Is Lakelands Garden District prime for revitalization?
LAKELAND  Lakelands Garden District is experiencing a construction boom, but it may be too soon to know if its the start of a neighborhood renaissance or will fall flat. Theres more construction happening in the subsection of the East Lake Morton Historic District than any other point in the past decade. The Gardens apartment complex is preparing for its east building tenants to move in next month, while a second Lemon Street complex is under construction and a third has been given the greenlight. Lakeland city planners are hoping its a positive sign of long-awaited neighborhood revitalization, but developers question whether the rapid growth is sustainable. We are seeing the market come into alignment with decades of thoughtful planning from our city staff and from our City Commission, said Brian Rewis, Lakeland's interim director of community and economic development. Now this is coming to fruition and the market is able to support it.  Out with the old, in with the new:Historic Orange Street home to move Sunday to make way for apartment complex  Learning to coexist:History sandwiched between the modern: A striking contrast on Lake Avenue  Its hard to miss the three-story grey, yellow and white The Gardens at Lake Avenue and Lime Street, which opened to tenants about two months ago. The 90-unit apartment complex is the first major construction project in the East Lake Morton Historic District since Florida Southern built its student apartments barely a tenth of a mile down the street. Matt Clark, president of Broadway Real Estate Services, which is behind the project, said the western building is fully leased and construction should finish on the building east of Lake Avenue in early July. Clark said interest in the one-bedroom apartments is high. It leased up really fast, he said. The general downtown area remains very attractive to renters.  Developer Jason Lewis has begun construction of a 22-unit apartment complex roughly three blocks away at 923 E. Lemon St. The one-acre site will have five, two-story buildings containing a mix of one- and two-bedroom apartments. The projects estimated cost is more than $2.8 million. Lewis next proposed project will fall within the same half-mile radius. Under CODA Development, Lewis has submitted plans for four, three-story buildings at 721 and 725 E. Orange St. It will be a 32-unit apartment complex equally split between one- and two-bedroom apartments. With two of the complexes constructing three-story buildings, the areas skyline is rising. These developers are among the first to take advantage of citys revamped zoning laws and master plan put in place nearly two decades ago. A little Hyde Park  The vision for the future of Lakelands Garden District was drafted by city staff in 2003, according to Emily Foster, as the citys senior planner for historic preservation. It was loosely modeled off Hyde Park, a historic 19th-century streetcar suburb outside of Tampa that underwent a major revitalization in the 1950s and 60s. Its also a designated historic district and become one of the most sought-after areas to live in Tampa, Foster said. Matthew Lyons, Lakelands chief planner, said the commissioners moved to rezone several city blocks for a unique mix of low and mid-rise buildings for single-family and multifamily use, intermingled with offices and commercial use. What it did was set off real estate speculation around the two, a lot of local investors came in and started buying up property, Lyons said. But not one wanted to be the pioneer and actually build something.  Instead, the housing bubble popped around 2008 at the start of The Great Recession. Construction stalled as the economy floundered, and the city planners' hopes never materialized. Instead, the neighborhood developed a number of derelict and vacant properties. Previously:Lakeland plans new surveys of its seven historic districts  Preserving history:Once a Victorian treasure now a derelict Lakeland home that may get a new lease on life  In 2017, the late Commissioner Edie Yates Henderson was among the first to propose the city consider increasing the Garden Districts maximum building heights from 40 feet to 70 feet, according to Lyons. The commissioner hoped it would lessen restrictions, attracting developers who could get more return on investment by building up. City officials ultimately reached a compromise in January 2019: Multifamily buildings north of Lime Street could reach a maximum height of 60 feet, not to exceed four stories; while buildings south of Lime Street would be limited to 40 feet. Its Location, location  Clark and his team at Broadway Real Estate Services were the first developers to express interest in constructing a multifamily apartment complex within the Garden District in December 2019. What attracted the company to the vacant properties at Lake Avenue and Lime Street was the prime location. Its kind of a nice, quiet neighborhood, Clark said. Its in close general proximity to downtown. People want to be able to live in and walk around the downtown area.  Recent business growth, such as the addition of The Joinery off Lake Mirror, has expanded walkable downtown area, Lyons said. Living in the heart of the city wasnt always considered desirable. Why is Broadway doing this? Foster said. Those apartments are constantly full." Lewis said he feels that Lakeland is evolving, even though he doesnt live in the city, and that the Garden District is a prime redevelopment area. He and his wife own at least 10 units in the surrounding historic district and intend to purchase more. I understand the City of Lakeland is looking for an infill developer to build 20-40 units, also referred to as the missing middle, Lewis wrote in an October letter to the city. I am interested in filling that need in the community...  Challenges ahead  While Clark said his company would love to scoop up properties to develop more apartments, there are issues that could pose hurdles to any interested developer. Anyone who has walked or driven through the citys Garden District can tell you, theres not much vacant land left. Developers face a daunting task of purchasing multiple adjacent single-family homes to combine properties for a larger development. Then they need city approval to demolish the existing buildings if they are contributing historical structures. In todays economy and housing market, even those homes that should be torn down are selling for a pretty penny, Clark said. Because the Garden District is a designated redevelopment area, Lakeland does grant special flexibility to developers to demolish historic houses, particularly if they are deteriorated and abysmal to repair, Foster said. It must be shown the estimated repair costs exceed the propertys current value. Another complicating factor is that the cost of construction materials, particularly lumber, have skyrocketed in recent months. That increases costs for the developer while Lakelands apartment rentals still cant fetch the same rates of a similar unit in Orlando or Tampa, leading to a lower return on investment for builders, Clark said. Developers suggest the City of Lakeland and Lakeland Community Redevelopment Agency could offset the high costs of developing downtown by offering better incentives: waive impact fees, development fees and offer more creative packages to lure builders. We think the area is ripe for more development, its a matter of finding feasible sites to do it on, Clark said. Sara-Megan Walsh can be reached at swalsh@theledger.com or 863-802-7545.