Palace hotel developers frustrated by SRIA
BY LISA NEWELL Gulf Breeze News lisa@gulfbreezenews.com

After getting approval to rezone the former retail site of The Palace on Pensacola Beach Blvd. to allow a commercial hotel, developers were stunned by a 3-2 vote to disallow the proposed density increase to 50 units per acre from 30.

Representatives for A&CH Properties told the Santa Rosa Island Authority members on Wednesday, March 26 that they planned a 57-unit, 18-story "boutique hotel" on the site of the demolished Palace retail site, complete with restaurant, bar and retail center, but were denied the required density to make the project economically feasible.

Board chairman Thomas Campanella said he voted against the project because there was no guarantee the hotel would not "morph" into a condo later in the time frame.

Frank Dougherty of A&CH replied, "I was told that Santa Rosa Island wanted hotels out here and I signed on," and denying the project would take money out of the developer's pocket as well as the SRIA.

Tammy Bohannon, who, along with Ed Guernsey, voted in favor of the density change, said the vote was "sending a bad message" to anyone willing to invest on Pensacola Beach.

Vernon Prather told A&CH that he voted no because there were no conceptual plans brought forward for the hotel, and he would revisit the subject if and when plans are presented.

Fred Gant said he voted against the project because it appears that the board is approving every density change that is brought before it.

"Thirty working units per acre is a farce," Gant said. "The board needs to look at our rule. Is 30 a valid number, or should we increase it to 50?"

In other action, the SRIA voted in committee to:

allow a sublease to Yancy Spencer IV to conduct water safety classes behind The Dock;

allow a Soundside concession project behind Jubilee restaurant on the Boardwalk;

approve a special events calendar to increase shoulder season visits, presented by Nan Harper of the Pensacola Beach Chamber.

move forward on a suggestion by Beach resident Jim Cox to study the need for additional parking spaces at hotel rooms over 850 square feet. Currently, parking is allocated at one vehicle per hotel room.

The next SRIA meeting will be at 5 p.m., April 9 at the SRIA offices located at 1 Via de Luna.