A major new project could reshape downtown West Palm Beach—and it’s already raising questions.
🏗️ The Plan
- A 23-story, 400-room hotel next to the convention center, which would be the second convention center hotel
- Estimated cost: $300M+
- Still needs final approval from Palm Beach County commissioners
🤝 How It Works
- County buys the land for $26M
- Leases it back to Related Ross for 99 years
- Structure makes the project tax-exempt
💰 The Payoff
- $4M upfront
- $1.8M/year, increasing by 3% annually
- Extra income tied to hotel performance
- Additional payments to the county for parking
- Potential for $1B+ in total revenue over the lifetime of the deal
⚖️ The Catch
- If taxed normally and not exempt, this could generate ~$6.6M/year in taxes (as compared to the lease payments of ~$1.8M/year)
- Raises questions for critics about tax breaks for private development
📈 Why It Matters
- Doubles hotel capacity to ~800 rooms
- Helps land bigger conventions and events
- Could drive $100M+ in annual visitor spending to Palm Beach County
Bottom line: Big upside for growth, but not everyone agrees on the cost.
