Vinik unveils billion-dollar vision for downtown Tampa
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Dec 17, 2014

Tampa Bay Lightning Owner Jeff Vinik's billion-dollar development plan is one that could transform a desolate corner of downtown Tampa into a thriving urban neighborhood anchored by a major corporate campus.

Vinik on Wednesday unveiled plans to build nearly 3 million square feet of commercial space on the 25 acres between Amalie Arena and the Selmon Expressway that he has assembled over the last several years.

The development plans, which total $1.07 billion, are backed by Microsoft Founder Bill Gates' Cascade Investment LLC. Vinik's team estimates the project will generate $35 million in annual tax revenue for Hillsborough County.

It's a five- to seven-year project at a minimum, said Jim Shimberg, chief operating officer and general counsel of Strategic Property Partners, the holding company for Vinik's real estate endeavors. Office space accounts for 1.1 million square feet and $357.5 million in development costs - more than a third of the project - and Vinik's team is working to recruit a corporate headquarters to the site. That deal will be key, because it will bring thousands of jobs to the district and drive demand for not only office space, but the hotel, retail and residential components of the plan. The office component of the plan is contingent upon the a commitment from a major tenant, Shimberg said. SPP is working to lure a corporate headquarters to the site.

"There's a couple of prospects in a very early stage we're working with right now," he said. "So we feel pretty optimistic about it, but I don't think we'd build it spec."

Here's how the rest of the plan breaks down:

Channelside Bay Plaza: Plans are still in flux, with the team considering everything from complete teardown to a major renovation, but construction should being in 2015, Shimberg said.

Hotel: 575,000 square feet, $270.7 million

USF buildings: 330,000 square feet, $156.7 million

Residential: 660,000 square feet, $136.1 million

Parking garages: 5,000 spaces; $80 million

Retail: 250,000 square feet; $50 million

District cooling: 50,000 square feet; $20 million

As Vinik's team has said for months, they plan to play up the city's waterfront. The plans, designed by Pittsburgh-based Urban Design Associates, show a public mooring area and a water taxi terminal just off the RiverWalk, south of the hockey arena.

The first phase of the project, to commence as soon as hockey season ends, will be reconfiguring the street grid west of Meridian Avenue. Water Street will be extended northward, to connect with East Cumberland Avenue. East Cumberland will be extended to connect with Meridian.

East Brorein Street, between South Jefferson Street and Channelside Drive, will be closed, as will South Caesar Street.

The University of South Florida Morsani College of Medicine and a medical office building will likely be the first to break ground, Shimberg said, likely in 2016. Vinik's proposed 400-room hotel, at the intersection of Old Water Street and Florida Avenue, could be under construction at the same time.

A flag for the hotel has not yet been selected. A feasibility study is under way to determine the exact mix of hotel rooms, residential units and meeting space.

The construction timeline for the rest of the project will be demand driven, Shimberg said. SPP plans to seek community input on their plans over the next several months, hearing from the public what types of retailers and restaurants and other concepts they would like to see in the district.

"We're laying out the vision, but we're not necessarily saying, 'Here's the pro forma for this building, and we're starting construction on it tomorrow,'" Shimberg said. "It's 'Here's how we think it best lays out.'"