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1675-2 New Hotels mh94 BEACH HOTEL PLAN HAILED AS MAJOR BOOST FOR BLACKS 08/01/1994 THE MIAMI HERALD Copyright (c) 1994, The Miami Herald DATE: Monday, August 1, 1994 EDITION: FINAL SECTION: LOCAL PAGE: 1B LENGTH: 56 lines ILLUSTRATION: photo: H. T. SMITH, Peter CALIN with Marvin Holloway and Eugene Ford, Plan of the HOTEL (Large) SOURCE/CREDIT LINE: PETER WHORISKEY Herald Staff Writer MEMO: see end of text for cutlines BEACH HOTEL PLAN HAILED AS MAJOR BOOST FOR BLACKS The building is as much a monument as a hotel. The Sheraton Suites project, now being planned for South Beach, represents the most tangible memory of Dade's grueling black tourism boycott. The hotel will be developed and owned by a corporation led by four black businessmen, four friends who responded to an offer of up to $10 million in city incentives. The money fulfills a promise to African Americans that led to the boycott settlement last year. "This project is right out of the vision that we who led the boycott had back in 1990, " said H.T. Smith, one of the movement's leaders. "It has the potential to bring the Greater Miami area from worst to first as a tourist destination for people of African-American descent." The 265-room project, according to Smith and others, would be the only major U.S. hotel owned primarily by African Americans. Its closest competitor in that regard is a hotel at Howard University that has less than 100 rooms. "This will put Miami on the map in a way that no other city in America is, " Smith said. The city and the developers, HCF Group, Inc. , led by Jerry Bailey, Peter Calin, Marvin Holloway and Eugene Ford, are negotiating the nature and terms of the city investment. Miami Beach City Manager Roger Carlton said the city would recover its money in many ways: in direct payments, in increased tax revenues and intangibles like job creation and the promotion of social causes. The promise of investment in an African-American hotel in Miami Beach represented a key concession in the settlement of the three-year boycott. Miami Beach Mayor Seymour Gelber led settlement efforts by offering a medallion to Nelson Mandela. The hotel inducement represents the tangible backup to that gesture. The total value of the project, including land, is about $37 million. It proposes the preservation of the Royal Palm and Shorecrest hotels, and the construction of a 16-story tower behind the Shorecrest. The project would preserve the lobbies and reconfigure the old rooms into suites. The Shorecrest would have 18, the Royal Palm 54 and the tower 193. The project fits into the most recent wave of South Beach regeneration. Four derelict hotels -- the St. Moritz, the Royal Palm, the Shorecrest and the Bancroft -- now constitute a beachside blight on the 1500 block of Collins Avenue. But two other recent proposals call for the restoration of the St. Moritz and the Bancroft. The Sheraton project would complete the row. "The facade of the tower is meant to relate to the two historic buildings, " said architect Kobi Karp, of the design by VOA Associates and Lane Pettigrew Wood Karp. "The area is coming back all at once."