A hotel with at least 110 rooms is moving closer to construction at Vero Beach Regional Airport after the city approved a lease agreement for a proposed Marriott-branded development.
The hotel is planned to include a swimming pool, fitness facilities and a limited-service restaurant and bar. Under the agreement, the developer must substantially complete construction within 24 months of the lease’s effective date.
Airport Director Brandon Dambeck said the project is expected to bring economic benefits to the area.
"The hotel project is going to pump over 30 million dollars into the local economy as well and create over 60 middle class jobs. We have to make sure when we're doing our lease negotiations that we're doing it right. That we're getting the proper approvals through the FAA because this is a 30 plus year agreement and we want to make sure that we are thinking of everything as we're going through it," he said.
The lease drew opposition from City Council member John Carroll, who cast the lone vote against the agreement. He questioned the time it took to finalize the deal and the lack of rental income during the negotiations.
"We're sitting here from July of 2024 until October of 2026. Two plus years have gone by and we're just getting this lease. So we've effectively kept that parcel off the market and have not received any rent for that time frame," he said.
Dambeck said the delay did not prevent the developer from advancing preparations for the project and noted that no other parties had expressed interest in the property during negotiations.
"During that time no other interest has been expressed in the property. Also during that time the hotel has been working on design and site plan which does put money into the local economy hiring local contractors," he said.
Airport Assistant Director William Howard also pointed to the developer's financial contribution toward a separate project grant as evidence of its investment in moving forward.
"I'd like to also remind council that the developer has footed the bill for the 50% local match of that grant at $500,000. So we do have that money and that is with the city right now for that project apart from the site plan fees. So the site plan is approved and they're ready for development," he said.
Under the lease, VB Hotel 1, LLC will pay the city a base rent of $7,012.69 per month, plus applicable taxes and annual adjustments. Rent begins in the 25th month after the lease's effective date.
The initial lease term runs for approximately 40 years from the rent commencement date, with an option for one additional 10-year renewal. The hotel operator will also be responsible for construction, maintenance, utilities, insurance, taxes and other property-related expenses.
Dambeck said construction is expected to begin in the first quarter of 2027, with completion targeted for 2028.