Sarasota Approves Mixed-Use Project at Former Winn-Dixie

The city commission's 3-2 vote requires developers to fund local infrastructure and housing to clear entitlement hurdles.

Updated on Oct. 21, 2026 in Hospitality

Sarasota Approves Mixed-Use Project at Former Winn-Dixie

Live Poll

Should city officials prioritize new high-density development projects over the concerns of nearby residents?

The Sarasota City Commission voted 3-2 to approve a mixed-use development at the former Winn-Dixie site, overriding a prior planning board denial. The project will transform the 45,860-square-foot vacant property into a 145-room hotel and 91 apartment units.

Why it matters

The approval signals a shift for local commercial property owners as the city prioritizes infrastructure easements and housing trust contributions to secure project permits. Developers must now account for these public-benefit requirements when navigating municipal entitlement processes in the Sarasota area.

The development replaces a vacant 45,860-square-foot former supermarket with a 145-room hotel and 91 apartments, supported by a $450,000 contribution to the city's affordable housing trust fund. The plan includes 1,861 square feet of commercial space on the 3.32-acre parcel.

The players

Sarasota City Commission

The local governing body responsible for zoning approvals and municipal infrastructure policy in Sarasota.

Sarasota Planning Board

The municipal advisory panel that evaluates development proposals and makes initial recommendations to the city commission.

The details

The project secured approval after the developer agreed to widen sidewalks on Prospect Street to six feet and East Avenue to eight feet, alongside the housing trust donation. The buildings are permitted to reach a maximum height of 65 feet, with 23 apartments designated as attainable for households earning up to 120% of the area median income. The city commission chose to move forward despite objections from Arlington Park residents regarding traffic and pedestrian safety concerns.

2018: Developer first envisioned the site redevelopment.
September 9, 2026: Sarasota Planning Board denied the project proposal.
September 16, 2026: Planner filed an appeal of the planning board denial.
October 19, 2026: City Commission voted to approve the project.

Market Landscape

This development follows an increasing trend of tying major commercial redevelopment projects to mandatory contributions into the City of Sarasota's affordable housing trust fund. The commission's decision underscores the heightened focus on local housing policy over neighborhood-level objections to density.

Owners should monitor how the city assesses infrastructure demands—such as sidewalk easements—as a condition for site plan approval. Future projects will likely require similar public-benefit commitments to mitigate community concerns regarding traffic and density.

The takeaway

Commercial operators should anticipate that local commission approvals may increasingly pivot on the willingness of developers to provide tangible municipal benefits like sidewalk widening and trust fund contributions. Review current development proposals against these newly accepted infrastructure concessions to gauge project feasibility.