St. Petersburg breaks ground on first Florida housing project approved under industrial-land law

A St. Petersburg affordable housing project that broke ground this week is the first in the state to utilize a Florida law that allows cities to convert industrially zoned land into residential development.

Mayor Ken Welch, city staff and county leaders joined housing partners to break ground on Fairfield Avenue Apartments, a 264-unit affordable and workforce housing development near the Warehouse Arts District. 

The project — which is the largest affordable housing project approved by the city of St. Petersburg to date — is the first in Florida to move forward under 2020 legislation authorizing residential development on industrial land, according to a press release. That law aimed to open a new pathway for large-scale workforce housing construction in built-out urban areas.

First proposed in early 2022 under the state framework, the project is positioned as a potential model for other municipalities grappling with limited residential land and rising housing costs.

Welch said the project reflects the city’s willingness to pursue unconventional housing solutions and the urgency for expanding access to affordable homes. He thanked former Sen. Jeff Brandes, city staff and other partners for making the project a reality.

“Once again, St. Pete is leading the way in implementing innovative affordable housing solutions,” Welch said. 

“We are proud to be the first city in the state to approve affordable housing development on industrially-zoned land and we are even more proud that this is our largest affordable housing project to date. One of the most urgent challenges facing our city is access to safe, affordable housing, and today, we took an important step forward in our ongoing commitment to housing opportunities for all.”

The 6.9-acre site at 3300 Fairfield Ave. S. was previously home to Tibbetts Lumber Company, a family-owned business founded in the 1970s. The property was acquired for approximately $6.2 million by Fairfield Avenue Apartments LLC, an entity affiliated with St. Petersburg-based HP Capital Group and Brandes.

Nick Hansen, a partner with HP Capital Group, said redeveloping the site represents a personal legacy and a long-term investment in the city’s workforce.

“Fairfield Avenue Apartments represents both a deeply personal legacy and a forward-looking commitment to St. Petersburg’s future,” Hansen said. “Transforming a site that once supported local industry into housing that supports working families is incredibly meaningful. This project shows what’s possible when cities, counties and private partners come together to create long-term affordability and opportunity for the people who make this community thrive.” 

The Fairfield Avenue Apartments community will include 74 one-bedroom units, 162 two-bedroom units and 28 three-bedroom units. Affordability will span multiple income levels, with 53 units reserved for households earning at or below 50% of area median income (AMI), 67 units for households earning up to 80% AMI and 144 units for households earning up to 120% AMI.

Total development costs are estimated at $94.2 million and will be financed through a combination of public and private sources, including $9.7 million from the South St. Pete Community Redevelopment Area fund, funding from Pinellas County, a HUD construction loan and developer equity. The property will be leased through a trust with the Housing Finance Authority of Pinellas County, establishing a 99-year affordability commitment.

Pinellas County Commission Vice Chair Chris Latvala said the county’s participation is just one example of broader support for workforce housing.

“Pinellas County is committed to filling financial gaps for projects like Fairfield Avenue Apartments because we know stable, affordable homes are essential for our workforce and families who want to remain in the communities where they live and work,” Latvala said.

The Fairfield Avenue Apartments will offer a variety of amenities, including a swimming pool, meeting rooms, computer labs, a bike corral and repair workshop, playgrounds, picnic areas, and extensive bike parking. Construction is expected to continue through at least mid-2028.

Upon completion, the apartments will be owned and managed by the Pinellas County Housing Authority. Executive Director Neil Brickfield said the groundbreaking “marks the beginning” of a mission “transforming plans into progress and creating the foundation for new homes, stronger neighborhoods, and long-term opportunity.” 

“This project reflects our commitment to investing in communities, expanding housing access, and building a future where more residents can thrive in Pinellas County,” Brickfield said.