News Summary
The Waverly and Westmore condominium and apartment development in downtown Pensacola is facing a six-month delay due to a sharp increase in construction costs and borrowing rates. Developer John Buzzell noted that construction loan interest rates have doubled and costs have surged by approximately 65%. Despite these challenges, the number of residential units and the grocery store remain unchanged. A six-month extension from the city will allow construction to potentially commence by December. The entire project aims to enhance the downtown area, projecting completion by December 2030.
Waverly and Westmore Development Faces Delay Amid Rising Costs
The Waverly and Westmore condo and apartment development project in downtown Pensacola is facing a significant setback, with a delay of at least six months attributed to escalating construction costs. This decision impacts the timelines of what has been a long-awaited initiative for the area.
Developer John Buzzell from Bearing Point Properties has disclosed that the financial landscape for the project has changed dramatically since its inception. Over the last few years, the interest rates on construction loans have doubled, while overall construction costs have risen by 65%. These economic pressures have necessitated a reassessment of the project’s schedule.
Project Background and Location
The Waverly and Westmore project occupies a prime location at the southwest corner of Spring and Garden streets, utilizing nearly the entire block. Although development plans have been on the table for over ten years, the current project has been actively under consideration for at least five years, marking a lengthy journey toward realization.
In 2023, Pensacola made a commitment to fund a significant portion of the infrastructure improvements associated with the project. This funding agreement committed the city to contribute up to $1.5 million of an estimated $2.4 million earmarked for enhancements to Spring Street. These improvements are designed to make the area more pedestrian-friendly and facilitate access to a planned 40,000-square-foot grocery store that is a central feature of the development.
Funding Agreement and Extension Approval
Unfortunately, the agreement for funding the street improvements lapsed on June 30, primarily because construction had not yet begun. In light of these developments, the Pensacola City Council responded to Buzzell’s request for an extension, unanimously voting in favor of allowing an additional six months for the project to commence.
Despite the delay, Buzzell has assured stakeholders that the project will remain consistent in its core components. There will be no reductions in the number of residential units or the grocery store planned for the development. However, there are considerations for architectural design changes that may help in alleviating some of the rising project costs. Proposed alterations are expected to be presented to the Pensacola Architectural Review Board in the near future.
City Support and Future Expectations
Mayor D.C. Reeves has expressed his support for the extension, highlighting the importance of the streetscape improvements not just for the project, but as a beneficial addition to the entire downtown area. The new terms of the funding agreement stipulate that construction of residential units must officially begin by December 30 of this year. The expectation is that the entirety of the project will reach completion by December 30, 2030.
As the development moves forward, stakeholders and community members alike are hopeful that the groundbreaking will occur as anticipated, allowing for the realization of a project that promises to enhance the downtown area and provide much-needed residential options along with commercial offerings in Pensacola.
In summary, the Waverly and Westmore development underscores the challenges that developers face in the current economic climate, but with community support and revised timelines, the project may still carve out a prosperous future for residents and visitors to downtown Pensacola.
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Additional Resources
- PNJ: Waverly and Westmore Project Delayed
- Wikipedia: Pensacola
- PNJ: Condos Proposed for East Garden District
- Google Search: Downtown Pensacola development
- PNJ: Top Pensacola News
- Google Scholar: Pensacola development
- PNJ: Downtown Pensacola Apartments Planned
- Encyclopedia Britannica: Florida real estate development
- PNJ: Hawkshaw Project Sold
