehab of historic landmarks. (my vision is a community center, refurbished in a similar fashion to the community dynamic which was used to build the playground and I would CERTAINLY, happily, work on that idea/concept and then spend plenty of time in the venue, perhaps guiding tours, renting space and enjoying the wonderful old space, anew)
With all the available grants for historic preservation, maybe its time for city to look at freelancing grant writers to tap into the same resources that 3rd party developers would access. Its time to start doing research and coming up with viable ideas that will help preserve the historical integrity of NPR which seems to be the only reason most people are attracted to this area. In the end, hotels will not be needed, because there will be nothing left to see and the legacy of NPR will slowly fade away. I can’t believe city officials refer this landmark as a “carrot”. Cities lead by example, WoW what an example. "RobFromTMP"
Correct me if I'm wrong here, but doesn't this deal add up to a loss for the city and the more than 2-million tax payer dollars spent to acquire this historic property? Will the tax base created by the proposed project out weigh the $2-million already spent or are city leaders hoping this project will stimulate downtown growth like the Main Street Landing project did? What is the proposed tax base that will be created by the development of the Hacienda into a "viable hotel?" These are all questions that I've not seen any answers to, but should have been answered before any contract was offered to the developer.
The short answer about the improvement in the tax base is yes, it should over time. How much is very much dependent on the ultimate details. It should also provide one of the anchors for a revitalized downtown. The city has been working with the current developers since before the start of the Great Recession. Obviously, nothing much has happened during that time. A big part of the discussion has centered around where to build a room wing. Expectations for hotel rooms have changed quite a bit in the last 90 years, which is the reason for looking at a wing for modern rooms. Any room wing would need to fit in with the historic structure. For reasons I don't completely understand, it appears that the room wing would need to be built west of the existing building, probably fairly close to Main Street. My preference was to put the wing in the middle of Bank Street, but that is apparently not possible. Mindy, You took the words out of my mouth. We've been sitting still for long enough. If the hotel concept isn't going to work, there ARE some other alternatives that have been suggested and we ought to look at them. What we can NOT afford to do is let the building fall apart like the old First Baptist Church. We know how that ended.
There ARE some alternate ideas for the Hacienda that could put it back on the tax roles and generate enough revenue to rehab the existing building and cover the ongoing upkeep of the building. The million dollar question (or two million dollar question, if you will) is whether the Hacienda would best be a hotel that would cater to folks coming to New Port Richey to take advantage of various special events, eco tourism, and shopping downtown or would the Hacienda work best as a "day use" type of facility... restaurant, canoe/kayak shop, bike rental shop, or some combination thereof. We've been working with the hotel folks for several years and if the hotel is viable, great. If not, then we need to take a good long hard look at the other options. These other ideas are not all mine (thank you Craig Carmichael and others), but I'd be happy sit down with any of you to talk about how a revitalized Hacienda would help the entire downtown. Rob