Commission OKs first reading for 78-unit affordable housing project on Carnation Drive

The Dunedin City Commission on Thursday approved on first reading a development agreement with Archway Partners to build 78 affordable rental units at 1422 Carnation Drive.

City community development director George Kenny told commissioners the contract is the first step in a two-part approval process: the development agreement sets city and developer obligations; the second step will be a more detailed design-review that will address stormwater, height, landscaping, traffic and other site specifics.

The project, presented by developer Archway Partners and supported by a Pinellas County housing authority contribution and state low-income housing tax credits, is planned to serve households at 30%–80% of area median income. Robert Ironsmith, economic development staff, and Brett Green of Archway Partners outlined financing that includes federal/state tax credit equity and other subsidies that make the project feasible.

The commission discussed three incentives the developer had originally sought under city rules: a parkland impact-fee exemption, a 50% density bonus and a partial public-art fee exemption. Commissioners and staff negotiated to remove the parkland impact-fee exemption from the final draft. Kenny said the city’s recommendation was to approve the agreement as recommended by the Local Planning Agency except that the parkland fee exemption would no longer apply; staff estimated the impact-fee amount at about $195,000 would instead come to the city.

Public comment drew more than a dozen residents from nearby neighborhoods who raised concerns about stormwater runoff, traffic, parking, building height and compatibility with single‑story homes. Residents urged additional study of access at Carnation Drive and the potential for overflow parking and increased pedestrian crossings on Main Street. George Kenny and Clay Watkins of utilities and engineering said stormwater and traffic would be examined in depth during design review and that staff will perform peer reviews of the applicant’s reports.

Commissioners stressed that design-review remains the place to resolve detailed site concerns. The motion to approve first reading was made by Commissioner Tom Dugard and seconded by Commissioner Rob Walker; the vote was unanimous. A second reading and final vote is scheduled for June 5, 2025.

Kenny and Archway representatives said they will proceed to the design-review stage and that city staff will continue peer review of stormwater and traffic calculations prior to returning to the commission.