Ocala CRA tables Marion Hotel redevelopment agreement after dispute over parking-lot reverter and $2.9 million incentives

A redevelopment agreement to convert the historic Marion Hotel into a 59-room Hilton Tapestry Collection boutique hotel drew extended questions from the Ocala Community Redevelopment Area (CRA) Agency Board and was tabled for revision and further analysis on Nov. 4.

Aubrey Hill, Ocala planning director, described the project as a roughly $29 million private investment and outlined the city incentives under discussion: a city grant of about $650,000 to be paid in equal disbursements over five years (about $130,000 per year), a permit-and-impact-fee reimbursement of $79,460, and the potential return of tax-increment financing (TIF) payments subject to standard collection and reimbursement rules. The agreement as drafted also would convey Lot 6 — a 96-space surface parking lot now appraised at $1,254,000 — to the developer with a right of reverter that staff said would allow the city…