St Augustine skyscraper to be high-roller hotel

Last night, Historic City News readers observed as Christmas came early for St Augustine hotelier Kanti Patel when the St Augustine City Commission voted unanimously to approve the latest iteration of modified plans allowing redesign, remodeling and repurposing of the tallest icon in the downtown skyline.  The six-story tower at 24 Cathedral Place is one step closer to becoming a luxury five-star hotel on the Plaza de la Constitución.

Opened in 1927 as the First National Bank, the landmark has operated as an event venue and commercial space since its purchase from Virtu Cathedral Associates. Once construction is complete, the new hotel will provide some 120 rooms and a parking garage with more than 150 valet-only and employee spaces.  It will no doubt appeal to a high-budget visitor, someone who will contribute substantially to the St Johns County Bed Tax.

“These visitors stay longer, they spend more money, and they actively support our local businesses, restaurants and cultural assets,” said Susan Phillips, President & CEO of St Augustine, Ponte Vedra & The Beaches Visitors & Convention Bureau.  It is no secret that those visitors pay the bed tax that supports tourism efforts like Nights of Lights.  “As noted by the business community, this is exactly the type of visitor that city leadership has consistently said we want to attract.”

Phillips said that a luxury hotel brings the kind of guests that the local tourism bureau works hard to attract. However, depending on who you talk to, those “tourism efforts” like Nights of Lights are either a blessing or a curse.  The cost to produce events of that scale are underwritten, in part, from public funds like the bed tax.  At issue with that funding source is the inevitability that a large percentage of those dollars wind up in the pockets of private individuals and their pet non-profit organizations. 

Evidence of the mixed opinion of Historic City News readers was recently seen in well published comments, both pro and con, to extend the number of nights included in the Nights of Lights event.  Lines are often drawn between “the business community” who supports maximizing profits -versus- residents who are concerned about “quality of life”.  Everyone knows that it is the residents who bear the brunt of additional traffic congestion, noise pollution and the public nuisance of late-night drinking.

Known by the company you keep

Patel’s company Jalaram Hotels Inc operates these hotels in St Augustine, according to publicly available records.

• Hilton St. Augustine Historic Bayfront
• Hampton Inn St. Augustine Downtown Historic District
• Renaissance St. Augustine Historic Downtown Hotel
• Hilton Garden Inn St. Augustine Downtown
• Holiday Inn Hotel & Suites – St. Augustine Historic Area
• Best Western Bayfront Inn (Avenida Menendez)
• Best Western Historical Inn
• Best Western Seaside Inn – St. Augustine Beach

The yet unnamed hotel will still include an area for events as well as around 30,000 square feet of commercial space.  The parking garage won’t be restricted to just hotel guests and staff.  The public will be able to pay-to-park from remaining available spaces according to a consultant speaking on Patel’s behalf.  To promote mobility options other than cars, the hotel will reportedly offer bicycle rentals and have a staging area for Uber and Lyft ride-share services.

During the regular commission meeting Monday night, commissioners heard mostly favorable public comments about the project before casting their vote.  Former commission candidate, Historic City News reader and longtime local resident Melinda Rakoncay joined several others who expressed a dissenting opinion. While the developer plans to beautify nearby streets, Rakoncay argued that the building represents “faux history” right in the heart of St Augustine’s historic district.  In her opinion, the developer plans that were ultimately approved are “destroying” the city’s “historic authenticity”.

“The five-star hotel is going to be a great thing. It’s going to bring in all those people with all that money.  But, it’s going to drive out people like me who live on a fixed income,” said City Commissioner Jim Springfield committing the Historic City News cardinal sin.

It does no good to criticize bringing high roller tourists to town from your seat while casting your vote in favor of doing it.  We call that having your ass planted firmly on the fence, or worse, talking out of both sides of your mouth. Other commissioners called the project “ambitious” and “a blessing’ to downtown St Augustine.