We now have two proposals to develop the publicly owned beachfront property between Johnson and Michigan Streets. While originally four developers qualified, two of them have dropped out. The remaining proposals -- from Margaritaville and Planet Hollywood -- differ significantly.
Hollywood residents who care about the beach must take the time to learn about these proposals. A public meeting is scheduled for Monday, March 15, 6 PM, at city hall -- so that each developer can make a presentation and respond to questions from the public.
A big underlying question here is whether you think a casino gaming operation is suitable for our beach. One of the two developers proposes such an operation to be built on property adjoining the publicly-owned land, thus creating a large Planet Hollywood resort-gaming enterprise on Hollywood's Central Beach.
Both proposals are available on the city's website at this LINK under the heading "Stage II Submittals" midway down the page. A staff evaluation committee heard presentations from each developer on March 4, and after a day-long process, ranked Margaritaville first and Planet Hollywood second. The City Commission/CRA Board will make the final decision, perhaps as early as April.
A brief summary of each one, with emphasis on what they offer Hollywood residents, follows:
This proposal would create a Margaritaville destination resort and entertainment center, including a 350-room hotel (17 stories. set back from the beach) with convention space, restaurants and bars, retail, and a spa that will be available for daily use as well as for hotel guests. Johnson Street would be redesigned to include a new amphitheater as its centerpiece (stage facing east), with a "great lawn" extending to the broadwalk for performance seating (both permanent seating and space for people to bring their own blankets and beach chairs). All programming for the theater would be managed by Margaritaville at no cost to the city. All performances would be free to the public.
This development would include new public restrooms and a l,056 space parking garage (600 spaces for the public). The garage would be completely enclosed within the resort and hidden from view by decorative architectural elements and live foliage. Behind the amphitheater at the west end of Johnson Street would be a hub for public transportation.
Without specifying a LEED-certified level this early in the process, the Margaritaville proposal does reference a number of energy-recovery and conservation building techniques.
The main entrance to the hotel would be on A1A, with the developer giving up 20 ft of right of way to widen the street for this purpose, a roadway modification FDOT has already agreed to, according to the developer. Margaritaville is exploring the acquisition of additional land along the Intracoastal adjoining the city-owned parcel west of A!A to accommodate a restaurant/bar development there.
Developer: A limited liability company formed by Lon Tabatchnick and John Cohlan (Margitaville's representative in Palm Beach).
Attorney: Wilson Atkinson
This proposal would feature a "300 plus room" Planet Hollywood Hotel, with water features including zip line, wave-rider, and a water slide -- all open to the public (for a fee). The project would include new public restrooms, bike racks, a police substation, a lifeguard station, a fitness facility offering public memberships, and a tourist information booth. The band shell would be refurbished.
In addition to the upscale hotel (19 stories), this development would include retail, nine restaurants (including Planet Dailies, Earl of Sandwich, Anthony's Coal-Fired Pizza, and Rosie's Italian Ices, and Buca di Beppo on the Intracoastal Waterway). The hotel, designed by Architectonica, is described as meeting at least LEED silver environmental standards. Its main entrance, along with parking for hotel patrons, would be on Michigan Street. A separate garage entrance, further east on Michigan would lead to public garage parking. The proposal states that garage parking would accommodate "over 870" parking spaces, including 500 for the public. Johnson Street would be redesigned as a pedestrian walkway.
This developer claims to have a contract to purchase a "significant parcel of land" on the south side of Michigan Avenue which it sees as ideal for 200 additional hotel rooms, 700 additional parking spaces, and a "state of the art casino gaming operation" to be run by Planet Hollywood. The developer speculates that this gambling facility would bring additional annual income to the city in the $4-$5 million range.
Developer: A partnership formed by Loveland Development Co. and Ambassador Development, LLC.
Attorney: Alan Koslow
Evaluation of the two proposals is complicated by the lack of traditional financing. Developer equity differs considerably: The Margaritaville developer is putting in $20 million of its own money while Planet Hollywood will contribute $5 million. The rest of the proposed financing for these projects would come primarily from foreign investors and the CRA/City.
Margaritaville wants $30 million from the City/CRA for the garage and other public improvements. Planet Hollywood asks $20 million from the City/CRA.
The bulk of the financing for both projects would come from foreign investors. Margaritaville would seek foreign investment through the Federal EB-5 Program, while Planet Hollywood would rely on unspecified private equity from Europe and elsewhere.
When asked which financing plan was better, the financial consultant reviewing both proposals for the city said "I wouldn't hang my hat on either one." He said we would need further clarification on financing from both proposers as crucial details for making a financial feasibility judgment were lacking.
A highly unfortunate pattern appears to be developing here that we have seen repeatedly in recent years. The city commits to providing public funds to enable a development to proceed, and then years go by with nothing being built. Several parcels around Young Circle fall in this category. Moreover, this Johnson Street RFP represents the fourth time the city has sought a private developer for the property. Each time, failure resulted, and the last time the City/CRA agreed to pay the non-performing developer a substantial fee to get out of the development agreement. We cannot afford to see this type of costly non-performance again.
