A major mixed-use development is moving forward in the heart of downtown Dunedin, with city leaders betting the project will attract more visitors while protecting the small-town character that put the city on the map.
Dunedin commissioners have approved design plans for the Main Street Exchange, a mixed-use development slated for the corner of Main Street and Douglas Avenue on the site of the former Ocean Optics building. The project includes an 89-room boutique hotel, a 14,000-square-foot food hall, a 280-seat theater, retail space, and an off-site parking garage.
The development has evolved significantly since its early stages. Originally envisioned as an apartment complex, Main Street Exchange shifted toward a hotel-and-entertainment concept after discussions with city officials, business owners, and community leaders. The theater component also emerged from local input, as Dunedin currently offers limited options for mid-sized gatherings, with the new venue expected to accommodate between 200 and 400 guests.
City Development Director Robert Ironsmith called it a signature project for the downtown corridor. He argued that hotel guests act as a built-in economic engine for local businesses, saying those 89 visitors will patronize the city’s restaurants, cafes, and shops — and that this dynamic actually helps sustain Dunedin’s small-town feel rather than undermine it.
The project will replace two aging properties: a vacant 1976-era office building at 380 Main St. and an industrial yard at 968 Douglas Ave., which has already been demolished. An off-site parking garage is currently in permitting, with groundbreaking expected within a month and completion targeted for later this year.
Main Street Exchange itself could break ground in summer or early fall, with completion anticipated in approximately two years. The development will include 133 on-site parking spaces plus 89 valet spaces.
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