Boutique hotel on Harbour Island denied by Tampa City Council
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: May 13, 2022

Tampa City Council on Thursday voted to deny a proposal to develop a boutique hotel on Harbour Island.

Tampa-based Liberty Group, led by CEO Punit Shah, had proposed a 150-room AC Hotel by Marriott on a site that's currently home to a single-story bank building. In March, Liberty Group said it had made a few tweaks to the hotel — reducing it from 15 to 12 stories and from 180 to 150 rooms — at the request of Harbour Island residents.

Those changes did little to appease neighbors, who hired former Tampa city attorney Julia Mandell to represent them in their opposition to the development. Neighbors who spoke against the project told council members they were concerned that the hotel would mean even more traffic on the island, which they said already faces gridlock multiple times each day. They also said that the property's location south of Knights Run Avenue was inappropriate for high-rise development.

Liberty's proposal needed two approvals to move forward: an amendment to the development order for Harbour Island, which is a development of regional impact. Without the amendment, the developer's rezoning request for the property at 800 S. Harbour Island Blvd. could not move forward.

A staff rezoning report on the project declared it consistent with the city's land development regulations.

"We are disappointed with tonight's decision and are actively exploring any and all legal options," Shah said in a statement.

Larry Premak, president of Harbour Island's South Neighborhood Association, told the Tampa Bay Business Journal that those opposed to the development felt that it "does not even remotely add anything to Harbour Island or its residents."

The SNA is comprised of Harbour Island's 12 neighborhood associations.

“It is a not case of not in my backyard," Premak said. "It’s a case of trying to fit the round peg into the square hole. It just doesn’t fit here."

Council chairman Joseph Citro, along with councilmen Guido Maniscalco, Orlando Gudes and Charlie Miranda, voted to deny the amendment. Councilman Luis Viera and councilwoman Lynn Hurtak voted in favor of the amendment. Councilman Bill Carlson was absent.

Miranda said he was voting against the proposal because it was south of Knights Run Avenue, which some neighbors had argued is a boundary between Harbour Island's high-rise and commercial developments and the gated residential neighborhood.

Hurtak said the gates to the residential community acted as a “very clear demarcation” between public and private spaces on Harbour Island.

“It is still in a public space; all of our staff has approved it and found it consistent, no waivers," she said. "I find it legally difficult to disprove.”

Channel district developer Ken Stoltenberg addressed council during the public hearing and said he wasn't for or against the project; he was there to address the development process. Developers, Stoltenberg said, evaluate a potential site and take into consideration development codes and rules and try to figure out the best fit for a property within those parameters.

"In this case, the applicant did exactly that," Stoltenberg said. "What they’re seeking to do may not be popular, but it is consistent, and by not taking that into account, it may create unintended consequences for other folks looking to make positive investments in your community."

Construction attorney Ben Dachepalli, an active member of the Tampa Bay Economic Development Council, spoke in favor of the project.

Projects like the proposed boutique hotel, Dachepalli said, "help folks like me tell the story of Tampa to the outside world."