Boutique hotel in downtown Dunedin still a go despite financing struggles
By Henry Queen
Tampa Bay Business Journal
Published: Oct 11, 2024

Joe Kokolakis has reimagined plans for a downtown Dunedin mixed-use project at a site known as the Gateway property.

Dunedin commissioners on Oct. 3 voted to nix the old development agreement with Kokolakis after he requested the change. He previously planned to build a 90-unit residential building, a 79-key hotel and a 17,000 square-foot food hall at the corner of Milwaukee Avenue, Main Street and Skinner Boulevard.

High interest rates were among the factors that made that plan unfeasible. Kokolakis — a longtime Dunedin resident — still wants to advance a mixed-use development with a boutique hotel. Exact project specifications are not clear.

As part of the project's changes, Kokolakis donated a small part of the site for a public park that will be named after his father, John Kokolakis.

Gateway Dunedin LLC, controlled by Kokolakis, first entered into the old development agreement in 2020. The new version of the project isn't expected to enter into another development agreement but will go through a site plan review.

The city is confident in Kokolakis' vision. Downtown Dunedin is generally bustling, but the eastern portion is lacking activation.

"This will really make the east end of downtown shine," said Bob Ironsmith, Dunedin's director of economic and housing development.

Several proposals at this site have fizzled out over the years. Ironsmith first negotiated the city's purchase of the parcels 20 years ago.

Ironsmith said Kokolakis has proven himself with his other projects in Dunedin. Kokolakis was also behind Victoria Place apartments on Main Street and Artisan Apartments on Douglas Avenue — two of downtown's signature mixed-use projects. In addition to his work as a developer, Kokolakis also owns a general contracting company with major clients across the Tampa Bay region and the country.

City commissioners on Oct. 3 waived a $5,000 termination fee despite staff recommending against doing so. Kokolakis expressed frustration with the staff recommendation considering the fact that he donated the land, covered the closing costs and already paid a $2,500 fee for modifying the old agreement. He also spoke about challenges in coordinating with the city on parking issues at his other properties.

A second reading of the development agreement's termination will occur on Nov. 7.