Old Pensacola Sports HQ may become multi-story residences or a hotel

Four developers are interested in the old Pensacola Sports headquarters property on Main Street.

Pensacola received four letters of interest in response to an advertising request for the "highest and best" use of the former Pensacola Sports property at 101. W. Main St.

The city is following a similar process to what it is using to develop the Pensacola Motor Lodge property. Unlike the lodge property that will be an affordable housing project, however, the city is seeking a project that will help activate the area and bring in the biggest bang for the buck when it comes to future property tax revenue.

Pensacola Sports left the building last year to relocate to the Pensacola State College campus, and the building reverted to the city's control.

The Pensacola City Council, meeting as the Community Redevelopment Agency board, voted in January to issue letters of request, while at the same time the adjacent Harbourview on the Bay building on West Cedar Street and the three-level parking deck across Baylen Street were also listed for sale. The new owner of the Harbourview on the Bay building was one of the four companies to respond to the city's request.

The four companies were the Derbyshire Group, Goshen Cornerstone, Kerioth Corporation, and Waterview Hotel Development LLC.

The responses varied in levels of detail provided as the next steps in the process are to allow the city to ask more questions and decide with which group to move forward. Before the city could move forward with any group, it would have to advertise the property for 30 days to allow for other proposals.

The Derbyshire Group, based in Miramar Beach, owns Harbourview on the Bay. They're proposing to build either a hotel or a mixed-use retail center, which can include commercial or multi-family units. The company said they would request that Baylen Street be closed to allow for a pedestrian-friendly connection between their existing properties and the 101 W. Main St. property.

Pensacola Mayor Reeves appeared skeptical of the idea of closing Baylen Street when asked about it Tuesday.

Reeves said the city has been working on restoring public access to the water in that area through the city-owned Baylen slip that allows day-use boat docking. Reeves said there is still hope the city can install a kayak launch at that location, and Cedar Street continuing east of Baylen Street as a pedestrian-only path is a key part of the Hashtag Project that is still under development that will improve the streets in that area to be more pedestrian and bike friendly.

"I'll always entertain any creative idea but we're going to probably default at a no for shutting down roads that that we may need to eliminate congestion and things like that until we see exactly what's being proposed," Reeves said.

Goshen Cornerstone is a partnership between developer Alexander Goshen of Fort Lauderdale and Cornerstone Strategic Partners based in the Tampa Bay area. They're proposing to build a multi-story residential development, and it was the only one to propose including a type of affordable housing set aside as part of the project, although the city was not specifically seeking affordable housing at this location.

Their proposal would be an 80-unit building with a first floor that includes up to 3,000 feet of retail space. Twenty percent of the units would be set aside as affordable housing, with rent pegged to be affordable for people making 100% of the area median income for a guarantee of 99 years. Pensacola's current household area median income is $67,772.

In exchange, the group wants the city to set the rent for a 99-year lease at $1 a year.

Kerioth Corporation, based in Ridgeland, Mississippi, said they want to develop the property as a mixed-use project that could include retail, restaurant, office, hospitality and residential uses. They said the specific use would be developed based upon a future market study.

Waterview Hotel Development LLC is being led by Pensacola investors, including Bob Cleveland and Dave Cleveland, founders of Highpoint Hotel Corporation, along with Pensacola architect Brian Spencer. Their letter had the most specifics of all the letters of interest. They are proposing to build a $66 million AC Hotel by Marriott with at least 150 rooms and its own parking garage.

Reeves said the city is interested in finding out more information from all four groups.

"We like the idea of having four," Reeves said. "We have four come in. They all at least seem viable. Let's take it to the next step, and now we want to see financials. Now, we want to make sure that you've got the ability to fund a project like this. We can continue to take those steps."

Reeves said he didn't want a situation where the property is tied up for years waiting for the project to begin.

"We want to see vertical construction, and my philosophy right now, whether it be Maritime Park, whether it be Main Street, is we'll work with you. We'll give you the time that you need, but we want to see action," Reeves said. "... We've had a lot of projects threatened for a long time, and it's time to see some vertical construction."

This article originally appeared on Pensacola News Journal: Old Pensacola Sports HQ may become multi-story residences or a hotel