Giant Washington Square project begins downtown Monday

TaMaryn Waters | Tallahassee Democrat

Beginning Monday, a mega-downtown 19-story development will begin its two-and-a-half year journey from dirt to vert.

Site preparation, demolition and excavation work will begin this week for Washington Square. It's another sign of progress downtown.

Washington Square will occupy an entire 1-acre city block on the northeast corner of Calhoun Street behind the Leon County Courthouse. Fairmont Development LLC has spent the last six months refining its design.

There will be sidewalk and minimal road impacts on Jefferson Street between Gadsden and Calhoun streets as needed.

Locals may remember the site as the old Ausley and McMullen law firm. For months, the land has been cleared and waiting for this moment.

The $90-million, mixed-use project excites government and economic development leaders eagerly anticipating the nearly 1,800 jobs it's estimated to pour into the local economy and $67 million in wages when the project is completed by summer of 2020.

It represents an estimated total economic impact of $206.3 million and is one of two massive mixed-use projects simultaneously under construction within less than a mile of each other.

Washington Square is one of the largest new construction projects downtown with more than 575,840 square feet. That includes 84,000 square feet of office space, about three dozen condos and ample garage parking. Restaurants, including one on the roof, and a cafe are planned.

The project's centerpiece is the 19-story Loews Hotel that will reshape Tallahassee's skyline. The luxury hotel's entrance into the capital city hints at what's to come in the near future.

More development. More change.

"To have Loews here," Leon County Administrator Vince Long said, "it's a big deal."

'Why Tallahassee'

Two years ago, Long had a coffee meeting with a billionaire.

He met Jonathan Tisch, co-chairman of the board of Loews Corporation and chairman and CEO of its Loews Hotels subsidiary. They sat down at the Power Plant, an industrial coffee and smoothie cafe at The Edison that's encased by original bricks and history at the city's former electric plant.

Few Loews hotels exist in Florida. Tallahassee will join Miami and Orlando as the only cities to claim the Loews brand.

"Why Tallahassee," Long said he asked Tisch, regarding the company's selection process.

Delighted by what he heard, Long said he was told, "We don't want to be just anywhere. We want to be where the market is ripe for our product."

Loews prefers to enter a market five or so years before it catches economic fire, Tisch told him. Long left the meeting thinking Tallahassee was on the verge.

Walter Hall, principal at Fairmont Development LLC, said Tallahassee is an attractive market for the mixed-use project coming downtown.

"As the capital of the third largest state and a major college town with 72,000 plus students, we believe Tallahassee will continue to grow and prosper like other cities having this similar distinction," he said. "We envision companies currently in states with high taxes will be attracted to the area’s quality of life, highly educated population and local university research facilities."

An economic analysis of the project was done by the Center for Economic Forecasting and Analysis at Florida State and the Tallahassee-Leon County Office of Economic Vitality.

The project will create 1,094 construction-related jobs and 703 permanent jobs, with a $66.9 million total wage pay out, the report said.

"In addition to the employment, income and economic output associated with the project, there is also the accrual of state, local, and federal taxes," the report said. "The one-time fiscal impact associated with the construction of the project is estimated to be nearly $14.8 million. The estimated annual fiscal impact is approximately $10.8 million."

Total taxes expected from the Washington Square project is about $25.5 million for the Tallahassee Metropolitan Service Area.

OEV Director Al Latimer said the project is "huge."

"We look forward to it rising over the next 30 months and them being able to showcase it to not only this community but also those people who will be users of the facility,” he said. "Hopefully, it’s the beginning of a trend of those kinds of brand name hotels locating in the area."

Emerging 18-hour downtown

Potential traffic woes are married to a large-scale project like Washington Square. The price of growing pains.

On Aug. 11, a pedestrian cover will be erected over the county-managed Calhoun Street as added protection for residents and surrounding buildings, Long said.

"With a construction project of this magnitude," he said, "there are lot of things that we need to plan for."

In an email to constitutional and judicial officials, Long alerted them of what's to come and the county's goal of minimizing disruption.

Some businesses, such as the Southern Strategy Group, were miffed this summer by months of construction and lane closures on Adams Street caused by work at DoubleTree by Hilton hotel. The project is a 17th-floor addition that will house a lounge, a restaurant and patio overlooking the city.

From the Washington Square site, cross over Apalchee Parkway and hard-hat crews can be seen working on the Cascades Project.

It's another massive downtown development that guts and transforms two city blocks that were once home to the Firestone and Bloxham Annex buildings.

Related: Cascades developer promises signature project

Soon it may be ground zero for millennial living.

The $150-million, mixed-use project includes new apartments, townhouses, a restaurant and commercial and office space. It also includes the construction of a $30-million AC Hotels by Marriott, a seven-story hotel with more than 5,000 square feet of flexible meeting space.

Tallahassee's AC Hotels site will have 154 rooms, a rooftop bar serving craft beers, signature drinks, tapas and an observation deck overlooking the 24-acre Cascades Park. The Loews hotel boasts 270 rooms.

The Cascades Project is slated to create 2,903 jobs with $117.8 million in income — $353.6 million in overall economic impact.

Washington Square and the Cascades Project are the downtown heavy hitters. Those two, along with the redevelopment of the Envision Credit Union flagship property, represent $648.2 million in overall economic impact.

They're not the only ones changing the face of downtown and helping to create an 18-hour downtown.

The Ballard Building is the new headquarters for lobbyist Brian Ballard. His building will include a new upscale restaurant by the owners of Sage, who are maintaining their current location and opening another venue under a different name.

The Jim Moran School of Entrepreneurship, the first of its kind in the nation, is open next door to the Ballard Building. It's changing the way Tallahassee educates future entrepreneurs, which contributes to the local startup ecosystem.

For years, officials chased the 18-hour downtown concept. The city took a few losses, including the closing of Walgreens on Monroe and Tennessee streets and a dormant Kleman Plaza when seasonal condo owners aren't in town for the legislative session.

Tallahassee City Commissioner Curtis Richardson said these major projects are making the 18-hour downtown a reality.

"We are starting to realize that vision,” Richardson said. "We are going to see cranes downtown, and that’s always a good sight on your skyline. That’s always a good sign because it shows the economy is growing."

Loews hotel is considered an exclusive brand, Long said. Residents will soon understand its impact, he added. The hotel will be a convention option that's been on private sector's wish list for years. It will also be another venue option for visitors.

"More and more," he said, "people are going to be really excited."

Contact TaMaryn Waters at tlwaters@tallahassee.com or follow @TaMarynWaters on Twitter.