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.

Waverly and Westmore Downtown Pensacola Development Faces Six-Month Delay Due to Rising Construction Costs

The Waverly and Westmore condominium and apartment development in downtown Pensacola is facing a significant delay of at least six months. This setback is attributed to a sharp increase in construction costs and borrowing rates, as reported by developer John Buzzell of Bearing Point Properties.

Since the initial proposal for the project, construction loan interest rates have doubled, and construction costs have surged by approximately 65%. These economic challenges have forced the developer to reassess the project timeline and budget.

The development will occupy nearly the entire block at the southwest corner of Spring and Garden streets, with plans that have been in the pipeline for more than ten years. The current phase of these plans has taken at least five years to come to fruition.

City Funding and Infrastructure Improvements

As part of the project, the city of Pensacola had agreed to fund up to $1.5 million of an estimated $2.4 million in improvements to Spring Street. These enhancements aim to make the area more pedestrian-friendly and to improve accessibility to a planned 40,000-square-foot grocery store within the development.

However, the funding agreement for these street improvements expired on June 30 because construction had not commenced. To address this issue, Buzzell sought and received a six-month extension from the Pensacola City Council, which approved the request with a unanimous 7-0 vote.

Project Adjustments and Timelines

Despite the delays, Buzzell has indicated that there will be no changes to the number of residential units or the grocery store in the development. However, architectural design changes are under consideration to help bring down overall project costs. Plans for these modifications will soon be presented to the Pensacola Architectural Review Board.

City officials, including Mayor D.C. Reeves, have expressed support for the extension. They emphasize the significance of the streetscape improvements as a collective benefit for the downtown region’s growth and appeal.

The terms of the new agreement stipulate that construction of the residential units must commence by December 30 of this year. The entire Waverly and Westmore project is currently anticipated to be completed by December 30, 2030.

Conclusion

The Waverly and Westmore development aims to transform an integral part of downtown Pensacola but faces challenges amid rising costs and financial pressures. As the developer navigates these obstacles, the anticipated improvements to local infrastructure and the addition of new living spaces continue to hold promise for the future of the area.

Deeper Dive: News & Info About This Topic

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