St. Petersburg reviews options for existing municipal services center

A new appraisal shows a $19 million price tag on a city-owned property in below average condition, and Thursday, the St. Petersburg Economic and Workforce Development Committee was faced with the question of what to do with it.

The Municipal Services Center, located at the corner of Central Avenue and Fourth Street downtown, has been a subject of discussion since before Mayor Ken Welch took office. It’s currently used as an office building and parking garage for city employees, but its condition has been repeatedly evaluated as “below average” by appraisers.

In 2021, there was a plan to build a new center across the street from City Hall and include affordable housing alongside it. But the project was killed by the City Council due to confusion about how much the original center should sell for. The land was going to go to Echelon and Third Lake Partners for $12 million. The most current appraisal at the time showed the building was worth $14 million.

City Council member Gina Driscoll is concerned about how much money needs to be fed into the building for repairs, she said. A 2023 study from architecture firm Harvard Jolley predicted costs upwards of $25 million over the course of five years to keep the building running in better condition that it has been in.

Though she thinks it might be worth considering more minimal repairs, Driscoll said the fact still stands that there needs to be a decision: fully invest in fixing it or sell the property.

“We’re spending more than the whole place is worth,” Driscoll said. “I don’t want to waste any more money on this building. It’s money that could be spent fixing things that we’re actually going to keep around for a while.”

The appraisal also showed that if no expense was spared to repair the building, which would cost about $55 million, its market value would be within a range of $41 million to $45 million. This would still involve investing more money into the building than its projected worth, Driscoll said.

Action should be taken as soon as possible to avoid sinking more repair money into the property, Driscoll said. She thinks it’s time to put out a request for proposals to buy the property.

But assistant city administrator Tom Green cautioned the committee to consider the amount of other city redevelopment projects in the works. He mentioned the Fleet Management Facility expansion, which services city vehicles, and the potential redevelopment of the Enoch Davis Center with $1.5 million in state money. Speeding along another project can create timing issues, Green said.

“It’s a big list,” Green said. “Trying to prioritize and navigate all those is a challenge.”

The committee will continue to discuss its options at its next meeting in late August.