The developer backed out of this hotel and retail proposal at 210 E. Ocean Ave. in Lantana, but the town hopes for a future project there. Rendering provided
Related: Along the Coast: Changing skyline
By Mary Thurwachter
It looked like big changes were coming for Ocean Avenue, Lantana’s main drag and business district.
During a special Town Council workshop on Dec. 8, representatives working with Kenco Communities displayed plans to build a seven-story hotel — with a rooftop pool — and a five-story building with shops, restaurants, a parking garage and its own rooftop pool that would have a water view and be open to the public.
Lantana has a four-story height limit, although it has made some exceptions and council members have said they would be willing to at least consider five stories for the land at 210 E. Ocean Ave.
It encompasses four parcels on the north side of the road owned by sister-and-brother Marsha Stocker and Steven Handelsman. A few single-story shops and restaurants stand across the street and, at the edge of the Intracoastal Waterway, sits the Old Key Lime House, a brightly colored building that is Lantana’s largest business. That popular eating spot exudes the town’s old seaside fishing village vibe.
The Kenco proposal, which brought much interest and excitement, didn’t have that feel, and a few people said so.
Former Council member Ed Shropshire called the planned buildings “a monstrosity” that didn’t hold up to the town’s seaside village identity.
Nevertheless, the proposal, with early renderings that would be subject to change during any future site plan review process, drew mostly favorable support from both the council and the attending residents.
Alex De Angelis of HdA Architects and Valentina Broglia of Urban Design Studio presented the plans.
Developer bows out
But a week after the workshop, on Dec. 15, Nicole Dritz, the town’s development services director, received an email from the developer Kenco saying it was no longer going forward with the plans.
“Unfortunately, we terminated our deal with Mr. Handelsman on Friday and will not be moving forward the project at this time,” it said.
Dritz said after receiving the email that she hoped to schedule a call with the developer “just to see if there were any big red flags.”
“There was definitely a little bit of hesitancy on their part, which is why we originally offered to hold the workshop,” she said, “just to give them a little bit of peace of mind. If I had to speculate wildly, I just think they probably needed to be higher and denser than what we were maybe willing to do.”
She said that the town was “super bummed” that this project would not work out, but is ready to see who else is interested.
“There was a lot of support from the community,” Dritz said, “I really liked the use itself as a hotel, just the idea of bringing people into our downtown. It didn’t work out this time, but thankfully we found out early and we can kind of start to work with anyone else who’s ready.”
Although the developer terminated plans to build a seven-story hotel and five-story mixed-use building, the idea received some positive feedback. Rendering provided
Council members’ reactions
Jesse Rivero, the council’s newest member, admitted he was a little disappointed. “It’s been so long stagnant, the community was hoping for something new and exciting. Time will tell. For now, I’m optimistic,” he said.
“There are other potential buyers,” Mayor Karen Lythgoe said. “And we now know the level of community support. The buyer is the one taking a huge risk in buying an expensive property and in these uncertain economic times, who can blame either side.”
Lythgoe said her understanding is that Kenco wanted another extension and the property has already been off the market for a few months.
Council member Chris Castle said he wasn’t disappointed but that he believes “the project could have made a good impact for the town. I believe more developers will come forward in time and with plans to achieve similar projects.”
Council member Kem Mason said seven stories was not acceptable to many residents from whom he had heard.
Vice Mayor Mark Zeitler said he liked the hotel, restaurants and shops, wished the hotel didn’t have to go seven stories, but understood the economics of why that was in the plans. “Traffic would have been the worst part,” he said, “and it’s already a problem.”
At the Dec. 8 workshop, council members and residents, while interested in seeing more-developed plans, expressed concerns about a seven-story building on property that, for many years, was home to a handful of Key West-style cottages that had fallen into disrepair. Those were demolished in May 2024 and the property was sodded and enclosed with a chain link fence. Many trees were saved and some residents said they would prefer the property remain as is.
Owners now willing to sell
A bright spot for the town, Dritz said, was that it was able to convince the property owners to sell, rather than lease, as has long been their preference.
“Due to the current market conditions, I believe that it became apparent to the owners that it would be difficult at best for a potential developer to redevelop the property and make a reasonable rate of return on their investment under the terms of a lease,” Town Manager Brian Raducci said.
“As a result, I believe that selling the land became a more viable option for all concerned parties,” Raducci said.
“We will continue to communicate our desire for the site and what we envision for the properties going forward to ensure that any potential redevelopment will benefit our entire community.”
A million in fines owed
The Handelsmans still owe significant fines on the property, since the cottages had not been meeting codes for years. The fines, exceeding $1.1 million, “helped to nudge them in the right direction” as far as selling the property, Dritz said.
Dritz said the town has authorization to foreclose on the property. “But I think more than that our end goal is to have something developed there that’s going to kind of spur some economic growth in the downtown. It’s very much less about the fines to us and more about getting a development in there.
“We certainly don’t want the code fines to hinder any type of development effort, but if the owner decides just to sit on the property, then we have some legal action that we can take.”
Islanders’ views
Several Hypoluxo Island residents weighed in on the proposal.
Patricia Towle, who opposed the plan, was concerned about the increase in traffic and said the town should do a study on traffic during peak season before going ahead.
“I live east of the bridge,” she said. “Right now, to get to Dixie Highway, especially in season, takes me maybe 15 minutes. If you put a seven-story structure there, with cars turning in and out, it’s gonna take me a half an hour.”
Michelle Donahue said she was excited about the attention this parcel has attracted and was delighted to learn more about Kenco’s boutique hotel/restaurant proposal. “I’m sure if Kenco is truly interested, they’ll come back around with another offer, or the Handelsmans may find another developer with similar interests. My overall hope is that the entire parcel will remain intact and developed as a single project rather than being subdivided into four separate projects.”
J.J. McDonough said he was happy that the Handelsmans are open and amenable to selling the property. He suggested the town not be so tied to having an “old fishing village vibe” and move on as other communities have. He said Lantana needs to do better self-care.
“We’re so frugally minded that we just can’t see the big picture,” he said.
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