City-owned land currently used as a parking lot in St. Petersburg has received another unsolicited proposal for development. The site, 800 1^st Ave South, has been previously considered for a Moffitt Cancer Center satellite campus. Property Markets Group (PMG) and Feldman Equities have offered the city $8 million for the block and are interested in creating affordable and market-rate housing, offices, and retail.

The site has lured unsolicited bits before, including the Moffitt proposal. Moffitt proposed an out-patient treatment center, hotel, and residential tower but Mayor Ken Welch vetoed the bid for not having enough affordable housing.

PGM and Feldman have proposed a six-story affordable apartment building that will have 111 units as a part of the development’s first phase. The units would be restricted to those earning 80% or below of the area’s median income. The group would then transfer ownership of the building to the city so the units will stay affordable indefinitely. The city would take on mortgage, upkeep, and all other obligations towards the building going forward. Transfer of ownership would happen upon closing on the land for phase two of development which includes market-rate residences and an office tower.

Feldman says the affordable housing project could take two years of construction once the project receives financing. The mortgage amount is still unknown. Next to the six-story apartment building, a 29-story market rate apartment building with 259 units, and an 11-sotry office building will 110,000 square feet would be built. The group is open to increasing office space, and a medical office is viable for the site location.

A parking garage will be available for public use, and 14,000 SF of ground floor retail is included in the proposal. PGM & Feldman seek to split the city-owned lot, which continues onto the south of Second Avenue S.

Third Lake Partners purchased the neighboring lot at 800 Second Avenue S from United Insurance Holdings in November for 10.5 million. The group has also recently submitted an unsolicited bid to the city for the lot at 800 First Avenue S. The bids do not compete which one another, and neither group has spoken to the other. The lot borders the Historic Gas Plant District. PGM led the affordable housing component of Sugar Hill Community Partners unsuccessful proposal to redevelop the district.