ST. PETERSBURG, Fla. (WFLA) —  A decision more than four decades in the making has finally been made.

St. Petersburg Mayor Ken Welch on Thursday announced his selections to redevelop the Historic Gas Plant District, choosing one team to lead the transformation of the 86-acre site and another to build affordable senior housing.

The announcement marks a major milestone in the city’s long-running effort to redevelop land that has remained largely underutilized since the historic Black neighborhood was cleared decades ago.

“Our community has waited for decades for promises to become plans, for plans to become progress and today, the progress begins,” Welch said.

Welch selected The Burg Bid, led by Blake Investment Partners, to redevelop approximately 58 acres of the Historic Gas Plant District. He also selected the Pinellas County Housing Authority to develop affordable senior housing on the Third Avenue South parcel.

The Burg Bid proposal calls for 3,600 affordable and workforce housing units, new public infrastructure, a central park featuring museums and landmarks, a workforce training center, and a small business success center.

Financially, the proposal includes what developers describe as the highest land valuation of the site at $405 million. The proposal would provide the city with a $20 million cash deposit, a $275 million cash payment for approximately 58 acres, while allowing the city to retain 28 acres valued at $130 million.

Developers project the overall redevelopment would generate $8.1 billion in development spending, more than $30 billion in economic impact over 30 years, and more than $2.7 billion in tax revenue over that same period.

“We share in the weight of this decision because we’re from here and we’re 100% dialed in on its future,” said Thompson Whitney Blake of Blake Investment Partners.

The affordable housing component selected by the mayor would focus on deeply affordable senior housing.

“We’re doing it on neighborhood land, and we’re not going to be moving people in when these folks move in. We’re restarting a neighborhood,” said Neil Brookfield with the Pinellas County Housing Authority. “No apartment will be more than 80% AMI [area median income] and some will be lower…AMI changes but if we were doing a dollar amount today, you’d probably be talking about $600 a month.

The announcement drew applause from supporters who said the project finally gives the city momentum after years of multiple failed redevelopment efforts.

“It’s for the people,” said Douglas “Doug” Homeyer, who is running for St. Petersburg’s 6th District City Council seat. “Now we have a vision, we have something to talk about, to move forward. It’s election year, I’d rather see something moving forward than staying stagnant.”

Mercedes Young of the Hispanic Chamber of Commerce of Tampa Bay said that the proposed housing for the senior community will be a step forward for Hispanics in the city.

“We were ready yesterday and we are ready today,” Young said. “We are in 2026, their income from when they retired from back in those days does not line up and don’t assimilate with what is necessary to live where they were before.”

Still, not everyone welcomed the mayor’s decision as some residents expressed concerns that the project places too much emphasis on commercial development instead of housing for longtime residents.

“We’re investing so much into commercial development, [and] we have enough money generated that we need to prioritize investing that back into the community in the form of subsidized housing for residents that are long term residents of our areas. It’s part of the obligation,” said resident Kari Mueller.

Resident Brayana Pettit questioned whether the proposal preserves the lifestyle of the community that once occupied the neighborhood.

“The land that historically was there, you were able to cultivate, harvest a life, right? I don’t know that putting them in a high-rise building is going to allow them to have that same kind of lifestyle,” Pettit said. “I’ve seen gentrification in in many cities, Washington, D.C., New York. I would hate to see it turn into that here, which is kind of what it looks like it’s doing.”

Rob Diner, who publishes the advocacy newsletter Home Runs Matter, argued the city should maintain greater control over the redevelopment process.

“The only thing I would emphasize is, is that it’s hard to understand why we are proceeding along this way without bringing in outside experts and bringing in a formal advisory council,” Diner said. “I have talked to national planners around the United States, and this is the way smart cities develop their property. They keep control. They they create the vision. They don’t turn over the vision to somebody else and they retain all the value.”

Welch says the redevelopment proposal includes the eventual demolition of Tropicana Field after 2030.

“The old model of a new stadium further to the East is gone. We have to start thinking about the city of Saint Pete,” Welch said.

The future of Tropicana Field remains a key part of the redevelopment conversation.

Although the city has approved roughly $60 million in Hurricane Milton-related repairs to keep the stadium operational, Welch said those repairs were justified.

“Because it was eligible for FEMA reimbursement… we’ve got the economic benefit for the next three years, maybe five years if they ask for an extension and then we’ll see what happens going forward. That was our thinking on it,” Welch said. “The Trop [Tropicana Field] is about more than baseball, as you know, graduations and other things happened there. So, it is an asset, but the plan now is to eventually, demolish that and replace it.”

Negotiations between the city and the selected development teams will now begin.

Any final redevelopment agreement must return to the St. Petersburg City Council for approval before construction can move forward which Welch adds can take about one year.

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