Tangerine Plaza redevelopment approved by St. Petersburg City Council
Sugar Hill Group released a rendering of the planned redevelopment of Tangerine Plaza during a press conference on April 9th | WanneMacher Jensen
Following years of negotiating and discussing the best revitalization plan for the beleaguered Tangerine Plaza in south St. Petersburg, the city is moving forward on an agreement.
In a 5-3 vote on Thursday, St. Petersburg City Council members narrowly approved a 75-year lease and development agreement with the Sugar Hill Group to bring at least 115 affordable rental units and 10,000 square feet of retail, including a new grocer, to the plaza at 1794 22nd Street South.
Council members Ed Montanari, Gina Driscoll, and Lisset Hanewicz cast the opposing votes, primarily citing language and procedural issues, concerns about rent abatement for the first two years, and the uncertainty of securing a long-term grocer.
Since 2017 when the previous anchor tenant Walmart Neighborhood Market closed its doors, the space has remained vacant and the area has been federally declared a food desert. Prior to Walmart, SweetBay Supermarket occupied the space for eight years before vacating in 2013.
Today, the plaza has very few active tenants.
Tangerine Plaza, which has struggled to retain tenants over the years, is located at 1794 22nd Street South just east of Perkins Elementary | Google Maps
It’s been over four years since administration, then under Mayor Rick Kriseman, issued a Request for Proposal (RFP) for the plaza’s redevelopment. In 2020, Kriseman selected Sugar Hill Group to breathe new life into the plaza, but a lease and development agreement was never executed.
The Sugar Hill Group is headed by partners Rev. Louis Murphy Sr. of Mount Zion Progressive Missionary Baptist Church, Roy Binger of Binger Financial Services, and South Florida-based New Urban Development.
Despite developers submitting numerous competing bids to the city over the years, city staff continued negotiating with the Sugar Hill Group, which has recently made multiple revisions based on feedback from the city's Citizen Advisory Committee and the Economic and Workforce Development Committee.
Per the approved agreement, the Sugar Hill Group will lease the plaza from the city for $100,000 annually during the 75-year period.
The anchor retail space at Tangerine Plaza has been vacant for the past seven years. Before that, Walmart Neighborhood Market and Sweetbay Supermarket occupied the space | Google Maps
However, upon completion of the project, the development partners plan to execute an option agreement to purchase the property for $1.5 million, which was previously appraised at $1.6 million.
Sugar Hill Group must secure all the funding necessary for the development in 18 months, according to the agreement.
Sugar Hill Group must also obtain a commitment letter from a grocer, which will be required to occupy at least 3,000 square feet at the plaza.
During the hearing, Murphy Sr. of the Sugar Hill Group revealed that the development team is in early discussions with Sarasota-based Detwiler's Farm Market to lease space at Tangerine Plaza. However, a lease has not been signed.
Detwiler's is known for its fresh produce, full-service butcher shop, seafood shop, Amish-style deli, and farmhouse bakery.
Today, Tangerine plaza has very few active tenants, but that will hopefully change as Sugar Hill Group plans to redevelop the property with at least 115 affordable apartments and 10,000 square feet of retail space, including a grocery store | Google Maps
Council members drew concerns about the required minimum five-year lease term for the grocer as the city's goal is to provide permanent healthy food options for the area's residents.
"When the Walmart closed, no one knew what to do," Council member Gina Driscoll recalled.
City staff said the required five-year lease term is in place to make it easier on the developer to find a grocer for the plaza.
The city is currently collecting $215,000 in annual rent from Walmart, whose current lease expires in 2026.
While the grocer component dominated much of the discussion, the new affordable housing piece is just as significant.
The affordable apartments would be rented to residents earning up to 80% of the area median income (AMI) and must remain affordable for at least 40 years.
The apartments will be a mix of one-to-three-bedroom units.
the development team is in early discussions with Sarasota-based Detwiler's Farm Market to lease space at Tangerine Plaza. However, a lease has not been signed | Detwiler’s Farm Market
While Sugar Hill Group is required to develop a minimum of 115 affordable units, the group can potentially add market rate units.
With the approved agreement, Sugar Hill Group can pursue government funding for the affordable housing component while the city will continue collecting annual rent from Walmart.
"Tangerine Plaza will be a poster child for private-public partnerships," said Oliver Gross, President of New Urban Development.
Sugar Hill Group is expected to submit site plans for approval in three months.
The group plans to break ground on the redevelopment of Tangerine Plaza within 18 months and complete construction within three years.