No questions asked: Council approves momentous redevelopment

Despite its size and the site’s noteworthy background, a $225 million project received the St. Petersburg City Council’s blessing Thursday without discussion.

Echelon Development plans to build twin 31-story towers with 824 apartments and 35,800 square feet of retail space at 800 2nd Ave. S. The existing building temporarily houses executive offices for the Tampa Bay Rays, and the property was once part of a proposed development that included a Moffitt Cancer Center. 

The site was also formerly home to UPC Insurance and a city-owned parking lot. Councilmember Richie Floyd, seemingly referencing the Moffitt proposal, was the only person on the dais to comment. 

“Goodness, it’s just very different from where we started here,” Floyd said. “It does feel a little bit like a missed opportunity. I just wanted to acknowledge that.”  

The unnamed project is enormous by local standards. At 1.56 million square feet, its gross floor area far surpasses the 46-story Residences at 400 Central (1.2 million), St. Petersburg’s tallest high-rise. 

The site formerly housed UPC Insurance’s headquarters and a city-owned parking lot.

Atlanta-based development firm TPA Group and Moffit offered $5 million for the 3.05-acre site and an abutting parcel in 2022. While that project included a 75,000-square-foot cancer center, it would have also featured a 30-story residential tower and a 14-story hotel. 

Welch has received criticism for scrapping the deal over a lack of affordable housing. The development team would have reserved 35 of the 400 proposed units for households earning up to 80% of the area median income, and capped 35 at 120%. 

Welch’s hesitation could prove prescient. The $5 million offer was a fraction of the site’s previously appraised $24 million market value, and the city still owns the northern block at 800 1st Ave. S. that would have housed Moffit. 

Third Lake Partners (TLP) purchased UPC’s former headquarters for $10.5 million in November 2022. The Tampa-based developer subleased the adjacent parking lot, across the street from the Historic Gas Plant District’s planned redevelopment, from the city. 

Appraisals valued the parcel at roughly $16 million. However, officials were eager to exit a cumbersome lease that expires in September 2086. The city’s tax bill on the property topped $56,000 in 2023, and TLP paid just $1,755 in monthly rent. 

Council members approved selling the parcel to TLP for $10 million in September 2024. The price reflected tax savings and the city retaining ownership of a right-of-way along 2nd Avenue South, a key entry point to the Gas Plant. 

Administrators subsequently used $6 million of the proceeds to repay a loan associated with the Deuces Rising townhome project. They also moved $4 million to the Housing Capital Improvement fund to support other affordable developments. 

In September, Council Chair Copley Gerdes told the Catalyst that the right-of-way was worth between $2 million and $4 million. He also expressed excitement for a “much simpler option than what’s currently on the books with ownership of the property and the lease.” 

“I’d much rather be able to pay back the economic stability fund and put some money back into housing than to have outgoing cash flow on a piece of property we can’t do anything with,” Gerdes added. 

Welch could still sell the northern block or use it for affordable housing. He also recently discussed plans to begin the Gas Plant’s redevelopment without the Tampa Bay Rays. 

The project approved Thursday is a joint venture between TLP and St. Petersburg-based Echelon. It does not include subsidized housing and would not trigger the city’s community benefits process unless the total cost fell below $40 million. 

The project will feature 35,800 square feet of retail space and a seven-story parking podium.

Council members could only approve of the project’s consistency with the Intown Community Redevelopment Area. However, they discussed plans for another downtown redevelopment before moving to the two 31-story towers. 

Councilmember Corey Givens Jr. did mention the latter project in the previous discussion. He expressed concern over several in-progress and proposed developments straining the city’s infrastructure and sewage capacity. 

Givens reiterated that sentiment in a social media post after the meeting. “Our crumbling infrastructure can’t withstand much more of this overdevelopment,” he wrote. 

“I expressed my concerns,” Givens continued. “Let’s hope it doesn’t fall on deaf ears.” 

St. Petersburg’s Development Review Commission must still approve Echelon’s site plan. Each L-shaped tower will soar 343 feet above 2nd Avenue. 

A seven-story parking garage will provide 1,550 vehicle and 828 bicycle parking spaces for the 824 units. An amenity deck above the podium will feature two resort-style pools, cabanas, fitness centers, social lounges and fitness facilities. 

“This development is designed to enhance its surroundings by prioritizing active ground floor uses and shaded pedestrian pathways that foster street-level vibrancy,” Echelon wrote in its proposal. “By incorporating balconies and other features … the design celebrates St. Petersburg’s unique climate while contributing to its reputation as a livable and forward-thinking city.”