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Commerce Park group bids on site for affordable housing development
The group behind the St. Petersburg Commerce Park LLC, which promised to deliver a manufacturing center and affordable homes in South St. Pete, is pursuing to acquire a city-owned lot to complete the vision for its long-intended development.
Tom Callahan, CEO of St. Petersburg Commerce Park, has offered to buy 2586 8th Ave. S. (Lot 16) from the city for $40,000 after the city received interest from another party to obtain the site.
St. Petersburg Commerce Park, or SPCP, owns 5.5 acres in Commerce Park, including Lots 18,19, 20 and 21, surrounding the available lot, which does not have any existing structures.
Years ago, the organization planned to construct a mixed-use development consisting of retail, industrial and workforce housing on the site, but those plans never came to fruition. The vacant lots currently have leases associated with them; however, those leases could be terminated.
Vacant land in Commerce Park. File photo.
“The acquisition of Lot 16 would assist the development of the Commerce Park property. One of them [sic] most pressing for the city is affordable housing. Presently, [the] buyer is in discussions to develop Commerce Park property as affordable housing and have met with the city and possible developers,” the document to the city read. “The purchase of this property will enable the buyer to construct additional affordable housing units.”
Business and corporate law attorney Rob Kapusta (with Battaglia, Ross, Dicus and McQuaid P.A.), who represents Callahan, said there is interest from developers in building affordable housing at the site and the plans for industrial use could potentially materialize if given the right opportunity.
Bama Sea Products, which currently runs a 100,000-square-foot facility at 756 28th St. S. and supplies seafood to retailers, initially submitted an unsolicited proposal to purchase the lot.
Bama offered the city $10,000 in January to purchase the site to expand its operations. Due to it being an unsolicited offer, the city then had to open the floor to allow others to submit offers for the site by April 20.
The Drop Box Inc., which provides trailers and dumpsters for construction companies and contractors, also submitted a proposal to acquire the site as it needs more storage space.
Last year, the St. Petersburg-based company purchased a lot adjacent to the site at 2576 8th Ave. S., which has been cleared and fenced off.
“Space for equipment storage has been an ongoing issue for DBI, but a recent federal grant has made it possible for us to expand even further,” DBI President Adam Harvey wrote in his proposal.
Lot 16 would double DBI’s storage capacity and house a warehouse, while the remainder of the property would be used for short-term storage for trailers and other equipment.
DBI has put two offers on the table for the city to consider. In one scenario, DBI would pay the city $70,000 in an all-cash deal. In the second option, DBI would trade another nearby lot that it owns on Union Street S. in exchange for Lot 16. DBI does not currently conduct operations at the Union Street property.
The city staff is still in the process of reviewing the proposals. Once city staff reviews them, the proposals will go in front of St. Petersburg Mayor Ken Welch who may decide which one, if any, to move forward with, a spokeswoman said.
