Margaritaville is still “a go” after months of stalled construction and uncertainty amid rising costs, Melbourne Mayor Paul Alfrey said Monday.
Construction on the Compass Landing by Margaritaville resort, planned for 4.6-acre riverfront site just south of Cherry Street on U.S. 1, has proceeded in fits and starts since it began in late 2022. Work began again in September but stalled again shortly after, leaving some residents wondering whether the project was still moving forward.
Alfrey put those concerns to rest Monday, posting on Facebook that the Jimmy Buffet-themed tourist resort and entertainment complex was still Melbourne-bound.
“The project is still a go!” Alfrey said in the post, blaming the delays on rising interest rates that he said has inflated the costs from a projected $50 million up to between $100 to $120 million.
“The development team has been waiting for interest rates to come down however they really have not,” Alfrey wrote. “Their team is now weighing their option of a couple of outside financing partners to get work back underway.”
It was unclear Monday exactly when construction might resume. Alfrey said in the post that developers had scrapped their previous plan to build the resort in phases, which would have increased costs by up to $5 million.
Developer Harry Mirpuri, who is spearheading the project, was traveling Monday and not immediately available for comment.
So far, the resort’s developers have not requested any rebates or tax assistance from the city, Alfrey said.
“I want to thank the development team for their commitment to the project and our residents for their patience. Once I receive more information I will provide the update as we move forward,” he wrote.
Plans for the tropical-themed Melbourne Margaritaville included a seven-story hotel facing the Indian River Lagoon; a two-story restaurant building with 400 seats; a 221-slip marina; a 14,000-square-foot lawn with stage for concerts and events; a four-level parking garage; and a public boardwalk.
Eric Rogers is a watchdog reporter for FLORIDA TODAY. Contact Rogers at 321-242-3717 or esrogers@floridatoday.com.
