St. Petersburg city council voted unanimously on Oct. 16 to approve a ground lease and development agreement with Green Mills Holdings LLC to build a mixed-use project on three contiguous city-owned parcels on 20 Second Street South.

The deal establishes a 99-year ground lease for a development that will include 54 affordable rental units and roughly 2,500 square feet of ground-floor retail. Aaron Fish, the city's real estate and property management director, said the developer will pay annual rent of $100 plus applicable taxes and execute a promissory note for $885,000; that payment may be deferred until the expiration of the required affordability period, at which point the city could choose to forgive the note.

The agreement sets a timeline tied to funding milestones: the developer must submit site plans within six months of the agreement, deliver a full building permit package within 24 months, commence construction within 36 months and obtain certificates of occupancy within 60 months. The city will record a restrictive covenant limiting rents so the average for the building does not exceed 80 percent of area median income (AMI). Fish summarized the agreed unit mix: 15 studios, 36 one-bedroom units and 3 two-bedroom units, with targeted affordability tiers that include nine units at 30% AMI or below, 30 units at 60% AMI or below, three units at 70% AMI or below and the remainder at or below 80% AMI.

Why it matters: The property had been marketed via an RFP issued in August 2024 and the city reviewed multiple proposals. City development staff told council Green Mills’ proposal included the largest number of deeply affordable units and demonstrated local development experience. Council members and members of the public raised questions about ownership versus rental models and parking for nearby businesses; staff and the developer said the RFP left those choices flexible and that marketing would prioritize local residents when the building is leased.

Developer and staff perspectives: James Corbett, the city development administrator, told council that Green Mills offered the largest unit count and the strongest new-construction experience among respondents. Manny Diaz, representing Green Mills, said the firm intends to market retail spaces affordably and to work with local partners to prioritize minority‑owned small businesses for the ground-floor bays.

Public comment and council discussion: Jerome King, a neighborhood resident, urged the council to increase the number of units reserved at the lowest AMI tier, saying, “Allocating nine units for 30% or below is making a very small window for people who truly need it.” Council members discussed that tax-credit and financing constraints often force projects to include a mix of AMI tiers so lower-cost units can be subsidized by higher‑rent units and other funding sources. Council member Gina Driscoll praised Green Mills’ Burlington Avenue project as an example of high-quality affordable housing.

Council action and next steps: The city recorded a unanimous vote to approve the ground lease and development agreement; the contract includes the AMI breakdown and the deferred promissory note described above. Staff and the developer said they will proceed with required permit submissions and applications for housing financing (including tax credit rounds) to meet the schedule in the agreement.

Looking ahead: Council members asked administration to coordinate parking and other streetscape details in the surrounding Deuces commercial corridor and to ensure the project’s marketing prioritizes nearby CRA-area residents once leasing begins.