A decision on a $2.8 million incentive package for the revitalization of the Hotel Marion property in downtown Ocala was delayed after the Ocala City Council pulled the item from discussion during its most recent meeting.
On Tuesday, November 4, the Ocala City Council pulled the matter from its agenda with no further discussion.
According to City Manager Pete Lee, changes will be made to the agreement and it will be brought back to the council for a final decision at a later date. No further details were provided during the meeting.
The previously proposed redevelopment agreement with property owner Marion Opportunity Zone Investment I, LLC, includes a waiver of impact and building permit fees, the donation of a $1.25 million parking lot, and the payment of a $650,000 grant over five years.
It is unclear what changes will be made to the incentives package before it is brought back to the city for a final decision.
The incentive package is being proposed in exchange for the economic investment by the company’s efforts to restore the historic Hotel Marion, which is located at 108 N Magnolia Avenue. The proposed redevelopment agreement requires the developer to invest a “minimum of $28,966,695” in the project, which covers acquisition, demolition, soft costs, building construction, furnishing, finishing, and equipment at the site.
Marion Opportunity Zone Investment is owned by local businessman David Midgett, who spent years acquiring the condominium units that comprise the building before partnering with ARK Hospitality to create a boutique hotel that is part of the Hilton Hotels “Tapestry” Collection.
The project is being developed by Collage Design and Construction Group, which is based in Lake Mary, Florida. The architect on record is Donahue Architecture.
When complete, the renovated 46,775-square-foot structure will feature 59 rooms, a restaurant, a gym, meeting rooms, a business center, and outdoor patios.
In total, the proposed incentive package would have cost the city approximately $2,896,670 and would have been funded by the city’s Economic Investment Fund.
The parking lot donation also included a provision calling for the city and developer to establish a written agreement outlining the temporary parking arrangements and terms for dedication of spaces in the new garage.
That donation also featured a right of reverter clause, which would allow the city to regain ownership of the parking lot for the purposes of possibly building a third parking garage.
In support of the incentives package, the city previously stated in its memo that the new site will preserve a significant landmark while also activating “a prominent historic downtown building,” transforming its use to a full-service boutique hotel. The change is expected to increase “pedestrian activity, day/night vibrancy, and the presence in the surrounding area.”
Additionally, the city says the new hotel will expand downtown’s “hospitality offerings” and will encourage more extended visitor stays and increased spending at “nearby restaurants, shops, and entertainment venues.”
“This project aligns with the goals and objectives of the Downtown CRA Plan by addressing conditions of slum and blight through the redevelopment of an underutilized property,” reads the city’s memo.
In August, the Ocala City Council approved an incentive package that was nearly twice the amount of the agreement that was pulled on Tuesday. That package totaled approximately $5.6 million and was for the development of the Downtown Ocala Marriott AC Hotel.
The next meeting of the Ocala City Council takes place on Tuesday, November 4, at 4 p.m. at Ocala City Hall (110 SE Watula Avenue).
What are your thoughts on the city’s proposed incentives package for the project? Share them in a comment below or, if you have more to say on the topic, write a letter to the editor.
UPDATE: This story was edited to clarify that building permit fees would be waived, not the permits themselves.