Tampa leaders turn down hotel project despite threat of litigation

Tampa’s City Council rejected a plan to build a boutique hotel on Harbour Island on Thursday evening for a second time setting up the possibility that a tabled $6.6 million lawsuit filed by the developer will be revived.

The council, after a more than three hours and 30 minute public hearing that saw a large group of residents complain about the project and how it will affect traffic in the area and sharing several other concerns, voted 4-3 to turn down Punit Shah’s plan for the proposed 144-room hotel.

In a statement after the hearing, Liberty Group CEO Shah said that “we are disappointed with the City Council’s decision this evening, particularly since city of Tampa staff recommended approval twice.

“The hotel would have created desperately needed jobs in our community, built tourism, and boosted the local economy. It is disappointing that this City Council will not support our efforts to enrich the Harbour Island and downtown Tampa community. We hope they reconsider their decision in future board meetings.”

Shah did not indicate whether the lawsuit would continue despite saying in interviews that he would continue to fight the city if the plan again failed to win approval.

The idea that the city could be taken to court was enough to sway at least one member of the council.

“The mere threat of litigation is not relevant, … but litigation that is going to wind up as a raw deal for taxpayers in the city. That is something to take seriously,” said Luis Viera, who represents District 7, moments before voting for the project.

The plan presented Thursday was updated from a previous plan the council saw in March. This version called for the number of rooms to drop from 180 to 145, a 20% reduction, the number of parking spaces to drop from 288 to 115, a 60% reduction and the number of floors to drop from 12 to 10. A planned rooftop bar with views of the city was eliminated.

The plan was changed after the lawsuit was initially filed and the parties participated in mediation.

Harbour Island, a community just off of downtown Tampa, near Amelie Arena, Water Street Tampa and the convention center.