State of the City: St. Pete thrives despite challenges

Mayor Ken Welch’s third annual State of the City address highlighted St. Petersburg’s resilience amid storms, economic challenges and opposition to equitable initiatives.

The event began Tuesday morning at the Palladium Theater with a video montage that showcased the devastation caused by Hurricanes Helene and Milton – and the residents who stepped up to help their neighbors. It ended with Welch recognizing the “heroes” who showed up to work in various city departments despite also suffering storm damage.

City Council Chair Copley Gerdes noted the city collected enough hurricane debris – 2.1 million yards – to fill a football field as tall as the Empire State Building. He said 2024 was a “year that tested us, but it also demonstrated the strength of this community.”

“St. Petersburg is a place where people come together in times of need, and we’ve seen this firsthand,” Gerdes said. “Looking ahead, I know there will be challenges. But I also know we will face them together.”

Welch listed several affordable housing and educational support milestones in 2024 before turning an eye to the city’s future. Residents voted to allocate $1 million in the fiscal year 2025 budget to a new youth crime intervention program, Forward Together.

Welch said the initiative would address the root causes of teen crime through mental health and social service interventions. “The goal is to ensure St. Pete’s youth have achievable ways to get back on a path of success.”

St. Pete Fire Rescue will soon have a new station on the city’s west side and an additional high-water rescue vehicle. A modern training facility Welch called “long overdue” is now in the design phase.

He said the city would open its state-of-the-art sanitation complex in May. The facility will enhance operational efficiency and help reduce energy consumption.

Welch reiterated his commitment to the St. Pete Agile Resiliency plan, which “represents an aggressive, accelerated approach to strengthening the city’s infrastructure.” He anticipates advancing “at least $750 million in additional investments over five years.”

Projects include flood-proofing critical buildings and elevating wastewater treatment facilities. The city will launch a residential sewer lateral rebate program for homeowners this summer to mitigate repeated overflows.

“Our recovery will be a costly endeavor,” Welch said. “However, St. Petersburg remains in a strong financial position despite the significant impacts of Hurricanes Helene and Milton. Last week, Fitch Ratings reaffirmed our double A+ credit rating, with a stable outlook.”

Mayor Ken Welch at the 2025 State of the City event.

Welch said the city continues embracing public-private partnerships, equitable funding support for businesses and the arts, and a community-benefit development model that fosters inclusive economic opportunities. St. Petersburg experienced $1.4 billion worth of new construction in fiscal year 2024, a 4% year-over-year increase.

Welch said the city issued 34,761 construction permits, and “continued strong growth” underscores its “robust economy.” He also stressed the importance of equitable development.

Officials allocated over $1.5 million to 196 small businesses in the South St. Pete Community Redevelopment Area (CRA) throughout 2024. Over 80 received minority and women-owned business enterprise (MWBE) certification.

Welch said the city’s Office of Supplier Diversity would soon launch Ready Set Bid, an initiative that provides hands-on solicitation and bid training. He also thanked Carl Lavender for coming out of retirement to help establish the Office of Equity. St. Pete native George Smith – currently responsible for CRA’s housing and business development programming – will succeed Lavender as the next chief equity officer in March.

The mayor then offered “some straight talk about why equity matters.” He said St. Pete should not retreat from its principles “because some want to politicize, demonize or change the meaning … into something it never was and never was intended to be, with respect to our implementation in the city.”

Welch reaffirmed his commitment to providing economic opportunities in the Historic Gas Plant District – with or without the Tampa Bay Rays. He said equity in St. Petersburg is equal opportunity informed by facts, data and history to create “a path for us to move forward together.”

“And as long as I’m here, we will not abandon or retreat from that,” Welch added.

He selected the Tampa Bay Rays and Hines to redevelop Tropicana Field and the former Gas Plant neighborhood at his inaugural State of the City event in 2023. Welch expressed confidence in the complex deal’s success and benefits during his 2024 address.

Rays, Hines, Pinellas County and city officials signed agreements in July 2024 to bring the $6.5 billion project, anchored by a new stadium, to fruition. Welch remains hopeful that the team will now honor six-month-old contracts.

“As your mayor, please know that we are prepared, and have always been prepared, to adapt, adjust and move forward if the Rays walk away from this partnership,” Welch said. “The greatness and future of St. Pete does not depend solely on this deal.”