The Fort Pierce City Commission will hold a special meeting next month dedicated to the King’s Landing project in downtown Fort Pierce, in the wake of the alarming development that the Marriott Tribute Hotel portion of the project could not go forward without an infusion of an additional $15 million.
The commissioners agreed at their Aug. 3 regular commission meeting to set the special meeting for 5:05 p.m. Sept. 14 to review the status of the project and agreement, decide on a 180-day timeframe to locate funding, and determine the next steps and future direction of the project.
“We need the whole team here,” said Commissioner Michael Broderick, referring to representatives from Live Oaks Holdings as well as Joe Collier of Mainsail, the hotel managing operator.
The Fort Pierce Redevelopment Agency (FPRA) first learned of the $15 million shortfall to fund the construction of the Marriott Tribute Hotel – a development that could put the entire project in jeopardy and into a deeper level of default – during a meeting last month. At the meeting, a letter was read to the FPRA board by Project Manager Bill Ware of Live Oaks of Jacksonville during his required King’s Landing quarterly update to the board.
The letter, written by Mainsail, asked the city to consider “providing a bond financing for equity and participation in ownership” of the proposed hotel.
“We just need a partner of the city and we will deliver a quality hotel in which we will all be proud and will create catalysts for the city. If Fort Pierce believes in the growth and positive momentum of their town, then they should feel OK about this structure. Their risk is capped, ours is not,” the letter reads in part.
After learning of the shortfall, a couple of commissioners spoke out strongly against the request for the city to offer the funds so that the project could move along smoothly; in response, developer Live Oaks Holdings requested some time to find private investors to close the gap.
Ware requested two weeks to provide an estimated timeframe, and at the City Commission Aug. 3 meeting, a 180-day period was requested to secure the private equity commitment.
“We’re looking at friends and family and investment and private equity versus institutional investors,” said Paul Bertozzi, owner of Live Oaks Holdings, who spoke at the Aug. 3 meeting.
“We’re already in the process of reaching out to participating parties. I had a call with a party today – with a party we’ve been in communication with, so we’re actively pursuing this,” he said.
“Either way it goes, the ball is in motion for us,” Bertozzi said, noting that he also spoke to Mainsail’s Collier before the meeting to talk about his commitment to the project. “He is committed, and basically based on today’s meeting I told him he’ll be standing here next to me at the next one.”
Responding to a question about the project timeline, Bertozzi said, “We have looked at the timeline and it will extend the timeline for completion. We talked with Mainsail as well and, if approved, we’ll present a schedule that’s concise to the funding in place.”
“I’m not going one step further,” said Commissioner Chris Dzadowski. “I’m not going to support anything going forward with this particular situation.”
“I’m way over this. I’m beyond frustrated. We’ve made promises from this dais on when this hotel was coming and we have assurances and then we get whacked,” said Commissioner Curtis Johnson Jr., who added he was in favor of setting the date for the special meeting specifically so the public could be involved. “I want to hear from them on how they are feeling about this.”
“I think this special meeting is going to be it,” said Mayor Linda Hudson, who wanted to make sure the public knew that the request for additional funds was not from Live Oaks but the Marriott hotel portion of the project.
While he was not in attendance at the Aug. 3 meeting, Commissioner Arnold Gaines made it clear at the FPRA meeting that he would absolutely not support the city having any part of using taxpayer dollars to fund the hotel.
Commissioner Michael Broderick, however, contended that starting over with the project will take too long. “We’re looking at 10 years if we terminate this now,” Broderick said. “Give them 180 days to secure the finances to complete this is in the best interest of the citizens of the City of Fort Pierce and the commission to continue this on behalf of the citizens.
“There is another pool of local money that could be interested in this as well. Getting this project off the ground is in the interest of the citizens, and I believe this is the only avenue available to succeed in that,” Broderick added.
The initial King’s Landing agreement dates to December 2019 and the slow movement, numerous changes and breaches had some concerned it would never come to fruition.
King’s Landing on the H.D. King Power Plant property is the centerpiece of Fort Pierce redevelopment efforts. The mixed-use 7.5-acre project at Indian River Drive and A.E. Backus Drive includes plans for a Tribute Hotel by Marriott, condominiums, residences, retail, restaurants, The Villas townhomes and parking.