PANAMA CITY — The deal to turn Tan Fannies into a hotel has officially fallen through.
Hybrid Development, the company interested in turning the Tan Fannies property into a 75-room hotel, 20 condominiums and three retail shops, has decided to develop a property in Mexico Beach for roughly the same price, according to the developers, Tim Gehrman and Nadina Beavers.
The Mexico Beach property is located southeast of Tyndall Air Force Base, between the entrance to Crooked Island beach and the Mexico Beach city limits, and sits on the Gulf of Mexico. It is three acres, instead of the less than half-acre for Tan Fannies, which Hybrid Development had been working on a contract with the property owner for $2 million. Tan Fannies owner Joyce Cox wanted $1.99 million for her land and had not accepted an offer of $1.7 million, Beavers said.
Beavers also said Cox was arguing for $1.99 million under the auspices of a cabaret license worth $500,000. Beavers said the license does not exist.
Cox could not be reached for comment Friday.
The planned hotel for Mexico Beach includes 100 rooms, 35 condos, six retail outlets and a 3,000-square-foot spa. Wyndham Hotel Group will manage the condos and Aimbridge Hospitality will manage the hotel.
Beavers said the property at Tan Fannies was appraised for $590,000.
“It’s a shame. I had a great relationship with City Manager Jeff Brown and (city planner) Mike Lane.
“Rob Rosner (St. Andrews Community Redevelopment Agency program director), I wish that guy was on my team,” Beavers said. “But nothing in St. Andrews is coming to fruition until Tan Fannies is gone.”