Embattled townhome development’s second phase approved

Eight-year-old plans to transform the former site of a delipidated St. Petersburg mobile home park into a sprawling townhome community are now entering the second of four phases.

City Council members unanimously approved a site plan for the Terraces at 87^th Avenue Townhomes at their Feb. 20 meeting. The scaled-down project will now offer 92 units at the former Lamplight Mobile Home Park in a coastal high-hazard area of northeast St. Petersburg.

Pinellas Park-based Belleair Development Group (BDG) completed construction on the ambitious project’s first phase in December 2024. Founder and president Carlos Yepes said the city has a permitting and development review process that is “killing us.”

“I’m glad you brought me here today – because the system is broken,” Yepes said. “You need more staff. This system needs to be addressed.”

Belleair completed the project’s first 16 townhomes in December 2024. Photo: Lipply Real Estate.

BDG bought the property in January 2018 for $3.4 million. The firm initially planned to replace 112 decaying mobile homes with the same number of market-rate rentals.

However, BDG will now sell the townhomes around the intersection of 4^th Street and 87^th Avenue North. The three and four-bedroom units start at around $800,000.

The natural gas-powered homes feature four-car garages, rooftop terraces and wiring for electric vehicle charging. A real estate listing refers to the community as “lavish.”

Councilmember Brandi Gabbard questioned when the development would offer the community pool with cabanas, fireplace areas and BBQ grills listed on the aforementioned website. Yepes said the project’s second phase would include those amenities.

“I get a lot of questions about that – when are they going to approve the portion that looks more towards 4^th Street,” Gabbard noted.

Yepes said BDG is “almost done with the site work” fronting the corridor and has “anxiously” awaited permitting approval for the development’s second phase. “I hate to say this, but they blackmailed us to replace the sewer line on 87^th (Avenue), which we didn’t have to do, and that really messed up the whole process.”

The intersection of 4th Street and 87th Avenue North. Image: Google Street View.

St. Petersburg’s Development Review Commission approved the project, previously estimated at $30 million, in May 2021. At the time, the development team expected to commence construction within 90 days.

Yepes said Thursday that BDG had to relocate residents, remove asbestos and complete an extensive civil engineering process before receiving the city council’s approval. He said it takes 60 days to receive application feedback, and “many times, it’s ridiculous.”

“And then, when we get comments back to resolve the comments submitted, the next response has more comments than we had before,” Yepes continued. “And we just keep going in a loop.”

He said the convoluted local process can take 15 months, while officials in other areas respond in two weeks. Yepes believes Liz Abernethy, St. Petersburg’s planning and development director, is an “amazing” leader who needs additional employees.

Yepes credited some of her staff for their responsiveness, while others “don’t even answer” calls and emails. “You’re missing out on us completing projects, paying you taxes and creating jobs,” he added. “That needs to be fixed.”

“We operate in six, seven counties,” Yepes said. “This is the most difficult.”

The city council unanimously approved Belleair Development Group’s request to replat seven lots into 20.

He said BDG would immediately start the project’s second phase, which includes 20 townhomes. The firm wants to ensure the market can absorb the additional stock rather than having units sit empty and convert into rentals.

Gabbard, who represents the area, called the long-awaited development’s second council approval a good news item. She said the Terraces at 87^th is now an environmental resiliency project.

“For those of you not familiar, the mobile home park that was there before was in great disrepair,” Gabbard said. “Let’s just say that.”

She said all 112 mobile homes would have flooded during Hurricane Helene’s storm surge. Those that remained standing would have likely succumbed to Hurricane Milton’s winds.

Homes in coastal high-hazard areas must sit 11 feet above sea level. BDG previously pledged to add five feet to that requirement.

“Residents who invest in those areas will be safer overall,” Gabbard said of the project. “So, I just want to thank you for your continued commitment because I know what a struggle it has been to get to this project.”

Yepes said the development will feature a stormwater retention pond on each block. BDG will cover the first, about 110 feet long, 47 feet wide and three feet deep, with a deck.

The second pond will sit beneath the community’s pool area. “You won’t see it, but it’s there,” Yepes said.