Palm Beach County commissioners voted 6-1 Tuesday, Nov. 10, to approve again an agreement with Related Ross to build a 400-room hotel next to the Palm Beach County Convention Center in West Palm Beach. The vote replaces the agreements approved Sept. 29.
Commissioner Gregg Weiss cast the only dissenting vote. The matter was heard again in public before the vote. According to reports by The Real Deal and the Palm Beach Post, the repeat vote was tied to a lawsuit by nearby residents, who argued that the September decision was made without proper notice to the public.
The project calls for an 18-story, 400-room hotel under the Curio Collection by Hilton brand. According to media reports, it would be built near the existing Hilton West Palm Beach, which also has 400 rooms. A company affiliated with Related Ross will finance and build the property. The county will buy the land and the future hotel for $26 million, then lease it to the developer, which will operate it. The lease, including extension options, could run for up to 97 years.
The county is expected to earn income from rent, parking fees and a share of the hotel’s revenue. According to reports from September, the initial annual rent for the hotel and parking will be about $1.825 million, rising 3% each year. The county is also to receive 6% of hotel revenue above a threshold of $77 million a year.
The president and CEO of Discover The Palm Beaches told commissioners that the county is losing some conferences because it has too few hotel rooms. He said the additional rooms could increase the Convention Center’s revenue by 62%.
Neighbors protested the project, citing concerns about parking, traffic and changes to the look of the area. County officials explained that the organization of construction work and street parking rules fall under the City of West Palm Beach. In September, construction was estimated to take about three years, provided financing and permits are secured.
Source: Sun Sentinel
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Source: Słoneczne Radio
