Pink Palace Project Up for Consideration - Again

Now that the $6.5 million downtown Riverwalk project along the Manatee River has been handed off to the contractor, the Downtown Development Authority took time during a work session on Thursday to decide what comes next.

And one specter from the spring quickly gave rise: The Manatee River Hotel, better known as The Pink Palace. Widewaters Groups Inc., a private developer, had planned to renovate the property and open a downtown hotel, but had asked the DDA for more than $3 million last spring.

When the DDA realized last April that it didn't have enough money to offer $3 million, the project was put on hold. Widewaters has come back with a two-part funding request, but the the DDA's top priority, makes money scarce for other projects, including rehabilitation of the Pink Palace hotel.

That was the consensus of the Downtown Development Authority as it reviewed 11 competing projects during its budget workshop Thursday.

David Gustafson, executive director for the DDA, laid out the Community Redevelopment Agency's commitments, as well as the list of projects that the DDA wants to complete.  

Gustafson said the DDA has committed $1.2 million in cash to the Riverwalk project, in addition to the $5 million in bonds the city has approved for the ambitious riverfront redevelopment.

The plans for Riverwalk, which stretches 1.2 miles along the Manatee River from Ninth Street West to Sixth Street East, includes a skate park, improved lighting and walkways, interactive water features, public art, a tidal pool and volleyball courts.

With that project underway, the DDA has a $1.8 million cushion that it is considering spending on other projects.

On Thursday, the board reviewed a list of 11 other projects, including contributing to the restoration of the former Manatee River Hotel, dubbed the Pink Palace because of its exterior paint color. Widewaters Groups Inc., a private developer, had planned to renovate the property and open a downtown hotel, but had asked the DDA for more than $3 million.

When the DDA realized last April that it didn't have enough money to offer $3 million, the project was put on hold. More recenlty Widewaters Bradenton LLC, asked the DDA to contribute $880,000 toward the project when they receive financing and another $880,000 when the remodeling and construction is completed.

Widewaters also requested reduced impact and permit fees, infrastructure improvements, such as road resurfacing and additional parking spaces.

The list of other projects Gustafson presented to board members on Thursday did not have any specific budgets attached. Several board members said they want to know the cost of each before deciding whether to spend money on them.

Gustafson said he would have those numbers before the board meets to vote on the 2011-12 budget, which begins Oct. 1. The Bradenton City Council has final say on the DDA budget.

As for the Pink Palace: “This is a big expense,” the recently appointed executive director said.

Still there is some sentiment for the project.

The Manatee River Hotel was built in 1925 and is designated an historical building by the state and the National Park Service.

The one-time luxury hotel attracted celebrities and dignitaries during its heyday. In its final, it was an assisted living home. It closed about a decade ago.

While the Pink Palace is probably the most visible downtown project, there are others that are just as important, such as supporting several rowing headrace and regatta events proposed for the riverfront, Gustafson told board members.

“This could cost a couple of hundred thousand dollars,” said Gustafson, who was instrumental in the construction of the rowing facility at Fort Hamer Park when he was a planner with Manatee County.

DDA board members agreed that there are several priorities that may not allow such a large investment in one project. Board member Michele Weaver suggested putting placeholders in the budget for the projects until Gustafson works on the figures and the board can decide which will be funded.

Jayne Kocher, another board member, said she would like the DDA to consider funding more public art projects, while Jason Bartz said the authority should consider facade improvement grants as well as a business incentive program.