News Summary
The St. Petersburg city council has granted the Sugar Hill Group an 18-month extension to fulfill development requirements for the Tangerine Plaza project, which aims to enhance food access and affordable housing in South St. Petersburg. The project is expected to cost approximately $37 million and will feature 187 affordable housing units alongside commercial space. The initiative seeks to revitalize a site left vacant since 2017 and address critical community needs.
St. Petersburg, Florida — The city council has granted the Sugar Hill Group an 18-month extension to meet the requirements of a development agreement for the redevelopment of Tangerine Plaza, despite opposition from several council members. The approval, finalized in June 2024, marks a significant move towards addressing persistent challenges in the South St. Petersburg area, particularly concerning food access and affordable housing.
As part of the development agreement, Sugar Hill Group is tasked with securing commitments from a grocery store and procuring the necessary funding by December 31, 2024. The project, located at 1794 22nd Street S., has evolved from its initial scope and is expected to cost approximately $37 million. Originally outlined to include 115 affordable housing units, the plan has now expanded by 62%, adding an additional 72 units to the development.
This revitalization effort has its roots in discussions initiated in 2020 under the administration of former Mayor Rick Kriseman. Since the closure of Walmart Neighborhood Market in 2017, the area has been without a grocery store, further exacerbating its designation as a food desert. The new plan incorporates two residential buildings: one containing the originally approved 115 units, and the other with the newly added 72 units. The project will also feature two commercial buildings spanning 5,000 square feet each, alongside a substantial amount of green space totaling 43,120 square feet.
Mayor Ken Welch has underscored the significance of a January timeline for advancing the project. The development will include a total of 141 parking spaces, with another 47 spaces planned adjacent to the residential buildings. Additionally, a 5-foot privacy wall will surround the site to enhance community security and appeal.
To ensure the residential units remain accessible, the project stipulates income restrictions, requiring an average of 80% of the area median income (AMI) for rental units. Currently, this means that a three-person household must have an income of no more than $75,150 to qualify. The introduction of the Live Local Act in 2023 facilitates tax credits for units at or below 120% AMI, allowing developers in Pinellas County the opportunity to charge up to $3,255 for a three-bedroom apartment.
The Sugar Hill Group, which includes Rev. Louis Murphy, Roy Binger, and Oliver Gross, faces an uphill challenge as some council members expressed doubts about their ability to secure necessary funding and effectively transform the plaza. In response to these concerns, the group has indicated a commitment to bringing tangible change to the community. Recent communications from June 2024 suggest potential shifts in project leadership as the deadline approaches, further emphasizing the sense of urgency surrounding the redevelopment.
Despite the opposition, the proposal garnered some support from council members, with particular emphasis on the importance of empowering a Black-led development group tasked with revitalizing their own community. Councilmember Deborah Figgs-Sanders noted the potential positive impact this project could have. Discussions have also included the possibility of partnering with Detwiler’s Farm Market as a prospective grocery tenant to enhance local food options.
If the Sugar Hill Group successfully meets the outlined conditions for the project, they will enter into a 75-year lease for the property, with an annual payment of $100,000 commencing, after an initial 24-month period of waived payments. The group also has the option to purchase the property for $1.5 million, a value slightly below its estimated worth of $1.84 million.
The approval of this development agreement signifies a pivotal step towards revitalizing a long-vacant site and addressing significant local issues regarding both housing and food access. As further developments unfold, the success or failure of this initiative will likely have profound implications for the South St. Petersburg community.
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Additional Resources
- St. Pete Catalyst
- ABC Action News
- St. Pete Rising
- Fox 13 News
- Business Observer
- Wikipedia: St. Petersburg, Florida
- Google Search: Tangerine Plaza redevelopment
- Google Scholar: South St. Petersburg development
- Encyclopedia Britannica: food deserts
- Google News: Tangerine Plaza
