Council approves $4.5 million forgivable loan for Skytown redevelopment at former Ceridian site

At its April meeting, the St. Petersburg City Council unanimously approved a $4.5 million forgivable loan and related agreement changes to support Phase 1 of the Skytown redevelopment of the former Ceridian campus.

City staff described the overall project as a 34.3-acre, multi-phase redevelopment that will eventually include more than 2,000 apartments, about 69,000 square feet of neighborhood retail anchored by a Sprouts grocery, and 120,000 square feet of self-storage. Phase 1 (referred to as Site C) will contain 401 apartments, of which 121 units are designated as affordable/workforce housing (roughly 30% of the phase). Mark Van Lew, presenting the proposal for the administration, called the phase “a very shovel-ready project.”

Why it matters: The administration said pairing market-rate units with a modest public subsidy lets the city stretch housing dollars and deliver income-restricted units with a lower per-unit subsidy than many deep-affordability projects. City staff told council the city contribution, when allocated across the affordable/workforce units, amounts to about $37,190 per affordable unit; staff also estimated the cumulative rent reduction over a 30-year affordability restriction would total roughly $18 million compared with charging market rents for those units.

Support and structure: The developer, Altus Cardinal, reported it has provided substantial equity and has begun construction for the Sprouts outparcel; the full project will use a mix of developer equity, a construction loan, and the local subsidies. Staff said sources and uses include developer-contributed land and approximately $45 million in total equity (about $31 million of that as common equity), a county forgivable loan of $5.5 million already approved, the proposed $4.5 million city forgivable loan, and a construction loan near $68 million.

Contract changes and lender certainty: Because the developer anticipates conventional refinancing or an eventual sale of the project, staff said the city must modify its standard developer/borrower agreement language to allow lender assignment and subordination without requiring a new council vote each time—so long as the city’s affordability restrictions and other obligations transfer intact to the new owner or lender. Staff and the developer told council these changes are already reflected in similar documents used by Pinellas County and other municipalities.

Council discussion: Several council members praised the low per-unit subsidy and the potential to deliver workforce housing alongside market units. Councilmember Floyd raised concerns about how recent 2025 income-limit updates narrowed the gap between 120% AMI and market rents in some unit sizes and urged the city to prioritize deeper affordability (80% AMI) in future phases. Councilmember Givens urged attention to three-bedroom units and to ensuring displaced residents and families near the site can access the new units. The developer said the city’s protections would carry with any sale or refinance and pointed to the firm’s existing projects and experience delivering similar mixed-income buildings.

Vote and next steps: Council voted unanimously to approve staff’s recommendation and the funding request for Phase 1; staff said it will return with final documents and continue negotiating future-phase terms and any additional requests for assistance.

All decisions and conditions recorded in the developer agreement, including the 30-year affordability restrictions, remain enforceable and must transfer with any assignment or refinancing.