Waverly and Westmore Development Delayed in Downtown Pensacola

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.

Delay of Construction for Downtown Pensacola Development

The much-anticipated Waverly and Westmore condominium and apartment development in downtown Pensacola is facing a setback that will push the project’s timeline back by at least six months. The developer, Bearing Point Properties, has reported that escalating construction costs and rising interest rates have impeded progress on this long-gestating plan.

Financial Challenges Hinder Construction Plans

Newly obtained data shows that the project, which is located on the nearly occupied block at the southwest corner of Spring and Garden streets, has seen construction loan interest rates double and construction costs rise by an alarming 65% since the initial proposal. These financial pressures have forced developers to reassess their plans and timelines.

A Decade in the Making

Plans for this development have been in various stages for over ten years, with its current iteration rolling out over the last five years. In 2023, the city of Pensacola had agreed to allocate funds up to $1.5 million to aid in an estimated total of $2.4 million needed for improvements along Spring Street. These improvements are designed to make the area more pedestrian-friendly and improve accessibility to a planned 40,000-square-foot grocery store that will be part of the development.

Agreement Extensions Required

Despite the plans, the funding agreement for street improvements expired on June 30 following a failure to begin construction. This lapse prompted the Pensacola City Council to grant a six-month extension request from Bearing Point Properties, allowing for further consideration. The extension was approved unanimously with a 7-0 vote, reflecting a strong commitment to see the project through despite mounting challenges.

No Reduction in Housing Units

Developers have indicated that the number of residential units and the grocery store plans will remain unchanged. However, to address the rising costs, architectural modifications will likely be introduced. These changes are expected to be reviewed and presented to the Pensacola Architectural Review Board in the near future, focusing on keeping the project economically feasible without sacrificing quality or design.

Impact on the Community

The Mayor of Pensacola has expressed support for the extension, noting that improving the streetscape is beneficial not just for the development but the downtown area as a whole. The parameters of the newly extended agreement now dictate that construction on residential units must commence by December 30, with overall project completion aimed for December 30, 2030. This timeline offers a clearer picture for prospective residents and businesses alike as they await the development’s eventual rollout.

Conclusions

The Waverly and Westmore development remains a pivotal project for downtown Pensacola, promising a mix of residential living and community amenities. While financial and logistical hurdles have introduced some highly visible delays, stakeholders remain optimistic about revitalizing this part of the city in the coming years. As costs continue to be monitored and modifications made, the focus will be on ensuring that the vision of the development can be realized effectively and sustainably.

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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