Less than a year after committing $18 million in taxpayer funds to a waterfront property purchase, Madeira Beach commissioners are eyeing another multimillion-dollar land deal at the entrance to the city — this time putting up $15,000 of public money just to find out if the numbers make sense.

At a special meeting Aug. 20, commissioners authorized City Manager Michael Helfrich to begin formal due diligence on the Suncoast Boat Rental property at 545 150th Ave., a 1.37-acre parcel that sits between two properties the city already owns. The city and the site’s private owners have tentatively agreed on a $3.5 million purchase price, though officials stress the vote does not commit the city to buying the land. The $15,000 authorized so far will pay for two independent appraisals and an updated environmental assessment — the legwork required before anyone asks taxpayers to approve the purchase itself.

The push follows an October deal in which commissioners unanimously approved an $18 million purchase of a neighboring 4.6-acre waterfront property at 555 150th Ave., intended as a new site for the city’s public works facility and to relieve overcrowding at the municipal marina. The parcel now under consideration splits those two city-owned properties, and officials argue that buying it would knit the land into a contiguous 10-acre holding and give the city full control over how its gateway looks.

“Many residents have voiced their opinions on wanting the city acquire that,” Mayor Anne-Marie Brooks said at an Aug. 12 meeting. “It’s the entrance to the city. And it would give the city full control to the entrance to the city and how it looks.”

Commissioner David Tagliarini was more direct about his enthusiasm, calling the acquisition “a game-changer for our city” and predicting it would open the marina to three sides of water access instead of two, along with new revenue opportunities.

Not every commissioner is on board. Housh Ghovaee was the lone vote against moving forward, citing the cost — a concern that comes as the city is still absorbing last year’s $18 million outlay on the adjacent parcel.

Florida law requires municipalities to obtain independent appraisals before spending public money on real estate, precisely to guard against local governments overpaying or getting outmaneuvered on price. That safeguard carries extra weight here: the property comes with a documented environmental history. State records show the site once held a 2,000-gallon underground gasoline tank, removed in 1991 after inspectors found evidence of a petroleum leak, which triggered years of state-monitored groundwater and soil testing.

Recent results are mixed. Groundwater tests over the past two consecutive quarters came back clean, allowing engineers to recommend sealing the old monitoring wells. Soil tests told a different story — of 13 test borings drilled across the property in late 2023, eight showed petroleum-related contamination above state cleanup thresholds. Environmental engineers have not yet mapped how far the contaminated soil extends, meaning the city does not currently know how much dirt might need to be excavated or treated, or what that cleanup would cost.

The newly ordered Phase I Environmental Site Assessment is meant to answer those questions before the city commits further. Once the appraisals and environmental review are complete, Helfrich’s staff will report back to the commission with cost estimates, any remediation needs, and proposed funding sources. Only then will commissioners hold a full public discussion and vote on whether to finalize the $3.5 million purchase.

For a city that just spent $18 million on the lot next door, the pending environmental and appraisal findings may determine whether this second purchase is the described “game-changer,” or an expensive lesson in due diligence delayed.

Follow the St. Pete-Clearwater Sun on Facebook, Google, & X

St. Pete-Clearwater Sun: local St. Pete-Clearwater & Tampa Bay, FL news at PIE-Sun.com