St. Pete-based developer Stoneweg is adjusting its plans to transform the beleaguered Coquina Key Plaza in south St. Petersburg into a thriving retail center with market rate and workforce housing.

The real estate firm, which purchased the 14.5-acre plaza at 4350 6th Street South in 2022 for $8.9 million, is modifying the layout of the $124 million development to deliver the project in phases.

The previous plan, approved in July 2022, called for the construction of four separate residential buildings containing 465 apartments and more than 20,000 square feet of new retail space in front of the residences.  

According to the revised plan, which will go before the St. Petersburg Development Review Commission this week, Stoneweg will replace two planned mid-rise multifamily buildings with nine garden-style buildings and associated surface parking.

The parcel’s Corridor Commercial Traditional-1 (CCT-1) zoning district allows for buildings of 150 feet. Stoneweg's prior agreement limited the team to construct up to 77 feet for the seven-story apartment buildings.  

The group plans to decrease the height of the buildings to four stories, reaching 42 feet high, with a reduction in setbacks.

"The phased opening will provide additional units to the area sooner than if we opened the whole community at the end of construction,” Stoneweg Development Manager Denise Kelly said to St. Pete Rising. “In the redesign, we also wanted to take into consideration the input we received from our neighbors and the concerns they had with the previous design.”

In addition to lowering the height of the tallest buildings, the total unit count has slightly dropped from 465 to 456 units. The promised 20% of units reserved for workforce housing will still be available for households earning 80-120% of the area median income (AMI). The remaining units will be market rate.

"We revisited the Coquina Key Plaza project because of our leasing efforts at the Lake Maggiore Apartments [a workforce housing complex under construction less than a mile away], which have been excellent," Kelly said.

"The workforce housing units are leasing up very quickly as are the townhouses, which we have only 14 of." 

Typically, developers building projects with an affordable or workforce housing component pursue public funding to subsidize the below-market units. However, Stoneweg isn't seeking public dollars for the Coquina Key Plaza apartments.

Residential amenities are expected to include a full-service clubhouse, first-class fitness center, swimming pool, expansive green space, and a dog park.

The retail portion of the project has only been slightly modified. Stoneweg will eliminate the one small building that was previously planned and will add that square footage to the main retail building.

Since the proposed project's inception, residents have strongly voiced the need for a grocer and pharmacy in the plaza. 

The location is not an ideal fit for most national grocery chains as most grocers need to meet specific site selection criteria, including traffic counts, household income, and more.

However, Stoneweg is still trying to lure a prospective grocer and is in talks with one local operator.

"We are continuing our conversation with the local grocer group we’ve been working with since last year as they work through sourcing, equipment purchasing, and other details," Kelly said.

Stoneweg has secured a letter of intent (LOI), which declares the intention of both parties to enter into a legally binding agreement.

"Because of the importance of bringing a grocer to the neighborhood, we continue to pursue other options and talk with anyone interested in the development. This has been at the top of my priority list," Kelly said.  

Stoneweg also has an LOI with a local coffee shop operator and is talking with a health clinic owner who would bring an on-site pharmacy to the community.

Additionally, Kelly said an elevated authentic pizza concept, a bakery, and a yoga studio may also lease space.

Stoneweg hopes to begin construction this year. The first phase is expected to wrap construction 12-15 months after construction commences.

The development team includes BDG Architects and Osborn Engineering.