MELBOURNE, Fla. – It appears interest rates are to blame for holding up the development of the Space Coast’s first Margaritaville. That’s the claim from Mayor Paul Alfrey.
Compass Landing by Margaritaville, which will bring the chain resort, restaurant, and riverwalk to Melbourne, has been in the works for several years. On Monday, Alfrey posted on social media that while the project is still a go, it’s experiencing massive cost escalation. Originally the project was estimated to cost $50 million. Costs are now expected to be approximately $100 million to $120 million.
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“The development team has been waiting for interest rates to come down. However, they really have not,” said Alfrey. “Their team is now weighing their option of a couple of outside financing partners to get work back underway.”
Melbourne City Council members first approved bringing the Jimmy Buffett-themed Margaritaville complex to life in May 2022. According to the original plans, the hotel - located on South Harbor City Boulevard - will feature 146 rooms, multiple restaurants, a panoramic rooftop bar, and a pool area with a tiki bar. The stage area and connecting lawn, spanning about 14,000 square feet, will also be built to accommodate local entertainment and about 1,000 people.
Alfrey added that he will provide updates as the project moves forward.
Casey Runte from Melbourne said he thinks the project will be great for the city.
“I think that it helps revitalize an area that greatly needs it,” he said. “It takes an unused, vacant lot that was previously a waterfront restaurant and marina and makes it a serviceable marina.”
Runte also thinks boaters would enjoy using the marina to dine at the resort. Some other residents have expressed their worries about traffic and an influx of tourists to the city.
Runte said he wasn’t concerned.
“I think Mayor Alfrey has done a wonderful job building the Melbourne community, building up areas that have had crime and homelessness issues, which this is one of them, and make them a safer, more beautiful part of our town,” he said.
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