Council approves $6 million for west St. Pete development

Plans to create a sprawling residential complex at the embattled former Raytheon Technologies property in west St. Petersburg received a $6 million boost from the city Thursday.

The $110 million project’s first phase will create 102 affordable and workforce housing units at the 29-acre, industrially zoned site. Ongoing environmental remediation efforts began after Raytheon purchased the property – recently used to store storm debris – in 1995.

The proposed development, dubbed Azalea Gateway, could eventually feature 1,000 apartments at 1501 72^nd St. N. Council Chair Copley Gerdes represents the area in the city’s least-dense district.

“We have to start somewhere,” Gerdes said. “Where else do you put it if it’s not here?”

In July 2024, Azalea Gateway LLC, led by local developer Les Porter, requested $4.9 million from the city and $9.9 million from Pinellas County to begin the first of three phases. Commissioners unanimously approved allocating $5.25 million to the project in January.

The county’s funding hinged on the city dedicating $6 million to Azalea Gateway. Council members approved the public funding in a 6-1 vote Thursday.

Azalea Gateway’s first phase will feature 340 apartments. Porter will dedicate 51 of them to households earning up to 80% of the area median income (AMI), and 51 at or below 120%, for 50 years.

The city’s subsidy for all apartments is $17,647 – or $58,824 for the affordable and workforce housing units. Mark Van Lue, assistant director of housing and community development, said the public cost is “consistent with what it’s taking these days to get these types of projects built.”

The project’s first phase will feature 51 affordable, 51 workforce housing and 238 market-rate units. Rendering: Arc3 Architecture.

Councilmember Richie Floyd voted against the project. He took issue with the city allowing residential developments with so few affordable units on industrially zoned land and, additionally, providing a $6 million subsidy.

“I do not support subsidizing 120(%) AMI anymore,” Floyd said. “The rents are almost $3,000 a month. There’s environmental concerns, and half of the housing is not affordable, in my opinion.”

The project’s first and second phases will feature six buildings surrounded by sprawling surface parking lots. Azalea Gateway will offer 1,174 spaces for 680 one, two and three-bedroom units on roughly 11 acres.

Each phase will provide a pool and clubhouse. Construction should commence on the first by November and conclude by December 2027. City documents do not list a timeline for the second phase.

Officials did not say if the developers will seek additional funding. A site plan shows phase three encompassing nine acres with no other details.

Despite decades of contamination issues, Porter purchased the property, southwest of Tyrone Square Mall, in 2021 for $10.5 million. He initially envisioned building housing, a lagoon and a sports complex.

The city council approved those plans in February 2021. Forward Pinellas, the county’s planning agency, voted against the project and associated land use changes the following month.

Porter scrapped the lagoon and sports complex and presented a revised project in July 2023. An online petition garnered over 1,400 signatures, and more than 60 residents spoke against those plans at the meeting. City council members unanimously approved the $200 million project.

Greg Schultz, senior principal for consultancy firm Stantec, said Thursday that Raytheon remains responsible for groundwater pollution mitigation. “As far as development-related remediation, there’s really very minimal soil impacts, and those are going to be managed … with engineering controls.”

“And then we’re going to be installing passive vapor venting systems beneath the building, just to make sure there’s no interaction between the groundwater plume and the structures,” he added. “Just out of an abundance of caution.”

A submitted site plan for Azalea Gateway. Screengrab, city documents.

Councilmember Brandi Gabbard said Azalea Gateway is more palatable to neighboring residents than previous plans. “If this is not the right project, then what is in this particular area?”

Gabbard said industrial properties that now lack rail service are “basically wasted land.” She believes legislation that allows residential developments in those areas can propel communities.

“Especially in an area where the last census showed us that … there were less people living out there,” Gabbard continued. “And now I’m jealous, every single day, of Chair Gerdes because he’s getting all these developments out in his district.”

Gerdes lives two blocks from the site. He noted his father and grandfather “worked on the property” for 23 and 45 years, respectively.

Gerdes thanked Porter Development for allowing the city, at no cost, to store hurricane debris at the site for four months. “Our city still has debris, if not for that site,” he said.

“I’ll steal it right from Councilwoman Gabbard – if not here, where?” Gerdes said of the project. “It’s right up against the (Pinellas) Trail. It’s right against Tyrone Mall, which has six bus stops. It’s right next to a library. It’s right next to two schools.”