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. 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) with 35,000 sq. ft of convention space, 30,000 sq. ft of restaurant and bar, 6,500 sq. ft of retail, and a 13,000 sq. ft spa that will be available for daily use as well as for overnight 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.
This development would include 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.
This proposal would feature a Planet Hollywood Hotel, with water features including zip line, wave-rider. and a water slide -- all open to the public (for a fee). Public benefits 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 "300 room plus" hotel (19 stories), this development would include about 26,000 sq. ft of retail, nine restaurants (including Dailies Restaurants, 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, was 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 also has a contract to purchase a "significant parcel of land" on the south side of Michigan Avenue which the developer 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 notes that this proposal "is consistent with the Mayor's recently announced City priority to bring casino gambling to Hollywood Beach." The developer also notes that additional annual income to the city from gambling would be in the $4-$5 million range.
Evaluation of the two proposals is complicated by the lack of conventional financing available these days for projects of this sort. Margaritaville seeks $30 million from the City/CRA for the garage which is made more costly because of its enclosure within the hotel structure. Planet Hollywood seeks $20 million from the City/CRA but claims it can do the project without public financing by increasing the contribution from private investors.
Developer equity would be $20 million for Margaritaville and $5 million for Planet Hollywood. In addition, Margaritaville would seek foreign investment through the Federal EB-5 Program, while Planet Hollywood claims a direct pipeline to 6% money from private investors. The financial consultant reviewing both proposals for the city said "I wouldn't hang my hat on either one," when asked which financing plan was better. He said he would need further clarification on financing from both proposers as crucial details for making a financial feasibility judgment were lacking.
