By Brian French | October 13, 2026
Quick Answer
Major South St. Petersburg commercial projects include St. Pete Free Clinic’s conversion of a former Badcock furniture store at 2200 Dr. Martin Luther King Jr. Street South into a food, health care, and social services hub, and the long-delayed Tangerine Plaza redevelopment on 22nd Street South. Taxable values in the South St. Pete CRA rose from $1.1 billion in 2020 to $2.5 billion in 2025.
A Different Kind of Commercial Investor
When people talk about commercial real estate in St. Petersburg, they usually mean downtown towers and Central Avenue storefronts. In South St. Pete, one of the most consequential recent deals came from a nonprofit backed by private donors, not a developer.
St. Pete Free Clinic bought a shuttered furniture store on Martin Luther King Jr. Street South and is converting it into a combined food, health care, and social services hub. Meanwhile, the area’s best-known public-private project, Tangerine Plaza, remains years behind schedule. The contrast offers a useful look at how philanthropic capital and public redevelopment dollars are reshaping South St. Pete in different ways.
The South St. Pete Commercial Landscape
| Project | Location | Lead | Status |
|---|---|---|---|
| St. Pete Free Clinic hub | 2200 Dr. MLK Jr. St. S. | Nonprofit, donor-funded | Under renovation, opening targeted by 2027 |
| Tangerine Plaza | 1794 22nd St. S. | Sugar Hill Group, city-owned land | Deadline extended to January 2027 |
| Deuces corridor housing | 22nd St. S. | City and nonprofit partners | Townhomes completing in 2026 |
The Free Clinic Hub: Badcock to “Care Forward”
The Deal
St. Pete Free Clinic bought the former Badcock Home Furniture & More building at 2200 Dr. Martin Luther King Jr. Street South in June 2025. The furniture chain had filed for bankruptcy in July 2024, leaving the large commercial building empty.
Plans call for expanded food distribution, medical care suites, and community spaces including a Knowledge Center. The clinic chose the location deliberately: CEO Jennifer Yeagley said the 33705 ZIP code has the highest concentration and utilization of the clinic’s downtown fresh pantry.
The Money
The project is anchored by a major private gift. Philanthropists Trevor Burgess and Gary Hess committed $5 million to the clinic’s five-year, $100 million Care Forward initiative.
| Care Forward Allocation | Amount |
|---|---|
| Expanded programs | $80 million |
| Capital projects, including South St. Pete facility | $10 million |
| Endowment | $10 million |
| Total | $100 million |
By 2030, the campaign aims to reach all 260,000 food-insecure residents in Pinellas County with fresh produce and groceries and expand health care to 20,000 uninsured adults.
The donors have a long history with the clinic. Hess joined its board in 2019 and volunteered at its food bank, and in 2024 the couple gave $1 million with a community matching challenge.
The Community Tension
The project was not without conflict. The clinic’s purchase included the lot of Mairs Grocery, a family-owned market that had served the Harbordale neighborhood for more than 24 years. Its planned demolition sparked a community outcry in May 2025, with a city council member’s aide calling Mairs an essential food source in a recognized food desert and a cultural anchor for the Caribbean and Black community.
The clinic and the grocer reached an agreement, with the clinic helping the owner find a new location. At last report, the grocery was buying a building on the same street and hoped to relocate by summer 2026. Readers should check for the latest status of the relocation.
Tangerine Plaza: The Public-Private Contrast
Two miles away, Tangerine Plaza tells a different story. The city-owned strip mall at 1794 22nd Street South housed the area’s only grocery store until 2017.
The Timeline
- 2020: Sugar Hill Group submits its first proposal.
- 2022: The city selects Sugar Hill’s proposal.
- June 2024: Council approves an 18-month extension.
- December 2025: Council grants a second extension on a 6-2 vote, giving the group until January 2027 to secure financing, a grocer, and other requirements.
The Project
The plan has grown to a $70.1 million mixed-use project with 186 income-restricted apartments and 10,000 square feet of commercial space including a grocery store. Sugar Hill has requested $22.3 million in public funding from the city and Pinellas County. Mayor Ken Welch said the group had secured a small grocer and most of its financing, though at least two council members disputed those statements.
How the Money Compares
The narrative that private philanthropy is “out-investing” public dollars in South St. Pete is only partly accurate. The public side is substantial.
The CRA’s Resources
The South St. Petersburg Community Redevelopment Area covers 4,777 acres, or 7.4 square miles, making it the city’s largest redevelopment district and one of the largest in Florida. Established in 2015 as a 30-year tax increment financing district, it funds housing, commercial corridors, and workforce development.
| CRA Indicator | Figure |
|---|---|
| Taxable value, 2020 | $1.1 billion |
| Taxable value, 2025 | $2.5 billion |
| Base year (2015) assessed value | $530 million |
| FY26 housing budget | $15.1 million |
| FY26 corridor planning (22nd St. S. and 49th St. S.) | $2 million |
The district’s revenue has far exceeded original expectations. The 2015 projections estimated only $6.8 million in total revenue through fiscal year 2025.
Where Philanthropy Stands Out
Measured in dollars, the CRA’s annual budget is larger than the Free Clinic’s $10 million capital allocation. Where philanthropy stands out is speed and land control. The Free Clinic bought a vacant commercial property and moved into renovation within about a year, while Tangerine Plaza has cycled through extensions since 2020.
Philanthropy and public dollars also increasingly work together. In 2024, the city partnered with the Foundation for a Healthy St. Petersburg to secure $200,000 in philanthropic funding to match CRA dollars for roof repairs.
What It Means for Property Values and Foot Traffic
Foot Traffic
A combined food pantry, clinic, and social services center draws steady daily visits. For nearby small businesses on Martin Luther King Jr. Street South, that can mean more potential customers, though nonprofit service hubs typically generate different spending patterns than retail anchors.
Property Values and the Tax Base
Rising values across the CRA are already well established. One factor to watch: properties owned and used by qualifying charitable organizations can be eligible for property tax exemptions under Florida law. If a large commercial parcel moves from taxable retail use to exempt nonprofit use, it could reduce that parcel’s contribution to the CRA’s tax increment, even as the project improves neighborhood services. The effect on a single parcel is small relative to the district’s $2.5 billion taxable base, but it matters as more nonprofits acquire commercial land.
Commercial Land Competition
Nonprofits with donor capital can buy commercial property without the financing hurdles that slow traditional developers. That can accelerate reuse of vacant buildings, but it can also displace existing tenants, as the Mairs Grocery dispute showed.
Brian’s Take
South St. Pete is becoming a test case for how different types of capital reshape a neighborhood. The Free Clinic’s Badcock conversion shows what donor-funded nonprofits can do: buy a dead commercial building, secure funding, and move quickly. Tangerine Plaza shows the difficulty of public-private deals that depend on stacking subsidies, grocers, and housing financing all at once.
From an investment standpoint, the CRA’s numbers are striking. Taxable value more than doubled in five years, and the district is generating far more revenue than its planners expected. That is a strong signal of private market interest, and it means the CRA has more money to deploy than ever. The challenge has been spending it efficiently.
The lesson for investors and business owners is that South St. Pete’s commercial future will likely be shaped by a mix of philanthropy, public incentives, and private capital. Nonprofit anchors can stabilize corridors and bring daily traffic, but the neighborhood still needs taxable commercial uses, especially a full-service grocery, to build a durable retail economy. The January 2027 Tangerine Plaza deadline is the next milestone to watch.
Frequently Asked Questions
What commercial real estate projects are happening in South St. Petersburg?
Key projects include St. Pete Free Clinic’s conversion of the former Badcock furniture store at 2200 Dr. MLK Jr. Street South into a food and health hub, the Tangerine Plaza redevelopment on 22nd Street South, and housing projects along the Deuces corridor.
What is the St. Pete Free Clinic building in South St. Pete?
A flagship facility combining food distribution, medical care, social services navigation, and community space in a renovated former Badcock furniture store, supported by a $5 million gift from Trevor Burgess and Gary Hess.
What is the status of Tangerine Plaza?
The St. Petersburg City Council extended Sugar Hill Group’s deadline to January 2027 to secure financing and a grocer for a planned $70.1 million project with 186 affordable apartments and 10,000 square feet of commercial space.
How much have property values grown in the South St. Pete CRA?
Taxable values rose from $1.1 billion in 2020 to $2.5 billion in 2025.
What is the South St. Petersburg CRA?
A 7.4-square-mile tax increment financing district created in 2015 to fund housing, commercial corridors, and workforce development, generally bounded by 2nd Avenue North and the interstates on the north, 4th Street South on the east, 30th Avenue South on the south, and 49th Street on the west.
Are there grants for businesses in the South St. Pete CRA?
Yes. Programs such as the South St. Petersburg CRA Microfund Program provide funding and capacity building to businesses located in the CRA for at least six months.
Sources and Further Reading
- Burgess-Hess Gift Advances SPFC Expansion — St Pete Catalyst: https://stpetecatalyst.com/burgess-hess-gift-advances-spfc-expansion/
- Trevor Burgess and Gary Hess Give $5 Million to St. Pete Free Clinic — St. Pete Rising: https://stpeterising.com/home/trevor-burgess-and-gary-hess-give-5-million-to-support-st-pete-free-clinics-new-flagship-facility-in-south-st-pete
- Transformational $5 Million Gift Drives St. Pete Free Clinic’s Expansion — I Love the Burg: https://ilovetheburg.com/st-pete-free-clinic-care-forward/
- St. Pete Couple Gives $5 Million Toward Free Clinic’s Hub — Pinellas Community: https://pinellascommunity.com/posts/st-pete-couple-gives-5-million-toward-free-clinic-s-south-st-pete-hub
- Free Clinic Relocation Jeopardizes Food Desert’s Lone Grocer — St Pete Catalyst: https://stpetecatalyst.com/free-clinic-relocation-jeopardizes-food-deserts-lone-grocer/
- Free Clinic, Neighborhood Grocer Resolve Demolition Concerns — St Pete Catalyst: https://stpetecatalyst.com/free-clinic-neighborhood-grocer-resolve-demolition-concerns/
- Longtime South St. Pete Grocery Store Relocating — WTSP: https://www.wtsp.com/article/news/local/pinellascounty/mairs-grocery-relocating-st-pete-free-clinic/67-d429e4f6-6da3-4683-93a6-fd4a05059e1b
- St. Pete Gives Tangerine Plaza Developers Another Year — St Pete Catalyst: https://stpetecatalyst.com/st-pete-gives-tangerine-plaza-developers-another-year/
- Letter Shines Light on Tangerine Plaza’s Proposed Grocer — St Pete Catalyst: https://stpetecatalyst.com/letter-shines-light-on-tangerine-plazas-proposed-grocer/
- Tangerine Plaza Developers Need More Time, Money — St Pete Catalyst: https://stpetecatalyst.com/tangerine-plaza-developers-need-more-time-money/
- Several Developments Move Forward Along the Deuces — St. Pete Rising: https://stpeterising.com/home/several-developments-move-forward-along-the-deuces-corridor-in-south-st-pete
- South St. Pete’s $15.1M Housing Budget — Hoodline: https://hoodline.com/2026/09/south-st-pete-s-15-1m-housing-budget-splits-repairs-from-new-construction/
- South St. Petersburg CRA — City of St. Petersburg: https://www.stpete.org/business/economic_development/community_redevelopment_areas/south_st_pete_cra.php
- Council Approves South St. Petersburg CRA FY26 Plan — Citizen Portal: https://citizenportal.ai/articles/6757129/florida/pinellas-county/st-petersburg/council-approves-south-st-petersburg-cra-fy26-plan-directs-spending-toward-housing-corridors-and-workforce
- State of the Economy: Employment, Incomes, and Construction Value Rise in St. Pete — St. Pete Rising: https://stpeterising.com/home/state-of-the-economy-employment-incomes-and-construction-value-rise-in-st-pete
- South St. Pete CRA Microfund Program — City of St. Petersburg: https://www.stpete.org/residents/grants___loans/south_st_pete_cra_microfund_program.php
