CLEARWATER - The city will spend $15-million to overhaul a stretch of waterfront if a proposed Hyatt resort comes to Clearwater Beach, council members said Monday.
BeachWalk would transform part of Gulfview Boulevard into a winding promenade lined with massive sidewalks, opulent landscaping and, hopefully, upscale shops.
Without the waterfront improvements, a Hyatt representative said the national hotel chain would not be interested in operating a 250-room, four-star resort on Clearwater Beach.
The unanimous council decision Monday means resort plans can move forward, said Michael Shindler, senior vice president with the Hyatt Development Corp.
"With BeachWalk, the whole area will be raised up to a new level," Shindler said. "We like being an anchor to it."
BeachWalk construction is scheduled to start next spring and would finish in 2008. Construction of the proposed Hyatt Clearwater Beach Resort and Spa would start at the same time, but finish in early 2007.
To fund the major beach roadway redevelopment, which also includes the widening of Coronado Drive, the city cobbled together funds from several different revenue streams.
City officials say they are confident some of the money - up to $7-million - will be offset by federal grants. The resort's developers, Taub Properties Inc., have also committed to paying $1.19-million.
Still, Assistant City Manager Garry Brumback said the makeover could affect other potential city projects, including downtown redevelopment.
"It severely limits the amount of money we have in cash in reserve," Brumback said. "This is about priorities."
Mayor Brian Aungst said it's time the city pushed forward with BeachWalk. Clearwater officials have talked about the potential makeover since 2000. Aungst was confident federal money would come.
"We really hit a grand slam with Hyatt," Aungst said. "This is something we really need to make work. It's too good to pass up."
The proposed Hyatt will rise 150 feet above Gulfview where the Glass House and Beach Place motels currently sit. The 14-story project would include restaurants, shopping and meeting space.
The $90-million project would be the first major resort in Clearwater in years if Tampa developer Brian Taub holds to his construction schedule.
"We are delighted to have this Hyatt project as the catalyst of BeachWalk," said Taub, who will top the hotel with 18 luxury condos.
Taub's firm will own the resort, but Hyatt will manage the hotel. Shindler said Hyatt is also prepared to make a multimillion-dollar capital investment in the resort property, but would not say specifically how much.
"We made a corporate decision to show our interest to be here in Clearwater," Shindler said. "In order to put the flag up there, we're writing a check."
BeachWalk will eliminate 376 city parking spaces between Gulfview and the beach to make way for the new roadway.
To compensate, the Hyatt will include 400 public parking spaces, but the resort will collect the revenues. That means the city will lose $730,000 a year in parking revenues.
Also as part of an agreement, the city is required to reimburse the resort about $1-million for the construction of a pedestrian overpass to link the hotel to the beach.
In return, the new resort would generate an additional $335,000 in city property taxes each year, according to city estimates. Finance director Margaret Simmons said the city could raise parking rates or cut services to make up the remaining deficit.
Council members who have often pressed for beach redevelopment said BeachWalk is the perfect starting point.
"The primary beneficiaries in this project are the citizens of Clearwater," council member Bill Jonson said. "This completes a scar in the public infrastructure on south beach."
