A proposed Reverb by Hard Rock Hotel development at Pensacola’s Community Maritime Park will move forward without a $58 million tax rebate requested by the developer, Pensacola Mayor D.C. Reeves announced July 15.
Developers also announced that construction would begin by the end of the year on the privately financed $310 million Reverb by Hard Rock Hotel and Rhythm Lofts apartments slated to be built across the street from Blue Wahoos Stadium.
Reeves said the project is likely the largest single private project in the city’s history, and he said he appreciated the developers pulling their request, as the city is facing a changing landscape with property taxes, with the statewide referendum that would cut taxes for homeowners.
“We’re grateful for the value that they see in our community,” Reeves said. “A $310 million project has significant complexity and significant risk, financial risk, and that’s what makes projects like this so hard to have happen. And frankly, why it is relatively unprecedented here. These are hard to put together, hard to get financed, hard to get to execution.”
The developers had previously said the project wouldn’t happen without an estimated $58 million tax rebate under a never-used tax abatement program through Pensacola’s Community Redevelopment Agency meant to promote development at Maritime Park.
Reeves came out against the tax rebate but said it would still be evaluated by city staff.
The city officially rejected the initial application for the tax rebate on the grounds that the 345-page application the developers submitted was “incomplete” after consultants hired to evaluate the application questioned the financial projections used to justify the rebate.
Reeves said at his weekly press conference July 15 that the developers had notified the city they were withdrawing their request for the city tax rebate and that the project would move forward without it.
The project is still seeking certification from the state of Florida under the Live Local Act. That certification would give much smaller property tax breaks for each unit that rents at rates Florida deems affordable for “middle-income” households earning 80% to 120% of the area median income.
The lease requires construction to begin within 45 days of obtaining permits, and Reeves said that construction activity could begin as soon as September. The lease had a deadline of “substantial completion” of June 30, 2028 and for the certificate of occupancy to be issued within six months of that.
Inspired Communities of Florida, also known as The Dawson Company, and Corporate Contractors Inc. (CCI) are co-developing the project with Emmitt Smith’s E Smith Advisors at Lot No. 5 at Community Maritime Park.
The $310 million project will include a 12-story, 147-room hotel branded as a Reverb by Hard Rock Hotel and a 16-story, 247-unit apartment tower, along with a parking deck and outdoor public plaza at Community Maritime Park. The development had previously been billed as a $250 million project, but Reeves said the developers’ latest estimate had risen to $310 million.
The group issued a press release on July 15 that said the project is moving toward a year-end groundbreaking.
“This project is about more than a hotel, residences or a beautiful building,” Tamara Bowens, president and chief operating officer of The Dawson Company, said in a press release. “It’s about creating a place that belongs to Pensacola—one that puts people to work, brings new life to the waterfront and helps carry the city into its next chapter.”
Developers had previously said the construction project will generate 2,500 to 3,000 construction jobs over the 34-month construction period. The completed project would create 300 direct, permanent jobs through the operations of the hotel, spa and fitness club, restaurant, rooftop bar and residential office operations.
The group said in its July 15 press release the project will translate to a $38 million in annual ongoing economic impact once the project is operating.
The group also highlights the project’s public plaza with its “portal” opening to Blue Wahoos Stadium as a $24 million gift to the city of Pensacola that can support public and private programming like gatherings, farmers markets, outdoor movie nights, concerts and other events.
“Lot 5 is private investment serving a public purpose,” Bowens said. “We believe the community will be able to see and feel the benefit — in jobs, public space, tax base, downtown energy, new residents, new visitors and pride of place. This is the kind of project that can help define the next era of Pensacola’s waterfront.”
The developers have also pitched a second project directly next to the hotel development at Lot No. 4, which is currently a parking lot, that would expand the new parking deck and plaza and add more restaurants and retail shops. Developers have said they would like to attract tenants such as Trader Joe’s or The Cheesecake Factory as part of that development.
Reeves said that development, however, has been on hold while the developers focused on completing the hotel project. Any development on Lot No. 4 would most likely require the city’s direct financial involvement because the city has an obligation to provide 350 parking spaces for Blue Wahoos Stadium.
“When I hear (Lot No.) 4, I hear parking garage,” Reeves said. “And that’s not necessarily a good thing. Meaning, I’m willing to take it on, but that is a complex, expensive discussion to have about how do we make up the parking that you’re going to build on because the city has obligations to 350 parking spaces. So, if you develop 4, it forces us, the City Council, the mayor’s office, and everybody else to have discussions about how to put those parking spaces back in place.”
Jim Little is the City Government Accountability Reporter for the Pensacola News Journal. If you have a news tip, please send it to jwlittle@pnj.com.
This article originally appeared on Pensacola News Journal: Downtown Reverb Hard Rock Hotel will move forward without $58M tax rebate
Reporting by Jim Little, Pensacola News Journal / Pensacola News Journal
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By Jim Little, Pensacola News Journal | USA TODAY Network
