Sun Sentinel Palm Beach Edition
Water Tower Commons hits snag
Construction yet to begin for phase 1 2017 opening
Construction on Water Tower Commons in Lantana was supposed to be well underway by now.
The first phase of the most significant development in the small town’s history was expected to open by the end of 2017, revitalizing a stretch of Lantana Road, east of Interstate 95, and boosting property values in a mostly working-class suburb that once served as home to the National Enquirer tabloid newspaper.
But the master developer recently scaled back plans for the commercial and residential project, and no buildings have broken ground. The 73 acres on the site of a former tuberculosis hospital remain fenced off to the public.
Mayor Dave Stewart says the delay does not mean Water Tower Commons has lost momentum.
“Even though it seems like nothing is happening, a lot is happening,” Stewart said. “If it takes another year, it takes another year. I’m sure when it’s done it will be a great economic engine for that area. As my wife says, ‘you can’t rush a good thing.’ ”
In 2015, the town approved more than 300,000 square feet of shops, offices and restaurants and up to 1,100 residential units.
But Lantana Development, a partnership that includes Boca Raton-based homebuilder Ken Endelson, told the town in March it was cutting back the commercial space to 209,000 square feet.
Lantana Development indicated that the struggles of brick-and-mortar retailers in an era of online shopping prompted the reduction, according to David Thatcher, Lantana’s town planner.
Mike Langolf, a vice president for the developer who oversees the project, did not return two phone calls and did not respond to an email seeking comment.
In an email last month to Town Manager Deborah Manzo, Langolf said the developer has spent more than $4 million on infrastructure, installed new light poles and moved utilities underground.
Langolf said two national retailers have signed leases and three other leases were nearly complete. He said interest among retailers remains strong, although the only announced tenant so far is a Walmart grocery store.
Stewart said the project is taking longer as Lantana Development works with Palm Beach County on an agreement that will pay for future
upgrades to Lantana Road. And time was lost when the developer asked city officials for variances related to 360 apartments, Stewart said.
The town council denied the variances for parking and open spaces. Stewart said he heard unofficially that Lantana Development may try to revise the apartments and submit another proposal, which could push construction back even more.
Russ Bornstein, a senior vice president for the Colliers International commercial real estate firm in Boca Raton, said the project has the potential to fill a retail niche and attract patrons from West Palm Beach and Delray Beach.
“It’s easy-on, easy-off,” Bornstein said, referring to I-95. “It’ll draw from 10 miles north and 10 miles south because they can be there in 10 minutes.”
But Alan Bush, a retail Dave Stewart, consultant in West Palm Beach, said the delay is concerning, given that shopping center developers are scrambling to get financing from lenders and commitments from large retailers as the industry changes dramatically.
Retailing giants Sears, Macy’s and JCPenney are closing hundreds of stores, while hhgregg and Sports Authority have gone out of business.
“It’s pretty clear what the future is of brick-andmortar retail,” Bush said. “The long-term prognosis for malls is not rosy.”
Meanwhile, Lantana residents are frustrated by the lack of construction.
Rob Schwartz, who lives in the Moorings condominium complex on Dixie Highway, said he expected the development to bring upscale shops and restaurants to Lantana, similar to what Renaissance Commons on Congress Avenue did for Boynton Beach.
Schwartz said he and his neighbors were counting on Water Tower Commons to improve the town’s image, but they’re not sure when or if it will happen.
“The developer needs to level with the residents and the town and tell us what’s really going on,” Schwartz said, “There’s been nothing.”