U.S. Army Corps of Engineers lifts permit suspension on Pasco's Cypress Creek Town Center

WESLEY CHAPEL — Cypress Creek Town Center, the regional mall that has been stalled for 18 months over environmental issues, now has the green light to move ahead again.

The U.S. Army Corps of Engineers announced Thursday it had lifted the suspension of the permit for the proposed shopping center at State Road 56 and Interstate 75. The news comes about a month after the developers agreed to pay a $297,000 fine for discharging muddy water into Cypress Creek, a federally protected waterway that feeds into Hillsborough's drinking water supply, and for clearing almost an acre of forested wetland that was supposed to be preserved.

The corps had suspended the permit Feb. 1, 2008.

After issuing the fine, reviewing public comments and hearing developers' plans to prevent further problems, the corps decided that "the modified permit is not contrary to the public interest," according to its news release.

The corps also determined that the project now complies with its regulations and represents the "least environmentally damaging practicable alternative."

The release described the permit changes as "administrative" and "minor." A corps investigation of the muddy discharge determined it was caused by "human error" and not by the project's design. The Southwest Florida Water Management District also said its permits remain valid and no changes were needed.

The proposed mall is being developed by the Cleveland-based Richard E. Jacobs Group and Sierra Properties of Tampa. When completed, it will include 1 million square feet of stores, restaurants and entertainment venues.

A sign on the property advertises a Kohl's and a Super Target coming soon. Initially, the lineup of stores also included Circuit City and Linens-n-Things, which have both filed for bankruptcy, and Justice for Girls, which opened a store at nearby rival The Shops at Wiregrass.

One of the project's contractors, Kearney Construction LLC, is also in bankruptcy and has sued the developers over $1.6 million it says the developers owe for work after changes were put in place to protect Cypress Creek. That case is pending.

Also, the Sierra Club has sued the Army Corps for granting the permit. That case is pending.

"Am I shocked? No," said Denise Layne of the Sierra Club. She was in North Carolina on Thursday and had not yet read the news release or corps documents but had received a call from the group's attorney with the news.

"Let's just say I'm disappointed. This is bigger than just a permit. It's a huge public interest and it's just a shame."

Developers repeatedly have said the mall remains a go and reiterated that Thursday, although the time lapse and a dismal economy are requiring that they essentially start over.

"Since this project has been on hold for a year and a half, we will need to rebid the construction contracts," said Thomas P. Schmitz, vice president and project manager for the Jacobs Group. "We also need to again coordinate our plans with the major retailers that had previously committed to the project. "We have a lot of work to do before we can predict an accurate timeline on the opening, but we remain committed to the project."

During the construction delay from the suspended permit, the Jacobs Group completed $20 million in road improvements for the development, including a 5-mile widening project on State Roads 56 and 54.

In addition, the company said it spent $3 million on a separate 250 acre site in Pasco County to create new wetlands and move 25 gopher tortoises from the mall property.

Developers said when all phases are complete, Cypress Creek Town Center is expected to provide more than 3,800 new full-time jobs, more than 1,000 construction jobs, annual revenue of $6 million for the county and $2.4 million for the Pasco County School District.

Lisa Buie can be reached at buie@sptimes.com or (813) 909-4604.