Tourist Council opposes giving $30M in grants for marketing Westin project in Cocoa Beach

Members of the Brevard County Tourist Development Council on Wednesday signaled their opposition to a proposal from Driftwood Capital, which is seeking $30 million in county grants.

The grants — up to $1 million a year for 30 years — would be used to market the company's planned 502-room, six-story Westin Cocoa Beach Resort and Spa, as well as its adjacent conference center. The marketing effort also would promote Cocoa Beach and the Space Coast as an attractive destination for conventions and conferences.

The nine-member council — which is an advisory board to the Brevard County Commission — took no formal vote at its meeting, after a nearly two-hour discussion.

But most members indicated they didn't like Driftwood's proposal, under which up to $30 million of the money it generates from the county's 5% tourist development tax on its room rentals over a 30-year period would be used to market Driftwood's Cocoa Beach development off State Road A1A.

TDC members said $30 million is too much for the grant, 30 years is too long a time frame, and the Space Coast Office of Tourism's marketing team — and not Driftwood — should be the entity to oversee any marketing efforts.

Tourist Development Council member Giles Malone put forth an alternative proposal under which Driftwood would receive up to $500,000 a year for seven years for marketing its project — a total of $3.5 million. And the Office of Tourism staff would oversee that marketing.

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But Driftwood asked that a vote on Malone's proposal be delayed to give the company time to study that proposal and other alternatives and to answer any additional questions that come up from the Tourist Development Council or the County Commission. So the TDC tabled such action until its next meeting in July.

This is an artist rendering of a king guest room at the planned Westin Cocoa Beach Resort and Spa.
This is an artist rendering of a king guest room at the planned Westin Cocoa Beach Resort and Spa.

Several members of the public also spoke against the proposed $30 million grant, including hotel owner Bob Baugher; former Space Coast Office of Tourism Executive Director Eric Garvey, who now is chief operating officer in Baugher's company; and Sandra Sullivan, a Republican candidate for Brevard County Commission in District 4.

Cocoa Beach Mayor Ben Malik spoke in favor of the Driftwood proposal.

This is an artist rendering of the lobby of the Westin Cocoa Beach Resort and Spa.
This is an artist rendering of the lobby of the Westin Cocoa Beach Resort and Spa.

Driftwood proposes tearing down the current 502-room, two-story International Palms Resort it owns off State Road A1A in Cocoa Beach, and replacing it with an upscale 800,000-square-foot resort hotel and conference center, featuring 11 food and beverage venues, a spa, three swimming pools, a fitness center, multiple retail locations, and a multistory parking garage to accommodate about 800 vehicles,

The complex also will include about 50,000 square feet of indoor conference space and about 70,000 square feet of outdoor conference space.

Glenn Wasserman, chief financial officer of Driftwood Capital, estimates the project will cost $388 million.

This is an artist rendering of what the U-shaped Westin Cocoa Beach Resort and Spa and its conference center would look like in an aerial view
This is an artist rendering of what the U-shaped Westin Cocoa Beach Resort and Spa and its conference center would look like in an aerial view

Wasserman led the presentation of his company's proposal. He was joined at the meeting by a high-power contingent that included other members of Driftwood's management, a vice president of Westin parent Marriott International, officials of consultant C.H. Johnson Consulting Inc., former Brevard County Attorney Scott Knox, attorney and lobbyist Kendall Moore, and former Brevard County Commissioner Robin Fisher.

After the meeting, Wasserman said he was pleased that the Tourist Development Council members indicated support for the Westin project in general — even if they didn't endorse the $30 million in grants.

“We are pleased with the outcome of today’s presentation at the Tourism Development Council," Wasserman said. "All of the council members, in one way or another, acknowledged that the project is transformational in nature and therefore merits financial support from the county, which we view as a positive step forward."

In reality, not every TDC member indicated he or she was ready to support grant funding for Driftwood in any form.

Baugher — who is an owner or partner in four hotels in the Cocoa Beach/Cape Canaveral area, with more under construction or planned — said he doesn't think Driftwood is justified in seeking the grant.

"I don't see any reason to fund the richest guys in the room," Baugher said, referring to Driftwood.

Tourist Development Council Chairman Tom Hermansen — a hotelier who is a partner in five hotels in the Cocoa Beach/Cape Canaveral area — said he does not see the Driftwood request as "a justified use of public funds."

And Tourist Development Council member Julie Braga, a hotel general manager, said giving the money to Driftwood "opens a Pandora's box," with other hotel developers potentially seeking similar grants in the future.

But Wasserman said potential investors in the Westin project have qualms about the cost of developing the Cocoa Beach project, in relation to the number of guest rooms, and are looking for an indication of county support for the project. So, Wasserman added, if Westin does not get the grants it is seeking, the scope of the project may have to scaled back.

Driftwood officials were planning to make a presentation about the project to county commissioners at the County Commission zoning meeting on Thursday night. But they said they would not ask for formal action until July, after the County Commission returns from its June recess and after the Tourist Development Council meets again to discuss the matter.

Regardless of what the Tourist Development Council does, it is an advisory board, and the County Commission, with a majority vote, can override the TDC's recommendation.

Dave Berman is business editor at FLORIDA TODAY. Contact Berman at dberman@floridatoday.com. Twitter: @bydaveberman.

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This article originally appeared on Florida Today: Brevard County Tourist Council opposes $30M grant for Westin project

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