City sells two downtown blocks to hotel developer for $8 million

The City Commission voted, 3-2, to sell the properties to a developer in two phases.
Published: Jul. 7, 2021 at 5:38 PM EDT
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TALLAHASSEE, Fla. (WCTV) - Two blocks in downtown Tallahassee are now slated to become new hotels. The City Commission voted, 3-2, to sell the properties to a developer in two phases.

Each plot of land was sold for $4,000,000, for a total of $8,000,000. In total, they make up 5.09 acres.

The Valencia Development Corporation wrote a letter to the City about their desire to purchase the properties.

The Johns Block is on South Duval Street. It’s just 2.68 acres, currently consisting of 132 paved public parking spaces, two sand volleyball courts, and the former food truck court.

Development of that property is part of Phase One, which would be a luxury hotel with 220 guest rooms.

That property would also include two restaurants, a bar, a rooftop bar and restaurant, a grand ballroom, a meeting space, and a swimming pool.

The Chevron Block is on South Bronough Street; it currently has both paved and gravel parking (165 parking spaces in total). That 2.41-acre lot would be a “Courts Concept” hotel, with 180 guest rooms.

The developer describes this as an “upper-upscale” hotel, with a large courtyard with a pool, fireplaces, and live music on certain days.

Mayor John Dailey says the sale is an exciting opportunity for the City of Tallahassee.

“When we talk about development and redevelopment, we should always start with the urban core and work our way out. We’ve been approached by a hotel group, a four-star hotel group the Valencia Group, out of Texas that is interested in buying the property so that they can develop new hotels right there on-site,” said Dailey.

The first hotel would employ 175 people, and the second would employ another 75. The developer says none of the jobs would be minimum wage.

The Valencia Group also wrote to the City Manager that they hope to work with the FSU College of Hospitality.

Commissioners Jeremy Matlow and Jack Porter voted against the sale, arguing the no-bid sale of public land was not the right way to do business.

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