Domenic D'Angelo is in lease negotiations to take over the recently vacated Pacific Wave space at 211 2nd St. S. in St. Petersburg. He closed his fine-dining Italian restaurant, Gratzzi, last month after nine years in BayWalk.

"Problems in BayWalk are not insurmountable," D'Angelo says. "BayWalk's problems stem from a perception that it is unsafe, and the management company has done nothing to overcome those perceptions. It will be easy to rectify, but it will take time."

A self-described optimist, D'Angelo explains how devastating this August and September were for business in the dining and entertainment complex, citing check averages three years of around $35 and this August of a mere $20. "It got to the point that the next step would have been to sell my house."

D'Angelo feels that the smaller, cozier Pacific Wave space may suit the times better--his aim is to continue with Italian fare at the new Gratzzi, but to make it more affordable and casual.

"Fine dining is not in vogue anymore, so we're going to scale it back a little. Unfortunately, in a bad economy, restaurants are the first to feel it and the last industry to really come back afterward."

Assuming lease negotiations go smoothly, D'Angelo aims to open Gratzzi before the holidays after some renovation work.