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Cornerstone Hotel Project Plan Runs Into Massive Roadblocks

by Bryan Boggiano October 4, 2023

by Bryan Boggiano October 4, 2023 2 minutes read

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Cornerstone Hotel Project Plan Runs Into Massive Roadblocks

Proposed hotel in Coral Springs at Cornerstone.

By Bryan Boggiano

The planned Hyatt Place Hotel on Cornerstone’s South Block is slipping into developmental hell, at least according to comments from developers and Community Redevelopment Agency (CRA) board members on Tuesday.

The meeting comes as developers with La Boca Partners, a Predesco affiliate, discussed issues such as project financing and a breach in the developer agreement with the CRA.

According to the city, La Boca’s breach stems from the fact that they have not secured the necessary funding for the project to continue.

The developer will have 60 days to secure that funding.

Rod Sheldon, Predesco owner, said La Boca sold the parcel of land where the Hyatt would be developed to ADËLON Capital, the developer they sold the plot of land to in order to develop the hotel.

Due to market conditions, ADËLON has been unable to develop the property, leading to developers attempting to repurchase the property.

Sheldon also said issues were producing enough collateral to secure the necessary loans for development.

Potential solutions discussed included revising the tax increment financing (TIF). The CRA debated what components of the Cornerstone property should receive 75 percent, 50 percent, or some other figure.

Developers stated revisiting the TIF was vital to ensure the hotel would be built, Cornerstone would be successful, and Predesco would get returns on their investment.

CRA board members supported keeping the project going and remedying the situation.

Chair Andrew Kasten warned strongly against pulling the plug on the hotel contract.

“We’re starting over from square one, which is a disaster in my opinion,” he said.

But, they also criticized developers for what they saw as a lack of preparation.

“This is a disaster,” said Lorna Brown-Burton, CRA board vice chair. “The fact that we even have to be here when we signed this agreement in June…shows a lack of appropriate planning, appropriate ability to…foresee.”

Ultimately, the board agreed to give the CRA attorney direction to negotiate with the legal counsel for La Boca to keep TIF at 75 percent for the completed South Block building but no more than 50 percent for the hotel and North Block.

Staff would also need to have lending and finance numbers and information from La Boca at the CRA board’s next meeting.

That meeting will take place on Oct. 23, starting at 5:30 p.m.

“We have to get this thing built,” Sheldon said.

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Bryan Boggiano

Bryan has a degree in journalism from the University of Florida and earned his masters in geosciences from Florida International University, where he focused in atmospheric sciences. His interests include weather, entertainment, and municipal government.