Title
Downtown Hampton Inn/Lot 9 Redevelopment (B)
Explanation
On September 19, 2005, the CRA authorized Staff to prepare a Request for Proposals to solicit developers interested in building a hotel or a hotel with other uses on Lot 9 in Downtown. A sole response by Windsor Aughtry was subsequently selected for this project. At the time when Windsor Aughtry's initial proposal was first considered, the CRA approved of the general nature of the project and of the incentive request. However, the CRA requested that Windsor Aughtry fine-tune project and the incentive request and resubmit once these particulars had been worked out. Windsor Aughtry subsequently revised and adjusted certain details of the development, including the construction staging plan, number of stories, and the structure of the incentive request. Additionally, the developer succeeded in separately negotiating a parking agreement with the privately-owned parking garage located adjacent to Lot 9. On July 16, 2007, the CRA heard presentations from Staff and from Windsor Aughtry regarding the developer's revised Hampton Inn application. At that meeting, the CRA approved the project concept as presented and approved TIF reimbursement to fund the approximately $802,000 in eligible costs that comprise the “but for” financing gap identified for the project. The approved funding plan consisted of a 13-year payment period in which there would be 90% TIF reimbursement for the first five years and 60% reimbursement for the final eight years (or ending earlier if the “gap” amount was reached more quickly than anticipated.) Since that meeting, a development agreement for this project has not been signed.
In September 2007, the Florida Supreme Court issued an opinion in the case of Strand v. Escambia County, which profoundly impacts the tools and mechanisms used by CRAs statewide (including the Gainesville CRA) to fund redevelopment. Strand questions the constitutionality of multi-year obliga...
Click here for full text