A retail splash
Tenants from the Corporate Center One and Two buildings will have only a short jaunt to International Plaza, the $200–million, 1.26–million–square–foot regional mall that opened in mid–September, anchored by upscale retailers Nordstrom, Neiman Marcus and Lord & Taylor. The fourth and largest anchor, Dillard's, has 240,000 square feet.

When complete, the mall will feature 200 stores and a separate shopping area known as Bay Street at the Plaza, which developer Taubman Centers Inc. (NYSE:TCO), based in Bloomfield Hills, Mich., touts as reminiscent of a village plaza with restaurants and outdoor cafes, fountains, street entertainment and specialty shops.

"The focus of this mall is to be unique in the market," says Bruce Heckman, the firm's vice president of development. "It has to serve the entire metropolitan area as far as Sarasota. The ideal location is Westshore, adjacent to the airport and roads that provide access to the whole region. We will be 85 percent opened by Christmas. It will feel like a full mall by that time."

In addition to a concierge desk, children's play area and valet service, the mall will feature a shuttle bus to the airport. "Our shoppers will be able to monitor their flight status in the mall," Heckman says. "We'll have a high level of customer service." It will also shuttle shoppers and workers to and from HARTline bus stops on Boy Scout Boulevard, its solution to calm a storm that rose just before it opened when it was learned mall officials had declined to offer a bus stop on the mall's grounds.

Many of the restaurants at International Plaza will be "new to the market," Heckman says. They'll include, for example, the Bamboo Club, an upscale restaurant that will offer Pacific Rim cuisine; Kahunaville, a family dining establishment set in a tropical oasis that serves steaks, seafood and pastas; and Profusion, another upscale restaurant that blends the foods of Europe and Asia. For coffee connoisseurs, Hollywood Java and Joffrey's Coffee Company will offer their specialty brews.

Add these new eateries to the Palm Restaurant and Maggiano's Little Italy (see page 4) that opened at West Shore Plaza in the summer, and 2001 will go down as a year that added considerable choice to dining in Westshore.

West Shore Plaza not long ago opened a 150,000–square–foot wing containing a 14–screen AMC theater and the Old Navy store. Owned by Grosvenor International, West Shore Plaza encompasses 1.1 million square feet anchored by Burdines, J.C. Penney, Saks Fifth Avenue and Dillard's. But in anticipation of its new store opening at International Plaza, Dillard's has not renewed its West Shore Plaza lease.

The stores at International Plaza hope to benefit by the mall's proximity to the growing number of passengers that fly through Tampa International Airport. The airport provided service to nearly eight million passengers last year, an increase of 6.8 percent over 1999 and more than double the national growth rate.

Airport expansion
To better accommodate this growth, the Aviation Authority is spending $400 million over five years to modernize its facilities. Renovations are under way at Airside F and a 9,000–square–foot U.S. Airways club and office space is being added, although the future of that airline seems uncertain. The ticketing level at the airport is also under renovation and should be completed at the same time that the new Airside E opens in October 2002. The authority is developing a $10–million, 110,000–square–foot air cargo facility for Federal Express, which expects to add 100 jobs when the building is completed in early 2003.

The grand opening of Tampa Bay 1, a $200–million office and retail center by New York–based Bromley Development at Interstate 275 and North Dale Mabry Highway in Westshore, is less certain. A 300–room Westin Hotels & Resorts is scheduled to open in 2003 and 700,000 square feet of office space topped by 40 condominiums is planned. The retail component is 280,000 square feet. Currently infrastructure work for this project is under way.

"A lot of detail is involved in a development of this size," says Josephine Vitale, senior vice president and managing partner at the Bromley Companies. "An area that had existing utilities and buildings takes more time to develop than a piece of raw land."

Although the project is vast, "all of our plans are finalized and everything has been approved," Vitale says. "We're building the entire project at once." Leasing of office and retail space is under way but "we're not announcing anything yet," says Vitale. "Response to the condominiums is unbelievable. We have a waiting list."

Next door, there are no announcements yet from Morin Development Group as it develops plans for the former headquarters of Walter Industries Inc. Developer Ken Morin opened the 24–screen AMC Entertainment theaters at Anderson Road and the Veterans Expressway two years ago.

That location apparently holds appeal to the BayStar Hotel Group, which recently announced plans to build an 85–room Holiday Inn Express Hotel and Suites at that intersection. Earlier in the year the hotel developer opened the 86–room Hampton Inn near Anderson Road and Waters Avenue.

Just to make sure there's plenty of competition, McKibbon Brothers Inc. is developing a 160–suite, eight–story Residence Inn by Marriott at Cornerstone Plaza in Westshore.

Back to downtown
While Westshore has attracted a significant amount of new development, one company located there has decided to move back to downtown Tampa, after spending seven years in Westshore. Robert Half International relocated its regional office to the SunTrust Financial Centre. The staffing firm includes Accountemps and RHI Management Resources for temporary and full–time professionals for the accounting and finance industries. RHI Consulting handles placement of information technology professionals.

"We realized that more and more of our client base is located downtown," says Steve Wolfe, the firm's regional manager.

Downtown, city officials are working toward developing plans that were unveiled earlier in the year for a cultural arts district downtown along the Hillsborough River. They include a 50,000–square–foot expansion of the Tampa Bay Performing Arts Center, a 183,500–square–foot expansion of the Tampa Museum of Art, a 58,000–square–foot facility for the Tampa Bay History Center and a 56,000–square–foot community arts center. In addition, a 50–unit, five–story residential building would have space on lower levels for galleries and classrooms.

"Arts and cultural facilities have been key ingredients in the revitalization of many downtowns," says James A. Cloar, president of the Tampa Downtown Partnership. "The opening of the Florida International Museum has done great things for downtown St. Petersburg."

Funding the arts development is a question still under study. "The essence of the plan can be achieved on a step–by–step basis," Cloar says.

There was enough funding to develop the Channelside district, however, which is slowly taking over what was once a seedy warehouse district. A decade of development has seen the opening of the Tampa Convention Center, Florida Aquarium, Ice Palace and Marriott Waterside hotel. The Channelside complex, a $49–million, 230,000–square–foot retail and entertainment complex with a nine–screen theater and Tampa's second IMAX theater (the other is at the Museum of Science and Industry), is the most recent addition. It is 50 percent occupied.

"Our popularity is growing by leaps and bounds," says Denise Dasse with CB Richard Ellis, the firm that handles leasing at Channelside. "Tourists and local people are coming here to experience it."

Cruising on
The number of tourists may also grow by leaps and bounds when the Tampa Port Authority completes its fourth cruise terminal, a 100,000–square–foot building that will cost about $23 million, in late 2002. "It's already full with new ships coming," says Port Director George Williamson. "Royal Caribbean is making a strong commitment here."

Royal Caribbean International is bringing its 2,000–passenger Rhapsody of the Seas and the 1,600–passenger Nordic Empress to the port. In addition, Celebrity Cruise Lines Inc. will sail its 1,375–passenger Zenith from the new terminal.

The port handled 200,000 passengers in 1998 and about 500,000 in 2000. "Our most recent numbers show 750,000 passengers in the next year," Williamson says. "The development of Channelside has been a big boost. Now this is truly a destination with restaurants, shops and the Florida Aquarium just minutes away from the cruise terminal."

The maritime industry at the port is also growing. A.R. Savage & Sons Inc. has built a $3–million cargo complex to increase its container traffic. "They're growing their intermodal activity," says Williamson. "Arthur [Savage, president] is a large piece of what is bringing more containers into the port."

Elsewhere at the port, Tampa Juice Company is adding a $921,000, 11,500–square–foot building to allow it to increase its annual juice–handling capability from a million to 2.5 million gallons. The company imports citrus juice from Costa Rica. "Their business is growing with Brazil," Williamson says. "And they're bringing in other juice products from Central and South America."

Other companies have shown interest in placing operations at the port. Tarmac America Inc., a subsidiary of Athens, Greece–based Titan Cement Co., has placed an option to lease land for a cement distribution plant. An affiliate of energy company BP p.l.c. (until recently, BP Amoco p.l.c.) has options to lease 60 acres at the tip of Hooker's Point for Florida's first liquefied natural gas terminal, but it is also considering other locations for this facility.

And Longboat Key developer Murray "Murf" Klauber has set his sights on developing a $239–million hotel and high–tech conference center at the port. Klauber, the founder of the Colony Beach & Tennis Resort on Longboat Key, has submitted plans for a 52–story hotel and 450,000–square–foot convention center.

Additional industrial development is also in the works.

Trammell Crow Company is planning a 33–acre mixed–use development at Port Ybor with waterfront access. The industrial component includes two 102,000–square–foot buildings and a 275,000–square–foot warehouse.

"The main roadway design is under way and we'll let the contract by the first of the year," says Robert Abberger, the firm's managing principal. "We're moving to a building permit for our 36,000–square–foot, two–story office building at the front door of the park. This is a complex infill project that has involved the demolition of existing structures and coordination of design with the Port of Tampa. The port has completed design of wharf improvements on the waterfront to have a new ferry and container dock in place. That project is in excess of $10 million to bring a new back door to Port Ybor. This project requires a little vision and patience, but it's an exciting opportunity for the city and the port to create momentum in this district."

The buildings will come out of the ground as speculative space. "There's a lot of interest in that location," Abberger says. "Our focus is to find users who need to be in the port and have other port–related activities. The Port of Tampa is getting a lot of attention as it transitions from a pure boat operation to more of a consumer goods port."

Another development is planned along the southeast shore of Tampa Bay at Port Sutton. Land development firm DENEB LLC has purchased 314 acres for the proposed Madison Corporate Park that will include 2.5 million square feet of warehouse, office and retail space.

And the Tampa Port Authority is doing site work to add infrastructure on 150 acres at Port Red Wing. "This is a small peninsula at Big Bend," Williamson says. "Most of our property on Hooker's Point is either occupied or under option for lease. It's time to open the next 150 acres for industrial development. This is a beautiful site on deep water. It has strong possibilities for container activity."

Reviving the streetcar
As the port develops industrial sites and builds its cruise ship business, a special type of transportation will soon be available to cruise passengers. The new TECO Line streetcar system will carry riders from downtown Tampa through the Channelside district, with stops at the Marriott Waterside Hotel, the Channelside retail center and port, terminating at Ybor City.

The streetcar system resurrects a historic mode of transportation in the city. Tampa Electric Company ran the original streetcars from the latter part of the 19th Century until 1946. The station in Ybor City will feature a streetcar museum with a vintage streetcar that has been restored to operating condition.

"The system is a $30–million construction project," says Fernando Noriega, the City of Tampa's administrator of development. "We expect it to be operational by first quarter 2002."

The 700 employees at kforce.com probably won't commute using the streetcar system, but they'll expect to be at work in a new Ybor City office building. GTE Federal Credit Union is also building a 220,000–square–foot headquarters for about 350 employees in Ybor City.

And another 90,000 square feet of office space is under development at Ybor Square. Orlando–based ZOM Development purchased the 120–year–old, three–building facility and has invested about $10 million in renovations. "This was one of the first buildings in Ybor City," says Greg West, the firm's vice president of development. "At the time that it was built, it was the largest cigar factory in the world and Ybor City built up around it. On top of the factory building is a cupola where employees at the cigar factory watched for ships coming in to bring tobacco."

Its heyday as a cigar factory over, the historic site was converted to an unsuccessful retail center, and now ZOM is replacing the roof, adding new electrical, plumbing and air conditioning systems for what it believes to be a good place for office space. "Interest from companies has been phenomenal," West says. "We have a lot of letters of intent floating around. We expect the building to fill up quickly."

Ninety percent of the space at the 200,000–square–foot Centro Ybor retail and entertainment complex, which opened last year, is full. "We're very pleased," says Jay Miller, senior vice president at Steiner + Associates, the firm that co–developed the complex with St. Petersburg–based Sembler Company. "Some tenants have the best units in the country with us and a few are struggling, which is typical. We knew we were somewhat ahead of the curve here in Ybor City."

A 12,000–square–foot Urban Outfitters will be the newest store at the center. "It took a long time to put that deal together but it will be the icing on the cake for Centro Ybor in terms of making it a shopping destination," Miller says.

The Muvico theater "has done well but not as well as other locations," says Miller. "Two new [theater] complexes have opened within five minutes to serve the South Tampa market, so it's very competitive. The Muvico is getting respectable numbers, but they're not one of the best in the chain."

Gameworks, on the other hand, is "number one in their chain on a per–square–foot basis," Miller says. "And our restaurants are doing very well. When the city streetcar is up and running next spring it will be just great for Ybor City and the downtown district."

Penet Land Corporation, an Austrian–owned firm, is working to develop its own concept of a retail center in Ybor City. If the $20–million, 170,000–square–foot development moves forward, it will bring a different look to the city's architecture in stark contrast to the Spanish flavor that Centro Ybor developers built upon with the renovation of the historic Centro Español club.

Another new look is coming to Ybor City and downtown Tampa, but in the form of a prototype 21st Century roadway. The Tampa–Hillsborough County Expressway Authority is adding a $315–million, nine–mile span to the Lee Roy Selmon Expressway from downtown to Interstate 75 in Brandon. To improve rush–hour commutes, all traffic on the new toll–road will flow west to downtown Tampa in the morning and east to Brandon in the afternoon.

Brandon, for years considered a bedroom community to Tampa, is quickly becoming a major employment center with companies such as Citicorp Inc., J.P. Morgan Chase, Household Financial Corporation and Progressive Insurance establishing significant regional operations along the I–75 corridor. Progressive has a 1,600–employee customer service center in a facility built three years ago. The Mayfield Village, Ohio–based firm has recently added 130 people.

"This is one of our major call center locations in the U.S.," says Jennifer Cohen, the firm's national employment director. "We operate 24/7 with three shifts."

While Crescent Resources has built Class A office space in Westshore, it has also been developing industrial facilities in Parkway Center at Oak Creek, a 240–acre business park in Riverview. Black & Decker Corporation has recently occupied a 112,000–square–foot saw blade plant in the business park and Graybar Electric Company will soon operate a 208,000–square–foot warehouse at that location.

Another business center in Riverview, Legacy Park, is the site chosen by Home Depot Inc. to establish a 100,000–square–foot customer service center. Home Depot plans to hire 1,000 employees in its new Class A office building.

MiTek Industries Inc. also chose the Brandon area to relocate its manufacturing operation from Miami into a 100,000–square–foot building in Tampa East Industrial Park. The Chesterfield, Mo.–based firm, recently acquired by Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRKa and BRKb), will manufacture connector plates for trusses at this operation. "What is amazing is that something like 90 percent of their workforce relocated to this area," says Bob Dikman of the Dikman Company, the commercial real estate firm that handled the transaction. "They brought in 55 people. But there will be more jobs."

Further east along Interstate 4, Plant City companies are expanding. Albertson's Inc. is expanding its already–massive distribution center and Sav–A–Lot is building a new 320,000–square–foot distribution center. ATCO Rubber Products is expanding its facility by 110,000 square feet and Creative Games International, a Canadian company that prints lottery tickets, has located its North American headquarters in a new facility in Walden Woods.

"Last year we had a growth factor in our population of 4.6 percent," says City Manager Phil Waldron. "This is due to internal growth. There were no major annexations. Our quality of life and availability of land to develop keeps people coming to Plant City."

While those advantages have spurred national companies to place operations in locations throughout Hillsborough County, "we're also concentrating on existing employers," says Robin Ronne at the Committee of 100.

"For the three years from 1997 to 2000, we had over 22,000 net new jobs and 72 percent of those were with existing companies. We had a capital investment of $1.79 billion, 85 percent of that total was by existing companies. The best opportunities for growth come from our existing base of companies. They know our market place and are our best opportunity for new business."