Rendering of the downsized Byrd condominium project.

TAMPA - A $54 million Channel District apartment project, envisioned in 2003 as a pair of 30-story condominium projects before being scaled back and later stalled by a lack of financing, has become the latest casualty of the recession and local real estate downturn.

Clearwater-based Byrd Corp., alerted Port of Tampa officials this week it would forfeit $513,000 in a purchase option agreement for 3.5 acres of land on Garrison Channel between Channelside Bay Plaza and the St. Pete Times Forum, port director Richard Wainio said this morning.

Byrd, in February, had obtained two consecutive six-month purchase options from the Tampa Port Authority for a deal that would have paid the port $10.57 million for the land if the longer option were exercised.

However, there was no guarantee that Byrd was going to be able to obtaining financing, developer Brooks Byrd said earlier this year. Byrd could not be reached for comment this morning.

In an agreement forged with neighboring Harbour Island residents in 2006, Byrd agreed to slash retail space, including a large urban grocery, from 88,000 square feet to 25,000 square feet of mixed retail space. That would have included a coffee shop, a pizza restaurant and a cleaners.

Although the apartment complex was scaled back to five stories, it would have had the 250 apartments, the same number as the originally planned condo towers.

The land is being used as a valet parking lot and the port intends to find another vendor to continue the parking operation, port chief financial officer Mike Macaluso said.

Reporter Ted Jackovics can be reached at (813) 259-7817.