St. Petersburg Commits $4.5M to Affordable Housing in Skyway Marina Mixed-Use Project

Big news for South St. Pete! The St. Petersburg City Council has unanimously approved a $4.5 million forgivable loan to help bring much-needed affordable housing to the Skyway Marina District.

The funding supports the first phase of Sky Town, a large-scale, mixed-use community planned for the 34-acre site at 3201 34th St. S.—formerly home to the Ceridian office park. Once completed, the project will include 2,084 new homes and 92,000 square feet of retail space. The city’s contribution will help cover 401 of those apartments in phase one, with 121 units set aside specifically for affordable and workforce housing.

Originally designed as a market-rate development, Sky Town took a more inclusive turn after discussions with city officials. Thanks to the collaboration, 30% of the first phase units will now be affordable—making this one of the city’s first true public-private partnerships with a for-profit, mixed-income developer.

“Given the limited amount of state and federal support for affordable housing, we need to make the most of our local dollars by working together with private developers,” city staff explained in a report.

Back in January, Pinellas County pitched in $5.5 million toward the first phase using funds from the Penny for Pinellas sales tax. Altogether, the total cost of this phase is estimated at $120.4 million—about $300,222 per unit. The city’s piece of the puzzle comes out to roughly $11,222 per unit.

Here’s a quick snapshot of the full funding plan:

• $64 million from commercial bank loans

• $31.9 million in cash equity

• $14 million in land contributions

• $5.5 million from Pinellas County

The developer behind Sky Town is Altis Cardinal, based in Coral Gables. They purchased the property in 2021 for $40 million and are planning a total investment of around $750 million across six phases. Once complete, the former office park will be fully transformed into a lively, mixed-use neighborhood.

Things are already in motion—construction is underway on the site’s retail anchor, Sprouts Farmers Market, which is expected to open by October. The residential side is currently in the permitting stage, with full construction set to wrap up in under two years.

The first batch of apartments will average about 832 square feet, with rents expected to average around $2,273 per month. Of the affordable units:

• 60 will be for households earning 80% or less of the area median income (AMI)

• 61 will be for households earning up to 120% of AMI

As an example, using 2024 AMI data, a one-bedroom apartment would cost about $1,505/month at 80% AMI, and $2,150/month at 120%. These numbers are expected to go up slightly with the updated 2025 AMI released earlier this month.

Altis Cardinal is working closely with city housing leaders, including Assistant Director of Housing and Community Development Mark Van Lue, to map out future phases of the project—which may include even more affordable housing. Those plans will likely head back to city council and county commission for additional funding in the near future.