By Gaige Davila
The former site of Chaos nightclub is slated to become an entertainment center, with a restaurant and shopping center, after the city gave the building’s owner a notice to demolish the vacant structure.
The City of South Padre Island’s Substandard Review Board found the long-empty building to violate two of the city’s Property Maintenance Codes: that the building had reached its “limit state,” or when a structure becomes unfit for habitation of any kind; and that the roof was defective. Both of the violations fall under the “Unsafe conditions” section of the Property Maintenance Code.
The building’s owner, Mennish Amoyal, said plans to develop the Chaos building into a hotel were unsuccessful and has since shifted to building an “entertainment center” from the structure. The hotel, a $4.3 million, 60,000 square foot project with 77 units, was supposed to be finished by March 2021, according to Texas Department of Licensing and Regulation documents.
Patrick McNulty, mayor of South Padre Island, said during a July 15, 2020, Substandard Structure Review Board (SSRB) meeting that Amoyal did not submit a surety bond or a letter of credit for the Chaos hotel project, which were due on February 7 this year. Amoyal said issues with his bank in acquiring the funds and the city issuing a lien on the building on June 17, 2020, is delaying his ability to proceed with the project.
“We did the plan to do a hotel, and we were serious,” Amoyal said. “I don’t think you can doubt that we were serious, we spent so much money.”
Several times during the meeting council members asked if the project would materialize, saying there needed to be evidence that the long-vacant building will be worked on.
“We want to work with you, but we need some assurances on our end,” South Padre Island Council Member Joe Ricco said.
Amoyal asked the SSRB board to not require him to give a letter of credit, rather offering the city moving the Chaos building lien on another of his buildings. Amoyal said the lien on the Chaos building was preventing him from getting a loan to construct the project.
The SSRB gave Amoyal until September 1, 2020, to come up with a $450,000 surety bond, letter of credit or promissory note for the project, with a $500 fine per day until the surety bond is given, along with . The cost of the note was determined by the demolition’s cost and the cost to raise the foundation, Ricco said during the meeting. The deadline for all plans for the project and the select demolition’s completion is also due on September 1.
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