After evaluating the proposals from three development teams, Kissimmee has picked a $272 million plan that would transform an old Kmart shopping center into a place for shops, restaurants and housing.
The decision wasn’t close. After an initial review and rankings, CapStrata was the only developer invited to make an oral presentation on Sept. 2. That meeting solidified the committee’s choice, according to GrowthSpotter.
Led by Capstack CEO Veronica Malolos and apartment developer Burk Hedrick, the team proposed a mixed-use district called Edon Park with 630 mixed-income housing units, about 80,000 square feet of retail, office and dining, a large event lawn, and an indoor sportsplex. The master plan shows a large pond with fountains in the center of the project, flanked by the apartment communities and a park with a bandstand.
“This is all very personal for us,” said Malolos, who emphasized her local connection to the project as a 20-year resident of Osceola County. “We have a very hyperlocal perspective, which means that every thought and every idea that comes to the table for this redevelopment comes from a place of the heart, because it matters to us and to the rest of our team, who are all here from Central Florida, have worked here and have delivered success in our region.”
The plan calls for three apartment communities at the north half of the project, all five stories, with retail and office uses on the southern half and a large pond and civic space in the heart of the project. (Rendering by Cormia Design Group)
Kissimmee’s selection committee scored CapStrata almost 92 out of 100 possible points, and six of the eight members ranked it first over the proposals from Skyview Companies and Wendover Housing Partners.
“I think CapStrata did the best at really focusing on what this community needs over just developing a lot of housing,” said Samia Singleton, the city’s CRA manager. “There was intention and detail towards making sure that there was office space, making sure that there was an athletic center, which was something that we’ve talked about being important in this community, and making sure that this isn’t kind of just somewhere where people will go to sleep at the end of the day, but it’s vibrant throughout the day.”
The plans will go to Kissimmee City Commission next month.
The two factors that set the project above the competition were the purchase price and the proposed sportsplex. The city paid $14 million for the 22-acre Kmart site, and city officials said that any offer for less than the purchase price would be a non-starter. CapStrata offered $15 million, the highest of the three bidders.
The proposed 75,000-square-foot sportsplex is important since the Kissimmee Civic Center is being demolished to make way for a new convention center. Malolos said the team has met with sportsplex operators but expects it to be the final component of the overall program because it will be the most difficult to capitalize.
“It is going to be a challenge,” she confessed. “I mean, we’re not here to put wool over your eyes and say we’ve got it locked down or that we know exactly when it’s going to happen. But it is going to take shape based on how the market responds, how our development actually drives the economy into the region.”
Craig Ustler of Ustler Development will provide pre-development counsel to the project based on his experience as master developer for projects such as Orlando’s Creative Village.
Edon Park would also have a large central park and pavilion with a covered bandstand. Ustler said the developer would establish a separate owners’ association to work alongside the Vine Street CRA to manage the activities at the park.
“The secret sauce of these projects is public space and place management,” he said. “That doesn’t mean it has to be managed by the public, but it has to be open to the public.”
The 5-story apartment buildings at Edon Park would be developed in two phases, with 10% of the units designated as affordable. Hedrick said the income range for those units will be determined during the negotiations with the city.
“Market rate product is in that 100 to 110% (Area Median Income) range, which is the teachers, the firefighters — that $65 to $67,000 annual salary income,” he said. “So we feel that provides a large swath.”
The master plan calls for three phases, with over 600 apartments, 80,000 square feet of retail and office suites and a 75,000-square-foot indoor sports facility that could replace the Kissimmee Civic Center. (Site plan by VHB)
Deputy City Manager Desiree Matthews said the city may need to consider a subsidy to the developer if it wants those units restricted for residents earning less than 80% AMI, but she also noted that the city plans to open a large affordable housing complex next year just down the street with the Haven on Vine.
Hedrick said the apartment buildings will have lots of amenities “ and have all the latest and greatest features.” Each complex will have a pool, activity lawn and co-working space, and they will utilize structured parking and have ground-floor retail. And the entire development would incorporate public art created by local artists.
For the retail element, John Joyce said the team would focus on bringing unique, chef-driven dining concepts, rather than national chains. “So you want to bring in the nice Italian, the nice steakhouse, maybe a nice Asian one,” he said. “And then you bring in your specialties, your cafes, your sandwich shops, things like that, with canopies out over the street so that people can sit outside and enjoy the evening. You don’t want it so massive that it intimidates somebody from walking down. The architecture is just absolutely critical, because you want people to come here as much for the architecture and the experience of seeing that as they are there for the entertainment.”
The plan calls for a 5-year development timeline, though Luis Nieves-Ruiz, economic developer director for the Central Florida Regional Planning Council, called it overly aggressive. “I think that the team is pretty solid. I do have some qualms about the timeline,” he said. “I don’t think it’s realistic, to be honest with you. But considering the second option, I would rather recommend this team.”
Have a tip about Central Florida development? Contact me at lkinsler@GrowthSpotter.com or (407) 420-6261. Follow GrowthSpotter on Facebook and LinkedIn.
