Control of downtown Clearwater’s future is moving into the market, as Pinellas County brings developers into a redevelopment process driven by concerns about long-term ownership, public access and the influence of large property holders.
The county will release a request for negotiations in June, asking developers to propose how its downtown land should be redeveloped and structured, whether through a sale, a long-term lease or a combination of both.
The move puts roughly two dozen acres into play as the county shifts operations to a new government campus. It creates one of Clearwater’s largest redevelopment opportunities, in a downtown where land ownership has become increasingly concentrated.
Commissioners made clear the issue extends beyond real estate value. During the discussion, they pointed to the Church of Scientology and affiliated property owners, who control hundreds of properties in downtown Clearwater, as a factor shaping the county’s approach to the deal.
Commissioner Chris Latvala said the county should not repeat that pattern.
“What is undeniable is I believe they will be interested in this property,” Latvala said. “I also do not want this project to be used as leverage against Pinellas County.”
Latvala said his constituents “have felt like they have lost the heart of their city,” adding that redevelopment must reflect broader community use and not reinforce existing ownership patterns.
County Administrator Barry Burton said the county will not set a deal structure before testing the market. Instead, developers will define both the project and the financial approach.
“We look forward to seeing what the market will bear, what developers propose and really get into the details of the structure,” Burton said.
The county will accept proposals for fee-simple sales, long-term ground leases or hybrid structures. The county expanded the approach after commissioners and residents raised concerns about losing long-term control of public land.
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Leanne DuMond, working with CBRE on the redevelopment strategy, said the structure will not determine the outcome. The terms will.
“It’s the terms that control,” DuMond said. “A lease without terms doesn’t give you the outcome.”
Those terms will define when projects must be built, how the properties must be used and how they must be activated. They will also establish the protections the county retains over time, which developers must address in their proposals.
Outside counsel Eric Singer said the county is testing multiple structures at once, including using different approaches across parcels.
“Where we may land is sort of mix and match, where certain properties are best developed under a ground lease and certain might be best developed under fee simple,” Singer said.
That flexibility lets the county compare value and control. Singer said stronger restrictions will likely reduce what developers are willing to pay, creating a direct tradeoff for the commission.
“There is definitely a tradeoff between long-term control and price,” Singer said.
Commissioners said they would consider structures that combine upfront payments with long-term income or allow developers to gain ownership after meeting specific conditions. Burton said those combinations are part of what the county will test.
“It could be a combination where we actually do get some of those funds and at the same time keep the control in place,” Burton said.
Financing will shape what developers propose. Singer said lenders typically favor fee-simple ownership because it simplifies financing and resale. Ground leases can narrow the pool of buyers and complicate financing, especially for condominium projects. However, some developers may still pursue lease structures depending on the project.
Commissioners also emphasized that redevelopment must produce consistent activity in downtown Clearwater, including retail, dining and everyday uses that support foot traffic.
The process begins with the release of the request for negotiations, followed by developer submissions, evaluations and public presentations. Commissioners will review proposals before making a final decision, with additional opportunities for community input.
The county has not committed to selling or leasing the land. Instead, it will use proposals to compare financial return, development quality and long-term control.
With consensus in place, staff will finalize the terms and release the solicitation in June, beginning a multi-year process that will shape how downtown Clearwater is owned, developed and used.
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