The St. Petersburg City Council voted 5-2 on Tuesday to grant the Sugar Hill Group a one-year extension on its agreement to redevelop Tangerine Plaza, a largely vacant city-owned retail center in South St. Petersburg.
The project aims to bring a grocery store and affordable housing to an area designated as a food desert, which has been without a full-service supermarket since Walmart closed in 2017.
Under the original agreement approved in June 2024, Sugar Hill Group had 18 months to secure funding and obtain a commitment from a grocer. According to city documents, the group has not yet fulfilled these requirements and is requesting more than $22 million in combined funding from the city and Pinellas County.
Council members Gina Driscoll and Lisset Hanewicz voted against the extension, citing concerns about the project’s funding. Hanewicz noted uncertainty about whether the necessary funds would be available given upcoming budget challenges.
Supporters argued the council has granted extensions to other developers and that denying this request could restart the entire process. Council member Brandi Gabbard described it as a community-led development group working in an area that has experienced long-term economic depression.
The development plan includes building 186 affordable housing units and retail space featuring a grocery store. If the extension had been denied, the current agreement would have expired in January, and the city would have evaluated alternative development options for the property.
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