New Hotel Development in Pensacola: A Step Forward for the Gateway Redevelopment District
The Gateway Redevelopment District in Pensacola is set to welcome a new six-story hotel, a project that promises to enhance the area while addressing potential parking concerns. The City Council’s recent unanimous approval of a "license to use" (LTU) agreement with Kerioth Corporation, the commercial real estate development company behind the proposal, marks a significant milestone in this development journey.
Project Overview
Kerioth Corporation plans to construct a 132-room Homewood Suites by Hilton at 801 E. Gregory St. This new hotel aims to cater to both business and leisure travelers, providing modern amenities and a convenient location. However, the project faced scrutiny regarding parking availability, a critical factor for any hospitality venture.
Parking Solutions
To address parking needs, the developers have proposed the creation of 21 parking spaces in the public right-of-way along 13th Avenue and DeLeon Street. This arrangement would allow the hotel exclusive use of these spaces under the LTU agreement. While LTUs are commonly issued for sidewalk dining by restaurants, they have also been utilized for parking in previous cases, showcasing the city’s flexibility in accommodating new developments.
City Council Deliberations
The Planning Board initially expressed mixed feelings about the proposal, resulting in a split 2-2 vote. Concerns were raised about how the exclusive use of the parking spaces would be enforced, especially given the neighboring restaurant, Another Broken Egg, which often sees high patronage and utilizes the same area for parking.
Mayor D.C. Reeves emphasized the city’s commitment to developing a fair administrative policy for LTUs, noting that the current annual fee of $200 did not reflect the true value of the spaces. He appreciated the developers’ willingness to adapt to the city’s evolving priorities, indicating a collaborative approach to urban development.
Community Impact
Councilwoman Allison Patton highlighted the potential for this project to catalyze further development in the area. She pointed out that the Gateway Redevelopment District is relatively undeveloped, characterized by large parking lots. Patton expressed optimism that the hotel could pave the way for more shared parking solutions and a vibrant community atmosphere.
Conversely, Councilwoman Jennifer Brahier voiced her reservations about proceeding with the LTU while the city was still formulating its administrative process. She also raised concerns about the preservation of existing trees on the property, advocating for a plan that minimizes environmental impact.
Economic Benefits
Despite the concerns, the economic benefits of the hotel project are substantial. Mayor Reeves estimated that the new development could generate approximately $339,000 annually in property tax revenue for the city’s Community Redevelopment Agency, significantly more than the current revenue from the vacant lot. This figure does not account for additional tax revenue from sales and lodging, further underscoring the project’s potential positive impact on the local economy.
Next Steps
Before construction can commence, the hotel developers must secure approval for the aesthetic design of the building from the Planning Board. A vote on the design is scheduled for next month, marking another crucial step in bringing this project to fruition.
Conclusion
The proposed Homewood Suites by Hilton in Pensacola’s Gateway Redevelopment District represents a promising development for the area, balancing the need for new hospitality options with community concerns about parking and environmental impact. As the city navigates the complexities of urban development, this project could serve as a model for future initiatives, fostering growth while ensuring that the needs of residents and businesses are met.