Kissimmee approves Azure Hotel public‑private partnership and master development agreement

The City Commission of Kissimmee on Aug. 20 adopted a resolution finding an unsolicited public‑private partnership proposal from Azure Hotel International in the public interest and approved a master development agreement to redevelop the Civic Center site into a hotel and convention center.

The action authorizes Azure to build a proposed 4.5‑star hotel and a roughly 45,000‑square‑foot convention center on the Civic Center footprint, with the hotel developer financing the project and the city contributing $10 million toward the convention center’s construction. The city will own the convention facility, lease it back from Azure and receive ongoing payments and other benefits under the agreement.

Why this matters: The agreement is structured so most financial and construction risk rests with Azure while the city gains a public convention facility without incurring the project’s full public debt, additional meeting space for public use and a perpetual share of hotel profits.

Azure Hotel International presented concept drawings and a verbal overview during the public hearing. Jorge Figueroa, a local business representative, told commissioners the project would “revitalize the downtown area” and create opportunities for small businesses.

City Manager Mike (City Manager) and city staff described business terms in detail: the hotel and convention plan is a roughly $180 million private investment for the hotel portion with the convention center budgeted at about $54 million. Azure will fund the majority of the project; the city will put in $10 million. The city will receive 5% of hotel profits in perpetuity and unlimited complimentary access to meeting rooms in the hotel as negotiated; the lease for the convention center is expected to generate $2.5 million annually to the city with built‑in escalators (minimum 1% with a target of 3%).

Parking and operations: Azure will provide a hotel parking garage integrated into the building for hotel guests and convention users. In addition, the existing SunRail parking garage behind the Civic Center (about 400 spaces) will remain available to convention visitors. City staff said the site’s proximity to the SunRail station and downtown transit options is part of the development rationale.

Risk protections and guarantees: Staff said Azure will post a performance bond equal to the convention center’s cost so the city could cash the bond and build the facility if Azure failed to perform. City staff said that arrangement shifts most construction and operational risk to Azure while protecting the city’s $10 million investment.

City use and reservations: Under terms discussed on the record, commissioners negotiated guaranteed days for city events. The draft agreement as presented included 10 guaranteed days per year for parks and recreation events; Mayor Espinosa requested increasing that to 20 days and placed the request on the public record. Azure representatives signaled willingness to address the request during subsequent lease and management negotiations.

Public comment: One community speaker, Jorge Figueroa, expressed support for the project and said local small businesses had attended an Azure outreach event and were optimistic about contracting opportunities.

Votes and next steps: The commission voted to adopt the P3 resolution by voice vote after a motion by Commissioner Martinez and a second by Vice Mayor Angela Eady. The commission then approved the master development agreement by voice vote on a motion by Vice Mayor Eady and second by Commissioner Martinez. Staff said subsequent documents — including the lease, management agreement and specific performance bonds — will be negotiated and brought back for final approvals as required.

Speakers who appeared during the item included Azure representatives, Jorge Figueroa (business representative), City Manager Mike, City Attorney Olga (City Attorney), Economic Development Director David Rodriguez, and commissioners who spoke on record: Mayor Espinosa; Vice Mayor Angela Eady; Commissioner Martinez; Commissioner Ortiz; and Commissioner Alvarez.

Ending: City staff and Azure officials said they will continue negotiating lease and management details and return to the commission with the definitive agreements and any updates on the number of guaranteed city use days, performance bond documentation and specific parking allocations.