Two companies compete to build hotel in Sarasota

Sarasota City officials will soon decide on plans for a mixed-use hotel two developers hope to build on city-owned land next to the newly created Palm Avenue parking garage. The proposals would add up to 200 hotel rooms and could potentially foster other development in downtown Sarasota. The two proposals vary in scope and cost, how they would be financed, and in how much city participation would be required develop the one-acre site at Palm and Cocoanut Avenues.

One developer, Floridays Development Co. of Sarasota, wants to build 150 to 200 hotel rooms and include a meeting space, ballroom, spa, restaurant and lounges. The Floridays proposal also calls for the top two floors to be reserved for owner-occupied or rental units, an option to manage the Palm Avenue garage, and possible development of city-owned beach property on Lido Key for a hotel amenity. Floridays estimates the cost at $41.6 million to $51.9 million, depending on the number of hotel rooms. Floridays is asking the city to partially finance the project through a credit-tenant lease, though it would acquire the land from the city for $3.8 million.

The other proposal is submitted from Jebco Ventures and McKibbon Hotel Group of Sarasota and Atlanta, and calls for 175 suites, a restaurant, meeting rooms and nearly 16,000 square feet of ground-floor retail space. Jebco’s proposal does not include plans for the garage or beach property. Jebco estimates the project at $25 million and would be financed by Jebco and McKibbon. The developer would lease the land from the city.