The real estate development firm behind St. Petersburg’s tallest tower has agreed to reimburse the city for all expenses incurred after Hurricane Milton sent a construction crane crashing into a nearby office building.

The subcontractor responsible for the 500-foot tower crane may also face daily fines of $1,500 if they fail to reopen nearby roads and sidewalks by city-mandated deadlines. The crane, located at the Residences at 400 Central construction site, caused significant damage when part of it struck the eight-story building at 490 1st Ave. S.

The crane remained lodged in the building—formerly known as the Tampa Bay Times building—for over two weeks. James Corbett, the city’s development administrator, announced on Thursday that “selective demolition” is ongoing.

“Some areas of the building, including the roof, walls, and floors, remain unstable,” Corbett told the City Council. “The next step is to implement a shoring plan and survey the utilities to identify any damaged circuits or piping.”

Dallas-based Lincoln Property Group owns the affected building, now branded with the law firm Johnson Pope. Damage resembling a bomb impact stretches from the third floor up to the roof of the oldest structure, following the 100 mph gusts from Milton that toppled the crane.

Corbett explained that temporary walls or guard rails are being installed to prevent further hazards, such as falling debris. After these measures, officials will conduct a safety evaluation to determine tenant accessibility.

Corbett noted that some tenants may have limited access to retrieve critical files and personal belongings once the shoring plan is in place. While the crane severely damaged “Building B,” Buildings A and C suffered “extensive water damage” from a rooftop cooling tower rupture and fire sprinklers.

“That will need to be remediated before those areas are accessible again,” he added. “Road repairs will be the last step.”

However, the crane operator, Liberty Equipment, must first complete road repairs to support the heavy equipment required to stabilize Building B. “We don’t want to repair the road, bring in heavy equipment, and damage it again,” Corbett noted.

Councilmember Lisset Hanewicz mentioned that residents are curious about who would cover the city’s expenses for the recovery. New York-based Red Apple Real Estate, managing the 400 Central project, will bear these costs.

Suffolk Construction, the project’s general contractor based in Boston, subcontracted Liberty Equipment to manage crane operations.

“All city costs associated with the crane damage will be billed to the 400 Central developers,” Corbett confirmed. “They’re even covering the police costs for the ongoing road closure.”

“That’s good news for the public,” Hanewicz replied.

Brejesh Prayman, capital improvements director, stated that Liberty had until Friday to reopen two eastbound lanes on 1st Avenue, with a deadline of Nov. 18 to restore the bus lane, sidewalk, and section of the Pinellas Trail. Liberty will face a $1,500 fine per day for each delay. “We’re enforcing this strictly,” Prayman said.

Closed-circuit TV cameras helped inspect water, sewer, and stormwater pipes in the area, and no pipe damage was found. A pressure test on the water main confirmed normal capacity. “Fortunately, there were no leaks, though the road surface did suffer significant damage,” Prayman reported.

Contractors will undertake a “major patch repair” and a “depth restoration” on 1st Avenue, with further improvements to follow. 

“Once the project is complete, they’ll be required to resurface 1st Avenue from 3rd Street to 4th Street,” Prayman added.

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(Image credit: St. Petersburg Police Department)