See the proposals to redevelop St. Petersburg's Municipal Marina
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Jul 20, 2023

Two Dallas-based real estate firms are vying to redevelop the St. Petersburg Municipal Marina.

Suntex Marina Investors and Safe Harbor Marinas both submitted proposals to redevelop the city-owned marina, which has 640 permanent wet slips. The city released a request for proposals for the redevelopment of the marina in April, and responses were due July 14. Respondents had the option to submit a proposal for the redevelopment and operation of the restaurant space adjacent to the marina at 300 Second Ave. NE, which is currently home to Fresco’s Waterfront Bistro.

City staffers will evaluate the proposals, but there is no timeframe for choosing one and entering negotiations, mayoral spokesperson Erica Riggins said Thursday. Once the administration and a developer reach an agreement, it is subject to city council approval.

Why are both firms based in Dallas? The city has emerged as a center for submerged real estate investors.

“The reality is Dallas is a pioneering real estate market,” Safe Harbor CEO Baxter Underwood told the Dallas Business Journal in 2017. “There’s an understanding of alternative real estate classes in this market that I don’t think exists as much anywhere else.”

The central yacht basin docks were built in 1963; four of the five south yacht basin docks were built in 1977. The infrastructure “has reached the end of its service life,” the city said in the RFP.

The marina is next to the St. Pete Pier, and its redevelopment would mark the next phase of revitalizing the city's waterfront district.

Here's a look at each proposal, which the city released Thursday afternoon.

Suntex Marina Investors

The Suntex portfolio includes 28 saltwater coastal marinas, 16 of which are in Florida, according to its proposal. The company has proposed $70 million in improvements to the marina. The proposal would generate "$14.2 million in ground lease and revenue share payments plus $2 million in property taxes to the city through the initial 10 years of stabilized operations" through a revenue-sharing program.

Suntex envisions an initial 30-year lease term with the city, plus two 25-year renewal options. Over the course of the 80-year term, "the city’s ground lease revenue is estimated to be $444 million with an additional $57 million in property taxes," according to the proposal.

The company projects its proposal will create 358 construction jobs with $42 million in payroll. The redeveloped Suntex marina will create 292 permanent jobs generating $10.9 million in annual wages.

Key features of the Suntex proposal:

660 slip marina with 35,000 linear feet of new floating docks and utilities, plus the opportunity to expand further (an increase of 10,000 linear feet of docks)

New marine support facilities, including dockmaster’s building, captain’s lounge, marina store, laundry and shower/restroom facilities

20,000 square feet of new restaurant and retail space within Demens Landing Park

4,000 linear feet of new waterfront promenade

485 parking spaces at Demens Landing Park (an increase of about 200 spaces)

16 upland acres redeveloped,10 acres dedicated to recreation

Permanent amphitheater space with a gently sloped lawn

Option to add multipurpose fields and sports courts (at Suntex’s cost)

Safe Harbor Marinas

Safe Harbor owns 135 marinas, 20 of which are in Florida. The company broke down its proposal by visions for the central, south and north yacht basis.

Safe Harbor proposes $48 million in capital investments to the marina. Safe Harbor has offered to pre-pay the entire five-year initial lease term at $1.25 million or $250,000 per year at lease commencement. After that initial five-year term — during which the marina will be in various phases of construction — Safe Harbor proposes a percentage rent of 15% of total gross revenues excluding total fuel and retail revenues, 5% of total retail revenues and a participation rent of $0.05 on each gallon of fuel sold.

Safe Harbor projects that percent rent would total $34.475 million over 20 years.

Highlights of the central basin plan:

More than 14,000 linear feet of leasable “floating” dock space, about 10% more than the current central B=basin footprint

Flexible dock space and will accommodate more than 325 boats in a range of vessel sizes; up to 200 feet in length

Preservation of the existing covered wet slips and approximately 30 new covered slips

A welcome center located at the entrance of the St. Pete Pier

A new state-of-the-art multi-level restaurant building designed to complement the St. Pete Pier, including indoor and open-air waterfront seating for up to 225 guests

A two-story welcome and amenity center on the north wall of Demens Landing with a lounge, exercise facility, and parking for a fleet of electric vehicles available to boating members and visitors to navigate the city

Updated restrooms and shower facilities on the north, west and south sides of the central basin

Improved ship store offerings and upgraded landscape and outdoor gathering spaces adjacent to the marina office, fuel dock and ship store

Highlights of the south basin plan:

More than 12,000 linear feet of leasable dock space, which is an increase of more than 20% of the permanent dockage

Additional flexible dock space that will accommodate more than 310 boats in a range of vessel sizes up to 200 feet in length

A new amenity center with restrooms and showers, including additional commercial space for local marine-related operators such as boat brokerage and other marina-related retail

A dedicated maintenance building and yard for the marina

A permanent special event dock available for the St. Pete Grand Prix and designed to accommodate and integrate with the annual St. Pete Boat Show