Lake Wales commission approves settlement transferring downtown hotel to city control

The City Commission of the City of Lake Wales voted unanimously to approve a settlement agreement that will transfer ownership of a downtown hotel to the city and enable its renovation, commissioners said. The roll-call vote was 5-0 in favor.

The agreement, discussed at the commission meeting after a public comment and extended remarks from the city attorney and staff, marks the end of litigation over the property and authorizes the city and its Community Redevelopment Agency (CRA) to proceed with redevelopment planning.

The settlement matters to downtown businesses and taxpayers because, commission members and retained consultants said, a renovated hotel can generate tax-increment revenue for the redevelopment trust fund, create jobs and raise surrounding property values. Chair Gibson highlighted an economic analysis prepared during litigation and said the expected returns over a 10-year period “run into the millions.”

“I want to . . . thank you for putting your trust in me and Peterson and Myers to do this work. This was not a small project,” said Mr. Ashley, the attorney who represented the city in the litigation, thanking commission members and staff for their work on the settlement.

A member of the public, Becky Wanku, urged the commission to “take back the hotel and to improve it, not to tear it down,” an appeal commissioners said they shared. The CRA’s executive director described the settlement as one of his top priorities during his tenure and said he was “relieved that it’s done.”

Commissioners described next steps as a structured solicitation for redevelopment that will require developers to have “skin in the game.” Chair Gibson said the city will use a memorandum of understanding the commission previously adopted for redevelopment of distressed properties to shape offers and ensure private investment is matched to public trust-fund incentives.

During the meeting Gibson said the memorandum contains a mechanism in which a developer contributes to a trust fund and can be reimbursed dollar for dollar from that fund if the project meets agreed benchmarks. Gibson also cited a consultant, Dr. Hank Fishkind, whose report the commission received; Gibson said Fishkind used regional examples such as the Terrace Hotel in Lakeland to illustrate potential economic upside.

The commission made the motion and then voted by roll call: Commissioner Thompson — yes; Mayor Hillgoss — yes; Commissioner Williams — yes; Commissioner Gillespie — yes; Chair Gibson — yes. The motion passed and the commission recorded that, as a result of the vote, the city will assume ownership of the property covered by the settlement agreement.

Commissioners praised the legal work that led to the settlement and urged cooperative public messaging, noting that the agreement contains a nondisparagement provision. Chair Gibson urged the commission and administration to avoid negative public commentary that could undermine redevelopment efforts.

The commission said it will issue a request for proposals to identify a developer and apply the city’s previously adopted memorandum of understanding for redevelopment of distressed properties to structure the selection and financing. Specific timelines, developer selection criteria and budget amounts were not specified at the meeting.

Votes at a glance: Approval of settlement agreement regarding downtown hotel — motion to approve (mover and seconder not specified on the record); roll-call vote 5-0; outcome: approved. The settlement includes transfer of ownership to the city as stated on the record.

The commission adjourned after final comments and did not set a deadline for the request for proposals at the meeting.