Gradle fails to compile local version of android library (picasso)

I have an Android project that uses a local version of the picasso library that I have modified in a few ways. However, whenever I try to build my project from the command line using gradle build, I always get an error that Picasso does not exist:

$ ./gradlew build 
:compileLint
:copyDebugLint UP-TO-DATE
:mergeDebugProguardFiles UP-TO-DATE
:preBuild UP-TO-DATE
:preDebugBuild UP-TO-DATE
:checkDebugManifest
:prepareDebugDependencies
:compileDebugAidl UP-TO-DATE
:compileDebugRenderscript UP-TO-DATE
:generateDebugBuildConfig UP-TO-DATE
:generateDebugAssets UP-TO-DATE
:mergeDebugAssets UP-TO-DATE
:generateDebugResValues UP-TO-DATE
:generateDebugResources UP-TO-DATE
:packageDebugResources UP-TO-DATE
:processDebugManifest UP-TO-DATE
:processDebugResources UP-TO-DATE
:generateDebugSources UP-TO-DATE
:processDebugJavaRes UP-TO-DATE
:compileDebugJavaWithJavac
/Users/me/project/src/com/example/myproject/MyView.java:30: error: package com.squareup.picasso does not exist
import com.squareup.picasso.Picasso;

Moreover, when I run with --info, I can see it is assembling tasks, but the picasso:check and picasso:build are incorrectly placed at the end:

Tasks to be executed: [task ':compileLint', task ':copyDebugLint', task ':mergeDebugProguardFiles', task ':preBuild', task ':preDebugBuild', task ':checkDebugManifest', task ':prepareDebugDependencies', task ':compileDebugAidl', task ':compileDebugRenderscript', task ':generateDebugBuildConfig', task ':generateDebugAssets', task ':mergeDebugAssets', task ':generateDebugResValues', task ':generateDebugResources', task ':packageDebugResources', task ':processDebugManifest', task ':processDebugResources', task ':generateDebugSources', task ':processDebugJavaRes', task ':compileDebugJavaWithJavac', task ':packageDebugJar', task ':compileDebugNdk', task ':packageDebugJniLibs', task ':packageDebugLocalJar', task ':packageDebugRenderscript', task ':bundleDebug', task ':compileDebugSources', task ':assembleDebug', task ':copyReleaseLint', task ':mergeReleaseProguardFiles', task ':preReleaseBuild', task ':checkReleaseManifest', task ':prepareReleaseDependencies', task ':compileReleaseAidl', task ':compileReleaseRenderscript', task ':generateReleaseBuildConfig', task ':generateReleaseAssets', task ':mergeReleaseAssets', task ':generateReleaseResValues', task ':generateReleaseResources', task ':packageReleaseResources', task ':processReleaseManifest', task ':processReleaseResources', task ':generateReleaseSources', task ':processReleaseJavaRes', task ':compileReleaseJavaWithJavac', task ':packageReleaseJar', task ':compileReleaseNdk', task ':packageReleaseJniLibs', task ':packageReleaseLocalJar', task ':packageReleaseRenderscript', task ':bundleRelease', task ':compileReleaseSources', task ':assembleRelease', task ':assemble', task ':lint', task ':preDebugUnitTestBuild', task ':prepareDebugUnitTestDependencies', task ':processDebugUnitTestJavaRes', task ':compileDebugUnitTestJavaWithJavac', task ':compileDebugUnitTestSources', task ':mockableAndroidJar', task ':assembleDebugUnitTest', task ':testDebugUnitTest', task ':preReleaseUnitTestBuild', task ':prepareReleaseUnitTestDependencies', task ':processReleaseUnitTestJavaRes', task ':compileReleaseUnitTestJavaWithJavac', task ':compileReleaseUnitTestSources', task ':assembleReleaseUnitTest', task ':testReleaseUnitTest', task ':test', task ':check', task ':build', task ':android-autofittextview:assemble', task ':android-autofittextview:check', task ':android-autofittextview:build', task ':picasso:assemble', task ':picasso:check', task ':picasso:build']

I would think that :picasso:(assemble|check|build) would need to be run prior to :compileDebugJavaWithJavac, which it is failing on, especially given my compile project(':picasso') directive in the dependencies section of my build.gradle file.

Here is my build.gradle file:

buildscript {
    repositories {
        mavenCentral()
    }

    dependencies {
        classpath 'com.android.tools.build:gradle:1.3.+'
    }
}

apply plugin: 'android-library'

android {
    compileSdkVersion 19
    buildToolsVersion '23.0.1'

    sourceSets {
      main {
          manifest.srcFile 'AndroidManifest.xml'
          java.srcDirs = ['src']
          resources.srcDirs = ['src']
          aidl.srcDirs = ['src']
          renderscript.srcDirs = ['src']
          res.srcDirs = ['res']
          assets.srcDirs = ['assets']
      }
    }

}

dependencies {
    repositories {
        mavenCentral()
    }

    compile project(':picasso')
    compile project(':android-autofittextview')
    compile 'org.apache.httpcomponents:httpmime:4.2.3'
}

And here is my settings.gradle file:

include ':myproject'

include ':picasso'
project(':picasso').projectDir = \
  new File(settingsDir, '../../../Lib/picasso')

include ':android-autofittextview'
project(':android-autofittextview').projectDir = \
  new File(settingsDir, '../../../Interface/android-autofittextview')

Here is my gradle version:

$ gradle --version

------------------------------------------------------------
Gradle 2.7
------------------------------------------------------------

Build time:   2015-09-14 07:26:16 UTC
Build number: none
Revision:     c41505168da69fb0650f4e31c9e01b50ffc97893

Groovy:       2.3.10
Ant:          Apache Ant(TM) version 1.9.3 compiled on December 23 2013
JVM:          1.8.0_51 (Oracle Corporation 25.51-b03)
OS:           Mac OS X 10.10.5 x86_64

Note that I do not believe this has anything to do with picasso itself because I see the same problem trying to compile a local version of android-autofittextview too.

Can anyone tell me how I can get gradle to properly compile and include my local version of picasso?