$40 million Harbour Island hotel project is rejected, again
By Alexis Muellner
Tampa Bay Business Journal
Published: Dec 16, 2022

Tampa City Council has again denied a proposal to develop a $40 million AC Hotel by Marriott on Harbour Island.

On Thursday, Tampa-based Liberty Group, led by CEO Punit Shah, presented revised plans to Tampa City Council for the boutique hotel at 800 S. Harbour Island Blvd., seven months after council members voted to deny the project. Hurricane Ian forced a November meeting to be rescheduled.

After filing a lawsuit against the city and going through mediation, Shah’s new proposal called for a 10-story, 145-room hotel, a reduction from the 12-story, 150-room hotel that the city council first rejected in May. Parking spaces were also reduced by 60%. A rooftop bar was removed from the plans. The original proposal called for 15 stories and 180 rooms.

Shah’s adjustments to the hotel have not been enough to sway vocal opposition to the project by neighbors, citing concerns about the project’s height and gridlock on Harbour Island. The site is currently home to a single-story bank.

Had the previous version been approved, Shah said he’d have been ready for an early 2023 groundbreaking. Council’s denial in May set the project back nearly a year and cost him $1 million in legal fees, he previously told the Tampa Bay Business Journal.

Liberty’s proposal needed an amendment to the development order for Harbour Island. Without the amendment, the developer’s rezoning request for the property could not move forward.

Like the one that the council denied, city staff deemed the latest version consistent with land development regulations.

On Thursday, a special magistrate recommended the council approve the plans. Council Chairman Joseph Citro, along with councilmen Orlando Gudes and Luis Viera, voted in favor of that recommendation, but councilwoman Lynn Hurtak and councilmen Bill Carlson, Guido Maniscalco and Charlie Miranda voted against it. On the actual rezoning vote, the council’s vote broke down the same way, 4-3 against the project.

In a statement, Shah said the hotel would have created desperately needed jobs, built tourism and boosted the local economy.

“We are disappointed with the City Council’s decision this evening, particularly since city of Tampa staff recommended approval twice,” Shah said. “It is disappointing that this City Council will not support our efforts to enrich the Harbour Island and downtown Tampa community. We hope they reconsider their decision in future board meetings.”

Harbour Island residents in opposition said they were “extremely happy” with the council’s affirmation of its earlier rejection of the Liberty Group’s proposal.

“This was not a case of ‘not in my backyard’ but rather that certain commercial buildings do not fit in residential neighborhoods,” said Larry Premak, president of Harbour Island’s South Neighborhood Association, in a statement. “Much like Jeff Vinik and SPP decided Hooters did not fit in Water Street, the Marriott AC does not fit on Harbour Island.”

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