South St. Pete will soon have affordable new townhomes

Construction has commenced on a much-anticipated townhome community in an underserved area of South St. Petersburg.

The Pelican Place Townhomes will provide 40 new affordable homeownership opportunities to residents earning between 30% and 80% of the area median income. Another partnership between Habitat for Humanity Tampa Bay Gulfside and the City of St. Petersburg is bringing the estimated $15.6 million project at 2100 18th Ave. S. to fruition.  

Mayor Ken Welch selected the nation’s second-most prolific Habitat affiliate to develop the vacant 2.2-acre site in July 2022. He noted that “this did not happen overnight” at a groundbreaking ceremony Monday morning. 

“I’m so excited because I know that progress takes time,” Welch said. “A lot of things had to happen with a lot of folks along the way for this vision to happen.” 

Tangerine Plaza provided the backdrop for Monday morning’s groundbreaking ceremony.

The city gifted the property, across 22nd Street South from the mostly dormant Tangerine Plaza site, to Habitat in 2024. Officials dedicated $2.18 million from the South St. Petersburg Community Redevelopment Area (CRA) to the project in June. 

However, Welch said the process to provide affordable housing at the site began under a former CRA, which lacked a tax increment financing mechanism. The city’s total contribution, including the land, is roughly $3.6 million. 

“This is a special project because it addresses both housing affordability and homeownership, and therefore represents a pathway to stability, to economic opportunity and to long-term prosperity for the families who will soon call these townhomes home,” Welch added. “Homeownership is one of the most powerful tools we have for building generational wealth.”

Pelican Place will feature eight buildings, each with five units. The community’s two- and three-story townhomes will offer two-, three-, and four-bedroom floor plans. 

Habitat candidates who meet income requirements, demonstrate a need for adequate shelter, complete a robust homebuyer education curriculum and invest 350 to 450 “sweat equity” hours will receive a 0% fixed-rate mortgage. The organization caps closing costs at $2,000. 

CEO Mike Sutton previously told the city council that residents would pay around $1,200 monthly for their mortgage, homeowner’s association fees, taxes and insurance. Welch said Monday that Habitat projects help ensure equitable growth and shared progress by addressing soaring living costs and preserving “the character of neighborhoods.” 

Sutton said attendees “wouldn’t be here on this property if it wasn’t for the city.” Habitat built 88 homes over the past year and will exceed 95 in 2025.

Sutton noted there is a “common misconception about who Habitat homeowners are.” He said they often earn “too much for government assistance and too little for a traditional home loan.” 

Habitat will soon open The Grove, an 11-unit townhome community about three blocks away from Pelican Place. When pressed by the mayor, Sutton said the latter development would welcome its first residents in 2026. 

St. Petersburg is home to around 25% of all Habitat homes. The affiliate’s coverage area now encompasses Pinellas County and the west coast of Pasco and Hernando Counties.

Sutton said Habitat has completed roughly 250 homes in South St. Petersburg. After the event, Council Chair Copley Gerdes stressed the importance of creating affordable housing, “no matter where it is in the city.” 

Habitat provided QR codes that directed attendees to an informational website. Gerdes sent two to West St. Petersburg constituents. 

“If I’m a renter, and I have the opportunity to generationally build wealth with 0% down on a 0% mortgage, as a former financial advisor, those numbers don’t get any better,” he added. “So, it’s attractive to anybody.” 

From left: City Council Chair Copley Gerdes; Councilmember Deborah Figgs-Sanders; Mayor Ken Welch; Councilmember Corey Givens Jr.; Mike Sutton, CEO of Habitat for Humanity Tampa Bay Gulfside; and Chris Hackney, chair of the affiliate’s board.

Tangerine Plaza

Gerdes also noted that The Grove, other projects along 22nd Street South and Tangerine Plaza’s long-awaited redevelopment would increase area property values. He said encountering hurdles and delays “doesn’t mean you should shift course.” 

“When you see the vision, you have to keep going towards the vision,” Gerdes continued. “You don’t change the vision in the middle, just because it’s hard and it takes time. If you really thought about the vision, and that’s the guiding light, then you have to keep going.

“I think that’s where we’re at on a lot of projects in St. Pete; it’s not just Tangerine Plaza.” 

The city-owned strip mall housed the area’s only grocery store until 2017. Sugar Hill Group, which submitted its first proposal for the embattled site in 2020, needs additional public funding and a one-year extension to meet city requirements. 

In June 2024, council members approved offering the group 18 additional months to secure funding and a grocer in a 5-3 vote. The latest agreement will terminate Jan. 2 if they disapprove of another extension Thursday. 

Councilmember Corey Givens Jr., who represents the area, recently said that the city should reopen the proposal process. Sutton, who previously advocated for plans submitted by developer and former Councilmember Robert Blackmon, said Monday that Habitat would “definitely consider” a bid if the site becomes available. 

“I think we hadn’t submitted in the first round just because of the numerous projects we had going on in the community,” Sutton said. “If there is an opportunity – it wouldn’t be us alone – we would look at some sort of joint collaborative effort.” 

A rendering of the Pelican Place Townhomes. Image provided.