St. Petersburg Plans to Sell City-Owned Property to Third Lake Partners for $10 Million

St. Petersburg’s mayoral administration plans to sell a problematic property across the street from the upcoming Historic Gas Plant District at a discount. The 1. 53-acre property at 298 Dr. MLK Jr.

St. S. sits directly east of Tropicana Field’s Lot 8. Those grass lots will soon house a new Tampa Bay Rays ballpark. Third Lake Partners (TLP) submitted a $6 million unsolicited offer on the site in March 2023.

At least one council member believes unloading the land for $10 million will benefit the city. “The history of that property is complicated,” Councilmember Copley Gerdes told the Catalyst. “I think the council’s role in this is to ensure we get the best value possible out of this piece of property. “I’m sure that will be discussed next week, and I’m excited to have that conversation. ” A map showing the property’s (red pin) proximity to Tropicana Field’s grass lots (blue pin, left).

Moffitt Cancer Center and a development partner previously offered the city $5 million for the property. The group planned to build a 75,000-square-foot cancer center, a 30-story residential tower, a 14-story hotel and a 300-space parking garage. To some residents’ dismay, Mayor Ken Welch rejected those plans in August 2022 due to the low price point and lack of affordable housing. TLP’s subsequent $6 million unsolicited offer required the city to request additional proposals. Welch ultimately selected TLP over one alternative submission.

After extensive negotiations, the Tampa-based firm increased its offer to $10 million. If approved by the council Sept. 12, administrators would transfer $6 million from the city’s General Fund to the Economic Stability Fund and repay a short-term loan for the Deuces Rising townhome project. They would also move $4 million to the Housing Capital Improvement Fund to support future subsidized developments. “In general, I’m excited to have a much simpler option than what’s current on the books with ownership of the property and the lease,” Gerdes said.

“I look forward to having that conversation with my colleagues and seeing where we land. ” The city-owned site has a convoluted history. Documents explain how officials vacated right-of-way segments in 1985 to accommodate a development agreement. In 1987, they allowed Morris Developments to sublease an abutting parcel, 800 2nd Ave. S.

, to the Peninsula Motor Club for parking. Morris failed to meet the city’s terms; officials terminated its lease at 298 Dr. MLK Jr St. S. in March 1991.

The city now holds a 99-year lease on the parking lot that expires in September 2086. The tenant pays just $1,755 monthly, or roughly $21,068 annually for the property. However, the city’s 2023 tax bill topped $56,000. A November 2021 appraisal found the property’s annual leased value was $250,000. TLP, led by Ashley Furniture founder Ronald Wanek, bought the abutting 800-block site for $10.

5 million in November 2022. It formerly housed United Property Insurance’s headquarters. TLP also became the parking lot’s lessee. The firm submitted its unsolicited offer for the site, which is now under consideration by the city council.