Ocala proposes new Home2 Suites hotel with TIF incentives for development

The Marion County Community Redevelopment Agency (CRA) meeting held on September 3, 2025, focused on a proposed development project that aims to replace the existing Holiday Inn Express with a new Home2 Suites by Hilton. The new hotel is set to feature 106 rooms and will occupy a larger footprint of 75,000 square feet compared to the current hotel's 62,000 square feet.

The developer emphasized that the Home2 Suites brand is recognized as a top-tier extended stay hotel, ranking highly in the upper midscale category according to JD Power. The proposed hotel will include various amenities such as outdoor lounges, fire pits, and a pet relief station, designed to attract guests for longer stays.

During the meeting, discussions highlighted the alignment of the project with CRA guidelines, which aim to enhance the aesthetic and functional aspects of developments within the area. The developer referenced a previous special use permit granted for height considerations, indicating ongoing compliance with local regulations.

A significant portion of the meeting was dedicated to discussing Tax Increment Financing (TIF) incentives, which are commonly utilized in CRA projects. TIF allows for a portion of the increased property tax revenue generated by the new development to be reinvested back into the project. The developer outlined how these incentives would work, emphasizing that they are structured to ensure that the CRA benefits from the increased property values without jeopardizing its budget for other community needs.

The developer presented hypothetical financial scenarios to illustrate potential TIF revenues, noting that the CRA would receive 95% of the increment generated by the new hotel. The discussions included various projections based on different property value increases, with estimates suggesting that the total TIF could reach significant amounts depending on market conditions.

Commissioners raised questions regarding the specifics of the TIF agreements, including the duration and conditions under which payments would cease. The developer assured that the agreements could be tailored to cap the total benefits received, ensuring fiscal responsibility for the CRA.

Overall, the meeting underscored the importance of the proposed hotel in driving economic growth in Marion County, particularly through increased tourism and associated tax revenues. The CRA is expected to evaluate the project's potential benefits further, with plans for continued collaboration between the developer and county staff to finalize the details of the TIF agreement.