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Hacienda Hotel plans fall through

By BRIDGET HALL GRUMET
Published May 18, 2006

NEW PORT RICHEY - The plans to turn the historic Hacienda Hotel into a lyceum - an upscale gathering place for meetings, banquets and weddings - have fallen apart.

Mirror Lake Lyceum owner Brian Wilder, who had been negotiating with city officials for the past six months, told them last week he no longer was interested.

City Manager Scott Miller said it appeared the project had become "too massive for them to handle." Wilder declined to comment Wednesday evening.

"This puts us back at square one," Miller said.

In all likelihood, city officials will put out a call for new proposals on what to do with the 1920s hotel by Sims Park. City Council members will discuss the issue at their June 13 Community Redevelopment Agency meeting.

The lyceum concept "was just one idea," Mayor Dan Tipton said Wednesday. "We'll have to go back to the drawing board and see where we go from here."

Built in 1927, the Mediterranean-style hotel once hosted the likes of actor Gloria Swanson and baseball legend Babe Ruth. More recently, Gulf Coast Jewish Family Services used the 55-room hotel as a residential facility for mentally disabled people.

The city bought the two-story building two years ago for $2.21-million, with the hope of making it an anchor of the downtown redevelopment effort.

They solicited proposals last year for possible uses, such as a bed and breakfast, offices or a conference center. The winning idea was a gathering place like the Mirror Lake Lyceum that Wilder owns in St. Petersburg.

But the tax status of the property became a constant sticking point during the months of negotiations.

If the city leased the building to a for-profit company, such as Wilder's company, it would have to pay property taxes. Miller estimated the building's tax bill would be in the $60,000 to $80,000 range once improvements were made.

The city tried another approach in which it would contract with Wilder to manage the Hacienda Hotel as a lyceum. Wilder would have paid the city $8,000 a month plus some of the revenue from events. Even though the city would have retained control of the building, however, it was unclear whether the Hacienda would have enjoyed a tax-exempt status as a for-profit lyceum, Miller said.

Miller said he was disappointed the plans fell through but said it just means the city will have to try something else.

"If the situation breaks down, and both parties walk their separate ways, it just wasn't meant to be," Miller said.

--Bridget Hall Grumet covers New Port Richey. She can be reached in west Pasco at 869-6244 or toll-free at 1-800-333-7505, ext. 6244. Her e-mail address is bgrumet@sptimes.com

[Last modified May 18, 2006, 01:40:19]