Candy-cane dreams: Could the historic Gulfstream Hotel finally sell in December?

Holiday wishes could come true for Lake Worth Beach residents hoping to see the historic Gulfstream Hotel reopened and restored to its former grandeur.

In mid-December, the hotel and vacant land at 1 Lake Ave. are expected finally to transfer from CDS International of Delray Beach to Restoration St. Louis, a firm specializing in historic restoration.

The sale will consist of the land and a separate entity awarded rights to restore and expand the hotel, according to Amy Gill, chief executive of Restoration St. Louis. These rights include money incentives and entitlements that allow for renovation of the hotel and construction of a hotel addition.

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Restoration of the Old Florida landmark could begin immediately after the closing, with completion of the hotel slated to take about 15 months, Gill said. The hotel would be done first, followed by the additional portion.

Financing issues have delayed the project's redo for the past three years, but Gill said all funding is in place now.

Final details delayed Gulfstream Hotel's sale in October

Although a sale had been expected to take place in October, Gill said a final detail needed to be completed before the purchase could be completed. That detail involves submission of an updated plat that establishes new entrances and exits and utility easements for the site. The plat also separates the hotel property and the hotel addition into separate parcels.

The Lake Worth Beach City Commission is expected to vote on the plat redo Dec. 5, according to Lauren Bennett, director of the city's leisure services department. Once that vote clears, Gill said her company can complete the purchase "and we're off to the races," she said.

Still, Gill hedged on whether a closing will definitely take place on Dec. 12 as planned.

"Now it's getting everybody to the table at the same time," Gill said.

Regardless, preliminary construction documents already have been submitted to the city, and its staff has reviewed them and made comments, Gill said. This means that when the final documents are submitted soon after the sale closes, approval should be swift.

If the sale takes place as planned, a formal building permit should be filed by year-end, with a groundbreaking expected to take place in early 2024.

Once the sale closes, work could begin immediately on the hotel's water and sewer lines, Gill said.

A fresh start for Old Florida landmark property that dates back almost a century

The sale would mark a new start for the aged property, which opened in 1925 and was added to the National Register of Historic Places in 1983.

In 2005, the waterview property across from the Intracoastal Waterway and Bryant Park closed its doors, marking a blow to the downtown district. The Gulfstream is the only hotel option for tourists in downtown Lake Worth Beach and potentially could be a major economic boost to nearby businesses.

In 2014, a group tied to CDS International paid $7.2 million for the hotel. CDS is a company owned by vitamin kingpin Carl DeSantis, who died in August at age 84.

Solid plans for a redo of the hotel finally began to take shape in August 2019 when Restoration St. Louis became involved in the venture.

CDS found Restoration St. Louis, led by the husband-and-wife team of Amrit and Amy Gill, after a search for a company skilled in historic preservation. The St. Louis-based company has renovated more than 400 historic properties, primarily in the Midwest.

In 2020, the Gills said they planned to buy the property from CDS. But then the coronavirus pandemic dried up construction financing, and the Gills never completed the purchase.

Instead, in March 2021, Restoration St. Louis and CDS Holdings announced they were entering into a joint venture agreement to reopen the hotel, with CDS providing the construction financing.

Under this latest arrangement, the property once again is a sale, with CDS still providing some construction financing.

Incentives from the city sweetened Gulfstream Hotel project

To help sweeten the deal, Lake Worth Beach City Commission approved economic incentives for the project. This includes a 10-year tax abatement on the historic hotel, believed by some to be worth in excess of $10 million.

Restoration St. Louis said an expansion of the hotel also was necessary to make the project financially feasible.

This led to city approval of a 165,000-square-foot annex that would be built on the six parcels west of the hotel and feature an additional 50 hotel rooms, plus 85 apartments and a parking garage in an eight-story building.

The annex also would include a restaurant, rooftop pool, banquet room, salon and gym.

The entire project is expected to cost $135 million, with the historic restoration alone costing $45 million to $50 million.

Alexandra Clough is a business writer and columnist at The Palm Beach Post. You can reach her at aclough@pbpost.com. Twitter: @acloughpbp. Help support our journalism. Subscribe today.

This article originally appeared on Palm Beach Post: In Lake Worth Beach, Old Florida Gulfstream Hotel could be restored