Gray Property Group is officially under contract to purchase the 1.16-acre city-owned parcel at 320 10th Avenue W in Downtown Palmetto, Florida, a milestone that makes the broader site assemblage and mixed-use development vision possible.
The parcel, currently operated as a municipal parking lot and owned by the City of Palmetto, represents the critical southern component of the assemblage when combined with Gray Property Group’s adjacent privately controlled parcel at 336 10th Avenue W. Together, the two sites total approximately 1.67 acres at the corner of 10th Avenue W and Riverside Drive.
Under the terms of the contract, Gray Property Group has agreed to purchase the City parcel for $1,110,000. In parallel, the City has committed to leasing between 80 and 100 parking spaces within the project’s structured parking garage at a cost of $35,000 per space. These spaces will be secured under a long-term $0 per month triple-net (NNN) lease, ensuring permanent public parking availability while shifting construction, ownership, and operational responsibility to the private development.
The contract follows an unsolicited purchase and development proposal submitted by Gray Property Group to the City in September 2024. The proposal outlined a public-private partnership framework under which the City would sell the parcel to facilitate a comprehensive redevelopment that expands residential density, activates underutilized downtown frontage, and materially increases covered public parking capacity serving the waterfront and surrounding commercial district.
During the due diligence period, Gray Property Group will advance the remaining predevelopment work required to move the project forward, including securing a 13-year Community Redevelopment Agency (CRA) tax incentive and drafting the long-term parking lease governing the City’s use of the dedicated parking spaces within the garage.
The assembled site is planned to support a landmark mixed-use development consisting of approximately 75 to 80 residential units, 15,000 to 30,000 SF of retail space, and a structured parking garage incorporating both private and dedicated public parking. The project concept is designed to align with the City’s Downtown Core vision, Old Main Street revitalization goals, and long-term public parking needs near the Manatee River waterfront.
With the City parcel now under contract, Gray Property Group will continue advancing design development, zoning coordination, and predevelopment work as the project moves through municipal approvals. Securing site control over the City land represents the defining step that allows this Downtown Palmetto waterfront project to proceed as a cohesive, economically viable mixed-use development.
