Thrive
City gives $4.5 million to massive Skyway Marina project
St. Petersburg City Council members unanimously approved allocating $4.5 million to a sprawling mixed-use development Thursday amid debate over what now constitutes affordable housing.
Once complete, the multi-phased Skytown Apartments project will feature 2,084 housing units, 80,920 square feet of commercial space, 22,500 square feet of accessory self-storage and 4,000 parking spaces at the southwest corner of 34th Street and 30th Avenue South. The 34.3-acre site in the Skyway Marina District was once home to the Ceridian business campus.
Public funding supports the $120.4 million first phase, which includes 401 apartments, a Sprouts grocery store, and nearly 12,000 square feet of retail space. Development firm Altis Cardinal will dedicate 60 units to households earning less than 80% of the area median income (AMI), and 61 will have a 120% limit.
Councilmember Richie Floyd noted that allowable monthly rents at 120% AMI are now over $2,800 for a two-bedroom apartment. Mark Van Lue, assistant director of housing and community development, believes the city is still getting a “really good bargain.”
“This guarantees affordable rents for 30 years,” Van Lue said. “If five years from now, 10 years from now, rents go crazy again … these are guaranteed to be locked in at what are considered to be affordable rents.”
Skytown will reimagine the former Ceridian business campus at the southwest corner of 34th Street and 30th Avenue South.
Skytown, once dubbed Skyway Village, initially lacked an affordable and workforce housing component. Coral Gables-based Altis Cardinal agreed to include subsidized apartments through discussions with the city and Pinellas County.
In January, county commissioners allocated $5.5 million to the largest mixed-income project in St. Petersburg’s history. Van Lue said the development’s first phase is “shovel-ready,” and its anchor tenant, Sprouts, should open in October.
He called Skytown “one of the first true public-private partnerships” with a for-profit developer. Van Lue also stressed the importance of those efforts, as federal and state housing funding has decreased.
“A $4.5 million investment by the city today, over 30 years, will net at least $18 million in return in the form of reduced rents to the citizens of St. Petersburg,” he said.
Per-unit public subsidies typically range between $50,000 and $100,000. Officials contributed about $800,000 to each of the Deuces Rising project’s 24 affordable (80% AMI) and workforce (120% AMI) townhomes in January 2024.
In St. Petersburg, 80% of the AMI for a family of three is $75,150. That soars to $112,680 at 120%.
“Affordable housing is not affordable for everybody,” said Councilmember Deborah Figgs-Sanders.
Altis Cardinal will complete the project in six phases.
The city will provide $37,500 for each of Skytown’s affordable and workforce units. The council unanimously appreciated the lower cost.
Many, like Councilmember Lisset Hanewicz, appreciated the certainty provided by a 30-year term amid market chaos. “We still don’t know what’s going to happen with tariffs,” she said. “You don’t know what the price increases are going to be.”
“I like the fact that we’re able to do something based on this atmosphere,” Hanewicz added. “I think this, based on the numbers and what you’re doing, is a good thing.”
Figgs-Sanders agreed that allocating 121 of 401 total units to affordable and workforce housing provides a benefit. She also questioned if 121 is the final tally when the project calls for 2,084 apartments.
Van Lue could not offer an answer, as economics will dictate the development’s evolution over several years. He pledged to continue advocating for a subsidized housing component in future phases.
Altis Cardinal will break ground on a mixed-use building with 401 apartments and 11,800 square feet of retail space this spring. The first phase will also include a parking garage, 9,000 square feet of ground-level amenity space, a 1,200-square-foot rooftop terrace with a 1,500-square-foot Sky Lounge and a courtyard encompassing 20,000 square feet.
City officials expect a 22-month construction process. Council Chair Copley Gerdes called the partnership with Altis Cardinal a “cutting-edge” approach that has proven fruitful in cities like San Francisco and Chicago.
“I think adding market-rate units along with affordable units is working,” Gerdes said. “Market-rate units help, too. And thank you to the developer for working with us on this – you didn’t have to do this.”
Layloned Kay
April 21, 2025at10:26 pm
It’s so odd that there are only 121 affordable units in this phase, with additional phases being “predicated on the economy.” So basically, developers tossed out that number to get city officials to approve and fast-track this project. I got good money that there will be no additional units—or at best, fewer than 2084 units built. It goes to show how fiduciary responsibility for taxpayers’ dollars is being shirked by derelict local government.
Lelilani K
April 21, 2025at7:26 pm
Not cool to prioritize new development over homeowners in crisis.
Joseph Boone
April 21, 2025at5:27 pm
This whole project feels out of touch. $2,800/mo (33k a YEAR) for “workforce housing” when most workers don’t make nearly enough to afford that?
Bradley Cochran
April 21, 2025at3:02 pm
Kinda wild how they keep throwing up new buildings, but nothing really seems to get better around here. Who’s this stuff even for?
Alissa haley
April 21, 2025at2:18 pm
Yeah, because what this city really needs is more luxury apartments to drive up rent even higher!!!
Lucas stone
April 21, 2025at1:42 pm
Millions in public funds handed over to a for-profit project, and barely anything for the people struggling the most. Feels like they forgot who they’re supposed to be working for.
Julia Burke
April 21, 2025at1:40 pm
I can think of some more urgent uses for that $4.5 million. HELLO??!! Also, the 30 year guarenteed rent stabilization is nothing to brag about. If you move in when you’re 40, what happens when you’re 70 and living on a fixed income, etc., etc.? You’re screwed out of a home you’ve been in for decades. Not cool.
Mike C
April 21, 2025at12:37 pm
City leadership is spending tax payers money like drunken sailors. How many affordable housing units are enough? How much will that cost the city on a nonrecurring and recurring basis? How much will this add to taxes? We keep hearing about affordable housing. What is being done to address the urgent needs for infrastructure improvements AND reducing taxes? What risk analysis is being done to be prepared for cuts in federal funding or inflation? High taxes will reduce property values and reduce affordability for people to move into the area, or even move into a home of their own. This city has a spending problem, not a revenue problem.
Joseph Stasio
April 19, 2025at8:37 am
Manhattan prices crazy how things have changed you have to be making 150k a year to live comfy now
K Tarver
April 19, 2025at7:10 am
It’s not affordable for everyone and the council member that said it is, doesn’t care. You are paying 2800.00 for rent, electricity, water, car note and car insurance, medical bills and food;really Mr. Mark Van Lue and God forbid you want to go out and live a little. Go outside and sit by the stores and look in because you want have any money left to buy anything else.
Lauren Lopez
April 18, 2025at8:00 pm
Shame. This is a disgrace.
S. Rose Smith-Hayes
April 18, 2025at5:23 pm
Affordable for whom????Unbelievable, $2800 for a two bedroom apartment???Where am I living???Who makes that kind of money for rent??The $12 an hour folk cannot afford that , neither can the $15 to $18 dollar an hour person. It appears St. Petersburg, Fl is for the wealthy, no consideration for ‘regular’ folk.That is why my niece’s classmates that graduated in the 80’s have left the area. At a recent classmate’s funeral, she learned that many have left St. Pete. Can any City Council Member afford $2800 a month for a two bedroom apartment? just asking for a friend.