Tesla Gets OK To Redevelop Vacant Kane's Liquidation Store In Lealman

LEALMAN, FL — First there was SpaceX, then Twitter. Now business magnate Elon Musk will play a major role in revitalizing the disadvantaged Lealman community in Pinellas County.

The CEO of Tesla plans to open a 102,410-square-foot vehicle showroom and service center in the now-vacant Kane's Furniture liquidation store at 4601 34th St. N. (U.S. 19).

Truett Realty Group, which is redeveloping the 4.2-acre property for Tesla, received unanimous approval from Pinellas County to open the county’s first Tesla sales, service and delivery center. TRG closed on the property the last week in April.

The new Tesla facility will showcase the company's all-electric vehicles, giving would-be Tesla owners a chance to test-drive and purchase new Teslas. Current Tesla owners can have their vehicles maintained and repaired at the facility.

Under the redevelopment plans, the footprint of the current building will be reconfigured to accommodate a 52,000-square-foot service and delivery operation. The remaining enclosed air-conditioned space will be used to store about 170 vehicles.

The massive box building that dominates the corner of 34th Street North and 46th Avenue North has become an eyesore and a prime target for redevelopment as part of the mission of the 2,500-acre Lealman Community Redevelopment Plan area, bounded by the city of Pinellas Park to the north, Kenneth City to the west and the city of St. Petersburg to the south and east.

The Lealman CRA, the first in unincorporated Pinellas County, is intended to address the area's blight and improve the quality of life in the community.

The community redevelopment area’s revitalization strategy includes reinvesting in Lealman’s commercial and residential properties while, at the same time, capitalizing on the area's environmental and recreational assets, including the Raymond H. Neri Community Park master plan, the adjacent 77,000-square-foot Lealman Exchange Community Center, and the Joe’s Creek restoration project, which includes a walking and biking trail that will connect to the Pinellas Trail.

Redevelopment projects are financed through tax increment financing (TIF), meaning that this investment will not only bring jobs to the area, but also generate TIF dollars for the redeveloped area to reinvest once Tesla improves the property.

Tesla expects to employ about 50 new software and automotive technicians at the Lealman facility.

The Tesla facility is the kind of reinvestment in the economically disadvantaged community that Pinellas County leaders envisioned when they approved the Lealman CRA Redevelopment Plan in 2016.

“The importance of this deal for Lealman cannot be understated," Pinellas County Commissioner Charlie Justice said. “Tesla recognizes what we’ve been saying. Lealman is on the rise and is ready to welcome business."

The redevelopment plan provides a comprehensive framework for long-term economic development and revitalization over the next 30 years and places strict requirements on new and redeveloped sites, requiring them to meet certain architectural standards, accommodate green space and provide sidewalks and other pedestrian-friendly amenities.

“We’re thrilled to execute on an adaptive reuse project that will transform a building originally developed as a distribution center into a state-of-the-art Tesla facility," said TRG Principal Rob Truett. "Our redevelopment projects are extremely rewarding as they provide a cost-efficient way to enter markets with high barriers to entry while promoting a sustainable environment.”

He noted that county and CRA staff worked closely with TRG to obtain the approval of the Board of Adjustments and Appeals to allow for vehicle sales on the property, which otherwise was not allowed due to its industrial zoning.

For Tesla, the location is ideal. The property is situated just south of the five Crown new car dealerships on U.S. 19, giving Tesla an opportunity to attract people who are already out car shopping.

Jordan Simler, senior vice president and commercial banking team leader for Valley Bank, said the bank was eager to finance the project, which places a priority on financing projects that support communities with incomes lower than the county average.

Simler said Valley Bank has a long-standing relationship with Truett and his partner, Jacob Khotoveli of JBL Asset Management, including financing three other U.S. Tesla SSD and collision Centers.

“Our strong history with Rob and Jacob was a major driver in financing this project,” he said. “We especially value his focus on redevelopment projects that drive economic and beautification efforts for underserved communities. This is the second CRA-classified Tesla Center that we have financed.”

Kane's Furniture plans to keep its showroom next door at 4501 34th St. N. open and Kane's CEO Irwin Novack said the company is looking forward to the arrival of Tesla.

“We welcome Tesla to the neighborhood and are confident that they’ll be great corporate citizens and a major asset to Pinellas County," Novack said.

TRG expects to begin construction this summer and open in 2023 or 2024. This project marks the company’s fourth Tesla redevelopment project since 2021.