OCALA, FL (352today.com) – The redevelopment agreement between the City of Ocala and the developer of the Hotel Marion, Marion Opportunity Zone Investment I, LLC, is listed as an agenda item under general business for the Ocala City Council meeting scheduled for Nov. 4, 2025.
The redevelopment agreement between the two entities is for the historic Hotel Marion property, located at 108 N. Magnolia Ave., with total incentives not to exceed $2,896,670.
The Hotel Marion is nearly a century old, having been constructed in 1927, and carries the distinction of being listed on the National Register of Historic Places in Oct. 1980.
It’s currently being restored as a 59-room boutique hotel under Hilton’s Tapestry Brand, according to the City of Ocala. The hospitality partner in the project is Ark Hospitality, with the cost being $28.9 million.
It’s expected that the project will be completed in late winter or early spring, in 2026, with the square footage of the project being listed as 46,775 square feet. The proposed city incentive is $2,896,670, with a payback period of five years and with a net present value, five years, $726,959.
The expected revenue impact from the tourist development tax will be 4 percent ad valorem increment; Tax Increment Financing, $87,817; Ocala Electric Utilities $523,978; Ocala Fiber Broadband, $18,000; with a total annual estimated revenue of $738,451.
The partnership between the city and the developer:
- Developer, 90%
- Permits Fees, 0.27%
- Tax Increment Financing, 3.15%
- City Grant, 2.24%
- Property Donation, 4.33%
The .58 acres site’s current value:
- Land Just Value, $501,761
- Buildings, $1,102,757
- Miscellaneous, $5,291
- Total Just Value, $1,609,809
- Total Assessed Value, $1,609.809
- Exemptions, $0
- Total Taxable, $1.609.809
As of Nov. 13, 2023, the building had undergone a complete interior demolition.
The purpose of the agreement for the Hotel Marion, between the City of Ocala and Marion Opportunity Zone Investment I, LLC, is to provide for the redevelopment of a portion of downtown Ocala in accordance with the redevelopment program, so as to improve the quality of environment, enhance the quality of life and the aesthetic and useful enjoyment of the downtown area, promote economic development and investment in the downtown area and further the objectives of the master plan.
The proposed city incentives:
- The Development Cost, $28,966,695
- 10%, $2,896.670
- The Contract Term, 2025-2039
- Community Redevelopment Area Grant, $650,000, to be paid back in five installments
- Tax Increment Financing, $913,210, 12-year TIF, 100%, adjusted based on the value of other confirmed incentives to remain within 10% of the target amount
- Lot 6 conveyance, $1,254,000, if the Right of Reverter is exercised, the value will be paid as a lump sum and or converted to TIF payments, contingent upon extension of the CRA sunset date
- For Contribution, building permit and impact fees, $79,460 reimbursement to the developer
- Total Incentives, $2,896,670
An environmental site assessment was performed by Terracon Consultants, Inc., on the parking lot, Lot 6. between NW 3rd St. and NW 2nd St. for the City of Ocala for an Environmental Protection Agency Brownfields Assessment Grant on March 7, 2024. The 1.16-acre site was developed as a paved parking lot in the early 2000s. However, historical records indicate the site had been developed with residential dwellings in the early 1890s, supported a used car lot from the 1940’s to 1970s, when the site was redeveloped with a commercial building.