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Slow sales, more time

The Island View condos get a one-year extension to start construction.

By MIKE DONILA, Times Staff Writer
Published October 19, 2007

A rendering shows the southeast view from Osceola Avenue of the Island View project by Triangle Development Co.
	[Triangle Development Co.]

Construction of the Island View condominium and retail complex on the northern edge of downtown won't begin by the end of the year as initially planned because of slow sales and a slight change to the project's design.

But officials with Triangle Development of Clearwater say sales have steadily picked up and construction will begin by Dec. 31, 2008 - the new deadline the City Council unanimously approved Wednesday night.

Triangle executives asked the council for a one-year extension on their $270-million project, which includes three condo towers, a row of townhomes and about 13,000 square feet of shops and restaurants.

"No one wants to see this finished sooner than I do," said Ron Pollack, chief executive officer for Triangle Development Co.

Island View encompasses 5 acres along Fort Harrison Avenue, Jones Street, Georgia Street and what will eventually be a new Osceola Avenue. It will be built in three phases.

The first phase, an $80-million condo tower, was supposed to start by Dec. 31 and finish by the end of 2009, according to a development agreement the city and builder signed in February.

If Triangle had missed the deadline, it would have had to scrap the project and go through the lengthy permitting and development process again. The builder also would have lost 109 of the currently planned 358 units, according to the 10-year development agreement.

And the city would have lost out on $3-million in streetscape improvements such as sidewalks, landscaping and furniture.

"I think everyone understands the real estate market at present and that it's appropriate to grant some consideration to the developer in light of that condition," council member Paul Gibson said. "It's no secret that the real estate market isn't healthy at this time, and the ultimate objective is that the project get built even if it takes a little longer."

Pollack said the company has sold roughly 40 percent of the first tower's 108 condos and he would like to sell about 60 percent before starting.

"Presales are happening, but they're not happening fast enough to break ground," he said.

However, in the past two months, they've had a "nice spurt" in sales and are now selling about one a week, he said.

Pollack, a member of the Church of Scientology, said Island View is a private project not affiliated with the church. Condos will be sold to both Scientologists and non-Scientologists. Prices for units in the first phase range from $478,000 to $1-million.

The project has been in the works since 2004, when it started out as a small 39-condominium development.

As it grew in 2005, the market could not support the high construction costs, Pollack said. He said builders scrapped the design and reworked the plans to make the condos more affordable.

Many of those changes took place in 2006.

Most recently, construction crews have been completing utility and road work on the site.

Pollack said he's not worried about the slow market because of the city's efforts to revitalize the area with its $10-million Cleveland Street rehab project and the recent success of Water's Edge and Station Square, two other condo towers that are under construction downtown.

Triangle recently tweaked its design plans to build an above-ground garage rather than an underground one, which was another reason Triangle asked for the extension.

The project boasts three 180-foot-tall towers and a three-story retail and residential building. It also will have townhomes, a pool and a walkway that leads into the Intracoastal Waterway.

Mike Donila can be reached at mdonila@sptimes.com or 727 445-4160.

Fast facts

Island View

What: A $270-million project with three 180-foot condo towers, a row of townhomes and 13,000 square feet of shops and restaurants.

Condo prices for Phase 1: $478,000 to $1-million.

New deadline: Construction must start by Dec. 31, 2008.

Overheard: "It's no secret that the real estate market isn't healthy at this time, and the ultimate objective is that the project get built even if it takes a little longer."

Clearwater City Council member Paul Gibson.

[Last modified October 19, 2007, 00:02:01]