Sarasota mulls two proposals for hotels

Two companies are proposing contrasting hotel concepts and financing options to the City of Sarasota for the downtown Palm Avenue hotel site. The property sits directly across from the Palm Avenue parking garage, on North Palm Avenue at Cocoanut Avenue.

Sarasota-based Floridays Development Co., which has the exclusive rights to purchase a nearby antiques store parcel on Cocoanut Avenue, is proposing a four-star, 200-room hotel. Floridays President Angus Rogers, who has partnered with Sarasota-based Jonathan Parks Architect, promises the hotel will be among the top 10 tourist draws in Florida, ranking just below the Ritz-Carlton in class while offering a $200 room rate. Floridays would operate the property.

The proposal also calls for 12,000 square feet of meeting space, a spa, restaurant, display space for local artwork, and up to 40,000 square feet of owner-occupied or rental residential units on the top two floors of the 10-story building.

Atlanta-based Jebco Ventures Inc., which also has a Sarasota office, is proposing a 175-room Embassy Suites chain hotel for the 40,000-square-foot site. It would work in partnership with the Gainesville, Ga.-based McKibbon Hotel Group.

City staff will review their proposals and make a recommendation first to the Community Redevelopment Agency Advisory Board and then to the City Commission.

While Floridays may have the upper hand with its option on the other parcel on the corner of Cocoanut Avenue and Palm Avenue, city staff seem a bit hesitant about its financing plan. Floridays has said it would need to make use of the city's credit rating.

If chosen to construct the hotel, Floridays would partner with Cleveland-based Western Reserve to formulate a credit tenant lease. Floridays would agree to pay the city $3.8 million for the hotel site, construct the hotel, then lease the building to the city for 20 years. The city, in turn, would agree to sublease the property to a Floridays-created entity that would operate the hotel. The hotel operator would then use its income to pay off its 20-year lease. After the debt was paid off, Floridays would own the hotel.

The Embassy Suites hotel is expected to cost $17.25 million. If Jebco's proposal is selected, Bridges said he is hopeful his company can acquire the antique store parcel.