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CORRESPONDENCE .. r', (' Y:,^fYl It:..,.... ~. "<0:: . LuA'K ~f, Michael From: Sent: To: Subject: Hutchinson, Douglas Friday, February 18, 2005 9:10 AM Rumpf, Michael Condo Hotel This is not a screwy designation on just this project. The condo hotel market is very big and growing extremely fast... The south Florida market leads the country. It is NOT driven by cheating density, but how to get hotel units into a soft market and how to make condo ownership more affordable; i.e., room revenues offset some holding costs. The last three hotel projects announced for West Palm Beach all have hotel condo unit elements. The South Florida Business Journal has covered several projects in Miami and Fort Lauderdale. The concern is for the units to act most like a hotel room vs a rental property. The units are managed (a required covenant) by a company that acts as and supplies services just as a hotel, except that the ownership is fragmented. In fact the largest mover in the market is Marriot! The items that I outlined are unique elements to the condo hotel operations. I think the concern would be equally that a "hotel" becomes a long term rental facility with just a label as hotel. What do we set as the test of hotel vs a rental unit? That might be the definition or rules. I believe that defining these will set standards that we can endorse. I our market these hotel rooms are critical to our downtown economics and in fact, if they are not there, a full service hotel is unlikely. These units can be managed by the full service hotel to extend the size of the lead hotel without the capital costs. The condo hotels are operated better because of the draw of the full service hotel. We are about to look at a $30,000,000 incentive to have these elements come together. I do not think that the Promenade was after a density busting element... we press hard for hotel rooms and we got the best we could in today's market. Doug -----Original Message----- From: Rumpf, Michael Sent: Friday, February 18, 2005 8:45 AM To: Hutchinson, Douglas Subject: Re: CVS colors Good luck. This was a manipulation of the system. I still may be misunderstanding something, but that is not the definition inserted into code. a hotel is a hotel and a condo is a condo. Call it what is, not something enabling it to avoid density calculation and mixed use picture. Perhaps there is a disconnect between current and conventional zoning and todays market, but I think my skeptisim is justified. Sent from my BlackBerry Wireless Handheld -----Original Message----- From: Hutchinson, Douglas <HutchinsonD@ci.boynton-beach.fl.us> To: Rumpf, Michael <RumpfM@ci.boynton-beach.fl.us> Sent: Fri Feb 18 08:08:27 2005 Subject: RE: CVS colors I think that the period of stay is where we can set some standards. I think 180 consecutive days is too long. I think 90 days per stay separated by no less than 30 days makes sense. six months is half a year, which puts it more into a condo rental than hotel operations in my mind. Also there will be other items unique to condo hotels... such as furnishings. The condo hotel will require a set furnishing package, they also set room service, management fees for night rentals, etc... we need to see that these items are in place so the act like a hotel room. Doug -----Original Message----- From: Rumpf, Michael Sent: Thursday, February 17, 2005 6:06 PM 1 ..... To: Hutchinson, Douglas Subject: RE: CVS colors The period of stay is like between 30 and 180 days. But owned? -----Original Message----- From: Hutchinson, Douglas Sent: Thursday, February 17, 2005 5:29 PM To: Rumpf, Michael Subject: RE: CVS colors Condo hotel units are income properties and cash flow as such... owners can occupy a number of days, but they are commercial operations. They told us that the units were condo hotel units from the beginning. What is our definition of condo hotel? Is there a max number of consecutive rental days or occupation days by one person or group before it becomes a residential rental vs hotel? That would be the best way to measure what type of use it really has. Doug -----Original Message----- From: Rumpf, Michael Sent: Thursday, February 17, 2005 5:13 PM To: Hutchinson, Douglas Subject: RE: CVS colors That's ok. Have you taken some water to her while in line? On a serious note, we heard a rumor that Promenade/Panther was selling the hotel units. I e-mailedMr.Krinsky conveying our concern. Do you know anything? Mike -----Original Message----- From: Hutchinson, Douglas Sent: Thursday, February 17, 2005 5:12 PM To: Rumpf, Michael Subject: RE: CVS colors No, they are here for her to see but she is in the middle of the Promenade purchase program and will not be available... its hard to get out of line. It probably will be next week for her to take a minute to see them. Doug -----Original Message----- From: Rumpf, Michael Sent: Thursday, February 17, 2005 5:05 PM To: Hutchinson, Douglas Subject: CVS colors Doug, have you had a chance to get with Jeanne on these colors? Just checking in. Thanks, Mike 2 ~f. Michael Er-t c... , p ko..&C. G..J ~ <::) ~...,,~ ~ -/od ( -(0 From: Prainito, Janet M~l-(c-c +1.Js r~t. Sent: Thursday, January 27,20058:59 AM To: Tucker, Patricia; Rumpf, Michael r ~c\.\l c. c:t- -Ie--:. ~ (..... Subject: RE: Arches 0 ~ (oCJ lL -Ie, \" c:.. ..:. ,..Q. M c:.. A?~ ( .:L OS f- 'F ~~C" We listened to the recording and determined that they did not change the length of the time extension. ,.. ~ However, Commissioner Ferguson requested two reports (one from staff and one from the develoDer). 5~b6:..- He wants those reports two times - one report from each on May 1st and September 1st. The reports are to / provide progress made from each prospective. r3_ ~d .<<::.s t( -,.,r .5 r1-c.. J~~' rtr::- Janet -----Original Message----- From: Tucker, Patricia Sent: Wednesday, January 26, 2005 2:56 PM To: Prainito, Janet Subject: Arches Janet, I asked Mike about the "6-month report from staff and one from the developer" and he doesn't remember. I and he checked his notes on the agenda that he writes on at the meeting and there is nothing saying to do this, just says approved. I guess we would have to listen to the minutes and he also asked if you could or Barbara (whoever does the tape) how long did they finally decide on the time extension. Could you let us know? Thanks :l~icin {l <'TacRet Administrative Assistant Planning and Zoning 561-742-6268 tuckerp@ci.boynton-beach.fl.us 1 ~f, Michael From: Sent: To: Subject: Rumpf, Michael Friday, February 18, 2005 12:26 PM Hudson, Dick (Orran) FW: Promenade hotel units -----Original Message----- From: Jeff Krinsky [mailto:JKrinsky@pantheroffice.com] Sent: Friday, February 18, 2005 11:11 AM To: Rumpf, Michael Subject: RE: Promenade hotel units Michael, thank you again for your assistance finalizing the permits on the sales center. We had a successful day yesterday selling units. In regards to the hotel portion of the project, I cannot speak to any rumor but, rest assured, we are selling the hotel units in full compliance with the zoning regulations. Regards, Jeff -----Original Message----- From: Rumpf, Michael [mailto:RumpfM@ci.boynton-beach.fl.us] Sent: Thursday, February 17, 2005 4:44 PM To: Jeff Krinsky Subject: Promenade hotel units Jeff, I was please that we could get the permit issue rectified for you in time for opening day. However, we are a little concerned over a rumor regarding sales of hotel units. By our understanding and definitions, if the "hotel" units are not owned and operated collectively, they become condo units and subject to pooling with other units for calculation of denisties. Please take into consideration. Mike 1 P--r~~ L vf (e <. C\ ( L <..-Ag)