State of the City: Mayor Welch promises equitable development through Rays deal, more housing, and business opportunities
/DOWNTOWN ST. PETERBURG’S SKYLINE WITH ST. PETERSBURG CITY HALL | CITY OF ST. PETERSBURG
Residents, leaders from nonprofits, and the descendants of the Historic Gas Plant District filled the seats in The Palladium, applauding Mayor Ken Welch on the city's achievements over 2023 and what's in the cards for this year.
Once again, the redevelopment of the 86-acre former Gas Plant District took center stage at the State of the City address, held Tuesday, January 30th.
St. Pete’s partnership with the Hines and Tampa Bay Rays joint venture was first announced at last year's State of the City address.
"We've met every project milestone working diligently with partners and finalizing an agreement to bring the 40-year saga to a positive conclusion," Welch said.
The new 30,000-seat ballpark will be at the heart of the $6 billion redevelopment, which will include 4,800 residential units and 1,200 affordable/workforce housing units both on- and off-site, 8 million square feet of development, and a $50 million community benefits package.
"The costs will be exceeded by the benefits - taxes, fulfillment of promises to the Black community, and businesses displaced," Welch said, recalling how the Gas Plant residents were forced to move with the rise of Tropicana Field and the dividing interstate.
mayor KEN welch AND MEMBERS OF ST. PETERSBURG CITY COUNCIL at the state of the city | CITY OF ST. PETERSBURG
Stadium costs and impact:
$1.3 billion cost for the stadium – the Rays have committed to pay $700 million and any cost overruns for the ballpark. Pinellas County and the City of St. Petersburg will combine to contribute approximately $600 million in equal amounts. The county portion is paid for through tourist bed taxes, which are restricted to tourism-related uses.
Over the next 30 years, this project will be an economic engine for the city, generating:
$535 million in new property and other taxes for the city
$1.04 billion in new property and other taxes for the county
32,900 full-time equivalent construction jobs
11,000 permanent full- and part-time jobs
"We've literally waited decades to be in this position. We've never been this close ... we'll keep working to bring this home," Welch said, thanking the City Council for their due diligence in defining the agreement terms.
The Community Benefits Advisory Council is currently reviewing the agreement. It must also go before City Council and Pinellas County Commission for final approval.
a renering of the proposed redevelopment of the historic gas plant district | city of st. petersburg
Other projects coming to the forefront:
In 2023, the city issued over 32,000 building permits and experienced $1.37 billion worth of new construction. These are some of the projects Welch drew attention to at the event:
Municipal Marina overhaul: Welch has selected Safe Harbor Marinas LLC for the redevelopment and operational management of the marina adjacent to the St. Pete Pier. The recommendation to enter an agreement with Safe Harbor Marinas will go before the St. Petersburg City Council this year. Safe Harbor Marinas' latest plan entails a $48 million capital investment for the renovation and new assets such as a two-story welcome and amenity center, a fitness facility, and flexible dock space to accommodate more than 325 boats.
Reimagined Tangerine Plaza: Residents have long waited for a grocer to open in South St. Pete’s Tangerine Plaza. The space has remained empty since a Walmart Neighborhood Market exited the plaza in 2017, creating a food desert. Welch said the city is inching closer to finalizing a deal with the Sugar Hill Group, which plans to demolish the 40,000-square-foot space and bring 155 affordable housing units. At least 10,000 square feet would be reserved for a grocer. “This is one of those projects when I came into office that were some agreements on the table and promises that had been made and we tried to stick to the goal of those projects,” Welch said to St. Pete Rising during the event. “We are at the point to move into the next stage of that process.”
New sanitation complex: The city recently opened its new $14 million state-of-the-art sanitation department complex at 2001 28th Street North. The new 18,600-square-foot, two-story facility replaces two 50-year-old buildings. The solar-powered building will achieve net-zero energy consumption and meet the criteria for LEED Gold Certification, a designation for projects reaching a high level of sustainability.
A look back: Highlights of 2023 accomplishments
The information is from the city's 2023 Impact Report and data shared at the event.
Building equity: In May, Welch allocated more than $1.35 million for the new South St. Petersburg Community Redevelopment Area (CRA) Microfund Program—an accessible funding opportunity for businesses based in the CRA to fund improvements without any upfront capital. In October, the City Council approved the Minority- and Women-Owned Business Enterprise (MWBE) program, activating opportunities for more diverse businesses to be eligible to bid for contracts from the city.
In November, Welch appointed Carl Lavender as Chief Equity Officer for the Office of Equity, which was created to bring a high level of leadership, expertise, and accountability to further advance intentional equity based on research, community dialogue, the Employee Climate Survey recommendations, and other drivers.
Addressing the housing crisis: The city passed the NTM-1 (Neighborhood Traditional Mixed Residential) zoning district, giving eligible property owners the option to convert their home into or build up to four residences on a typical-sized single-family lot. The city estimates 2,895 properties are affected by the new zoning. The city also reported it reserved or completed 155 affordable housing units in 2023 in developments such as Sixteenth Square Townhomes, Jordan Park Senior Residences, and Citrus Grove Apartments.
Additionally, the city assisted 58 first-time homebuyers in purchasing a home, expending roughly $3.3 million in State Housing Initiatives Partnership (SHIP) and CRA funding. The city also reallocated $5.9 million in Emergency Rental Assistance funding to continue to provide financial assistance to eligible renter households and construct new affordable rental housing units.
Mayor welch, members of city council, and community partners at the ribbon cutting for sixteenth square | city of st. petersburg
Collecting community input: The city held quarterly breakfast meetings with neighborhood association leaders. Welch also hosted a four-stop City Hall on Tour series, bringing the city's various department heads and staff under one roof to engage with the community, answering questions and educating residents. Welch also conducted a citywide Employee Climate Survey to listen and learn from team members about their experience working for the city.
Improving infrastructure: St. Pete received a $20 million grant from the Florida Department of Environmental Protection’s Office of Resilience and Coastal Protection. Approximately $8.87 million will be used to replace maintenance buildings at the Southwest Water Reclamation Facility and the Northeast Water Reclamation Facility to increase service reliability and safety during extreme weather events like hurricanes. The remaining $11.575 million will go toward stormwater flooding mitigation at and around Lake Maggiore.
The full 28-page Impact Report can be found here.
