(Editor’s note: This article has been updated for this online version.)
The Daytona Beach Shores City Council has approved a Treasure Island Development Agreement, moving a near two decades long headache closer to resolution.
The Treasure Island Resort was once described as, “Daytona’s finest oceanside resort.” The 2004 hurricane season, notably Hurricane Charley, ended the hotel’s fine run as the hurricane damage forced the resort to close for good.
New York-based Acres Capital LLC believes the site on which the decrepit hotel precariously sits can once again be a jewel along Atlantic Avenue in The Shores.
During a Jan. 11 council meeting, Mayor Nancy Miller mentioned that wherever she goes, constituents speak to her about Treasure Island. She reflected their interest by emphasizing full transparency and expressing a desire to hear residents’ thoughts on the matter.
The initial approval allowed City Manager Michael Booker to continue negotiations with Acres Capital to finalize an agreement. The completed agreement was approved at a special City Council meeting Tuesday, Feb. 1.
Essentially the development agreement is in two parts. One is the demolition of the existing building at 2025 S. Atlantic Ave. and the other is the redevelopment of the property along with eight other parcels.
The additional parcels are an adjacent lot to Treasure Island that was formally home to the Sunny Shore Resort, parcels directly across Atlantic Avenue and parcels on Fraile Street.
The plans show a hotel with a maximum of 300 units and 13 stories, the Sunny Shores lot would be a maximum 23-story, 200-unit residential structure, the westside parcels would be parking lots. The Fraile Street parcel is designated for overflow parking as a gravel lot. Retail properties also are in the proposed site plan.
The plans are subject to change. The council may revoke or modify the agreement if it is found Acres Capital breached the agreement. If the developer wishes to make substantial changes to the agreement, it may return to the council for approval. Robert Merrell, an attorney for Acres Capital, stated, “I hope you see a (final) site plan within the year.”
Acres Capital, through its subsidiary 2025 South Atlantic Avenue LLC, must complete demolition within 120 days of the agreement approval. If demolition hasn’t started in 60 days, the developer is required to put money into an escrow account that can be accessed by Daytona Beach Shores to fund the demolition.
The 120-day time period has particular significance as the June 1 hurricane season looms. City Manager Booker reiterated a fear previously expressed by Mayor Miller that the structure may not withstand a hurricane.
At the Jan. 11 meeting, Mayor Miller called out the developer for not exhibiting the same urgency the council has had in meeting deadlines.
Mr. Merrell, responded, “We’re ready to get this done, too,”
He noted Acres Capital willingness to have the 60-day stipulation in the agreement is proof of their eagerness to get a deal done. He thinks Acres Capital, “Hopes it (the hotel) gets built in two years. And it’s more than hope, these guys have an investment in this piece of property that’s burning a hole in their pockets. And they want something built, way more than you guys do. That’s the business reality of the situation.”
Acres Capital will be in the Alternative Tax Relief Program only after certificates of occupancy are obtained. Dangling the tax rebate in such a manner is an incentive for the developer to work quickly and assurance the city will not be giving a rebate for unfinished work.
Whether the first certificates of occupancy are obtained in five years or eight years is one of the items left to be negotiated. The main issue over whether Acres Capital will construct one building housing both the resort and residential units or two separate buildings.
Mr. Merrell indicated the likeliness that it will be two separate buildings. If that is the case, the city is advocating for five years for the hotel, Acres Capital would like it to be eight years, while they both agree that 15 years for a certificate of occupancy is fine regarding residential.