Following a long and very contentious meeting, the Hollywood Commission voted 5-2 to approve a large condominium project on the beach at 1301 South Ocean Drive. The building will be a 30 story sleek structure.
In return for a 99 year lease Hollywood will be able to collect millions of dollars in rent, property taxes and a share of condominium sales. The city will get an expanded park and a new community center on the ocean. Hollywood leaders believe this deal will bring up to $1.4 billion over the next 100 years. The Related Group is the developer of this project.
The deal includes an annual revenue of $2.7 million to $3.3 million. This means tax revenues of $1.9 million to $2.3 million, rent of $297,500 to $400,000 with annual increases built in based on the Consumer Price Index; $180,000 a year from parking fees; $75,000 to $124,000 a year from a restaurant, $67,500 to $95,000 a year from condo resale fees;$226,000 for facilities rental.
Hollywood leaders have said they will collect $35 million based on condos selling for $750 per square foot and a maximum of $55 million based on condos selling for $850 per square foot.
