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Developer, Dade City agree on plans to build new hotel

The accord means that construction is scheduled to begin within six months on a three-story, 60-room hotel on U.S. 301.

By MOLLY MOORHEAD
Published January 26, 2005

DADE CITY - A long-sought chain hotel came closer to reality Tuesday when city commissioners entered an agreement with a developer who must begin construction within six months.

The city signed papers with Atlanta developer Piyush Mulji, who is set to buy property next to KFC restaurant on U.S. 301. He has proposed a three-story, 60-room hotel and about 10,000 square feet of office space on the lot.

Hampton Inn has been the hotel chain most often mentioned, but City Manager Harold Sample said that no longer is certain.

"They have assured us it will be a comparable price range and scale," Sample said.

Dade City leaders for years have tried to lure a hotel to the area on the presumption it would spur other development.

The agreement reimburses Mulji up to $150,000 as incentive to build the hotel. The city would reimburse him after the building is completed and on the city's tax rolls. Mulji would pay his property tax, then the city would reimburse him for the equivalent amount yearly until the $150,000 maximum is reached.

Mulji originally asked for $325,000 in incentives.

The agreement says Mulji must close on the property within 45 days and begin construction within 180 days. The hotel must be completed within one year.

Sample told commissioners that other investors have approached the city in recent weeks about building a hotel, but none has bought property or made a firm commitment. The city has been negotiating since last February with Mulji, who has already invested thousands in the project.

"They are still at the starting gate ... and have simply expressed interest," Sample said. "(Mulji) is basically ready to go."

Commissioners voted 3-0 to approve the agreement. Mayor Hutch Brock abstained because his law partner is representing Mulji. Commissioner Eunice Penix was absent.

In other news:

Commissioners delayed action on a controversial ordinance governing the types of signs allowed in the city. The sticking point: banners commonly used by nonprofit groups to promote downtown festivals and events.

Once again, representatives from the Dade City Garden Club, Heritage Arts Association and Main Street expressed a desire to continue allowing banners to be hung across U.S. 301.

"Look at all the special events that advertise with those banners," said Virginia Geiger of the garden club. "To me, it's a Dade City symbol."

Sample wants to discontinue over-the-road banners because of the cost and danger of hanging them.

The commission decided to remove the banner issue from the sign ordinance and revisit it again in the next two months.

Commissioners delayed voting until their next meeting on five other growth-related ordinances that address issues such as landscaping, tree protection and the design of large stores. The ordinances will form part of the city's land development code, a sweeping document that dictates the direction of growth. It is being written by city attorney Karla Owens and a group of 10 residents.

The next commission meeting and final hearing on the ordinances is scheduled for 5:30 p.m. Feb. 8. The public comment period on all the ordinances is closed.

[Last modified January 26, 2005, 00:13:15]