Kissimmee City Commissioners voted unanimously Tuesday to begin negotiations with local firm CapStrata for the proposed $272 million redevelopment of the city’s blighted Kmart site.
“I’d like to highlight the great opportunity this is for our city,” Mayor Jackie Espinosa said, according to a report in GrowthSpotter. “When we drive through there and see that area, we certainly are all excited about what’s coming.”
The city bought the 22-acre lot last year to spur development in the Vine Street area, then solicited proposals from developers.
Led by Capstack CEO Veronica Malolos and apartment developer Burk Hedrick, the winning team proposed a mixed-use district called Edon Park over five years 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.
CapStrata was one of three proposals the city received for the redevelopment site, dubbed the “NoVi District” for North of Vine. A selection committee comprising city staff and outside experts ranked CapStrata’s Edon Park concept above the proposals from Skyview Companies and Wendover Housing Partners.
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 was a game changer for the project, especially since the Kissimmee Civic Center is being demolished to make way for a new convention center. Hedrick said the facility would have two stories over podium parking, and it would be designed with a multipurpose arena to accommodate a range of indoor sports and activities.
Malolos told the selection committee that she expects it to be the final component of the overall program because it will be the most difficult to capitalize.
Hedrick said the apartment buildings would be constructed in two phases. 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. The development breakdown is anticipated to be 40% one-bedroom units, 50% two-bedroom units, and 10% three-bedroom units.
“We feel like that’s a good mix for the area and what is needed between families, young professionals and the different demographics that this city has,” Hedrick said.
Rents will be set to accommodate residents earning 80-120% of the area median income. CRA Manager Samia Singleton told commissioners that if they want to designate units specifically for senior citizens or affordable housing, that would be a part of the negotiation for the final development agreement.
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