St. Petersburg Extends Deadline for Tangerine Plaza Redeveloper to Secure Funding and Grocer

The city of St. Petersburg has granted developers additional time to advance long-anticipated plans for a grocer and affordable housing at the dormant Tangerine Plaza in South St. Petersburg.

On Thursday, the City Council voted 6-2 to approve a one-year extension for Sugar Hill Group, which originally submitted an unsolicited redevelopment proposal in May 2022. The group was selected in June 2024 and given 18 months to secure funding for affordable housing and to finalize an agreement with a grocery tenant. To date, neither requirement has been met. Sugar Hill now has an additional year to move its plans forward and informed council members that it received a letter of intent from grocer Taste of the Islands on Wednesday.

“Progress takes patience and persistence in this city,” Council Chair Copley Gerdes said. “It’s like driving the Titanic — you’ve got to do it one degree at a time. Turning that ship around is far more difficult than keeping it moving forward.”

Council members Lisset Hanewicz and Gina Driscoll cast the dissenting votes.

“It’s been 18 months and nothing,” Hanewicz said. “Even with the documents provided, including letters of intent, I do not see anything that shows this will be completed within another year.”

Sugar Hill submitted letters of intent in November committing project funding, but those commitments are contingent on the city allocating $11.16 million from the South St. Pete CRA and Pinellas County contributing an additional $11.16 million. According to city staff, the CRA funding is not currently available and would take at least two years to secure. County officials have expressed general support but cannot utilize Penny for Pinellas funds unless more units are reserved for households earning 80% or more of the area median income.

The proposed redevelopment includes 186 affordable apartments and 10,000 square feet of commercial space, anchored by a grocery store—potentially Taste of the Islands. Current plans call for 56 units reserved for households earning at least 60% of the AMI and 130 units for those earning at least 80%.

Sugar Hill Group is distinct from Sugar Hill Community Partners, the finalist group previously considered for the Tropicana Field redevelopment. The Tangerine Plaza development team includes the Rev. Louis Murphy of Mount Zion Progressive Missionary Baptist Church, Roy Binger of Binger Financial Services, and Miami-based New Urban Development.

Under the terms of the agreement, the project is structured as a 75-year lease with annual rent of $100,000. Rent will be abated for the first two years or until the project receives its final certificate of occupancy.

City and county financial commitments must still be finalized and approved by both the St. Petersburg City Council and the Pinellas County Commission.