St. Pete housing developments receive influx of county cash

The two largest mixed-income housing projects in Pinellas County history received a $10.75 million boost Tuesday. Commissioners also authorized $65.93 million in bond sales to finance three other local developments.

The $76.68 million total windfall will help four projects in St. Petersburg, including two long-awaited redevelopments, come to fruition. The fifth is in Largo.

Commissioners unanimously approved $5.25 million and $5.5 million in unencumbered subsidies for the Azalea Gateway and Sky Town Apartment projects, respectively, with little discussion. The funding supports 223 new affordable and workforce housing units.

Plans for the phased redevelopments include over 3,000 total homes, with 30% dedicated to those who earn near or below the area median income (AMI). The subsidies stem from the Penny for Pinellas sales tax and ensure affordability restrictions for at least 30 years.

The Azalea Gateway project will transform the former Raytheon Technologies site in West St. Petersburg into a massive housing complex. Rendering: Arc3 Architecture.

Azalea Gateway

The City of St. Petersburg hastily transformed the embattled, 29-acre former Raytheon Technologies property into a storm debris collection site following recent hurricanes. Local developer Les Porter will now commence construction on a $110 million project with 1,000 units.

Porter purchased the property at 1501 72^nd St. N. for $10.5 million in 2021 despite decades of groundwater contamination issues. He settled on plans for Azalea Gateway after considering creating a sports complex and recreational lagoon on the expansive West St. Petersburg site.

The city approved a project site plan in 2023. The county’s $5.25 million will support the first of three development phases, which features 340 apartments.

“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 previously said in a prepared statement sent to the Catalyst. “In order to do that, we need public-private partnerships.”

Porter will dedicate 51 of the first units to households earning up to 50% of the AMI; another 51 have a 120% income limit. The county’s funding hinges on St. Petersburg allocating $6 million to the project.

Sky Town Apartments

Once dubbed the Skyway Village, the Sky Town Apartments will transform the former 34.3-acre Ceridian business campus into a massive mixed-use development. The project, once complete, will feature 2,084 housing units, 80,920 square feet of commercial space, 22,500 square feet of accessory self-storage and 4,000 parking spaces at the southwest corner of 34^th Street and 30^th Avenue South.

Construction has commenced on a Sprouts grocery store, the anchor retail tenant. The county’s $5.5 million will support the first construction phase, which includes 401 units and totals $120.39 million.

The project’s developer, Altis Cardinal, will dedicate 60 apartments to those earning up to 80% of the AMI, and 51 will have a 120% income limit. The county funding is contingent on St. Petersburg contributing $4.5 million.

However, in October 2023, attorney Donald Mastry said Altis would not seek financial assistance from St. Petersburg during a contentious Development Review Commission (DRC) meeting. “I think it would be horrible policy for this board or this city to deny projects that are permitted by right without any variances being requested,” he added.

“That’s a bad message to send.”

The DRC mandated several stipulations, including two additional traffic studies during subsequent construction phases. The board then approved Altis Cardinal’s plans in a 7-1 vote.

Sky Town will reimagine the former Ceridian business campus at the southwest corner of 34th Street and 30th Avenue South. Rendering: Altis Cardinal.

County Administrator Barry Burton said Tuesday that commissioners have committed $70.5 million to affordable housing through the latest Penny for Pinellas funding round. They have about $25 million left to disburse.

Commissioners also authorized the Pinellas County and St. Petersburg Housing Finance Authorities to issue $65.93 million in Multifamily Housing Revenue Bonds at Tuesday’s meeting. Developers must repay the 4% low-income housing tax credits, which according to county documents, have “no fiscal impact” on local public funding.

Those projects include:

Flats on 4^th: Orlando-based developer Archway Partners will receive up to $18.5 million in bond revenue for Flats on 4^th, an 80-unit project entirely for households earning just 30% to 60% of the AMI. The firm previously received $2.9 million from the county and $4.4 million from the city for the development at the southwest corner of 4^th Street and 106^th Avenue North.

Skyway Isles Apartments: According to county documents, Tampa-based developer Sage Partners will receive up to $36.73 in bond revenue to “help finance the acquisition, rehabilitation and equipping” of the low-income senior housing complex. Formerly dubbed the Viridian, the 54-year-old, 188-unit tower at 518 3^rd Ave. S. in downtown St. Pete will receive a $73.2 million facelift. Documents state the “substantial” renovations will provide much-needed improvements to extend the property’s “useful life.”

Seminole Square Apartments: Archway Partners will also receive up to $10.7 million in bond revenue for the Seminole Square Apartments. Commissioners previously dedicated $4 million to purchase 4.97 acres of vacant land for the project and ensure affordability. The development at 2005 Seminole Boulevard in Largo features 96 units for households earning between 30% and 80% of the AMI.