CLEARWATER - This is the type of downtown news city leaders want to hear.

Now that the city has finished a $10-million project to revitalize Cleveland Street, a local developer has scooped up an acre at the eastern end of downtown with the goal of bringing in new tenants.

Rule Development of Largo a few weeks ago spent $1.2-million for the acre bounded by Cleveland Street, Myrtle Avenue and Park Street. The purchase price was about the same as the assessed value.

That corner now is home to an Avis car rental operation, the Wicker Shack, which sells patio furniture, and two empty buildings.

"We're working with a lot of interested and potential people to put on the land," said Rule Development marketing developer Alexandra Bouyoucas. "Right now, Clearwater is the place to be as a developer.

"Even though things have been a little slow, there's now a lot happening, and we're hoping it turns into another downtown St. Petersburg," she said.

Bouyoucas said she's in preliminary discussions with a number of restaurants, including the Indigo Cafe, Richard's Whole Foods and Panera Bread. Avis and the Wicker Shack are expected to stay.

"There's so much happening. We're pretty excited about that corner," said Rule Development co-owner Louis Leousis, whose partner is Ralph Rugo.

Three nearby condo towers are in development in the downtown area, so Leousis says he doesn't see a problem with luring customers once businesses do set up shop. Further, the developers said the downtown area has a built-in base of government workers and Scientologists who they hope will frequent the potential restaurants.

Leousis says he'll probably have to rehab three of the four buildings. He does not expect to have to rehab the Avis building. He wants to put a restaurant with an outdoor terrace in the 6,000-square-foot building that used to house Fiore's Gourmet.

Construction crews will probably start work by the end of the month, Leousis said. He didn't know when a new business would move in but said "as soon as possible."

Leousis also is working with Dunedin officials to build an upscale 13-unit townhouse development planned for Bayshore Boulevard and Wilson Street.

The Clearwater venture will be Rule Development's first commercial project.

The city recently added new sidewalks, planters and landscaping on a four-block stretch of Cleveland Street from Osceola to Myrtle avenues. City leaders felt that if they invested the money, then it would prove Clearwater is serious about luring new businesses into a tired downtown.

It's starting to work. In addition to Rule Development, Jamba Juice, a chain of smoothie restaurants, opened a shop on the street.

"This is what we hoped for if we made the investment in Cleveland Street," Vice Mayor John Doran said. "We felt the private sector would then step up and invest, too, so I consider this a dividend. Plus, restaurants are always an attractor."

Joseph Leo, whose father sold the property, said Rule Development "looked like a good bunch of guys who will work with the properties and hopefully help generate more money in the downtown district."

Mike Donila can be reached at mdonila@sptimes.com or 727 445-4160.