St. Pete once again trying to redevelop beleaguered Tangerine Plaza
By Breanne Williams
Tampa Bay Business Journal
Published: Jul 26, 2022

The city of St. Petersburg has officially restarted the process to bring new development to Tangerine Plaza.

The city had been working on negotiating a term sheet with The Sugar Hill Group LLC to redevelop the approximately 3.6-acre site at 1794 22nd St. S. However, the team submitted a new proposal, and the city in turn opened up the property once again for other development proposals. Development teams have until Aug. 17 at 10 a.m. to submit their plans.

The site was once the home of a Walmart Neighborhood Market and, before that, a Sweetbay Supermarket. The city bought the property in 2017 after Walmart closed. The initial negotiations between the city and SHG, during Mayor Rick Kriseman's administration, were for the development of another grocery store on the site as well as retail and affordable housing.

SHG — a venture from CEO of Binger Financial Services Roy Binger, the Rev. Louis Murphy Sr. and New Urban Development President Oliver Gross — now wants to build a mixed-use community center with 10,000 square feet of retail or commercial space and 115 affordable housing units on the site. City documents show the group said it “continues to be interested in working with the city on revisions” to its original proposal.

Amenities like a fitness center, community room and computer/business center would be included for residents. In response to the city’s affordable housing crisis, SHG said it is “committed to marketing and leasing all dwelling units to moderate and low-income residents of the community.”

The documents show the project is estimated to cost $37.3 million. The residences will be leased to residents whose household income was 80% or below the average median income. The proposal shows a portion of the total units would be reserved for residents at 60% AMI. There will be 34 one-bedroom units, 58 two-bedroom units and 23 three-bedroom units. SHG also intends to build a green energy building that follows the Nation Green Building Code.

The commercial or retail space is planned to be adjacent to one of the residential buildings and will front 22nd Street South. Outdoor amenities are planned for open green space at the site, and the developer intends to build 210 parking spaces.

According to the proposal, SHG intends to “utilize local Pinellas County bonds from the Housing Finance Authority paired with both State and City subsidies.” Subsidies like Penny for Pinellas and potential contributions from the community redevelopment area are some funding sources that will be pursued.

The proposal shows SHG entering a 75-year lease with the city with the group having the right to negotiate to purchase the property throughout their lease. SHG would pay $1.5 million for the lease in the form of a capitalized lease payment.