Embassy Suites hotel developers ask for third extension; FEMA to pay most of $1 million in contracts to help with Sally recovery

Embassy Suites hotel developers ask for third extension; FEMA to pay most of $1 million in contracts to help with Sally recovery
By John Mullen
Developers hoping to build an Embassy Suites hotel across from the Gulf of Mexico near the ‘T’ in Gulf Shores are asking for a delay for the third time.
The first delay of six months came in May of 2019, the second in September was just for just a month and the latest, codified by a city council ordinance will be for an additional start-date delay of six months.
“A month ago, an ordinance was presented on the Embassy Suites development agreement for that project with DD Partners,” Economic Development Coordinator Blake Phelps told the council on Oct. 26.
“That ordinance at the time extended their project commencement deadline 30 days to give us a little bit more time to talk with them and understand where they are in the process. This ordinance is coming back to you with another recommendation.”
Phelps said events during 2020 have hamstrung the project as developers struggle to get things lined up to start construction. Also, during the meeting, the council took action on some resolutions to help the city deal with the ongoing cleanup after Hurricane Sally.
“The short of it is between the pandemic, between hurricanes, elections all the things that are kind of up in the air right now and affecting the world,” Phelps said.
“We believe it would be prudent and reasonable for the city to extend their project commencement deadline to April 30, 2021, to give them some time and hopefully the world some time to stabilize, markets to continue to recover and working with them to hopefully get this project moving forward and reevaluate on April 30. This let us see where we are with the financial markets, the pandemic and everything else.”
In May of 2019, the first agreed-upon start date was July 1 but it was changed to Jan. 1 with an eye on opening on March 1 of 2022. On Dec. 2, 2019, the council voted again for a delay with the developers eyeing a July 2020 start date.
King Scovell, Managing Partner and Chief Development Officer of Woodbine, one of the partners said at the time it would take 22 months for the project to be completed. That would push the date for completion to February of 2023.
“That would be a final, final as far as I’m concerned and I think the council agrees,” Mayor Robert Craft said. “By that time if we hear positively from them, we’re good to go. And if not, we will negotiate a start date for the project at the point in time. But if we don’t hear the proper words that probably will our last shot to get a project that we really believe will add a lot to our city.”
Plans include a 7,800-square-foot ballroom and a total of 11,000 square feet of meeting space the city asked the developers to include adding another conference venue in the city.
Gulf Shores will give Embassy Suites a tax rebate of 42 percent during the first three years of operation and 35 percent every year following until $6.5 million is reached. Or the basic cost of adding more than 11,000 square feet of meeting space including a 7,800-square-foot ballroom to the project.
Current plans call for 229 rooms, a full-service spa, indoor pool and fitness center. Topping it all will be a 23,000-square-foot rooftop with views of Gulf Place beachfront and It will include a bar open to the public and a pool for hotel guests.
During the regular session, the council ratified a pair of contracts worth nearly $1 million, paid mostly by FEMA, to help the city’s recovery from Hurricane Sally.
The city will pay Thompson Consulting Services $400,000 to perform debris monitoring following a natural or manmade disaster and hired Hagerty Consulting to provide disaster recovery and emergency response grant services for $450,000.
City staff recommended the enter both contracts before formal council action in the wake of all the debris generated by Hurricane Sally and the $20 million in estimated damages by the storm in Gulf Shores.
“Due to the declared state of emergency, Mayor (Robert) Craft was able to immediately execute the contract and Thompson began debris monitoring,” City Engineer Mark Acreman wrote in a memo to the council. “We are now asking the council to ratify this contract as per our purchasing manual guidelines.”
The agenda item on the monitoring notes that Crowder Gulf is the pre-selected contractor for removal of debris for the city after natural or manmade disasters but the monitoring of removal would overwhelm city staff and resources.
“In previous events, city staff have monitored debris removal operations,” Acreman wrote. “However, we determined staff would not be able to perform debris monitoring as the sheer volume of debris present would deplete our city resources for months and impede our ability to expedite Sally recovery. It would greatly impact our ability to provide essential services to the rest of the citizens.”
On Sept. 23 the city opened seven sealed bids for the monitoring services and Thompson more closely met the specifications laid out in the proposal.
“Proposals were received and scored by a four-person selection committee,” city documents state. “Of the seven proposals, Thompson Consulting Services received the highest score based upon qualification, experience, resources, operational plans and unit pricing and was recommended as the debris monitor.”
Funding for this contract will be from a combination of city, Alabama Emergency Management Agency and FEMA money. Typically, FEMA will reimburse 75 percent of eligible debris monitoring costs, while AEMA and the city will each reimburse 12.5 percent of the costs. Funding for the $450,000 Hagerty contract will likely be fully funded by FEMA if the city follows certain guidelines.
“FEMA allocates 5 percent of the total value of the authorized project worksheets to fund administrative costs,” Acreman wrote in a city memo. “This professional service qualifies as an eligible Administrative Costs and is therefore 100 percent reimbursable as long as we do not exceed our 5 percent allocation.”
Five percent of the estimated damage of $20 million would be $1 million and the Hagerty contract is less than half that amount.
During the regular session, the council:
• Passed a proposal to apply for an Alabama Department of Transportation Alabama Transportation Rehabilitation and Improvement Program II grant program application in the amount of $2 million. It would be for traffic infrastructure improvements on State Route 59 from Cotton Creek Drive to County Road 8 including access management, a third southbound lane and intersection improvements. If awarded, the city’s match for the grant would be for $300,000.
• Set the Gulf Shores municipal court dates for 2021.
• OK’d a public assembly permit for the Gulf Coast Region of USA Volleyball to use the beaches at Gulf Place for 19 weekends between Sept. 13 and Nov. 6 of 2021.
• Reappointed Council Steve Jones and Paula Teipel to four-year terms on the Library Board. Both members’ terms expire on Nov. 1.
• OK’d a conditional use permit for a beach access for property at 931 W. Beach Blvd. for West Lagoon Cottages which will have 43 units. The access is located on the western edge of the Crystal Shores West Condominiums.
Discussed during Nov. 2 work session:
• The 2021 budget will have more than $90 million in revenues with $89 million going out in expenses, according to a report given to the council by Finance Director Cindy King.
• A request from Crozzzzcabz seeking a taxi franchise to operate a 2013 Ford E350 Super Duty van on city streets.
• A bid from Sports Graphics to provide new backstop padding at the Gulf Shores City School women’s varsity softball and men’s varsity baseball fields for about $13,000.
• A request from the fire department to buy five new CPR devices for about $66,000 and nine cardiac monitors for about $281,000. Reimbursement for both purchases is available through the CARES Act or the Coronavirus Aid, Relief, and Economic Security Act passed by Congress in March.
Pictured: Rendering of the proposed Embassy Suites hotel complex across from Gulf Place.