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Stalled Pasco County Mall Project May Get Moving Again

Federal regulators reviewing Wesley Chapel development

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By KEVIN WIATROWSKI | The Tampa Tribune

Published: December 17, 2008

WESLEY CHAPEL - Federal environmental regulators said this week they're considering re-issuing the suspended development permit for Cypress Creek Town Center, where construction was halted in February after repeated Clean Water Act violations.

In the meantime, the mall developers say the 10-month suspension, coupled with the economic downturn, has forced them to renegotiate leases and reconsider their tenant mix. They also will have to rebid construction contracts on the project, said project spokeswoman Deanne Roberts.

The public notice for the re-issued permit was released Tuesday by the Army Corps of Engineers. The revised permit will be open for public comment until Jan. 15.

The Army Corps suspended the development permit for Cypress Creek Town Center Feb. 1 after heavy rains in January caused muddy water to overflow a retention pond and pollute Cypress Creek. The creek forms the western and southern borders of the mall site.

The overflow was the second major failure in the project's stormwater management system in a year, prompting outcry from opponents and a stiff response from regulators.

The corps and the developers are still negotiating penalties for the pollution, said Tom Farrell, an inspector with the corps' Tampa office.

The re-issued permit reflects minor changes in the boundaries of the joint project by the Cleveland-based Richard E. Jacobs Group and Sierra Properties of Tampa. The 502-acre project straddles State Road 56 on the west side of Interstate 75. The boundary changes reflect land the developers have given for road widening and a more accurate assessment of the high-water mark for Cypress Creek.

In the public notice, Army Corps officials said their decision to re-issue the wetland permit will depend on how well the developers convince them the defects that caused the flooding problems have been fixed.

The Army Corps' action comes at a point when Jacobs and Sierra are re-examining the future of their project. Jacobs has lost two of its intended tenants – Circuit City and Linens-n-Things to bankruptcy this year. A third, Justice Just for Girls, opened a store at the competing Shops at Wiregrass in October.

"Since this project has been on hold for nearly a year, we will also need to again coordinate our plans with the major retailers that had previously committed to the project," Roberts said this week.

Roberts said it's too early to know how changes in the broader economy will change the mall's tenant mix.

"The retail industry is in a major state of flux right now, with things changing daily," Roberts said. "So to comment on this now would be premature and speculative."

Reporter Kevin Wiatrowski can be reached at (813) 948-4201.

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