City officials are hitting the reset button on a major downtown redevelopment effort and re-evaluating how to move forward.

“We only have one chance to get this right,” City Manager Tom Carrino says. “We are going to kind of regroup, hit the reset button, and talk about how we get the word out about this fantastic opportunity in downtown Eustis.”

Tom said the decision follows the city commission’s workshop last week, where commissioners opted not to move forward with G3C2’s proposed development plan. Instead, Eustis will return to its newly adopted Downtown Master Plan as the foundation for future development, and find the absolute best development for the area.

The master plan, adopted in April, is the result of a two-year process that included extensive public input through workshops, town halls and online surveys. It outlines a shared vision for a “family-friendly downtown that is welcoming to all Eustis residents” while creating a “true waterfront downtown” that supports tourism and preserves the city’s historic charm.

The plan identifies the former Florida Hospital Waterman property—three underutilized blocks near Ferran Park—as a primary redevelopment site. Recommendations for the Waterman site include mixed-use housing, retail space and the city’s first hotel in decades, described as a “significant hotel offering with convenient and central access to the waterfront and the rest of downtown”  Market analysis shows the site could support up to 85 new housing units, 20,000 square feet of office space, and more than 55,000 square feet of retail space (p.141).

Tom emphasized that while G3C2’s proposal was based on the master plan, the city wants to ensure future development reflects both public input and market realities.

“We didn’t want to fall into the same track,” he says. “We want to involve the public, we want to involve the city commission, we want to involve stakeholders and we want to develop a shared vision for this site.”

The city is now preparing to issue a new solicitation to developers to cast a wider net to find the right development partner.

“We are not moving forward with what they presented,” Tom says. “We’re kind of going back to the master plan, and then we’ll work with the development community on it.”

While the Waterman site remains the focus, the master plan also highlights other catalyst sites, including the community center and Ferran Park extension, as key opportunities to expand downtown and strengthen its connection to Lake Eustis.

The commission also discussed an unsolicited proposal for a hotel at the community center site, which is not currently for sale, but Tom said officials are “potentially interested” in exploring that option.

The full Downtown Master Plan, including visuals and market data, is available on the city’s website.