Thrive
Municipal marina redevelopment deal is on the rocks
Long-awaited plans to breathe new life into the St. Petersburg Municipal Marina recently hit a snag after Blackstone, a trillion-dollar global investment firm, acquired Safe Harbor Marinas.
Mayor Ken Welch selected Safe Harbor Marinas to reimagine and operate the aging 640-slip marina in late December 2023. The city-owned facility along the downtown waterfront suffered extensive damage during Hurricane Helene.
Administrators planned to present a contract to the city council for approval in March. Their recommended 2026 capital improvement project budget, unveiled at an April 24 Committee of the Whole meeting, now includes $26 million for marina repairs.
“This does allow us to take the next step, in terms of actually self-performing the marina redevelopment,” said Brian Caper, economic and workforce development director. “We are hopeful it does not come to that – we feel very confident with Safe Harbor …
“But given the uncertainties of their own internal structure and the fact that we have not received a response in the last couple of months, we are just preparing for all possibilities at this point.”
A Safe Harbor Marinas rendering of a reimagined Fresco’s Waterfront Bistro as part of the St. Petersburg Municipal Pier’s redevelopment. Screengrab, city documents.
A 2017 master plan called for modernization efforts and improvements to docks that have reached “the end of their service lives.” Former Mayor Rick Kriseman’s administration, to the dismay of many stakeholders, subsequently selected the similarly named Safe Harbor Development (SHD) to redevelop and operate the marina.
SHD requested a 25-year lease, a nonstarter for the city council. Welch reissued a request for proposals in April 2023.
Safe Harbor Marinas proposed a $48 million investment, with $1.25 million upfront. The company would build new docks, a welcome center and a two-story amenity facility with a lounge.
Stakeholders have waited years for certainty. The wait may continue.
“Hearing that it has been some time since there has been a conversation, at what point do we say, ‘Ok, we’re going to pull up our anchor and sail away on our own,’” said Councilmember Gina Driscoll.
The city sent Safe Harbor Marinas a draft agreement on Valentine’s Day. Blackstone announced Feb. 24 that it acquired Safe Harbor Marinas for $5.65 billion.
Administrators expect Blackstone to submit a counteroffer this week. They will then restart negotiations with the global investment firm.
The $26 million budgeted for repairs provides a safety net to prevent the marina from falling further into disrepair. Councilmember Brandi Gabbard noted officials had spent nearly three hours discussing citywide needs and a lack of available funding.
Gabbard expressed shock over the update and called budgeting $26 million for the project “irresponsible.” She also has “no intention” to approve the allocation.
“So, I’m going to hope and pray that we can come up with some sort of agreement,” Gabbard continued. “Otherwise, we’re going to have to go back to the drawing board again, as far as I’m concerned.”
Tony Ashley, a St. Petersburg Municipal Marina resident, shows how high the water rose over electric equipment during Hurricane Helene. Photo by Mark Parker.
Councilmember Lisset Hanewicz, also shocked, stressed the impact of a global investment firm now overseeing the public-private partnership. She said Intown Community Redevelopment Area tax coffers could help pay for the marina’s redevelopment.
Administrators remain confident that they can reach an agreement with a restructured Safe Harbor. Councilmember Richie Floyd highlighted Blackstone’s “horrible reputation.”
“This has been a tricky conversation for all of us,” Floyd said. “But I’m immediately taken aback and worried about who we’re partnering with now … I was already struggling, and now you just created a bigger hurdle for me to get through.”
However, he noted that marinas can be profitable, and the $26 million budgeted stems from revenues. Floyd remains optimistic that the city will discern an acceptable path forward and receive a return on its investment.
Driscoll reminded her colleagues that the marina is home to about 100 people, not including businesses and the adjacent Fresco’s Waterfront Bistro, and is “falling apart.” Councilmember Deborah Figgs-Sanders previously told administrators that she “wanted someone other than Blackstone.”
Council Chair Copley Gerdes shared her concern. He said financial services firm Northwestern Mutual “won’t even hold Blackstone, so that tells me something … And, frankly, I’ve communicated that to Safe Harbor.”
Gerdes said he would still consider a deal with Blackstone or a short-term plan to self-fund marina repairs. “But I think we all know this is not a $26 million project.”
“This is an $85 million, $100 million or $110 million project,” Gerdes added. “It’s a big lift for us to take on when we’re trying to take on a whole bunch of other stuff.”
Robert Kleinschmidt
June 1, 2025at2:08 pm
If Safe Harbor is involved slips and fuel are going up!
Ryan Todd
April 30, 2025at8:41 pm
Recall Welch.
What are we waiting for? Another failed development or hurricane season? Cut the dead weight now.
John
April 30, 2025at10:07 am
Welch can’t leave soon enough. How many projects is he going to fail to deliver on?
CHRIS
April 30, 2025at7:25 am
Another bad bussiness decision from our Mayor.Please leave AL LANG alone.
Tatguy
April 29, 2025at7:30 pm
Has anything positive, come from ANY of Welch’s decisions???!! Enough.
Pegasus
April 29, 2025at4:52 pm
As a marina resident for 18 plus years, I saw first hand how the city of St Pete skimmed the profits from the money making marina and just sat back and let the once great marina spiral into disrepair. There is really no excuse for letting the facility reach the horrible condition it is currently in. The waterfront area is obviously the main draw to the downtown area. The fact that the city council is waiting for their savior SHD to swoop in and save them is ridiculous. Spend the money on the marina upgrades and keep it city managed. This is not rocket surgery. Scary to think these clowns are running the city. Geesh.
John F
April 29, 2025at4:31 pm
Please, just self-perform the work and keep the marina a muncipal asset. It generates a profit (unlike some other assets), and has contributed to City general fund for decades instead of building an R&R fund. It’s time for the general fund to give back.
No more shady developer deals.
S. Rose Smith-Hayes
April 29, 2025at4:26 pm
This is just too much talk and nothing is getting done. The deal is Not a good one especially if Blackstone will be in it. they do Not have a good reputation. What was the cause for the delay in following the Kriseman deal? Allow Fresco’s to independently rebuild on their spot with a lease with the City. Figure out what is needed, using a public Adjuster and figure out how to hire folk to do the work with a General contractor. This is too costly and probably will take years to get done.
Hugh Hazeltine
April 29, 2025at4:05 pm
Before Blackstone, Safe Harbor Marinas (SHM) of Dallas were owned by Sun Communities a Real Estate Investment Trust (REIT) for five years. Now these companies are being passed around like trading cards. Who will be the next to have SHM in their portfolio and it turn our marina? The question is do we want to tackle this problem ourselves or farm it out to a company thousands of miles away. The Marina will more than pay for itself and the city can reap all the profits or those profits can be shared with Blackstone investors.
S
April 29, 2025at4:01 pm
We figured that it went completely wrong when you wrote in the first sentence that Mayor Welsh made the decision.
It really doesn’t matter what decision it was going to be.
I hope everyone’s keeping track of the disasters he’s been leaving in his wake. No pun intended.
Lauren Lopez
April 29, 2025at3:50 pm
What a complete FAIL. Why didn’t we go forward with the Kriseman deal? St. Petersburg is on the wrong path.
John
April 29, 2025at3:07 pm
….And now they want to tear down Al Lang. Unbelievable.
Sergeant O' Leary
April 29, 2025at1:43 pm
The Kriseman Plan was such a win for the City. Unbelievable. Would have been complete by now.
Alan DeLisle
April 29, 2025at1:19 pm
Another example of Welch cancelling a solid project with no idea how to deliver it. No one will put private money into the Marina without a long term lease. The Kriseman administration had it structured appropriately. Now Gabbard and Driscoll have concerns after they scuttled a deal that would be done by now. Sad.
They let Moffitt walk, oversaw the disaster of the Trop, sat on the marina and mismanage South St Pete development every day. When does the Council wake up.
OriginalJud
April 29, 2025at11:06 am
The city should conduct the marina repairs from the hurricane and maintain it themselves