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Commission approves downtown PUD for multi‑million redevelopment; merchants press for parking plan
Summary
The Palaka City Commission approved a Planned Unit Development overlay for a mixed‑use downtown redevelopment including hotel, restaurants and event space; downtown merchants told the commission they need parking and curb-space protections before construction reduces available on‑street spaces.
The Palaka City Commission on May 14 approved a Planned Unit Development (PUD) overlay for multiple parcels along St. John’s Avenue and Reed Street, clearing the way for a multi‑phase mixed-use downtown redevelopment that developers say will include restaurants, entertainment venues and hotel rooms.
James Triano, representing the applicant, told commissioners the project aims to revive underused and blighted downtown buildings and "bring a wow moment to Palaka," with phased construction and tens of millions of dollars in private investment. The planning board had unanimously recommended approval.
But the vote sparked immediate concern from downtown merchants and small-business owners, who said new hotel and conversion projects will remove curb and surface parking in the 200 block and beyond. Shop owner Rosena Eisenman and retailer Marcia Becraft said limited daytime customer parking is already hurting small shops and warned that losing more spaces will reduce foot traffic. "When a hotel guest takes two‑hour parking spaces in front of my store, my customers drive by and I lose payroll," Becraft said.
Planning staff acknowledged downtown zoning does not require on-site parking for the proposed uses, and staff inserted a development-agreement clause requiring the applicant to work with the city on parking solutions. Developers suggested options including public–private parking agreements, off-peak lot use, shuttle services, and using impact fees to support parking solutions. Commissioners directed staff and the applicant to produce a parking study and to explore short-term solutions (shared lots, shuttle services) while redevelopment proceeds.
The commission approved the PUD ordinance (2026‑28) by voice vote. The project moves next to detailed site and building-permit reviews; the development agreement requires the applicant to coordinate parking approaches with city staff as the phases advance.
The city asked staff to prepare an updated parking‑supply study and to return with recommendations that balance downtown economic revitalization with the needs of existing merchants.
