Hilton Resort Delays Rezoning Vote Amid City Staff Opposition

The Marco Island City Council voted Tuesday to continue a controversial rezoning of the Hilton Marco Island Beach Resort and Spa to its October 19 meeting, after resort representatives asked for more time to consult further with city staff over the next three weeks.

This followed a strong statement of disapproval by city staff, believing that the proposal, which would double the resort’s room count from 310 to 626, went against the spirit of the city’s comprehensive plan and raised too many questions over traffic safety, environmental impacts, and the future of other resort developments on the island.

Before the plan was withdrawn from the meeting, the council seemed largely mixed on the proposal, with some members expressing that while they felt it was important to support the Hilton as a major business driver in the community, more considerations were needed before they could issue an approval. The council seemed ready to consider postponing the motion before Hilton representatives volunteered a delay to present a more thorough plan before the council next month.

This represents a setback for the project, which the Marco Island Planning Board moved forward in July by a 3-2 vote, despite staff pushback during the meeting on similar grounds.

The rezoning would allow for the Hilton to build a second 150-foot tower on the site, along with a parking garage, a restaurant, and other amenities on the proposed 10.4-acre site at 560 S. Collier Blvd.

Mary Holden, a city planning manager, similarly delivered a strong recommendation during the meeting. The central point of contention was the number of rooms outlined in the Hilton’s plan. Under the city’s current comprehensive plan, properties in the Hilton’s zoning area are allowed only 16 rooms per acre, but the hotel wants four times the permitted density. Holden said that, under the Hilton’s plan, they could subdivide the lot to reach the 626 figure, skirting the city’s zoning rules, which she found concerning.

“This does not comply with our comprehensive plan,” said Holden.

She added that the Hilton’s plan didn’t match the city’s strategic plan, which it adopted in 2019 by the city council, which said that it would prioritize low-density development to maintain a small-town feeling on Marco Island.

Additionally, Holden added, the Hilton wishes to change their zoning from a residential tourist zone to a planned unit development, which she said only qualified for mixed-use developments, which she said she believes the resort doesn’t qualify under.

“We staff are not advocating for the planning board’s approval; we’re advocating for denial. The project does not comply with our comprehensive plan, or land development code, or strategic plan. It does not meet the intent of the PUD,” said Holden.

Following the presentation, Council Vice Chairman Rene Champagne said that he was siding with the staff after hearing such a negative report, though hoped that there could be a resolution with the city.

“I can’t; during my 20 years I’ve lived on this island, I’ve never heard the staff come out with a more negative report than this one,” Champagne said. “One member of the community told me, it’s like they’re trying to put eight pounds of potatoes in a five-pound bag. I have to admit, it does sound like that.”

“But I think it would be foolish as a community if we just took the opportunity to reject something. I think there’s value here that can be salvaged, probably not in this current format. I would recommend and urge that the parties sit down and negotiate how we resolve this,” he added.

Zach Lombardo, a land use and zoning attorney representing Olshan Properties, the hotel owner, said he strongly opposed the staff’s assessment. He noted that the subdivision of the land wasn’t the owner's intent and said they would clarify the language in another draft.

He added that, under the zoning language they have access to, the regulations allow 26 units per acre, not 16.

Lombardo said that, if that was the case, the city’s comprehensive plan was working under an incorrect figure compared to what is published elsewhere.

“We have a fundamental disagreement with staff about the application of the comprehensive plan, because there’s no basis to support this idea that the actual hotel density here is 16 units an acre,” Lombardo said.

They also argued that the regulations cap development at 16 dwelling units, which the Hilton believes hotel rooms do not qualify as. Noting the presence of around 2,000 short-term rental homes on the island, Lombardo said adding a second tower would meet market demand and free up more homes from becoming rental properties to satisfy tourism traffic on the island.

“It’s part of the ecosystem of the island,” said Lombardo. “We’re trying to facilitate a market demand that is demonstrated by the Airbnbs … this is something the site can handle, it’s been planned for appropriately, and you don’t have these limitations inside your code.”

Many members of the public weren’t keen on the resort's potential expansion in its current iteration and shared similar concerns to councilors and staff, citing issues around traffic congestion, the size of the complex, and the belief that it wouldn’t significantly benefit the island or create many jobs for local residents.

“Construction of the hotel won’t go to local construction companies. It won’t create jobs for Marco residents. And where’s the staff going to come from? Not Marco Island. And where are all those new workers going to live? Not on Marco Island. And none of this addresses the additional infrastructure burden on the island,” said Marco Island resident Rick Woodworth. Woodworth elaborated that while he disagreed with the project as it exists, it could be modified into something workable for the community. “There is more work to do here,” he said. “I wouldn’t put a nail in it and kill this, but I don’t think the path of a PUD is the right path for this to take.”

Luigi Carvelli, a resident and owner of multiple restaurants in the plaza across the street from the development, said he would benefit significantly from the additional tourist traffic from the expanded Hilton project, adding that he felt investment in the Hilton would benefit the whole community. Despite that, he also told the city council it should conduct a more in-depth review of the full scope of the expansion.

“I’m asking you to negotiate and find a responsible path to approval,” said Carvelli. “Don’t treat this as a choice between approving everything and approving nothing. Use this opportunity to negotiate the best redevelopment agreement Marco Island can receive.”

The issue will be addressed again at the Monday, October 19 meeting in the Community Room located at 51 Bald Eagle Drive, with the new meeting time scheduled for 1:30 PM.