Landmark Center could include hotel

FORT WALTON BEACH, FL — The developers of the largest project in the downtown area are in negotiations with a hotel group to anchor the estimated $24 million venture.

From the beginning, Landmark Center at the intersection of Perry Avenue and U.S. Highway 98 included a mix of retail, office and residential space. While the project was initially designed to include multiple condominium units, developers Ft. Walton Development Partners are in "serious negotiations" with a hotel company that would replace the condos.

Negotiations have gotten so far along with the hotel group that Ft. Walton Development Partners have talked with the Florida Department of Transportation about installing a pull-off area on Perry Avenue. That area would allow people who stay at the hotel to drop off luggage and check in.

"We’re still moving this thing forward," said Bruce Houle, a principal with Ft. Walton Development Partners. "We’ve had some curve balls thrown at us, but this thing probably would have been built already if we could have gotten started in December."

Construction on the project was supposed to start last year, but the original bank pulled its financing and a new agreement had to be reached.

The Fort Walton Beach City Council is expected to discuss amending its original development agreement, approved in 2007, for the project next month. The developers want the original agreement with the city amended so the building and parking garage can be constructed separately.

"The way the agreement was structured, everything was done simultaneously," Houle said. "We just can’t do that in today’s world because of financing."

Houle said the developers are in the process of submitting their permits for the project’s parking garage, which they will likely do in the next 60 days. He hopes to start construction on the parking deck in December.