BRADENTON -- After more than a year of negotiations, the city of Bradenton is finally a day away from knowing whether downtown’s historic “Pink Palace” will become a Hampton Inn Suites.
The Widewaters Group, the development group seeking to renovate the circa-1926 building at Third Avenue West and Tenth Street West, on Tuesday received the first-ever formal, written offer from the Bradenton Downtown Development Authority for incentives. It includes $1 million in upfront payments, 15 years of tax rebates that could total more than $1.5 million, and streetscape improvements estimated to cost between $80,000 and $110,000.
A Widewaters representative said he would know by the end of the day Wednesday whether the group seeking to renovate the building, also known as the Manatee River Hotel, would accept the authority’s offer.
“The time for negotiation is done,” said Brian Long, director of development for Widewaters. “I’m going to take this back to my group and say, ‘This is the best they can do.’ They’re either going to accept this offer or turn it down. I’m not going to come back with another offer.”
The authority’s formal offer is $760,000 less than Widewaters had requested four months ago, and $3 million less than Widewaters’ original request more than a year ago. Since conversations first began between the authority and Widewaters, the development group has been focused on seeking other kinds of help from the federal and state governments to make up the difference.
The building’s renovation is considered a potential boon to downtown Bradenton because it is projected to draw about 50,000 guests annually whose extended economic impact is estimated at $2.5 million.
The project is also anticipated to generate 120 construction jobs, at least 35 permanent jobs, $450,000 annually in tourist tax revenue, $50,000 annually in school tax revenue and $30,000 in annual sales tax revenue.
The historic nature of the “Pink Palace” also increases its economic impact, said Cathy Slusser, deputy director of historical resources for the Manatee County Clerk of Court. She said studies show that “heritage tourists,” who travel the country seeking out historically significant locations, spend 50 percent more per trip than the typical tourist.
“There are people who actually travel around the country purposefully looking for historic hotels to stay in,” Slusser said, comparing the potential of the “Pink Palace” to historic hotels in St. Petersburg, Lakeland and Winter Garden. “They make a tremendous impact.”
The DDA’s offer to Widewaters includes $1 million that would come from the DDA’s discretionary fund, which consists of money left over from last year’s budget. The first half of that commitment would be provided to Widewaters after it obtained all financing and permits; the second half would be provided after Widewaters obtained a certificate of occupancy for the building.
Widewaters would also agree to taking out a $500,000 bond that would ensure the authority was reimbursed its initial commitment if Widewater did not obtain its certificate of occupancy.
The total tax rebate Widewaters would receive over 15 years is projected to equal at least $1.5 million. The streetscaping provided by the authority would include 1920s-era street lamps and decorative sidewalks along Tenth Street.
Altogether, Widewaters would spend $15 million on the building’s renovation. Other sources of funding it is pursuing include a “brownfield” designation that would open the door for state money to conduct environmental clean-up on the site, and a federal historic preservation tax credit.
If the authority’s offer is accepted, Widewaters would begin work on the building in spring 2012 and open a year later, Long said.
Christine Hawes, Herald business writer, can be reached at (941) 745-7081.
