Tampa developer takes another swing at rejected Harbour Island hotel
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Nov 7, 2022

When Tampa developer Punit Shah proposed a boutique hotel on Harbour Island, he saw it as an amenity that the area needed — particularly as a Harbour Island resident himself.

“I have a very unique property that’s walking distance to Amalie Arena, the convention center and CAMLS [Center for Advanced Medical Learning and Simulation],” said Shah, the CEO of Liberty Group. “It was, ‘What can I develop here that can make Harbour Island a better place to live, work and play and increase property taxes?’ I live there and work there, so I’m always thinking about the impact to the community.”

Shah on Thursday will once again present plans for a $40 million AC Hotel by Marriott at 800 S. Harbour Island Blvd. to Tampa City Council, six months after council members voted to deny the project. After filing a lawsuit against the city and going through mediation, Shah’s new proposal calls for a 10-story, 145-room hotel, a reduction from the 12-story, 150-room hotel that city council rejected in May. Parking spaces have also been reduced by 60%.

A rooftop bar, which would have had sweeping views of Bayshore Boulevard, Water Street Tampa, downtown and Port Tampa Bay, has been removed from the plans.

This version, like the one that council denied, has been deemed consistent with land development regulations by city staff. Had the previous version been approved, Shah said he’d be ready for an early 2023 groundbreaking. Council’s denial, he says, has set the project back nearly a year and cost him $1 million in legal fees.

There is widespread criticism of the council among real estate developers, attorneys and investors who say its unpredictable voting patterns could hurt business and economic development efforts.

Shah said he was “caught off guard” by the May vote because city staff had recommended the project for approval.

“I have spoken to a lot of local business owners, landowners and national developers,” he said, “and they’re looking for consistency and support through the development process. It’s already a lengthy and expensive process.”

Shah’s adjustments to the hotel aren’t enough to sway the neighbors who opposed the project in May, citing concerns about the project’s height and gridlock on Harbour Island.

Larry Premak, president of Harbour Island’s South Neighborhood Association, told the Tampa Bay Business Journal on Monday that his organization still plans to oppose the project on Thursday.

“This is essentially the same hotel as was rejected by council in May. It’s two stories shorter,” Premak said. “It is not a ‘boutique’ hotel; it is a business hotel that belongs at the airport or in an office park. It is completely different in nature from every structure south of Knights Run.”