NEW PORT RICHEY — City leaders are looking to strike a deal with developers for the sale and redevelopment of the historic Hacienda Hotel in less than a month.
During a City Council work session on Tuesday, board members were encouraged that negotiations continue between the city and the father-and-son team, Yaakov and Abraham Rosner, who are looking to buy and redevelopment the downtown landmark into a 30-room boutique hotel.
The Rosners have pledged to invest more than $2 million from an Israel-based family foundation to renovate the hotel and have agreed to enter into an agreement that they would preserve the Hacienda's historic nature.
Economic Development Director Mario Iezzoni told the council that city staff is poised to enter into an extensive "due diligence" phase in order to obtain assurances that the Rosners have the capital to complete the project.
The deal is expected to include property tax breaks for the Rosners as the re-opened hotel gains financial tracking. Iezzoni said projections are that the hotel would lose money initially with rooms ranging in price from $70 to $100 a night.
But by its fifth year in operation, a best case scenario estimates up to $2.2-million in revenue, with a net profit of $130,000 as room rates are increased to between $150 and $200 as the hotel becomes a destination point.
City Manager Debbie Manns said a letter of intent could come before the City Council for approval in about three weeks.