Former Police Headquarters site. Nearly seven years after the City selected a development team, the only completed structure on the property is a parking garage. St. Petersburg should not take that same risk with 86 acres at the Gas Plant.
If seven years from now the only completed structure at the Gas Plant were a parking garage, would we consider that a success?
That is the risk St. Petersburg takes when it places the future of 86 acres in the hands of a single development team.
Please join me (below) in asking Mayor Ken Welch to pause his current process.
What Happened at the Police Headquarters Site
Nearly seven years ago St. Petersburg selected a single development team to redevelop the former Police Headquarters site (across Central Ave. from Ferg’s Bar), a property of less than 2 acres. At that time, it was reported that the developer would build offices, condominiums, workforce housing, retail space. Now, seven years later – seven years!- the only completed structure is a parking garage.
Do We Want to Take That Same Risk at the Gas Plant?
Do we want to take that same risk, choosing a single developer for the 86 acre St. Petersburg Gas Plant site? Do we want to take the risk that seven years later, we might only have a garage? Because that is the risk a community takes when it selects a single developer for a major redevelopment. Why would we ever do that? The most successful cities don’t.
Mayor Ken Welch is expected to recommend turning over the the redevelopment of the entire Historic Gas Plant District to one of two developers and announce his choice very soon. (There is a third proposal – for the city to lead the development. But it does not seem that is something the mayor is seriously considering.) Whatever the mayor decides, that won’t be the final result. It will be up to the City Council to vote for or against it. And the mayor has said he won’t be ready to ask for a vote until the summer of 2027.
This Is Not About Criticizing Developers
This post is not intended as criticism of the developers involved.
Development projects are complicated. Markets change. Interest rates rise and fall. Financing conditions become easier or more difficult. Development teams evolve, plans are revised, and unexpected challenges emerge.
None of that is unusual.
In fact, the development team involved today is not exactly the same team originally selected by the City in 2019. As it turns out, the project is now led by one of the two developers currently seeking control of the Gas Plant site.
What is important is the lesson the project provides about risk.
When a city places responsibility for an entire project in the hands of a single development team, the future of that project becomes tied to whatever opportunities and challenges that team encounters over the years ahead.
The Risk of Relying on One Development Team
- No one knows what economic conditions will look like five years from now.
- No one knows what interest rates will be.
- No one knows how construction costs, financing markets, or demand for housing, office space, hotels, or retail will change.
- No one knows whether project partners will remain involved, whether plans will need to be revised, or whether priorities will shift.
These are the kinds of uncertainties that affect every major redevelopment project. When the entire site depends on a single development team, the City assumes the risk that circumstances beyond anyone’s control could slow, delay, or significantly alter the project.
It has been suggested that if a master developer fails to perform, the City can simply take the property back.
In practice, it’s rarely that simple.
By the time the City starts the process, years will have passed. Plans may have changed. Financing arrangements may exist with liens on various parts of the property. Portions of the site will have been improved while others remain unfinished. Legal disputes will arise. The City will face years of delay before it can move forward again.
Why would the City, any city, expose itself to that risk in the first place when other approaches are available that preserve flexibility and reduce dependence on a single development team?
The Gas Plant – The Same Risk – On a Much Larger Scale
The former Police Headquarters property consists of less than two acres. The Historic Gas Plant District is 86 acres in the heart of St. Petersburg.
The Police Headquarters project illustrates the risks that can arise when the future of an entire property depends on a single development team. The Historic Gas Plant District is more than forty times larger and will affect the future of St. Petersburg for generations.
That is why many successful cities facing similar opportunities do not simply turn over an entire district to a single developer. Instead, they create a public plan first. Streets, parks, infrastructure, public spaces, land uses, and development standards are established before developers are selected.
Individual parcels are then developed over time, often by multiple developers competing to deliver the best projects.
Under that approach, if one project slows down, the entire district does not stop.
If one developer encounters difficulties, other projects can continue moving forward.
The City retains flexibility, competition, and control.
We Cannot Take That Risk
Over the past several weeks, I have written about ten cities that successfully redeveloped major public properties by planning first and retaining public control. I have also written about six redevelopment projects where developer-led approaches failed to deliver the results communities expected.
Taken together, those examples demonstrate that the risks of relying on a single development team are real and that cities have better alternatives available to them.
After reviewing those examples and considering what has happened at the former Police Headquarters site, it seems quite clear – St. Petersburg should pause the current process, create a public plan for the Gas Plant District, and retain control of the property before selecting developers.
Why I Remain Concerned
Over the past year, I have spoken with national planners, local developers, and others familiar with large-scale redevelopment projects. I have yet to encounter anyone who believes the City should begin by turning over the entire Gas Plant property to a single developer. Instead, the discussion is almost always about how the City should first determine the street network, parks, public spaces, infrastructure, land uses, and development standards for the site, retain control of the property, and then work with multiple developers to implement that plan over time.
What makes this especially difficult to understand is that, despite the importance of this decision, the Mayor has not publicly explained why turning over 86 acres to a single development team is preferable to the alternatives available to the City.
What I’m Doing About It
Over the past year, I have met with Mayor Welch and written to him several times regarding the Gas Plant site. In each case, I have urged the City to pause the current process, create a public plan, and retain control of the property before selecting developers.
I have now sent another letter to the Mayor making that same request.
How You Can Help
This issue is too important for only my voice to be heard.
If you agree that the City should first determine the streets, parks, public spaces, infrastructure, and overall vision for the Gas Plant, I encourage you to read the letter and add your name.
The more residents who participate, the stronger the message.
Read the Letter and Add Your Name in Support
Related Reading
- Ten Cities That Got It Right
- When Cities Choose Development First – Lessons from Failure
- Who Should Decide the Future of the Gas Plant
- Understanding the Historic Gas Plant Redevelopment Debate
About the former Police Headquarters Project
The Police Headquarters redevelopment did not reach its current state overnight. To review the project’s history, multiple revisions, and seven-year development timeline, click the link below.
1 comment
The City needs to look at other options. At least 2-3 proposals should be presented to the citizens of St Pete for their response and input.
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