In the heart of downtown, the city seeks to rekindle a stalled development.
By Kelly Kirschner and Derek Gilliam/Suncoast Searchlight
Original Air Date: February 11, 2026
Host: Nearly two years ago, Sarasota leaders pitched a bold idea: take affordable housing into the city’s own hands—right in the heart of downtown, literally across the street from city hall. The plan promised hundreds of apartments, millions in outside funding and a faster path to housing for workers priced out of the urban core. But after a key resignation, missing money and months of silence, the project stalled.
Now, Sarasota is trying again—with a new proposal, a new developer and fresh questions about whether the city is repeating old mistakes. Here’s what happened and where things stand now. Kelly Kirschner brings us the details via Suncoast Searchlight.
Kelly Kirschner: Back in early 2023, Sarasota’s then-City Manager, Marlon Brown, floated an idea that broke with tradition. Instead of relying on private developers to build affordable housing on the city’s outskirts, why not build it downtown—and let the city control the project from start to finish?
At the time, downtown Sarasota had become increasingly out of reach for working residents, even as jobs clustered in the city center.
Brown’s proposal was ambitious: The city would buy property across the street from City Hall and build two high-rise towers on First Street, delivering nearly 200 units of what officials called “attainable” or “workforce” housing.
“Heritage Flats” is a 10-story affordable housing tower proposed by local developer Mark Vengroff, who submitted an unsolicited bid to develop the property on a lot owned by the City of Sarasota. Image from Vengroff’s bid via Suncoast Searchlight
The plan moved fast.
Brown lined up pledges from three major local foundations, plus millions more expected from the Florida Legislature. Commissioners approved land purchases. A groundbreaking was projected for mid-2025. But behind the optimism, some big questions went unanswered.
Affordable housing projects are typically smaller, built on cheaper land and financed through complex tax credit programs—often by developers with decades of experience. This project would be different. It would be taller, more expensive and led directly by the city—without a detailed construction budget or full financing plan in place.
Some residents warned the city was moving too quickly. One speaker compared it to writing a blank check. But the commission pressed ahead, arguing that Sarasota had talked about affordable housing long enough—and needed to act. In September of 2024, the city spent more than seven million dollars buying two downtown parcels.
Then, just one month later, Marlon Brown resigned.
Two parcels purchased by the City of Sarasota (light blue) on First Street across from City Hall are slated for affordable housing. The city already owned a parking lot (dark blue) but was unable to acquire the middle parcel and an office building owned by 1st Street Credit Union (red). Graphic by Suncoast Searchlight using Sarasota County Property Appraiser GIS map
The anticipated groundbreaking never happened. State funding was vetoed. Foundation dollars never came through. And the project faded from public view as Sarasota cycled through interim city managers. For more than a year, the land sat unused, and now, it’s back in motion.
In late January, the city quietly issued a request for proposals, seeking an outside consultant to help find a development partner—a sign that leadership no longer wanted to go it alone. Around the same time, a local developer stepped forward with an unsolicited bid. Mark Vengroff, whose company One Stop Housing focuses on affordable housing projects, proposed building a 10-story tower with 75 affordable apartments on the site—all rented to people earning at or below 80 percent of the area median income. That income range, experts say, is where the shortage is most severe.
The unsolicited proposal from Harvey Vengroff included the backing of at least three local foundations. Image from Vengroff’s bid via Suncoast Searchlight
The total project cost would be about $32 million, with construction making up the bulk of it. Vengroff’s proposal is backed by the same three foundations that originally pledged money to the city—though now their funding would support construction instead of land purchases.
But the new plan has raised eyebrows. Vengroff has never built a high-rise tower, and his proposed construction costs are significantly lower than previous estimates shared by the city. And some real estate experts say the numbers simply don’t add up. One veteran developer called the per-unit cost “impossible,” noting that high-rise buildings trigger stricter safety requirements that usually drive costs higher—not lower.
Vengroff disputes that criticism, pointing to past projects that skeptics also doubted—including an affordable housing development in Bradenton that he says is coming in under budget. He argues that controlling design, construction and management allows his firm to keep costs down.
City leaders are proceeding cautiously this time. Interim City Manager Dave Bullock says Sarasota has no experience developing mixed-use high-rise housing—and that’s exactly why the city is now seeking outside expert help. Bullock says even if moving everything quickly, construction would still be two to three years away.
Steve Horn, Ian Black, Marlon Brown and Chris Gallagher (of Hoyt Architects) answered questions from city commissioners during the April 15, 2024, meeting. The City Commission unanimously voted to move forward with buying the 1st Street properties after the discussion. Image from City of Sarasota video via Suncoast Searchlight
Some commissioners remain hopeful—but wary. Commissioner Kyle Battie says he still believes downtown should be a place where all people of whatever income can live and work—not just those who can afford luxury condos. But after a first attempt that sputtered, many are watching closely to see whether this second try brings clarity—or repeats the same costly missteps.
For now, Sarasota’s big affordable housing gamble is back on the table—with higher scrutiny, fewer promises and a long road still ahead.
City officials say they’re still reviewing the proposal and determining whether it meets legal and financial requirements to trigger action for an unsolicited proposal. No vote has been scheduled by the commission for its public review.
For Suncoast Searchlight, Kelly Kirschner. To read the full story, go to suncoastsearchlight.org/sarasota-affordable-housing-vengroff-proposal.
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