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Task force discusses reuse of hospital and Utilities Commission sites; boutique hotels eyed for Canal Street

New Smyrna Beach Economic Development Task Force · May 20, 2025
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Summary

Staff said the hospital is prioritizing road work and corporate approvals before building moves; the Utilities Commission building has attracted boutique hotel interest but would require zoning and master‑planning changes before reuse.

Members discussed the future of the hospital campus and the Utilities Commission building, both of which were raised during public comment as potential redevelopment opportunities.

Samantha told the task force that the hospital authority currently needs to complete road design and stormwater work at Sugar Mill before proceeding with building design. She said local design approvals must be followed by corporate review, which could push any redevelopment several years into the future. "They're focusing on the road right now," Samantha said of the hospital's work.

Staff also said several boutique‑hotel operators have expressed interest in repurposing the Utilities Commission building once it is vacated, but that a zoning change and a master plan would be required before such conversions could proceed. Members discussed height limits on Canal Street and the economics of hotel room keys; staff noted some projects may be five years or more away depending on approvals and market conditions.

Members asked staff to track potential buyers and to work on the zoning and comp‑plan steps that would enable adaptive reuse when properties become available.