Gulf Shores Embassy Suites start date extended to June 30


The new target completion date is September 30, 2024

(OBA®) – Gulf Shores, AL – Gulf Shores is preparing to offer developers of an Embassy Suites hotel project across from Gulf Place a fifth day extension to begin the project.

“We keep giving out extensions because we don’t think of anything that would suit this property better in our vision of doing something with a full service hotel of importance over there in Gulf Shores,” said Mayor Robert Craft. “I am delighted that we are finally moving forward with a project that we have been working on for years. “

The latest start date for DD Partners has been changed to June 30, 2022, with a target completion date of September 30, 2024. The board will discuss the proposal during the September 20 working session at 4:00 p.m. at the hotel. city. Council will vote on the extension at the regular session on September 27, a few days before the last extension expires on September 30.

In 2015, the city solicited proposals from interested parties to develop a 1.93 acre city-owned parcel directly west of the Alvin’s Island Beach Store at the corner of State Route 59 and from State Route 182 or the Beach Road. In March 2016, a selection committee formed by the city recommended the Embassy Suites project.

During the design phase, the city asked developers to increase the size of the meeting space in the hotel to provide an alternate venue to host meetings in Gulf Shores. To accomplish this, the city offered a tax incentive of a 42 percent tax refund during the first three years of operation and 35 percent each subsequent year until the 6.5 million dollars to add meeting space to be reclaimed. It is still scheduled to include 11,800 square feet of meeting space, including a 7,800 square foot ballroom.

Changes to the original design during one of the expansion requests made the hotel eight floors instead of 10, increasing the rooftop pool from 23,000 square feet to 10,000 and increasing the number of rooms. from 229 to 254, according to city documents.

Economic development coordinator Blake Phelps said investors willing to take the risk of trying their luck in a new conference space during the pandemic were hard to find, but that could change. The price of the project is around $ 85 million.

“In a nutshell, they’re starting to see a positive reaction in the capital markets,” Phelps said. “Things seem to be opening up again when it comes to interest in funding projects like this. Mostly full service hotels with significant meeting space which was not the type of project anyone was interested in investing in. It’s still not a slam dunk by any stretch of the imagination. It’s still complicated but they are certainly encouraged by the conversations they have and the reactions they receive in the market. At that time last year you hadn’t even had a conversation. The answer was just a categorical no because no one knew where things were going. “

In 2018, Dr Keivan Deravi of Auburn University at Montgomery said the hotel could have an economic impact of $ 65 million and direct local tax revenue is expected to be $ 1.8 million per year. and $ 22.6 million over the first 10 years.

During the working session on September 20, the board will also discuss:

  • Ratification of a new lease between Legal Air Properties and the Airport Authority for 14,345 square feet of land in the Southwest Corporate Hangar complex for the construction of a 60 x 80 square foot aircraft storage hangar. The airport authority will receive approximately $ 4,000 per year under the lease.
  • Renewal of a lease with J&J Enterprises leases an existing medical office building currently occupied by the Symbol Clinic. The lease will expire on December 31. The city has the option to renew for one year starting Jan. 1 and if that option is exercised there will be a 3 percent increase in the monthly fee. Currently, the city pays $ 2,788 per month for the clinic that serves city employees and their dependents.
  • Municipal court dates set for 2022. The court usually meets on Mondays and Thursdays.
  • Acceptance of an offer to purchase ryegrass seeds from Coastal Inventory Supply of Robertsdale at $ 2.85 per pound. According to city documents, Gulf Shores spends more than $ 15,000 a year on rye seeds.
  • Rezoning of 1.99 acre land at Northshore Drive and Landward Street from residential to general commercial.

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