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Hotel groundbreaking scheduled, despite uncertainty
The developer plans the ceremony as Dade City awaits a completed building permit application.
By MOLLY MOORHEAD
Published August 23, 2005
DADE CITY - The developer of a Hampton Inn on U.S. 301 plans a groundbreaking ceremony Wednesday morning, but the project remains in limbo because of loose ends at City Hall.
Atlanta hotel developer Piyush Mulji has an agreement with the city to build the three-story, 64-room hotel and in turn receive about $150,000 in tax reimbursements over three years. But he has missed some of the deadlines outlined in the agreement, first to purchase the 2.7-acre parcel south of downtown, then to begin construction.
The City Commission has granted him two extensions so far, but Mulji is up against another deadline.
City Manager Harold Sample said Mulji lacks a completed application for a building permit, containing signatures of contractors and subcontractors. He must turn that in by 5 p.m. today, in time for a Wednesday morning meeting of the city's development review committee. He has already submitted site plans.
"We are recommending approval (of the site plan)," Sample said. "The issue is the building permit."
Leonard Johnson, Mulji's Dade City attorney, said he believes the deadline will be met.
"I think he has every intention of having everything required in on a timely basis," Johnson said.
Even if Mulji misses today's deadline, he could still build the hotel. The deadline applies only to the development agreement with the city and the promised tax breaks.
Mulji paid $443,000 for the land, and he says he has spent another $230,000 on franchise fees, architectural designs and other costs. In all, he says the Hampton Inn is a $5-million investment.
City leaders have long sought to lure a chain hotel to town with the hope it would spur more business development.
To that end, Mulji's plans also include about 1,200 square feet of conference space and, later on, a 10,000-square-foot office complex.
The groundbreaking is scheduled for 9 a.m. Wednesday at the hotel site, on the west side of U.S. 301, south of the KFC restaurant.
--Molly Moorhead covers news about Dade City. She can be reached at 352 521-6521 or toll-free 1-800-333-7505, ext. 6521. Her e-mail address is moorhead@sptimes.com
[Last modified August 23, 2005, 02:45:30]
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