Top issues to watch in 2014: Downtown hotels

The property at the northwest corner of U.S. 41 and Gulfstream Avenue was emblematic of the housing trend during the last decade: targeted for a high-profile, high-rise condominium development, only to see the land remain vacant and plans fizzle out due to a lack of demand.

Now, it’s emblematic of a different trend, because it’s slated to become the home of one of at least four hotel developments in downtown Sarasota aiming to break ground in 2014.

The Kolter Group plans to build a 250-room Westin Hotel, in addition to a 144-room condominium, on the 2.9-acre bayfront property. Dwight Thomas, the west coast regional president with Kolter, said the group has targeted a vertical construction date around June.

The Kolter project, called The Vue, hasn’t received the final stamp of approval from the city, for occupants of the nearby Tower Residences at the Ritz-Carlton, Sarasota have called into question the quality of a traffic study performed to gauge the impact of the development. Still, it’s one of several projects with forward momentum heading into 2014.

Another hotel at 1289 N. Palm Ave., developed by Floridays Development Co., was able to move ahead with its plans after lawsuits tying up the property were dropped in the summer. The city approved the preliminary proposal in June 2012, and final plans were submitted to the Development Review Committee Dec. 18.

The development, adjacent to the Palm Avenue parking garage, is designed to be a boutique hotel that embraces the city’s arts community. Early plans include up to 225 rooms in the 10-story hotel.

In 2012, Jebco Ventures submitted a proposal to build an Embassy Suites at that Palm Avenue location. That proposal was not selected, but the project appears to have resurfaced at U.S. 41 and Second Street, where Jebco Ventures plans to begin construction on an 18-story Embassy Suites this fall.

Jebco Ventures CEO Jim Bridges is aware that the market could be inundated with new hotels, but he said there was no hesitancy regarding the development of a 200-room project.

“We looked at the surveys we’ve done, and the timing’s right,” Bridges said.

At U.S. 301 and Main Street, the county is in the process of negotiating with a development group led by Civix President Rod Connelly. The County Commission instructed staff to negotiate with the developers in October after hearing a proposal for a 150-room Kimpton hotel on the county-owned property.

Although all of the hotels have a construction window that would push their completion into 2015, the groundwork is being laid this year. Still, according to city Chief Planner Steve Stancel, things could change quickly depending on the economic conditions.

“Because they’re submitted, because they’re in the planning stage, it doesn’t necessarily mean they will all get built,” Stancel said. “It remains to be seen what the market will bear.”

Overview: Four downtown hotels could all begin construction this year, but some hurdles remain.

Players: Jim Bridges, CEO, Jebco Ventures; Rod Connelly, president, Civix; Angus Rogers, president, Floridays; Dwight Thomas, West Coast regional president, Kolter Group

Timeline: Throughout 2014

Contact David Conway at [email protected]