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Starbucks paves way for growth

By PAUL SWIDER
Published December 30, 2006

ST. PETERSBURG - Those Starbucks people, they really know what they're doing.

The national coffee chain's decision to set up shop on the west end of Central Avenue was right on the mark, said local developer Robert Berman.

He sees the city's west side as an untapped market in desperate need of commercial development, especially along the major thoroughfares.

"That Starbucks is a leading indicator of what is lacking," he said.

But Berman could be a little biased, considering he is working with JMS Group to transform one of Central's many older strip centers. Next year, on the block between 66th Street and Pinellas Way S, they plan to:

- Rehab 14,000 square feet of Central Avenue retail space.

- Build 11,000 square feet of new retail space on First Avenue S, with an additional 14,000 square feet of office condominiums above.

- Anchor the complex with a three-story parking garage in the middle.

"The area calls for something more," Berman said. "The demographic is there. We just have to take care of it."

There are dozens of small storefronts along Central, Berman said, but most of the 1970s-era buildings haven't been upgraded since they were built.

He finds that strange considering Central is a main conduit from upscale beach communities to downtown, and there are plenty of homes with disposable incomes along the way. That, he said, is what Starbucks is after.

"It's the headwaters of the corridor," he said.

City officials find the investment encouraging.

"That whole Central Avenue corridor is underutilized," said Dave Goodwin, director of economic development.

The city's new land development regulations seek to help make such projects more viable, Goodwin said, by creating more flexibility for builders.

Jason Sanchez, with JMS, said they're eager for the opportunity.

"When people leave the beaches, they drive right by this and don't even notice it," said Sanchez, who has had his eye on the parcel for years. "We're hoping to spark something."

Sanchez and Berman compare their project to the Royal Palms Center on Fourth Street at 50th Avenue N or a center in Tampa at Howard and Swann avenues, where shops at street level give way to offices above.

"This is going to be a pretty significant change to the west Central area," Berman said.

The project does not include Cornerstone Bank at 66th Street and Central but does involve the strip just to the west, with Paulo's Pizza and Mad Music.

Not everyone is happy with the change.

"My rent is going to triple," said Rob Porter, owner of Mad Music, which will move a block west next year in anticipation and avoidance of paying $32 a square foot for his present location. "Who can survive that?"

The developers said rents in the area are below market for the traffic and exposure. Rehabbing the property will create a space for businesses that can better embrace the market.

"This is going to be a destination spot," Sanchez said. "And development is contagious in this town."

PROJECT TIME LINE

Central Avenue's makeover

January: The project's first step will be to rehab the exterior of the existing stores, including a change in the streetside parking and the landscaping that fronts Central. Stores will remain open.

About the same time, installation of prefabricated concrete pieces for the garage and new buildings on the back half of the property should begin.

March: The shells of the buildings should be finished. The slabs are pre-engineered, cutting the construction time down to 60 days. Work will shift to finishing interiors and exteriors, including landscaping and access points.

Early 2008: Scheduled opening.

[Last modified December 30, 2006, 06:28:59]