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Lake Wales CRA approves $4.5 million purchase of Peterson Myers building to add downtown parking for Wells Built hotel project
Summary
The City of Lake Wales CRA board approved a $4.5 million purchase of the Peterson Myers building and adjacent parcels to create roughly 165 public parking spaces to support the Wells Built hotel restoration; the decision followed hours of public comment and a lengthy debate about costs and financing.
The City of Lake Wales Community Redevelopment Agency voted to approve a purchase agreement to acquire the Peterson Myers building and nearby parcels for $4,500,000, staff told the board, citing an appraisal of $4,850,000. Staff said the acquisition could create about 165 public parking spaces around downtown and generate roughly $90,000 a year in rental income while the city develops a longer-term plan for the Wells Built hotel restoration.
"Purchase price, the contract is $4,500,000. We just got an appraisal back yesterday appraised at $4,850,000," staff said during the presentation. The proposal would convert acreage on the south side of Stewart Avenue to public parking, add streetscape improvements and preserve an existing 20,000‑square‑foot building for potential city or tenant use.
The move is intended to address parking shortages identified by the developer restoring the Wells Built hotel and to give the CRA immediate options while negotiations with the care center continue. Staff said the CRA could finance the transaction with a short-term loan of about $7 million to close and cover initial improvements; staff estimated the all‑in cost for the larger program — acquisition, improvements and the CRA’s contribution to the hotel effort — at about $24.5 million.
Residents and civic advocates urged caution. Catherine Price, speaking during public comment, warned about the scale of the hotel restoration and potential taxpayer exposure: "We are quickly moving towards spending $43,000,000 to revive an old hotel," she said, and asked whether purchase contracts would include contingency protections if federal historic restoration funds are not obtained.
Other speakers urged taking the opportunity. One commissioner described the parcel acquisition as a way to "buy some time" and create necessary parking while continuing negotiations with other property owners. Board members repeatedly said the proposed purchase would not be paid from the general fund; staff said the financing and debt would be structured through CRA revenue streams and that the CRA's annual tax increment revenue has grown in recent years.
The board debated risks and timing for more than an hour, touching on appraisals, the availability of federal tax credits versus grants, short‑term revenues from building tenants, and the possibility of a future parking garage. After discussion, the CRA carried the motion by roll call vote (affirmative votes recorded by four board members; one member was not recorded as voting), authorizing staff to proceed with the transaction and associated next steps.
The CRA’s executive director said Restore St. Louis — the developer working on the hotel restoration — has released an RFP for architects and engineers, and staff will next bring detailed financing and design work back to the board. A Place Economics presentation on the project's economic impact is scheduled for a work session later in May.
What happens next: staff will finalize closing details, advance engineering and streetscape design, and return to the board with financing documents and implementation plans for the parking and building improvements.
