Mayor selects proposal with 126 affordable residences and retail for Commerce Park redevelopment in south St. Pete
/Magellan Housing’s proposal to build 126 affordable residences on a three-acre parcel of city-owned land in south st. Pete | Magellan Housing
Mayor Ken Welch has selected Magellan Housing as the preferred developer for Commerce Park, a 3.03-acre, city-owned site near 22nd Street South and 7th Avenue South across from the Manhattan Casino in south St. Pete.
Magellan, through its local affiliate Deuces Rising, LLC, was one of seven teams that responded to the city’s April request for proposals.
Its plan, called The Deuces at Commerce Park, includes an eight-story, 120-unit affordable apartment building, about 6,000 square feet of retail space along 22nd Street South, and six for-sale townhomes in a second phase.
The selection gives the Texas-based affordable-housing developer the opportunity to negotiate a deal with the city. Any final agreement must return to City Council for a separate vote, and the council is not likely to approve an agreement before November’s mayoral election.
All 120 apartments would be income-restricted, meaning residents would have to meet income limits to qualify. The proposal calls for 24 apartments reserved for households earning up to 30% of the area median income, 60 for households earning up to 60% of AMI, and 36 for households earning up to 80% of AMI.
The six townhomes would be set aside for income-qualified buyers, creating a homeownership option alongside the rental apartments.
The development site, a 3.03-acre, city-owned site near 22nd Street South and 7th Avenue South across from the Manhattan Casino in south St. Pete | Google Maps
According to the published RFP, the city sought a mixed-use project with commercial space along 22nd Street South, rental and homeownership opportunities, and a design that recognizes the area’s history.
That history is central to the decision. Known as The Deuces, 22nd Street South was once the commercial and cultural center of St. Petersburg’s Black community, with businesses, restaurants, and entertainment venues serving residents during segregation.
Decades of disinvestment and the construction of I-275 later took a heavy toll on the corridor.
The Commerce Park site has been the subject of several redevelopment efforts since the city began assembling the land in 2007.
Plans for an industrial employment center, a manufacturing facility, and a new home for the Woodson African American Museum of Florida did not materialize.
The property later became part of the city’s Deuces Rising initiative, which has focused on housing, retail, and neighborhood investment. The recently completed Deuces Rising townhomes are part of that effort.
Welch’s selection puts Magellan’s proposal ahead of six other submissions, including a boutique hotel with co-living units, larger mixed-income apartment projects, a workforce-focused development with an innovation center, and other affordable-housing proposals.
a landscaped public courtyard along 7th Avenue serves as a shared community space activated with gardens, a dog park, and a playground | Magellan Housing
In an August 27th letter to City Council, which was obtained by St. Pete Rising, City Development Administrator James Corbett wrote that Magellan’s proposal would create new opportunities for housing, homeownership, local businesses, and investment while incorporating public art and community gathering spaces intended to recognize the Deuces’ cultural identity.
Magellan’s proposal says Tampa-based Blind Tiger Coffee Roasters is in discussions to become an initial retail tenant.
It also calls for the retail spaces to be offered to local businesses at near-cost rents, a landscaped courtyard that could accommodate markets and festivals, and a public-art installation on the building’s south-facing facade.
Magellan estimates the full proposal would bring more than $43 million in investment to the corridor.
For the apartment phase, the developer proposes a 99-year ground lease rather than purchasing the land. In plain terms, the city would keep ownership of the land while leasing it to the developer for the apartment building.
Magellan has proposed starting annual rent of $55,000, increasing 1% each year for the entire 99-year term.
Final massing for Magellan Housing’s proposal to bring 126 affordable residences and retail to the Deuces in south St. Pete | Magellan Housing
The townhome land would be handled separately so the homes could be sold to individual buyers.
The proposal also seeks $200,000 from the city for each townhome unit.
The project’s financing plan relies largely on competitive Low-Income Housing Tax Credits. Those credits are a common source of funding for affordable-housing projects, but the timeline depends on whether Magellan receives an award.
If the project moves forward, Magellan expects construction to begin after financing is secured. The developer estimates an 18- to 24-month construction period and completion around 2029.
For now, the next step is negotiation. City staff will work with Magellan on the terms of a potential agreement, including the ground lease, the land for the townhomes, financing commitments, and project requirements. City Council will then decide whether to approve the deal.
