Vacant Gateway Lot Gets More Time

Even after an extra six months, Gateway developers still aren't ready to close on the vacant property.

They want more time for figuring out a "project that makes sense" before finalizing its purchase, Tom Harmer, a senior vice president with Pizzuti Builders, told city officials at a city commission meeting Thursday (March 15).

"We want to see it developed the right way," he said.

Nine more months would help, Harmer said. City officials ultimately granted that extension Thursday.

Pizzuti Builders agreed to purchase the Gateway property, a 4.1-acre vacant field across from Mease Dunedin Hospital, in two parts. Pizzuti purchased one part of the property for $1.2 million (and certain land trades) in August 2007 with a 2008 agreement to close on the other part of the property by September 15, 2011, according to city records. That agreement was made to "take into consideration the recession and difficult real estate environment," city documents state.

The economic downturn threw Pizzuti's original 2007 plan for medical offices and retail space on that property off course, Harmer explained to officials Thursday.

"The rates don't support that construction," Harmer said, so achitects must revise the site plan to incorporate uses that the market will support.

Apartments or other multi-family uses are likely to be included, as well as some mixed-use and retail.

"It's almost like a new project," Harmer said.

The city granted Pizzuti its first six-month extension in September. Documents show Harmer planned to come to the commission March 15 and ask for another year, but he backed down to nine months. 

The city planned for proceeds of the completed Gateway sale in next year's budget, according to city documents.

A market study confirming the demand for multi-family use should be complete this month, at which point the company can finish its plan, price out construction and come up with a financial plan, Harmer said in a March 2 letter to city manager Rob DiSpirito.

Both the city and Pizzuti ordered updated appraisals for the Gateway property.

Documents indicate that the parties are shooting to renegotiate a final asking price in roughly three months.