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DADE CITY - An agreement worth $150,000 in tax breaks for a long-awaited Dade City hotel was extended Tuesday, even though the construction could be completed as late as August 2007.
The City Commission voted to give developer Piyush Mulji more time to complete the three-story, 64-room Hampton Inn on U.S. 301 south of downtown. His original agreement with the city promised Mulji tax reimbursements only if the hotel was completed this month. Since construction began about a month ago, honoring the agreement was impossible.
Leonard Johnson, Mulji's attorney, told the commission the project was delayed by financing woes, design tweaks required by Hampton Inn and the difficulty of finding architects during a construction boom.
"Everything we touched took a lot longer than anticipated," Johnson said.
City Manager Harold Sample pointed out this was the third extension to be granted to Mulji, but Johnson emphasized his client's dedication to the project.
"It's in my client's interest for this to be completed as quickly as possible," Johnson said.
While the extension was granted until next August, the hotel is expected to be completed in April, barring any hurricanes, Johnson said.
The commission approved the measure 4-0. Mayor Hutch Brock abstained because his law partner represents Mulji.
In other news Tuesday, commissioners repealed a provision of the city's comprehensive plan that allowed a developer to change the density of one parcel if another parcel could not be used for environmental reasons. Previously, if one area contained wetlands, which cannot be developed, its density could have been pushed next door.
The commission also approved the annexation of two parcels:
- 288 acres at Morningside Drive and County Road 35A for low-density residential development. The area can have no more than 500 units.
- 52 acres east of U.S. 301 on Clinton Avenue for 173 homes.
Gina Pace can be reached at 352 521-6518 or gpace@sptimes.com.