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Beachwalk Margaritaville developer scraps lagoon-side restaurants despite talks with 100 candidates

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A rendering of Beachwalk's crystal lagoon.
A rendering of Beachwalk's crystal lagoon. (Pebb Enterprises)

Margaritaville Beachwalk has abandoned an ambitious plan to create a dining hub alongside its blue lagoon — and will instead build short-term stay cottages.

The pivot was revealed during a tense Board of County Commissioners hearing Tuesday on the cottages proposal, which eventually passed by a 3-2 vote.

“We had initially planned to bring restaurants to accompany the hotel, surrounding restaurants around the lagoon,” Falcone Group COO Alfonso Costa Jr. told the board. “We’ve been attempting that for years. It’s humbling to say that, unfortunately, we were not able to perform and execute on that business plan.”

Falcone Group partnered with PEBB Enterprises to form Beachwalk Retail LLC. The entity purchased land from Beachwalk’s master developer and is overseeing the Margaritaville project.

Costa said the restaurant vision failed to materialize despite talks with “more than 100 restaurateurs.”

Diagram of Beachwalk's marketplace.
A diagram showing the location of four restaurants that the developer has since scrapped due to lack of demand. (Pebb Enterprises)

Fysh Bar & Grill and Whiskey Joe’s were touted as potential tenants way back in 2021 — but both of those deals fell through.

Instead, Beachwalk Retail LLC asked the board to allow 68 short-term stay cottages with up to five bedrooms each.

The units would be managed by the Margaritaville Hotel and would not be advertised on AirBnB or VRBO, representatives said.

But a parade of Beachwalk residents voiced their opposition, worrying that the pastel-colored units would introduce hard-partying transients to the otherwise tranquil residential area.

“It was supposed to be a very walkable area of retail and restaurants that we, the residents were all going to access and enjoy,” resident Claire Karp said.

Yellow and blue two-story homes.
The planned Beachwalk Margaritavilla cottages are similar in design to these Margaritaville cottages in Orlando.

In asking the board to deny the application, she said “larger groups of transient residents tend to disregard noise ordinances or management rules” and that “we are not a party community.”

Objectors also chafed at the notion that cottage residents would be given access to their amenities — including the lagoon.

“We have not come to an agreement on the ability to access the lagoon,” Costa said when pressed on the issue by Commissioner Krista Joseph. “So as of right now, we do not intend, or we do not have the ability to access the lagoon based on the current business plan.”

Project representative Ellen Avery-Smith of law firm Rogers Towers said the cottages can’t be occupied by the same person or group for more than three consecutive months.

Rendering of Beachwalk's marketplace.
Rendering of the original planned retail hub in Beachwalk. (Pebb Enterprises)

She told the board the hotel management company will oversee security, cleaning, trash management, deliveries and landscaping.

Developers argued that the cottage plan is preferable to the likely alternative — another big box store looming over Beachwalk.

“It’s kind of offensive that we’re being accused of not trying to find something compatible with the neighborhood,” BRL official Evan Rosenblatt said. “Instead of looking at the back of another Walmart across the lagoon, these are hotel cottages that are very compatible and comparable to the exact architecture of the houses that surround the lagoon.”

The final vote was 3-2, with commissioners Henry Dean, Roy Alamo and Christian Whitehurst approving the plan.

Sara Arnold and Krista Joseph voted thumbs down.

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5 Responses

  1. I’m just wondering what the draw to stay at a “extended stay cottage” on 210 would be without the lagoon never minded without restaurants? The only thing that comes to mind is some kind of low income temporary housing or some sort of half way house. Why would anyone pay to stay there? I guess maybe people that will visit the residents, but 150 rooms I don’t see it. Will section 8 be accepted? Will there be any checks on citizenship? If the current conditions the owner keeps the property are any indication my suspicions are probably correct, a garbage dump for old trucks and a truck stop. It sounds like the owner is desperate and who knows why the zoning board approved it. Will soon find out.

  2. Completely agreed. This is a failing proposition. St Johns County is not a resort environment. I live in Beachwalk and would take a big box store over this proposal anytime with appropriate buffer between the store and the lagoon. HomeGoods anyone? The developer did not do due diligence when they formed their business plan. We were sold a lie. I got brochure where we were promised parks, restaurants, shopping like in a town center setting.
    Even with no access to the lagoon temporary guests of the temporary housing community will cause us damages. Proper security and accessibility of the lagoon is crucial. This developer failed us and failed his own plan.

  3. “ We have not come to an agreement on the ability to access the lagoon,”…. This was also said for the apartment tenets, which was quickly voided. Easy way to say we will be giving them access, but to get this to pass or behove those that are new to the lies “we aren’t sure”.. All said and done, as mentioned with many failed attempts.. this is probably the best option at keeping the lagoon at the local resort feel… being so close to 4-6 busy road that is.

  4. Look at the three voting in favor! These are the reason SJC is being over developed! Another bad decision by those three!

  5. A commenter wrote: “We were sold a lie. I got brochure where we were promised parks, restaurants, shopping like in a town center setting.” And then who clinched the lie by approving short term stay hotels, with the euphemism “cottages?” Alaimo, Dean and Whitehurst. The same three who recently benefitted from a well-funded campaign of lies about their opponents. And developers wonder why they lost control of the commission.

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