HomeMy WebLinkAboutPort letter Daniel Letterhead - 12 15 15 DANIEL CORPORATION OF WINTER PARK, INC
December 8, 2015
Canaveral Port Authority Commission
C/O Honorable Jerry Allender, Chairman
Canaveral Port Authority
445 Challenger Road, Suite 301
Cape Canaveral, FL 32920
Phone: (321) 783-7831
RE: TEMPORARY SEWER ACCESS
Dear Mr.Allender and Commission:
We represent a hotel brand with the intent to establish a presence in the Canaveral market.
We are under contract to purchase a parcel situated at the north end of the City of Cape
Canaveral abutting the Port Canaveral jurisdiction(see enclosure). On this parcel,we plan
to construct a 120-room, six story structure in full compliance with City codes. This
undeveloped parcel, like its neighboring undeveloped parcels, is designated to be served
by City utilities, including the City's recently installed Regional Sewer Lift Station #6,
located on Imperial Blvd. The City currently provides utilities through granted easements
extending northward to the Homewood Suites,which is currently under construction. The
City's desire is to extend those utilities further north through additional easements to serve
all parcels in the area. However, one property owner has refused to allow an easement
across his property. Because this parcel is for sale well above market rate ($4.9M for 6.9
acres = $710,000/acre), the refusal effectively stalls the extension of sewer and water
services, thereby stalling development of the entire 33+ acre area, including the 13+ acre
parcel owned by the Port.
We request that the Port grant a temporary connection to the utilities available in/through
Port property. The connection would be temporary until City utilities are available. Our
initial investigation indicates that there are two options/routes:
I. North to the Columbia Rd., and
2. West to S.R.AIA through property owned by the Port.
The City has indicated support of the temporary connection, provided an Agreement is
executed between the Port, City and Developer which binds the development to a future
City-provided utilities connection at such a time as they are available (see attached City of
Cape Canaveral correspondence).
We will cover all costs associated with the necessary approvals and connection.
We are sensitive to the fact that the Port also desires hotel rooms within its jurisdiction.
The 200-room product the Port recently considered serves a different market. The "port
hotel" is slated to be a resort style hotel with large conference and event space. This does
not represent competition for our product because we are at a different price point, which
P.O. BOX 3643 •WINTER PARK, FLORIDA 32790-3643
TELEPHONE (407) 644-6900 FAX (407) 644-1548
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will be geared towards the lower to mid-price range traveler. Also having a few less
amenities including limited food service and smaller scale meeting rooms with no room
for large groups or meetings and cater more to the in and out traveler our client profile is
on a different tier. To our knowledge, the market will sustain another 450 — 750 rooms in
the next 3 to 5 years. We anticipate that the Port will be successful in attaining desired
hotel rooms and that the City may get one or two hotels before we reach that level.
Upon your initial approval, we will move forward with the City toward drafting the
Agreement. On behalf of the Daniel Corporation and the Central Florida Development
Community, I would like to offer my congratulations and thanks to the Port
Commission/Port Leadership Team for the positive changes you have made to increase the
economic vitality of our region.
Sincerely,