St. Pete approves $4.5M for affordable housing in 2,084-unit Sky Town development
/An aerial rendering of sky town, which will include thousands of apartments, a sprouts farmers market, retail, restaurants, and self-storage | altis cardinal
One of the largest residential developments underway in St. Petersburg is set to receive local funding to support the inclusion of affordable housing.
On Thursday, the St. Pete City Council unanimously approved a $4.5 million contribution from the Housing Capital Improvement Fund for the first phase of Sky Town, a major mixed-use project planned for 3201 34th Street South in the Skyway Marina District.
This follows the Pinellas County Commission’s earlier unanimous decision to allocate $5.5 million to Coral Gables-based developer Altis Cardinal for the same phase of the project.
Originally planned as a fully market-rate development, the project now includes affordable housing thanks to a combined $10 million subsidy from the city and county.
Sky Town will be built in six phases and is set to include 2,084 apartments, 69,000 square feet of neighborhood retail anchored by a Sprouts Farmers Market, and 120,000 square feet of self-storage space.
Phase one will feature 401 apartments, 121 of which will be designated as affordable. Of those, 61 units will be reserved for households earning up to 120% of the area median income (AMI)—currently $103,200 for a family of three—while the remaining 60 units will be set aside for those earning up to 80% of AMI, or $68,800 for a family of three.
The other 280 units in the first phase will be rented at market rates.
The apartments will include studios, one-, two-, and three-bedroom residences, ranging from 562 to 1,370 square feet. The apartment complex will have amenities such as a rooftop lounge, pool, and ground-floor retail.
While the funding resolution passed unanimously, it didn’t come without some hesitancy from several council members arguing that the rent for the 120% AMI apartments is essentially equal to market rates.
the councilmembers hope the developer will incorporate more affordable housing throughout the residential component of sky town | altis cardinal
However, the 30-year affordability period guarantees that the units will remain affordable amid changing market conditions over the next several decades.
“I hope in the future phases, [units reserved for] 120% AMI is not needed here - it’s higher than [some] market rate, and we talk more about [subsidizing more units reserved for] 80% AMI,” said Councilmember Richie Floyd, pointing how in comparing the monthly rents there isn’t a substantial savings for residents.
A presentation from the developer showed the broader impact of the affordable rents vs market rate rents over 30 years, equating to nearly $17,884,800 in savings.
A site plan of Sky town | city documents
Floyd said he could “stomach” the agreement as it’s still a “good bargain” for the city.
Councilmember Lisset Hanewicz also weighed in, stating how international tariffs and other factors may jeopardize future affordable housing and this deal brings certainty for the city.
Frank Guerra, founder and principal of Altis Cardinal, said the city and county’s support is needed to secure financing for the phased development while facing the economic unknowns.
If the development is ever sold, all deed restrictions related to the affordable housing units must transfer with the property and be honored by any future owner.
City staff also noted ongoing discussions with Altis Cardinal about adding more affordable units in future phases of Sky Town.
an aerial of the ceridian campus prior to demolition of the surrounding structures. The ceridian office building will remain | google maps
Altis Cardinal acquired the 34.2-acre site—formerly home to the Ceridian campus—in 2021 for $40 million. A nine-story office building on the property will be repurposed as office and amenity space, while an adjacent structure will be converted into a self-storage facility. The remaining buildings on the site will be demolished.
Construction on the Sprouts Farmers Market is already underway, with an expected opening in October.
The remainder of phase one, with an estimated cost of $123 million, is expected to break ground this spring and be completed in approximately 22 months.
