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Developers pitch developments near Clearwater amphitheater

Veronica Brezina

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The Clearwater city staff members are favoring one of the three proposals from developers who are vying to transform two key downtown sites into mixed-use concepts that will connect to the future amphitheater. 

On Monday, the council members heard presentations from the three development teams that submitted proposals: Chicago-based GSP Development; Elevate Clearwater, which includes Channelside developer Ken Stoltenberg, the ECI Group, Smart City Group and Solaris; and The Bluffs, which is comprised of New York-based Gotham Organization and The DeNunzio Group, which is a locally based firm that has been involved in a handful of projects in St. Petersburg and Clearwater.   

The groups desire to purchase and/or lease the former City Hall and Harborview sites known as the “bluff properties” that are not utilized and offer unparalleled waterfront views.

City Manager Jon Jennings recommended the council enter a development agreement with The Bluffs. 

The other city staff members agreed with Jennings and ranked The Bluffs’ and Elevate Clearwater’s proposals at the top after hours of hearing the presentations and questioning the teams. GSP Development’s proposal ranked last in discussions. 

However, the Clearwater City Council is expected to select the master development group on Thursday. 

Here’s a look at the proposals and new information brought to light during the presentations: 

Elevate Clearwater 

The team’s proposal includes bringing a handful of mixed-use buildings and new innovative experiences to the downtown core. 

Elevate Clearwater, which consists of Smart City Group, ECI, KD Keller and Solaris, has collectively managed 15,000 multifamily units, 30,000 affordable and workforce housing units, and over 20 hotels and more. 

Ken Stoltenberg, a principal owner of KD Keller Development, said the former City Hall site would have 388 residential units in a 24-story building with over 40,000 square feet of retail and restaurant space. There would also be 14,000 square feet of food and beverage concepts as well as a speakeasy. 

A rendering of the proposed development for the former City Hall site is similar to the Channelside Club, which introduced the first Publix Supermarket in Tampa. The development recently sold for $136 million. Stoltenberg developed the Channelside District and activated other assets in the district over nearly 20 years. 

“It went from a tax base of approximately $37.5 million to over $1 billion. It was generating about $235,000 of revenue to the city of Tampa, it’s now generating over $10 million … we hope to do what we did in the Channelside District for downtown Clearwater,” he said. 

Construction would start by end of 2023 and would be completed in 2025. 

The group said it would pay $15.4 million for the property and would seek incentives. 

The Atlanta-based ECI Group would be the lead developer. 

A rendering of the 200-room hotel. Image: Elevate Clearwater/ City of Clearwater

For the Harborview site, Solaris would develop a music-themed hotel. The 200-key hotel would have a focus on jazz to pay homage to do the Clearwater Jazz Holiday. 

Janelle Branch, an executive at the Clearwater-based The Ring Workspaces, said there will be technology that people can interact with. There would also be a high degree of innovation with a food forest,  solar panels, charging stations and a drone landing pad to prepare for the future of air taxis. 

The group would offer to enter a 65-year-long lease for the site with a 30-year renewal option. The initial lease would yield roughly $23 million to the city. The additional 30 years would yield $34 million. 

The group is also proposing to take $5 million from the city’s CRA funds for parking to build about 200 spaces for retail use. The parking revenue would be split with the city for at least 40 years. 

Parking would be free for the first two hours. 

The Bluffs 

The Bluffs’ proposal includes the development of a 13-story, 150-room hotel with 15,000 square feet of retail and restaurant space for the Harborview site. Meanwhile, the former City Hall site would have two 27-story towers with a combined total of 600 rental units. 

The 13-story hotel would have a boutique conference center, which could hold 1,000 people, a 2,000-square-foot performance center and a rooftop restaurant and beer garden. 

The Harborview site as envisioned by The Bluffs group. Image: The Bluffs/City of Clearwater

The Bluffs group’s introductory letter listed several restaurants and retail partners, including John and Trudy Cooper, Volet Hospitality Group and Sea Dog Brewing Co.  During the presentation, the group also mentioned Green Bench Brewing as a tenant. 

The group said it would also work with the University of South Florida. 

The Bluffs is offering to buy the former City Hall site for $15.4 million and the site and the Harborview Center for $9.3 million. 

Picket said he would be willing to discuss a lease instead of a sale for the Harborview site. 

 

GSP Development

GSP Development is an Illinois-based real estate firm proposing to build a 16,900-square-foot development at the Harborview site with two indoor/outdoor restaurants, pop-up space and high-end retail. 

“This is really an exciting site because it’s the front door to the promenade,” said Larry Debb, president of GSP Development. Alongside the architects, he said there would be a two-story steak restaurant, outdoor bars and an area for a band. He said there would also be a high-end Italian restaurant and pop-up retail that could be anything from a retailer selling ice cream to merchandise for a band that’s playing. 

A rendering of GSP’s complex for the former City Hall site. Images: GSP Development/City of Clearwater

For the former City Hall site, GSP is proposing to build 4,850 square feet of high-end retail and 1,500 square feet of  “free” space that could be used by civic, cultural and non-profit groups. 

He continued to point out the success of the $55 million, luxury condo Apex Clearwater project as a relevant local example of how GSP can transform property.

Debb and city council said he would offer roughly $3.5 million for the sites, which is significantly lower than the appraised value of nearly $17 million. 

“We’re not asking for any help from the city,” Debb said regarding not seeking incentives for the site. He also explained how other developers have “overpaid” for sites and couldn’t sell units. 

The council members also questioned him about possibly incorporating workforce housing. Debb said he can be flexible; however, he envisions that the residents at the upscale apartment complex would be similar to the tenants at Apex Clearwater, where the average resident earns over $100,000. 

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