What is the Gas Plant site worth to St. Pete?

A local investor wants to buy the 86-acre Historic Gas Plant District site in St. Petersburg for $260 million, $71 million less than the city’s valuation.

However, the unsolicited proposal notes that “the market has certainly changed.” St. Petersburg-based Blake Investment Partners then lists the same factors the Tampa Bay Rays outlined before walking away from a new stadium deal Thursday.

The firm submitted its cash offer hours after the team announced it would no longer lead the Gas Plant’s $6.7 billion redevelopment. A new $1.37 billion ballpark would have anchored the ambitious mixed-use project that stakeholders hoped would help fulfill long-broken promises to the Black community that once called the area home.

In an accompanying letter, Thompson Whitney Blake, founder of the private equity firm, wrote that the long-awaited project needs someone to heed his mother’s advice and “put your money where your mouth is.” He would immediately provide $60 million to repair a storm-damaged Tropicana Field.

“For more than a decade, I have watched, along with the residents of St. Petersburg, a lot of people talk about the Rays and our 86 acres,” Blake said. “No one has offered to take any risk.”

The city’s property appraisal valued the land bordering downtown St. Petersburg at $3.85 million an acre. Blake’s proposal equates to $3.02 million an acre.

He noted that back-to-back hurricanes, increased interest rates, decreased home prices and elevated construction costs “would certainly be contemplated in an updated appraisal.” The Rays have said those issues – exacerbated by a seven-week bond authorization delay – created a financial gap.

Mayor Ken Welch reiterated Thursday afternoon that the team would not receive “another dime” of city money. The Rays and Hines development team would pay $105 million for 65 acres over 30 years, or $1.62 million per acre.

In addition to providing a major league sports team, the Rays committed to a $50 million community benefits agreement (CBA). The current deal’s annual expenses included a $1 million licensing fee, $400,000 for security, and millions in soaring stadium insurance premiums.

According to Blake’s proposal, the appraisal doesn’t consider that “maximizing value could take a decade.” He listed an additional $24.6 million in costs not subtracted from the valuation.

The firm would provide $60 million 10 days after the city council’s approval – if the offer is genuine. Blake encouraged officials to use it “as a stalking horse to lure in any firm that would like to pay more.”

Formal consideration would trigger a public process. Blake believes any competition should show a similar willingness to honor the previous CBA and have cash “they will risk to help this community springboard back” from Hurricanes Helene and Milton.

Blake Investment Partners would pay the remaining $200 million when the city’s lease with the Rays expires in 2028. The proposal presumes that the team would then vacate the property.

Blake said he could not fault Rays owner Stuart Sternberg for making wise decisions based on financial returns. “They don’t control the weather, interest rates or construction costs,” he added. “My firm would like them to stay in our town.”

Tropicana Field in Hurricane Milton’s aftermath. Photo by Mark Parker.

Site selection expert John Boyd Jr., principal at South Florida-based The Boyd Company, has advised clients like Boeing and DeBartolo Development. He called St. Petersburg a prestigious destination with “premier” developable property surrounding the Trop.

“Something is worth whatever someone is willing to pay for it,” Boyd said of the site. “The team’s (Rays) posture is 1,000% correct, and it’s been dismissed by so many elected officials.

Boyd highlighted the same headwinds listed in Blake’s proposal. “But what’s new here are also the tariffs,” he said. “The market fundamentals are drastically different.”

Blake envisions several companies buying and redeveloping the site in parcels. That would negate the current agreement’s cohesion.

He said various uses, like hotels, institutional headquarters and academic facilities, are critical to the redevelopment’s success. Blake pledged to have $500 million in vertical construction permitted and ready to commence “on the day the MLB lease expires.”

The firm would allocate 15 acres for green space and two acres for the Woodson African American Museum of Florida – provided the city offers a per-acre credit. According to Blake’s valuation, that would cut $51.3 million from the offer. He would also choose those locations.

He also proposed dedicating 15 acres to a convention center. Pinellas County would own roughly the same acreage to house a new stadium under the current agreement.

However, under Blake’s proposal, the county must lease the convention center’s land and would “have the right to” issue new bonds, oversee construction and operate the “world-class” facility.

“We are certain that county commissioners will see this use of funds as a major win over a sports stadium,” Blake wrote. “My firm wants to do what we have done time and time again in this city – create great real estate projects that our residents can enjoy.”

The six-page proposal does not mention affordable or workforce housing or the thousands of Black families and businesses displaced from the site. It does state the firm would secure a “household name, five-star hotel.”

A new ballpark would have anchored the Historic Gas Plant’s $6.7 billion redevelopment in downtown St. Petersburg. The Tampa Bay Rays pulled the plug on the deal Thursday. Rendering provided.