LARGO — The Largo City Commission has agreed to reimburse Parlor Doughnuts $137,000 in capital and operating expenses and increase its allowance for improvements to nearly $187,000, the latest cost stemming from delays at the Horizon West Bay development.
The May 5 vote marked the fourth amendment to the doughnut shop’s lease at the $85 million, 87,000-square-foot complex, which occupies the 400 block of West Bay Drive and is scheduled to open Tuesday, May 19 — more than a year behind schedule.
“This is the result of construction delays and some design defects that have resulted in increased carrying costs and construction costs to both parties,” City Attorney Sarah Johnston said. The amendment releases the city from any liability arising from the past year related to the lease, design and construction delays and defects.
The project, anchored by a new Largo City Hall, includes 18,000 square feet of retail and restaurant space and a public parking garage. It was originally set to open in March 2025, but the 2024 hurricanes and other factors pushed back the timeline and drove up costs for the city and its four tenants: Parlor Doughnuts, Strachan’s Ice Cream, The Tox beauty studio and Louis Pappas Fresh Greek.
In March, commissioners approved $500,000 in change orders for corrections needed before the complex could open, prompting Commissioner Michael Smith to voice frustration.
“It was really shocking to see some of these, and I am not pleased with this project,” Smith said March 3. “This is way late in the game to catch things now. How did they miss these? How did we miss these?”
Concerns about the project predate its delays. In the summer of 2024, city officials worried about the lack of signed leases at the still-under-construction development.
Parlor Doughnuts, an Indiana-based company founded in 2019, became the first tenant when commissioners approved its lease in September. The chain, known for its layered doughnuts, has grown to more than 100 locations in nearly two dozen states, including one in Clearwater Beach. Its menu features flavors such as French toast, raspberry pistachio, maple bacon and strawberry shortcake, along with breakfast items and specialty drinks.
Strachan’s Ice Cream, a Palm Harbor-based creamery with five other bay area locations, Louis Pappas Fresh Greek and The Tox Technique followed with their own lease agreements.
The Tox Technique operates studios across the country, including one in Tampa. An employee at the Tampa location said the franchises are independently owned. A call to the company’s New York City headquarters seeking confirmation of the Largo opening was not immediately returned.
While Horizon West Bay’s official opening is set for May 19, the tenants are not expected to begin operating until weeks, or possibly months, later.
Resident Greg Gardner told commissioners he is skeptical the project will draw enough foot traffic to sustain the businesses and suggested the city further increase its allowances and lower rents.
“They’re all going to evaporate strictly because of numbers. There’s not enough volume,” Gardner said. “You’ve got to have the volume for coffee and doughnuts. So it’s not gonna last, guys. I don’t want to pop the balloon. But that’s the reality.”