Announcement

The City of Kissimmee has issued an unsolicited proposal notification for a public-private partnership (P3) opportunity involving the development of two hotels through a competitive proposal process. The project centers on constructing a 122-room hotel at the Kissimmee Gateway Airport's Airport Business Park and a second hotel within the Downtown Community Redevelopment Area. Proposed deliverables include hotel facilities with amenities such as indoor conference rooms and a dog park, designed to serve both city residents and visitors. The procurement specifically targets private developers interested in submitting competitive proposals for these property developments, with electronic submissions required via email to EconomicDevelopment@kissimmee.gov. The primary submission deadline is February 17, 2025, at 3:00 p.m. local time, with proposals expected to provide comprehensive details about project design, scope, financial capabilities, and potential economic benefits to the city. Evaluation criteria will likely include project feasibility, economic impact, alignment with city development goals, and the developer's demonstrated capacity to execute the proposed hotel projects.

The solicitation does not explicitly specify set-aside designations or restrictions for disadvantaged business enterprises. The proposed project has a substantial total capital requirement of $114,775,964.79, with potential funding sources including the Community Redevelopment Agency (CRA) Pioneer Fund and Tourist Development Tax Dollars. Kissimmee Place Development Group, Inc. has submitted the original unsolicited proposal and is seeking an equity joint venture partner for the development. The project's financial projections indicate a potential net operating income exceeding $21.8 million after ten years, with an estimated resale value of $225.2 million and a projected Internal Rate of Return of 22.96%. The development includes potential future expansion opportunities, such as a 90,300 square foot flight training campus, public conference center, and additional commercial spaces. Lease terms are structured for 49 years with options for three additional 10-year extensions, and the developer will be responsible for 100% capitalization, development, construction, financing, operations, and maintenance.