EAST TAMPA - Nearly a dozen banks said no to Sarasota developers seeking a loan to transform a blighted commercial corner off Interstate 4.

'Everybody said, 'What a great project. We see the vision, but you know we don't like the area,'' said Kalu Watanabe, senior partner for Rand Development Group.

MacDill Federal Credit Union finally said yes, Watanabe said, agreeing to invest nearly $10 million to remodel the Milner Hotel and build a restaurant and possibly a five-story hotel. He said Rand has a contract to buy the property, 2708 50th St.

Watanabe estimates as many as 100 jobs will be created, including hotel maids, laundry workers and landscapers. Construction jobs will also be available.

To supplement the investment and spruce up surrounding corridors, the developers are asking the East Tampa Community Revitalization Partnership to earmark $1 million in local property taxes. The money, likely spread over more than one fiscal year, would be used for such items as landscaping and streetlights. It also would help in buying three nearby homes, which would make way for green space.

A tall monument, with a clock and a Welcome to East Tampa sign, is proposed for the I-4 right of way.

The property taxes are collected within the community redevelopment area bordered by interstates 4 and 275, Hillsborough Avenue and the city limits. The partnership works with the city on East Tampa redevelopment and recommends annual budgets, which are approved by the city council in its role as the Community Redevelopment Agency.

The partnership's executive board will consider the request in August. Residents, including Highland Pines Neighborhood Association members, also will be consulted.

The project was unveiled Tuesday at the partnership's monthly meeting and met with general favor.

'I'm excited,' Highland Pines President Betty Bell said.

Partnership Chairman Sam Kinsey said the project might prompt traffic concerns.

'The neighborhood will have to be assured there is not going to be any negative impact,' he said.

The initial investment of $2.5 million will revamp the Milner Hotel and replace it with a Quality Inn & Suites, with an estimated opening in January, Watanabe said.

The developers want to attract a chain restaurant. An additional $7.5 million would build a second hotel if the Quality Inn is successful.

'If this hotel fails, there is no second hotel,' Watanabe said.

He said the opportunity in the area is strong, particularly with the I-4 widening and the proximity of the Ford Amphitheatre and Seminole Hard Rock Hotel & Casino.

Reporter Kathy Steele can be reached at (813) 835-2103 or ksteele@tampatrib.com.