Developer requests $14.8 million for Raytheon site project

Plans for the embattled, 29-acre former Raytheon Technologies site in west St. Petersburg have changed for at least the third time in three years.

A local developer now hopes a proposed public-private partnership will see the project, dubbed Azalea Gateway, to fruition. The development could eventually feature 1,000 mixed-income apartments at 1501 72^nd St. N.

However, funding remains an issue. Azalea Porter Land LLC, led by Les Porter, now seeks $4.9 million from the city and $9.9 million from Pinellas County to begin the project’s first phase.

“By financially supporting our efforts with Azalea Gateway, we are working together to address the housing crises and ultimately will be adding 300 affordable homes for people in our community,” Porter said in a prepared statement sent to the Catalyst.

Rents

According to a city application submitted June 10, just 48 of the 320 units built during the first phase would fall under the “affordable” category, with an 80% area median income (AMI) limit. The document states that those monthly net rents would range from $1,305 to $1,808.

The $104.6 million first phase would include another 48 workforce housing units for those earning up to 120% of the AMI. Those monthly rents range from $1,791 to $2,712. The remaining 224 market-rate apartments would feature monthly rents between $2,051 and $3,261.

“As our city grows, it is crucial that we ensure our teachers, first responders, hospitality workers and others have access to safe and affordable living options,” Porter said. “In order to do that, we need public-private partnerships.”

The first phase would provide 48 affordable homes for those earning up to 80% of the area median income.

Previous proposals

Despite decades of contamination issues, Porter purchased the expansive 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 – once expected to welcome guests later this year – in July 2023. After three hours of ardent debate, council members unanimously approved the proposed $200 million, 1,058-unit mixed-income development.

More than 60 residents opposed the updated plans at the meeting, while 13 favored its approval. An online petition garnered over 1,400 signatures.

“The city funds will be a critical part of the capital stack to make this project a reality,” Porter wrote in the recent application.

Contamination

Extensive environmental remediation efforts began after Raytheon purchased the property in 1995. Mark Van Lue, housing development manager for the city, explained that the developers could not utilize groundwater.

The site also has stormwater management restrictions, and Van Lue said the developer must implement vapor barrier controls beneath living spaces. “As part of our due diligence, as we go through this application process with them, we’ll learn more about that,” he added.

The application states that environmental reviews will continue, and issues remain following a “Phase One” assessment in March 2021. Azalea Gateway is approximately a quarter mile from school, grocery store and transit line.

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

Approval?

Van Lue said there is no timeline for funding approval. He noted that it would likely take “some level of assistance” from the city and county “to make the project pencil out.”

“There will be a review, study, discussions and negotiating in terms of what they’re providing and what the sort of return on investment would be for the city,” Van Lue said. “And ultimately, we’ll get to a place where we either can’t support what they’re asking for, or we may arrive at some level that the mayor and administration feel is reasonable and supportable.

“But we’ll have to see how that negotiating period comes out.”

The submitted site plan shows each of the first two phases featuring three buildings with 320 units, a pool, a clubhouse, a leasing office and a parking garage. However, wraparound surface lots will account for 1,081 of 1,174 total spaces.

The site plan did not illustrate Azalea Gateway’s final phase. It shows a nine-acre vacant space. “Each phase of the project will take approximately two years to complete construction … for a total of six years from beginning construction to full lease-up,” Porter wrote in the application.

The developer stated Azalea Gateway will “deliver a huge amount of much-needed housing supply to the St. Petersburg market.” Van Lue agreed with that sentiment.

“I do think it would make a dent in our efforts to … help get the prices and costs down so that people can afford to live here in St. Pete,” Van Lue said of potentially adding 1,000 mixed-income units to the city’s inventory. “On a project of this size, as you can imagine, it’s going to be that will take some time, and we’ll have a lot of discussions, analysis and things we’re going to need to do.”