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'Hyatt Project' nears its start on Clearwater Beach

Developers have paid $2.4-million for permits to build the condo-hotel and public garage.

By MIKE DONILA
Published October 7, 2006

CLEARWATER - Construction could begin soon on a major beach project that includes hundreds of upscale condo-hotel rooms and a 400-space public parking garage.

Mayor Frank Hibbard said developers with Aqualea Resort and Residences - a Hyatt project - paid the city more than $2.4-million Thursday for construction permits.

The fee, which is required under a contract the city has with developers, will help cover stormwater issues and the city's Beach Walk project.

The permits expire within a year once they're acquired. In that time, developers must build the project's foundation.

The city and developers have gone back and forth for more than three years as the project changed hands, trying to work out the details. Initially they were supposed to break ground in March, but earlier this year, current owner of NJR Development asked the city for a nine-month extension, promising to break ground by Dec. 31. At the time, officials with the development said they needed to tweak their construction plans.

If the project doesn't begin by Dec. 31, it would have to be scaled back by 209 rooms, according to an agreement NJR has with Clearwater.

City leaders say this particular project - one of several major developments proposed for busy S Gulfview Boulevard - is especially important because it includes public parking spaces.

By next year, construction crews are going to begin eliminating more than 500 spaces as they make way for Beach Walk, a revitalization initiative that includes walkways, plazas, greenery and fountains.

"We could not go forward with Beach Walk without the Hyatt commencing construction - they go hand in hand," the mayor said.

Residents have publicly questioned whether the resort would ever get off the ground. But other than the initial delay, developers have pretty much been on schedule with their plans, city leaders say.

NJR Development President Neil Rauenhorst bought the rights to what has been dubbed the "Hyatt Project" in February 2005 for $18.5-million.

Where the old Glass House Apartment Hotel and the Beach Place once stood, Rauenhorst plans to build a 150-foot tall building that includes two pools - one on the eighth floor and another on the roof, according to his initial proposal.

The project will take up about 2 acres and include air-conditioned cabanas near the main pool deck, a spa, a poolside grille and a restaurant.

The tower will include 250 condo-hotel rooms and 18 condominiums and the overall project will cost at least $120-million.

Initial plans were to sell the condo-hotels for between $500,000 and $2-million each, and the residences for $2-million to $5.5-million.

The project could take about 30 months, but city leaders say they think it will take only about a year to finish the parking garage.

Rauenhorst did not return calls seeking comment.

David Hooks, whose marketing firm represents the Aqualea Resort and Residences, recently told the St. Petersburg Times that response to the project from buyers "has been pretty good."

He said the company has "sold over $40-million in product," despite a soft market, but Hooks didn't know how many rooms overall were sold.

Hooks could not be reached Thursday.

About the project

WHAT: Aqualea Resort and Residences, a Hyatt project.

WHERE: 301 S Gulfview Blvd., Clearwater

FEATURES: Plans include a 150-foot-tall building with 250 condominium-hotel rooms and 18 condominium residences, and a 400-space public parking garage.

PRICE TAG: Estimated at $120-million.

ON THE WEB: www.hyattclearwater.com

[Last modified October 7, 2006, 06:38:49]