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New Port Richey CRA approves purchase of Riverside Inn site at 7631 US 19 for $5.5 million
Summary
The CRA approved a purchase-and-sale agreement to acquire the Riverside Inn property (7631 US Highway 19) for $5,500,000, with deposits, a 45-day contingency period and an anticipated closing on or before Dec. 16; staff said the site is intended for waterfront mixed-use redevelopment.
The New Port Richey Community Redevelopment Agency approved a purchase-and-sale agreement to acquire the Riverside Inn property at 7631 US Highway 19 for $5,500,000, with staff outlining deposits, contingency terms and next steps for due diligence and master planning.
Presenter Mr. Orvac described the 3.39-acre site as a seven-building motel complex of about 150 rooms constructed in 1986. He said the sales-comparison appraisal returned an "as is" value of $5,500,000 and an income-approach value of $4,500,000. Staff reported an initial deposit of roughly $24,000 has been made and that, with board approval, a second deposit of $275,000 would be due within three business days. The purchase-and-sale agreement includes a 45-day contingency period; staff said the anticipated closing date is on or before Dec. 16.
Mr. Orvac tied the proposed acquisition to the CRA's adopted redevelopment plan and the Downtown/US-19 corridor master plan, calling the site a potential anchor for a northern gateway waterfront mixed-use redevelopment. He estimated the assembled area could attract "tens of millions of dollars in private investment" and an aggregate assessed-value increase "in excess of $50,000,000," language staff described as a conservative projection.
Staff noted the seller had ceased motel operations and that security and salvage arrangements were part of the proposed deal; staff also said it would likely demolish the existing structures after acquisition. The owner/operator of Suncoast Motels, Sean Patel, was noted as being in attendance.
A committee member moved to approve the purchase-and-sale agreement; a second was recorded and the board approved the motion by voice vote. Staff said acquisition costs ($5.5 million plus closing and due-diligence expenses) are included in the proposed budget and are expected to be financed.
Next steps outlined by staff include completing due diligence, coordinating a community-driven master planning process that would include Pasco County and neighboring jurisdictions, and later conducting an RFP or public-private partnership selection and negotiating redevelopment agreements.
