The Daphne City Council unanimously approved an ordinance to bring in a luxury hotel to the Old Towne area of the city.
The Fortuna Hotel will be a 68-room boutique hotel on Daphne Avenue, across from the U.S. Post Office.
"It's a high-end development," Daphne Mayor Robin LeJeune explained. "It's a $30-something million dollar boutique, high-end hotel. So, it brings in a high-end clientele to shop in our retail and be part of showing what Daphne and our Olde Towne Daphne can be. We want to show off Daphne, and this is a great way to do it."
LeJeune told 1819 News the city will offer up to $8 million in tax abatements as part of an economic development initiative. Each year, the city will receive 25% of the tax revenue, and the developer, 68 Ventures, will receive 75%, for up to 25 years.
"So, they have to be successful for them to get the $8 million in tax abatements. It's a 75/25 split between the city and the group," LeJeune said. "The cap is $8 million. So, if they are very successful and they have enough sales tax to get it done before the 25-year cap, and they get the $8 million done off that 75/25 split, then it stops. Then if they don't make the $8 million by year 25, then it stops there, too. It is just a normal economic development with tax abatements. There is no money that is flowing from the city to them."
LeJeune said city leaders are looking for ways to bring people to the Olde Towne area. He said the hotel will not compete with other Daphne hotels near the interstate.
"It's great for our Olde Towne," LeJeune said. "We have gotten a $5 million grant to start putting underground utilities in our Olde Towne, and we're looking to do some investment on some additional streetscaping and adding to our Olde Town area to highlight our restaurants and retail. Having a high-end boutique hotel will bring travelers to our Olde Towne area to go to our restaurants, go to our retail and really show off just as an addition."
The hotel will include a 4,500 square-foot upscale dining venue and a custom barn venue.
Groundbreaking on the project is expected to commence in the summer of 2027, and construction is estimated to take two years.
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