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Dunedin's Gateway project will be built in stages

By Tamara El-Khoury, Times Staff Writer
In print: Saturday, April 12, 2008

This rendering shows the planned $30-million Gateway commercial and office project that developer Pizzuti Solutions want to build at State Road 580 and Main Street in Dunedin. 
	[Pizzuti Solutions]

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DUNEDIN — The developers of the Gateway, a $30-million project with stores and offices, say the sour economy is forcing them to build in stages.

Instead of buying the 4.1-acre parcel from the city all at once, as originally planned, developer Pizzuti Solutions will close on half of the land in September for $1.2-million under a revised contract discussed at Thursday's Dunedin City Commission meeting.

They will then build the first phase of the mixed-use project, planned near the intersection of Main Street and State Road 580, which will include retail and office space and perhaps a gourmet market.

The developers must close on the second parcel no later than the fall of 2011 for $1.65-million. The second phase will also include retail and office space.

"We were working with tenants a few months ago that were very, very interested in the project, but as the market continued to be depressed and go down, they made decisions that the timing wasn't right," said Tom Harmer, senior director of public/private projects for Pizzuti. "We don't want to build an empty building."

Dunedin city commissioners were scheduled to vote on the revised contract Thursday, but city staff asked for more time to refine the agreement. The vote was postponed until the May 15 meeting.

The city bought the land in 2003 for $2.1-million and still owes $1-million on the property.

The revised contract also removes half an acre of land valued at $400,000 from the area Pizzuti was planning to purchase. Instead, the city will keep the land as a future site for affordable or work force housing.

Robert Ironsmith, director of economic housing and development, said the Dunedin Housing Authority pledged $350,000 toward a work force housing project on the site. He said the hope is to also work with the county.

If Pizzuti does not close on the second phase of the project, the city can "seek legal remedies" against Pizzuti, according to a memo written by City Manager Robert DiSpirito to commissioners.

In the memo, DiSpirito said he and city staff expect that the project will stay on course. He said the first phase will be a $10-million to $12-million development that will significantly add to the city's tax base and act as a catalyst for the eastern part of downtown.

"Taking a historic perspective, this area has seen little private investment in the last 20 years," he wrote.

City commissioners praised the architectural design of the project and unanimously approved the preliminary site plan.

"I can't help but think we're the envy of a lot of communities around here to be even having this discussion of a project of this quality and caliber," said Commissioner Julie Scales.

Tamara El-Khoury can be reached at (727)445-4181 or tel-khoury@sptimes.com.