Daytona Beach CRA pauses Campbell Hotel demolition; asks staff to solicit preservation and redevelopment interest

The Daytona Beach Community Redevelopment Agency on Aug. 20 continued consideration of a resolution to spend $40,268 in Midtown tax-increment funds to contract with Samsula Demolition for demolition and asbestos abatement at 537, 539 and 541 Dr. Mary McLeod Bethune Boulevard, and asked staff to solicit preservation and redevelopment interest before returning with a recommendation.

The item drew public comment from residents who urged preservation of the Campbell Hotel, a property identified in local Black-heritage materials and once home to the Stardust Lounge. Sandy Murphy, a Daytona Beach resident, told the agency the hotel was an important Green Book-era lodging and music venue and urged leaders to explore restoration rather than demolition. "You can't save everything," she said, "but you can hang on to some things that matter."

Why it matters: the site sits in Midtown, a focus of the agency's redevelopment strategy. Officials said they want commerce and housing to animate the block but face competing goals — preserving a culturally significant structure versus removing a fire-damaged, structurally compromised building and preparing the parcels for new development.

Staff and building officials summarized the record. Michelle Tolliver, Midtown project manager, said the city purchased the property on Oct. 16, 2024, presented a structural assessment after discussions at the Midtown Redevelopment Board, and recommended demolition based on that assessment and the building official's review. Glenn R. Kirk, the city's chief building official, said he had inspected the building after a fire and that, based on the structural report and his inspection, his "professional recommendation" was demolition unless an alternative route were pursued. Kirk explained that post-fire testing of masonry would be required and that the building, in its present condition, would likely exceed the 50% substantial-improvement threshold that triggers full code upgrades.

Redevelopment director Ken Thomas described the city's preferred reuse if the site is cleared: ground-floor commercial retail to stimulate activity, with two to three levels of apartments above and an open top deck. Thomas also outlined interim uses if the property is cleared, saying the site would be cleaned, made presentable and programmed for community events including food-truck activations tied to nearby Daisy Stockton Park.

Public commenters and members of the agency pushed staff to explore preservation options before demolition. Kenneth Hunt, who identified himself as a licensed contractor and past president of a historical museum, offered to help the city reach out to restoration firms. Another resident, Pierre Lewis, urged the agency to exhaust economic options for rehabilitation.

Commission debate mixed preservation concerns with urgency about redevelopment. A commissioner presented examples of adaptive reuses elsewhere — citing the Detroit Foundation Hotel and the Kessler Collection's restoration of historic properties — and asked staff to use those leads in outreach. Several commissioners expressed personal attachments to the building and asked whether the city could preserve the Campbell sign or use historic photos in new development.

After discussion, a motion to approve the demolition expenditure was withdrawn. The agency then voted 7–0 to continue the item, with commissioners directing staff to reach out to potential preservation partners and developers and to return with information; members discussed a roughly 90-day window (to Dec. 1) for staff outreach and recruitment. The city manager and redevelopment staff said they would compile recruitment packets and contact firms that specialize in historic rehabilitation as part of that effort. Staff noted that any formal disposal or sale of property under the Community Redevelopment Act would require a public notice period of 30 days.

No formal demolition contract award was made at the meeting. The building official reiterated that demolition remained his professional recommendation based on the structural assessment; staff said they would continue to pursue development options and report back to the agency.

Next steps: staff will contact preservation and redevelopment entities, assemble a packet of opportunities for prospective developers and present findings to the agency; any future transaction would follow CRA notice requirements and applicable building-code and permitting steps.