Hilton Marco Island withdraws plans for second tower

The push for a second tower of hotel rooms at the Hilton Marco Island Beach Resort and Spa is over … for now.

City Manager Casey Lucius told The Naples Press that the owners — New York-based real estate firm Olshan Properties — had halted efforts to get City Council approval. The council was to consider the proposal on first reading on Oct. 19 but Olshan Properties removed the discussion and vote from the agenda.

“The Hilton themselves decided to withdraw their application,” Lucius said. “They would have to submit a new application and start the process over.”

Hilton: ‘Refine the proposal’

A spokesman for the Hilton property told The Naples Press that the company will take a timeout to consider the objections raised by city planning staff and residents. It hinted that it might change the proposal to mitigate those objections.

“The company is pausing its current zoning application for the Hilton Marco Island redevelopment so it can take additional time to refine the proposal and continue listening to the community,” the company official said. “Olshan … remains confident that thoughtful redevelopment of the hotel can benefit Marco Island.”

The company would not say what aspects of the project it would change.

Though planning staff in July recommended rejecting the resort’s plan to increase the hotel’s capacity to 626 rooms, the Marco Island Planning Board moved the project to the City Council by a 3-2 vote.

When the owners of the Hilton brought it before the council, it ran into another layer of opposition.

Staff stands pat against Hilton

Mary Holden, a city planning manager, echoed what other planning staff and local residents have been saying for months: that the project doesn’t comply with the city’s comprehensive plan, its land development code or its strategic plan.

“We staff … are advocating for denial,” Holden told Council in September.

Vice Chairman Rene Champagne said he opposed the plan but did not shut the door on future iterations of the Hilton expansion.

He “recommended and urged” that city planners and the Hilton owners negotiate a plan that residents, staff and City Council can support. When other councilors indicated their opposition to the Hilton expansion, Hilton offered to postpone the discussion until the Oct. 19 meeting.

Lack of solid support

The lack of solid support on the City Council and the planning staff’s opposition to the project led Olshan to withdraw its application Oct. 19.

Hilton wants to rezone its property from RT (Residential Tourist) to Planned Unit Development. The latter is a flexible zoning classification — instead of adhering to standard, rigid zoning rules for a single lot, a PUD creates a customized, master-planned community where rules for building heights, land use and densities are negotiated between the developer and the county. Allowed uses under the PUD category include single-family detached/attached dwellings, duplexes, multi-family buildings, timeshares, hotels, motels and bed and breakfasts.

The Hilton sits on 10.5 acres, which means its density with the expansion to 626 rooms could reach 62.6 units per acre. Though Hilton is seeking 60 units per acre, it is still far denser than the 16 units-per-acre limit under the city’s resort/residential land use category.

Comp plan path not taken

Planning staff told the Hilton and the planning commission that the hotel would have to obtain a comprehensive plan amendment to expand.

“The proposed development would exceed the permitted density authorized … and is therefore not consistent with the city’s comprehensive plan,” city planners wrote in their staff report. Staff also believe Hilton’s petition to rezone the property does not meet the principles of maintaining a “small-town feel” or “development in the scale of a small town” – wording in the city’s “Marco Island Vision 2034” document.

Staff also argued that traffic on and around the property will double just as the number of hotel rooms doubles. The heavier traffic would likely adversely harm users of neighboring properties who would have to navigate more cars, trucks, vans and other vehicles.

‘Out of scale for the neighborhood’

“The requested rezoning would be out of scale for the neighborhood,” staff wrote. “The proposed 60 units per acre, if approved, would be unique, as no properties in the vicinity have that density.”

Planning staff say the only way for the Hilton to get its density of 60 units per acre is by “special privilege” through an amendment to the city’s comprehensive plan. Until the planning commission agrees to put it through the comprehensive plan process, staff won’t know how doubling the hotel will affect public facilities and services, stormwater drainage, sewer, water and other utilities.

Meanwhile, Olshan said it wanted to continue negotiations.

“Olshan Properties has been part of Marco Island for more than 40 years and remains committed to strengthening the island’s beachfront, economy and character,” the Olshan spokesperson said. “The company thanks residents and City Council members for their feedback throughout this process and looks forward to continuing that dialogue.”