Six months after suing the city of Naples, an Aspen-based developer agreed to settle, paving the way for a luxury mixed-use project featuring condominiums, boutique retailers and restaurants that will serve as a gateway to downtown.
The settlement with Fifth Avenue South Holdings LP, which plans to extend upscale Fifth Avenue South’s shopping district to historic Tin City on Naples Bay, came during a June 19 City Council executive session. Key terms involve forgoing big-box retailers, including Whole Foods Market and Restoration Hardware, and eliminating underground parking.
When announcing the settlement, Mayor Teresa Heitmann called Andrew Penev, head of development for M Development and its affiliate, Fifth Avenue South Holdings, a “crucial property owner.”
“That lawsuit could have gone on … for years and years and that property could have become stagnant and an eyesore,” Heitmann said before the unanimous vote. “Thank you for coming into our community and respecting what we see as a vision.”
The 4.32-acre site consists of vacant, nonconforming buildings and lots damaged by Hurricane Ian, from the former St. George & the Dragon restaurant site at 936 Fifth Ave. S., through the 1,000 block—properties purchased from the Hoffmann Family of Cos. for $43.5 million in 2021. The mayor called the settlement a “true partnership” that reduces intensity, improves traffic, and allows alleyways and rights of way to be used for public utilities and a tree-covered pedestrian shopping walkway.
Fifty luxury condominiums, with ground-floor parking, will sit atop shops and restaurants in the commercial portion, which will be reduced from 126,000 square feet to 75,000.
Councilman Ray Christman said plans still must be approved, but “traffic impacts on the city and that whole area around Four Corners … will be considerably less.”
The project, designed by Naples architect Matthew Kragh of MHK Architecture and New York City-based Morris Adjmi Architects, covers the restaurant site, 1010, 1050 and 1074 Fifth Ave. S.; 590 11th St. S.; 975 and 1041 Sixth Ave. S.
M Development sued in December, three months after Council voted to halt all underground-garage plans due to flooding concerns after Hurricane Ian. The lawsuit called it an illegal moratorium that prevented administrative staff approvals, including its plans.
The lawsuit alleged that in March 2023, when Council enacted an ordinance, Naples began searching for ways to delay or halt the project. But it was preempted by Senate Bill 250, which became law June 28, 2023. The bill, intended to expedite hurricane redevelopment work, prohibits municipalities from imposing stricter standards until October 2026.
It then searched for “other ways to kill the project,” and when a planner “was poised to approve” its site-plan in August 2023, the city manager and city attorney were “forced to comply.” The delays cost M Development more than $40,000 monthly and without underground parking, costs would reach $1 million.
“Through constructive and collaborative efforts, we have established terms that secure the project’s promising future while preserving the cherished character of our town,” Penev said. “Our shared vision with the city is to enhance Naples’ unique charm and lifestyle, delivering a project that aligns with this ethos.”
Other terms require Naples to cooperate in good faith with the alternative applications, build a parking garage in the southwest corner for commercial uses and establish a master association to uphold maintenance and standards.
