BY KEVIN MCQUAID

SARASOTA -- A city advisory board Tuesday approved plans for an upscale grocery store and condominiums downtown, one of the final hurdles facing the $55 million development.

In approving the Don M. Casto Organization's plan for residences and a Whole Foods grocery, the city's Community Redevelopment Agency Advisory Board also recommended that Sarasota contribute $6.65 million to the project.

That contribution, which includes $3.36 million in city land and the reimbursement of building fees, ranks among the highest in city history.

Advisory board members chose to focus on the benefits of Casto's project, rather than on the city's financial involvement.

"This is a fabulous project," said CRA advisory board member Lynn Robbins. "I realize the strong impact this is going to make."

The board's 8-0 vote in favor of the project -- one of its members was absent -- represents one of the approvals Casto needs.

Final approval could come Monday, when the City Commission, sitting as the Community Redevelopment Agency, votes on the 171,000-square- foot project.

Casto and partner Zenith Insurance hope to complete the Whole Foods Market Centre, which will be bounded by First Street, Central Avenue, Lemon Avenue and Second Street, by December 2004.

Drew Smith, a Casto executive vice president, said initial designs have been completed and the developer intends to have its financing in place next month.

The city's financial contribution will generate 300 new city-owned parking spaces that Casto will construct in a four-level garage. In all, Casto's building will contain 625 spaces.

The city will give Casto $3.3 million for the parking, which will be developed on what is now a city parking lot.

City officials described Casto's plan as a "catalyst project" for downtown and said Sarasota's contribution will be offset by increased taxes.

The project is expected to generate $3 million in property taxes in the first 20 years after its completion.

"This is one of the most upscale grocery tenants we could probably get in the downtown area," city Downtown Redevelopment Director Karen Hartman said of Whole Foods.

Whole Foods, a Texas-based grocer specializing in organic fare, signed a 20-year lease with Casto in mid- February.

"A lot of cities in this state would like to be in your position," CRA attorney David Cardwell said, citing Orlando's unsuccessful efforts to lure a grocery chain downtown.

Hartman added that Casto's project dovetails with the city's plan to increase parking, residences and retail downtown, key components of Sarasota's Downtown Master Plan 2020.

Casto's project is slated to contain as many as 96 condominiums, which the developer expects to sell for $300,000 to $500,000 each.

City officials acknowledged that the project still must clear several hurdles, including crafting an agreement between Casto and the city for the parking garage. The city is expected to pay a portion of the garage's operating and maintenance costs.

CRA Advisory Board members Dale Parks and Allyn Gallup also chided city officials for the lack of detail in the Casto deal, in light of the city's contribution.

"We're being asked to help substantially," Gallup said.

The city's Development Review Committee, another step in Sarasota's review, is scheduled to consider Casto's plan today during a meeting at 9 a.m. at City Hall. If approved, it will go before the city's Planning Board next month.

Last modified: April 02. 2003 8:36AM

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