News Summary
The Tallahassee City Commission has voted to initiate foreclosure proceedings on the Washington Square project, accumulating substantial fines due to multiple code violations. This action allows the city to pursue the property’s sale to cover over $413,350 in fines. The project, which was intended as a mixed-use facility, has faced ongoing challenges since its construction halted in 2019. The foreclosure process may lead to redevelopment opportunities as the city navigates regulatory issues surrounding the property.
TALLAHASSEE – The Tallahassee City Commission has voted to initiate action for foreclosure on the Washington Square project, which has accumulated over $413,350 in fines due to multiple code violations. This decision allows the city’s legal team to move forward with circuit court action to pursue the sale of the property, with proceeds aimed at covering the fines owed to the city.
The Washington Square site, situated on the block bordered by S. Calhoun, Jefferson, and N. Gadsden Streets, has faced ongoing challenges since construction began in 2018. The project was initially planned as a 19-story mixed-use facility, featuring a hotel, meeting space, restaurant, and office areas. However, construction ceased in 2019, leading to increasing concerns from city officials.
Two code enforcement actions have been initiated against the property: one related to violations of the environmental management permit, and the other concerning breaches of the Florida Building Code. Daily fines have been incurred since the site was first deemed in violation. As of May 1, 2025, the fines from both cases have exceeded $413,350, comprising $100 per day for building code violations and $250 per day for environmental infractions.
The Municipal Code Enforcement Board identified the project’s failures on October 18, 2022, imposing penalties for site abandonment. Following this finding, the Environmental Board also ruled on October 27, 2021, that the site was in violation due to environmental concerns. The city is now seeking to foreclose on the property, which signifies that the clerk of the circuit court will oversee the sale, utilizing the proceeds to settle the outstanding fines.
This action may not only resolve code violations but could also provide a pathway for the site’s redevelopment. The project has been heavily criticized for not meeting its deadlines and for having fluctuating plans. Originally envisioned with 270 hotel rooms and office space, the project is now being adjusted to a revised format—the Tallahassee Capitol Hotel and Tallahassee Capitol Residences, which proposes a seven-story hotel with 160 rooms and 100 apartment units.
In light of the project’s incomplete status, the Community Redevelopment Agency (CRA) board has extended the project completion deadline by 24 months, contingent on specific terms being met. Earlier financial assistance agreements linked to the original Washington Square development have been retracted as a result of the project’s lack of progress.
The property owner, McDermott, who is the principal at Fairmont Tallahassee LLC, has expressed an intention to cooperate with the city despite the challenging legal situation. The foreclosure process also allows room for the city to explore additional remedies regarding damages to public infrastructure, including sidewalks and the right-of-way surrounding the abandoned site.
As the community watches the developments unfold, the tension surrounding the Washington Square project serves as a reflection of broader concerns regarding urban development and adherence to regulatory standards in Tallahassee.
The outcome of the foreclosure process will determine the future of the Washington Square site and its potential to contribute to the city’s long-term development goals.
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Additional Resources
- Tallahassee Reports: City to Seek Washington Square Foreclosure
- Wikipedia: Urban Development
- Tallahassee Democrat: City of Tallahassee to File for Foreclosure of Washington Square
- Google Search: Washington Square Tallahassee
- Tallahassee Democrat: Downtown Tallahassee May See New Hotel at Washington Square Site
- Encyclopedia Britannica: Codes and Standards
- Tallahassee Democrat: Washington Square CRA Cuts Ties as Developer Pitches Plan
- Google News: Washington Square Tallahassee Foreclosure
Author: STAFF HERE TALLAHASSEE WRITER
The TALLAHASSEE STAFF WRITER represents the experienced team at HERETallahassee.com, your go-to source for actionable local news and information in Tallahassee, Leon County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Springtime Tallahassee, Tallahassee Jazz & Blues Festival, and LeMoyne Chain of Parks Art Festival. Our coverage extends to key organizations like the Greater Tallahassee Chamber of Commerce and United Way of the Big Bend, plus leading businesses in education, healthcare, and insurance that power the local economy such as Florida State University, Tallahassee Memorial HealthCare, and Capital Health Plan. As part of the broader HERE network, including HEREJacksonville.com, HEREOrlando.com, HEREStPetersburg.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
