FAA Lease Approval Clears Way for Hotel at Venice Airport
VENICE — The Federal Aviation Administration approved a 75-year lease between a Michigan-based developer and the Venice Municipal Airport that would allow construction of a 130-room hotel on the 12.4-acre former circus arena site.
"We were pretty far outside of the box on the FAA standard term," Venice Airport Manager Mark Cervasio said of the lease. "They look for 30 years, no more than 50, but we got 75.
"That's a big deal."
Cervasio received a letter on Aug. 2 from the FAA, indicating their approval of the lease terms.
The lease, which still must be approved by the Venice City Council, would allow JCRE Development, led by commercial real estate agent Kent Jacoby, to build the first hotel within Venice city limits since 1997.
Jacoby and JCRE Development are seeking to build a 130-room, three-story hotel, 8,500-square-foot village restaurant and brewery, and two medical office buildings on the site.
One of those office buildings would be a single story and house about 32,000 square feet of space. The second, smaller building would be two stories and house about 25,000 square feet of space.
The proposed $27 million complex will be named Ringling Bros. Memorial Park, in honor of the circus heritage in Venice.
The parcel is at 1401 Ringling Drive. Jacoby, who could not be reached for comment Thursday evening, previously said via email that the group wants to make the site into a new gateway to the island of Venice.
Virginia Haley, president of Visit Sarasota County, said the proposed hotel will fill a void in the city.
"For many years, we've got some really cute small mom and pops (hotels) on the island, but what's missing is a traditional hotel," Haley said. "And it's something that people want.
"They want to be right on the island and get a bicycle rental and go exploring the beaches and downtown — it's great new."
Development of the former circus arena site into an income-generating business is key to the financial well-being of the Venice Municipal Airport.
The airport lost a major revenue stream in 2013 when the city purchased the beachfront property under Sharky's on the Pier for $2.2 million.
Cervasio said that once the lease is in full effect, it will generate $312,000 annually.
As part of the deal with JCRE, the city will not collect any rent on the property until a certificate of occupancy is issued on the first building, or 24 months has passed — whichever comes first.
At that time, the airport will collect one-third of the rent. After the next year, two-thirds of the rent will be collected, and the following year — year five of the lease, it will collect the full $312,000.
Cervasio noted that the airport is operating at a surplus, but not a huge one. It also typically does not undertake new projects unless it has received a grant to underwrite construction.
"This will give the airport a much greater surplus each year, and we'll be able to do some more stuff — maybe without a grant."
The rental rate, using FAA guidelines, is 8 percent of the fair market value of the land, as determined by an appraiser.
In July, Bass & Associates appraised the land at $3.9 million.
The rent will be adjusted every five years, based on the Consumer Price Index, and based on a reappraisal of the land after 30 years and again after 60 years.
One casualty of the proposal is Tito Gaona's Flying Trapeze Academy, which has been operating on a portion of the property on a month-to-month lease.
Cervasio talked with Gaona Friday.
"We'll work with them to give them as much time as possible," Cervasio said.
The trapeze academy is highly visible to motorists traveling U.S. 41 Business. Cervasio said that it is possible Gaona could move his trapeze school to a portion of the Venice Airport Festival Grounds, but he did not know whether that site, which is not visible from the road, would suit Gaona's needs.
Cervasio hopes to get the airport lease placed on the agenda for the Venice City Council's next meeting on Aug. 27.
Jacoby had previously said it could take 24 to 36 months to build the complex.
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