City approves $4.5 million city loan for Sky Town development that will include workforce units

The St. Petersburg City Council voted unanimously to support a public–private partnership for the Sky Town redevelopment, approving a $4,500,000 forgivable city loan for Phase 1 of the project.

City staff and the developer described the project as a multi‑phase redevelopment of the former Ceridian campus. Mark Van Lew, presenting for the city, said Phase 1 — labeled Site C — will include 401 residential units, of which 121 will be designated affordable workforce housing, and ground‑floor retail anchored by a Sprouts grocery expected to open in October. Van Lew said, “30% of the units in this project are going to be affordable workforce, half at 80%, half at 120%,” and described a financing package that includes developer equity, a $5.5 million forgivable county loan and an estimated $68 million construction loan.

Developer Frank Guerra said his team has already invested in the site and will lead construction. Guerra told council, “Weve invested almost $60,000,000 in equity into the property to date,” and described Site C as shovel‑ready pending financial closing.

Council discussion focused on the affordability mix and the citys role in protecting long‑term rent restrictions. Councilmember Richie Floyd said he supported the deal because of the relatively low per‑unit subsidy but warned that AMI levels had recently changed, reducing the apparent rent differential between some 120% AMI units and market rate units. Floyd said the numbers had shifted in April and noted the council should watch how 120% AMI units compare with market rents.

Councilmember Corey Givens said he wanted more council oversight of future refinancing or sale, saying, “I feel like other councils should have a say in this,” and asking for assurances that affordability restrictions would transfer with any new owner or lender. City staff responded that deed restrictions and monitoring requirements would bind future owners; Van Lew and staff said the city would require income certification monitoring and inspections to enforce affordability and housing quality.

City staff presented the citys calculation of per‑unit subsidy for the income‑restricted units. Van Lew characterized a $4.5 million city contribution as delivering significant long‑term rent savings for residents over a 30‑year affordability period and said the subsidy for the workforce/affordable units works out to roughly $37,190 per restricted unit by the staffs accounting.

Council members asked for and received assurances that future phases would return to council for any additional public subsidies. After questions and comments from several members, the council moved, seconded and approved the resolution supporting the loan and developer agreement language as revised for this partnership.

The resolution passed unanimously. Staff said the developer expects to close financing and begin construction in early summer, with the Sprouts grocery slated to open in October. The council directed staff to include standard monitoring and reporting requirements for the income‑restricted units and to return to council if additional public funding is requested for future phases.

Next steps: the developer and staff will finalize financing and the city will execute the agreements and monitoring protocols. No additional council action was required for this vote; future phases will come back to council for consideration.