Tangerine Plaza Shows Why St. Petersburg Must Plan First at the Gas Plant
Tangerine Plaza is stalled again. It looks like the developer did not have the track record, the financing, or the market support. Now they want more time and $22 million in public money.
This is exactly what can happen at the Gas Plant if the city accepts proposals before creating a real plan. St. Petersburg should pause the proposal-first process, form a Community Advisory Council (CAC), hire a national planner, design the street grid, and then sell or lease parcels one by one.
This protects public value, keeps the city in control, and avoids costly mistakes.
Tangerine Plaza Struggles Again — A Clear Warning for the Gas Plant
The Tampa Bay Times reports that St. Pete Mayor Ken Welch is asking City Council to give the Sugar Hill Group one more year to redevelop Tangerine Plaza, the long-vacant city-owned strip mall at 1794 22nd St. S.
Tangerine Plaza opened in 2005 as a grocery-anchored shopping center designed to support Midtown. Sweetbay opened in 2005 and closed in 2013. Walmart opened in 2015 and left in 2017. Since then, the plaza has been mostly empty.
The city tried multiple RFPs. None succeeded. Eventually, the Sugar Hill Group submitted an unsolicited proposal for affordable housing and a new grocery store. City Council approved it in June 2024 with the requirement that financing and a grocer be secured within 18 months.
Those requirements were not met. Now the group wants more time and $22 million in public funds. This is a warning sign for how we approach the Gas Plant.
Why Tangerine Plaza Matters for the Gas Plant
Tangerine Plaza reveals three lessons:
Due diligence is essential
Outside expertise strengthens decisions
Markets—not renderings—determine what gets built
These lessons apply directly to the future of the 86-acre Gas Plant property.
1. Weak Due Diligence Leads to Delays and Public Costs
The Sugar Hill Group’s track record raised questions. New Urban Development, its lead partner, shows only two completed projects in the last decade, both from 2018. Most other properties are decades old and appear to be acquisitions or renovations—not new development. Their real development role is unclear.
This raises basic questions:
Did they have real experience?
Did they have a grocery tenant?
Did they have secured financing?
Why was the proposal accepted without stronger evidence?
Better due diligence could have prevented today’s situation.
The Gas Plant Is Now on a Similar Track
In a November 12, 2025 memo, Mayor Welch announced that the city received an unsolicited proposal from Ark–Ellison–Horus for the Gas Plant. On January 4, 2026, the city will open a window for competing offers. The memo states that a new RFP is unnecessary because the 2022 RFP’s 23 guiding principles still apply.
But do the guidelines apply? And how did that work out the first time? Let’s take a look…
It appears the city likes the Ellison proposal and wants to see if anyone can top it. But this raises a major concern:
Does this team meet the city’s own 2022 criteria?
The 2022 RFP requires:
Five past development projects
One large-scale, mixed-use project of 25+ acres or $100M
Documented start and completion dates
Ark–Ellison–Horus does not appear to meet this standard.
Ark is an investment firm, not a developer.
Horus is a contractor, not a developer.
Ellison Development, formed two years ago, lists two projects:
The Central (former Police HQ site). After seven years, only the parking garage is built.
Tampa Heights (YMCA + hotel + multifamily). Still in early planning.
The Central’s Changing Plans Show Why Planning Should Come First
The Central illustrates how quickly project assumptions change:
Original 2019 plan: Class-A office tower + hotel + retail + residential
First revision (~2021): Hotel removed; office reduced; residential increased
Current plan (2024–2025): Hotel reinstated; office redesigned; project still evolving
This instability shows how unpredictable long-term development is — and why cities should not commit 86 acres to one developer based on assumptions.
2. Planning First Is How Successful Cities Build Great Districts
Across the country, major redevelopment efforts follow one sequence:
Form a Community Advisory Council (CAC)
Hire a national land-planning firm
Create a site plan, street grid, and parcel map
Keep the city in control of zoning
Sell or lease one parcel at a time
Let the market decide what gets built
Capture land value for public benefit
This is the proven model.
The 2022 Guidelines Show Why Planning Must Come First
The 2022 guidelines include a requirement for a conference space attached to a major flagship hotel. This is exactly the kind of decision that should never be set before planning. No one knows yet whether St. Petersburg needs a conference center, how large it should be, or where it should go.
A CAC and national planner can study:
What drives St. Petersburg’s economy
How arts, culture, and parks shape demand
Whether a conference center actually fits our strengths
Whether a major hotel makes sense
Whether other uses create more public value
Only then can the city make an informed choice.
And if it makes sense, the private sector should build it
If a hotel or conference center is justified, private developers should build and manage it. They should carry the risk. They should fund the operating costs. If the market supports the idea, private investors will do it. If not, the city avoids a major mistake.
Parcel-by-Parcel RFPs Allow the Market to Decide
After planning, the city could:
Designate a parcel for a potential hotel or conference center
Wait for the right timing
Issue an RFP for that one parcel
Let developers and financing sources decide if demand is real
This removes guesswork and risk to the city.
3. Markets Drive Development — Not Renderings
Tangerine Plaza shows how markets, not promises, drive outcomes. Sweetbay and Walmart left. Financing fell apart. Demand was not there.
The Gas Plant faces the same risks:
No one can predict the market four years from now
Financing conditions will shift
The project will take 20–30 years to build
Early assumptions almost always change
Cities shouldn’t lock into long-term commitments early.
They should:
Plan first
Control the grid
Control the zoning
Sell land slowly and at full value
Capture the upside for public use
This keeps the city in control — not a developer.
A Better Way to Deliver Housing, Jobs, and Community Benefits
The CAC and planner should also examine on-site vs. off-site housing and job programs. Because the Gas Plant land is extremely valuable, off-site investment may produce far more units, deeper affordability, and better job programs.
This ties to the community benefits listed in the 2022 guidelines — training, apprenticeships, mentorships, small-business support, youth programs.
But these benefits should not depend on developer promises.
The better model is simple:
The private developer builds the buildings.
The city keeps the profits from the land.
Those profits go into a long-term legacy fund.
The legacy fund delivers community benefits for decades.
This is stable. This is predictable. And this keeps the city, not a developer, in control.
Actionable Conclusion: What St. Petersburg Should Do Right Now
To avoid repeating Tangerine Plaza’s mistakes, the city should take these steps:
1. Pause the proposal-first process.
Do not rush a 30-year decision.
2. Form a Community Advisory Council (CAC).
Bring in local experts, residents, business leaders, planners.
3. Hire a national land-planning firm.
Create a real plan, map the grid, set the vision.
4. Use the 2022 standards consistently.
Require real experience, real financing, and real results.
5. Sell or lease parcels one at a time.
Capture full land value and let the market guide what gets built.
6. Create a legacy fund.
Use long-term land revenue — not developer promises — to pay for
housing, jobs, youth programs, arts, parks, and community benefits.
If St. Petersburg plans first, we will build a district that honors the past, serves the present, and strengthens the future for generations.
What do you think?
Copy homerunsmatter@gmail
Let the Mayor know that you are with him to start a planning process and stop a proposal process. That’s what smart cities are doing everywhere.
Start by forming a Community Advisor Council.
1 comment
Re Tangerine Plaza. Has the question been asked as to why a necessary business failed – twice ?
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