St. Pete reaches preliminary deal to buy CSX rail line running through downtown St. Pete
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A years-long effort to bring a key stretch of the CSX rail corridor in downtown St. Pete into public ownership, including the segment that cuts directly through Ferg’s Sports Bar & Grill, is finally moving forward.
According to an October 15th email from St. Pete Transportation and Parking Management Director Evan Mory, CSX Transportation has accepted a conditional offer from the City of St. Petersburg to acquire nearly a mile of rail right-of-way stretching from Dr. Martin Luther King Jr. Street along 1st Avenue South to 5th Avenue North.
The city plans to create a trail linking the Historic Gas Plant District redevelopment and the Pinellas Trail up to 5th Avenue North, with the longer-term goal of extending it to Booker Creek Park in North Kenwood.
The purchase is expected to cost $7 million, with $1 million coming from the City of St. Pete, $4 million from Mark Ferguson of Ferg’s Sports Bar, and $2 million from Ellison Development.
The offer cannot move forward without City Council approval, which is expected within the next 30 days.
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A vacant site across from Lealman Elementary School will become a permanently affordable townhome community for 26 local families.
Habitat for Humanity Tampa Bay Gulfside and local officials gathered Thursday at 4000 58th Avenue North to mark the start of infrastructure work for Lealman Heights, a two-story townhome development at the corner of 58th Avenue North and 40th Street North.
The 26 townhomes are part of a broader 57-home Habitat community in Lealman, which will also include 31 single-family homes now under construction.
“Lealman Heights represents more than the construction of new homes,” Mike Sutton, president and CEO of Habitat for Humanity Tampa Bay Gulfside, said at the groundbreaking. “It represents opportunity, stability, and a brighter future for local families who have worked hard and dreamed of the chance to own a home in the community they love.”
The 26 townhomes will each span 1,500 square feet and include three bedrooms and a garage. The homes will be priced between $240,000 and $280,000, based on a buyer’s income.
High Point Engineering and G2 Design are leading the project team.
Habitat expects vertical construction to begin in summer 2027.