LAKELAND — Publix Super Markets Inc. has proposed plans to build its technology campus in downtown Lakeland, bringing hundreds of new job to the area. To do so, it wants permission to level a building and pave a parking lot.
The Lakeland-based grocery chain has come back to Lakeland commissioners seeking to demolish the former Florida Citrus Mutual building at 411 E. Orange St. and asking for a conditional-use permit to use it as a surface parking lot. Publix has said the lot would be used by "hundreds of new employees" coming downtown as it plans to invest upward of $50 million into creating the company's new technology hub.
"Surface parking is not the highest and best use in a downtown. We know that. We have gone through a lot of steps, we have a Catalyst plan and we are looking at that," said Jason Willey, the city's assistant director of economic development and manager of strategic projects, to commissioners at Friday's agenda study. "But really this is a remarkable opportunity."
Publix first approached the city with a request to pave the 2.42-acre site, transforming an entire city block into a parking lot in April 2022. It didn't receive resounding approval.
Publix circles back around
In April 2022, Chastain Skillman, a Lakeland-based civil engineering firm, first approached the city on behalf of Publix seeking permission to demolish the existing 19,000-square-foot, two-story building at Orange Street and Massachusetts Avenue.
Chuck Barmby, the city's planning and transportation manager, said Publix claimed the building is too costly to maintain. It's the same reasonFlorida Citrus Mutual gave for selling its headquarters to Publix for $3.1 millionin November 2016.
Publix has never occupied the building, Willey said. It's been sitting vacant.
Commissioners and the Lakeland Downtown Development Authority's board had concerns about demolishing the 80-year-old building in favor of surface parking. It's the opposite of direction economic leaders were envisioning. The city was selling other surface level lots, like Oak Street parking, to developers as sites for future multi-story residential and mixed-use developments.
"We don't want to pave parking lots away in other parts of downtown then add one in a very strategic location between City Hall and Lake Morton," Barmby said to commissioners in June 2022.
City staff recommended Publix's request to pave a parking lot be approved with a list of seven conditions. One was Publix would have to submit plans to the city within five years explaining how it planned to further develop the site, or in the alternative, offer its own analysis of why it needed the parking spaces.
City commissioners were expected to vote on the issues in August 2022, when Publix suddenly requested it be postponed.
Is there 'faith' in Publix?
Willey said city staff has learned more about what Publix envisions for its technology hub in downtown Lakeland over the past year, which appears to be changing minds.
"When this original request was considered by staff, we had a general knowledge of the need for parking in the area," he said. "I think it's really recently over this period of continuance of the last year we've learned about the expanded needs for the applicant's needs in downtown at this site."
Publix closed on the purchase of the former FedEx building at 333 E. Lemon St. in January, Willey said. This gives it another building to become part of its IT campus downtown.
Steve Scruggs, president of the Lakeland Economic Development Council, said Publix plans to renovate the former JC Penny building that it occupies at 321 S. Kentucky Ave. and the former FedEx building in a "Catapult-y" fashion. The buildings are 120,000- and 140,000-square feet, respectively.
Publix has taken FedEx's portion of the Orange Street Parking Garage, which is located catty-corner to the office buildings. It has all 700 spaces leased for its employees, but it's not enough.
Scruggs said Publix plans on adding "hundreds of high-skill, high-wage jobs" with an average annual salary of $130,000. That's more than 250% of the Polk County annual average wage.
"We have never announced hundreds of jobs at $130,000 a year," he said. "Never happened. Never had 250% of Polk County's average wage ever happen."
Based on these promised investments, Willey said city staff is strongly recommending the commission approve Publix's request to create a surface parking lot with no required timeline for future development on the site.
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"We have have faith in the project and the organization, in the development and growth of downtown, that while we don't love the surface parking, this will not always be a surface parking lot. So we don't see the value of that condition at this point," Willey said.
Scruggs said if Publix's plans come to fruition, it will significantly increase the taxable property values in downtown, benefitting the city, Lakeland Community Redevelopment Agency and Lakeland Downtown Development Authority. By the time the company finishes its proposed expansion, Scruggs said he expects it will have development plans to build on 411 E. Orange St.
"It's not in their best interest to have surface parking as well," he said.
What's next?
The city will hold the first reading of a proposed conditional-use permit for Publix at Monday's commission meeting. It still contains a provision that a minimum 4,000-square-foot pedestrian plaza must be built at the northwest corner of the site, improved landscaping and storm water drainage on the East Orange Street site.
"It's exciting when you envision what downtown can become," Commissioner Chad McLeod said. "It’s significant capital investment."
A public hearing will be held tentatively at the Aug. 21 commission meeting where anyone can comment on Publix's proposed plans before commissioners vote.
Sara-Megan Walsh can be reached at swalsh@theledger.com or 863-802-7545. Follow on Twitter @SaraWalshFl.
