Delayed ‘unicorn’ St. Pete housing project nears groundbreaking 

A long-delayed, historic affordable housing development in South St. Petersburg will finally break ground in October.

In April 2022, the city became Florida’s first to approve a project – the Fairfield Apartments – under House Bill 1339. Enacted in 2020, the innovative legislation, a precursor to the Live Local Act, allowed local governments to facilitate affordable housing in industrially zoned areas.

The estimated $87.8 million complex at 3300 Fairfield Ave. S. received $22.1 million in local government subsidies and is roughly three years behind schedule. City administrators granted its development firm, HP Capital Group, a two-year site plan extension and provided a project update to council members Thursday.

“This is a very special project to me,” said Councilmember Brandi Gabbard. “One of the first that we put through the 1339 legislation that we did, that was groundbreaking back in the day. And we continue to push this project forward.

“We’re going to put a shovel in that ground one of these days.”

The Fairfield Apartments at 3300 Fairfield Ave. S., the site of an old lumber yard.

Former Sen. Jeff Brandes has an emotional attachment to that ground. The site once housed the original Tibbets Lumber, founded by the late Linton Tibbetts, Brandes’ grandfather.

The business traces its roots to the late 1940s and Cox Lumber Co. Tibbets has since relocated to Clearwater.

Angelo Cappelli, partner at HP Capital, noted the project’s importance to the family. “I told them we could get it done in two or three years,” he said to laughter. “So, I got pretty close.”

“They have stayed committed to this project,” Cappelli added. “They view this as a legacy for their grandfather.”

The Fairfield Apartments will feature 264 mixed-income units across three buildings, each with a computer lab. Cappelli noted the complex will also offer a pool and clubhouse.

HP Capital will reserve 53 units for households earning up to 50% of the area median income(AMI), just $41,700 for a family of two. “That’s the piece I’m most proud of,” Cappelli said.

Another 67 apartments are for those earning up to 80% of the AMI, and the remaining 144 are at 120% or below. “What makes the project really unique, in addition to being 100% affordable (and workforce) housing, is that it’s being built by concrete,” Cappelli said.

“Concrete is 25% more expensive than building your typical affordable housing apartments,” he elaborated. “If it were being built in lumber, we probably would be finished with the building in the next few months.”

Cappelli said the property acquisition process was complex, as the lumber company and family each owned half the site. In November 2024, Brandes told the Catalyst that the county would own the land and place it in a trust, ensuring a 99-year affordability term.

Brandes noted the seven-acre “unicorn of a site” sits along 34th Street South (U.S. 19) near the Warehouse Arts District, abuts the Pinellas Trail and is next to Gibbs High School. “It’s a fantastic site for individuals who work downtown and don’t want to pay downtown rents,” he said.

Cappelli echoed that sentiment Thursday. “We jokingly call this project a unicorn,” he said. “It checks all the boxes.”

An overhead view of the seven-acre property and surrounding area.

The development team requested an extension on their site plan approval in April. Cappelli credited former Mayor Rick Kriseman, Mayor Ken Welch, St. Petersburg’s housing administrators and Pinellas County commissioners for “helping us keep this thing alive.”

City officials allocated $2.28 million in American Rescue Plan Act funding to the project in August 2022. Post-pandemic construction costs soared, and county commissioners more than doubled their initial investment, from $5.6 million to $12.4 million, in November 2023.

Later that month, St. Petersburg increased its commitment by over 300%, to $9.7 million. At the time, Gabbard credited the development team for not decreasing the number of units or increasing income limits.

Mark Van Lue, housing development manager, said Thursday that HP Capital has a “firm commitment” from the U.S. Department of Housing and Urban Development (HUD) for a $56 million loan. He called that a “cornerstone of their project financing.”

Site demolition is complete, and Cappelli plans to break ground the week of Oct. 20. He said the first building should welcome residents about 19 months later, with construction concluding on the second and third in six-week intervals.

Cappelli said his firm would employ the same contractor that built its Reflection condominium tower on Mirror Lake. The 18-story project was “a lot more complicated,” and he feels “pretty confident” in Fairfield’s latest timeline.

In November, Brandes noted that his grandfather “spent his entire life” helping build St. Petersburg. “I think he’d be honored to know somebody’s living there on that property, and we’ve continued to keep that in the family.”