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Developer Lennar plans to build 110 town homes at Old Post Road and Bay Boulevard. This is a slightly smaller version of the project, which has been on hold since the 2007 financial crisis.

PORT RICHEY — A developer has reactivated a long-stalled plan to build townhouses on the southeast corner of Old Post Road and Bay Boulevard.

Avila Bay is ready to start construction, Port Richey City Council members were told at their July 24 meeting. The revised proposal will be slightly smaller, with some 110 units.

In 2004, a Planned Unit Development was approved for up to 128 units, City Attorney James Mathieu told council. In 2006, a final plat plan was accepted with public easements and dedications.

All the roads, pipes, and infrastructure have been installed, Mathieu added.

In 2007, the city and developer entered into a water and wastewater development agreement, but the townhouses were never built because of market conditions at the time.

Due to the passage of time and changing conditions, the city renegotiated the water and wastewater agreement, Mathieu said. As part of the revised pact, the developer will improve the city’s Bay Boulevard wastewater lift station.

Land-use Attorney Clarke Hobby appeared before city council to represent Tampa-based Lennar Homes LLC, the Avila Bay developer.

All the infrastructure was pretty much in place when the project was postponed, Mathieu said. In 2006, the final plat plan had been approved. Easements have all been done.

“Then the market kind of fell apart,” Mathieu remarked, which he assumed delayed the project at the outset of the Great Recession.

When council members and other city officials expressed concerns about the traffic impact of Avila Bay, Hobby said Lennar would be “fully supportive” of possible changes to Bay Boulevard.