Proscenium's secret? Momentum

Three years ago, Sarasota was flush with real estate projects that promised to bring an abundance of well-heeled residents, upscale retail choices and new entertainment venues.

The waterfront Sarasota Bayside project slated to replace the Sarasota Quay, as well as the greatly expanded Bank of America tower downtown and the Pineapple Square development, among others, would generate millions of dollars in new tax revenue each year.

Just as importantly, taken together the developments -- collectively valued at more than $2 billion -- would allow the city to achieve the urban potential many have long believed possible.

Today, though, amid a worldwide credit crunch, a historic U.S. housing downturn and statewide budget tightening, only one major commercial real estate endeavor in Sarasota shows any momentum: A sleeper with an odd name that was not even conceived when some of the other development giants here were planning to sprout.

The Proscenium's forward progress appears to be one of the key reasons a trio of city leaders sloughed off traffic concerns and stiff-armed a state development of regional impact analysis of the nearly $1 billion project on Monday.

"We're really at significant risk downtown," Commissioner Ken Shelin said, in voting in favor of the project.

In endorsing Proscenium's plan to form a special hospitality district that avoids lengthy state review, commissioners recognize that Proscenium has -- at least for now -- staved off the economic inertia that has stalled other real estate projects.

It is the same reason they voted to tap a new set of traffic rules that ignore existing standards, and will result in Proscenium paying just $7.8 million of the $43 million in road improvements a city traffic consultant recommends.

Money is a driving factor. With fewer tax dollars flowing into city coffers, Sarasota leaders are scrambling to find revenue.

In that regard, commissioners are viewing Proscenium -- to be anchored by a Waldorf-Astoria Hotel and a Nederlander Worldwide performing arts hall -- as a sort of white knight for the moribund local real estate market, and with good reason.

If it receives final approvals and financing, Proscenium will provide some 5,000 construction jobs. When completed in 2011, it would generate nearly $3 million in annual property taxes from office space and 211 condominiums and more windfall from a bevy of restaurants and retail shops.

"It's vitally important we consider all this, instead of trying to bury every great idea because we don't have it all set," said Commissioner Fredd Atkins.

But not everyone is thrilled.

"I have a lot of concerns about this," Commissioner Richard Clapp said in voting against the project on Monday. "It's a really good-looking project, but the devil's in the details."

Proscenium developer Lion's Gate Development Group Inc. contends that the market's poor performance may be an asset.

"Our timing is probably good to the extent that the soft market is helping us," said Gary Moyer, Lion's Gate president. "Because the city is probably more sensitive to economic concerns than they were two to three years ago."

Other major, mixed-use real estate projects have not been as lucky.

Irish American Management Services' $1 billion plan for the former Sarasota Quay has been mired by a reliance on condos and by design revisions.

Pineapple Square, meanwhile, has struggled to land residential buyers for its property at Lemon Avenue and State Street.

At the same time, the planned Bank of America expansion, with a 17-story hotel, condos and revamped office space, has also fallen victim to the area's downtown.

But Proscenium, which first surfaced in January 2007, remains viable.

"The key to whatever success we've had, so far, have been our end users," Moyer said. "We're talking about a couple of jewels with Waldorf-Astoria and Nederlander."

He remains convinced, too, that time is on Proscenium's side.

"The best time to start a commercial real estate project is right now," Moyer said. "Most projects begin when the market is hot. But really, you should do just the opposite: Start in the trough, so that you're completed and come on line when the market begins to pick up. We believe we'll have product available when no one else will."

To that end, Moyer says more announcements could be forthcoming in the months ahead, including a business that could rival the buzz that initially surrounded Waldorf-Astoria.

He declined to offer more details.

"We could have one hell of a surprise."