Madeira Beach leaders are taking a cautious first step toward a multimillion-dollar waterfront land acquisition, agreeing to spend up to $15,000 to investigate a marina property before deciding whether to buy it for $3.5 million.
The parcel splits two city-owned properties at the entrance to the city just off the Tom Stuart Causeway.
In October, city commissioners unanimously approved an $18 million purchase of the 4.6-acre waterfront property at 555 150th Ave., calling it a strategic investment that will provide a new home for the public works facility and ease crowding at the city marina, which is on the other side of the parcel.
Officials say purchasing the property at 545 150th Ave. would create more room for the marina and provide greater control over the gateway to the city.
“Many residents have voiced their opinions on wanting the city acquire that,” Mayor Anne-Marie Brooks said Aug. 12. “It’s the entrance to the city. And it would give the city full control to the entrance to the city and how it looks.”
The property would also allow the city to use three sides of the marina instead of two, opening up, creating revenue opportunities.
“This would be a game-changer for our city, and I think it would be a positive game-changer,” Commissioner David Tagliarini said Aug. 12.
Housh Ghovaee was the lone commissioner to say he wouldn’t support it, citing the cost.
At a special meeting Aug. 20, commissioners authorized City Manager Michael Helfrich to initiate formal due diligence on the Suncoast Boat Rental property at 545 150th Ave. The city and the property’s current private owners have negotiated a tentative purchase price of $3.5 million for the 1.37-acre parcel along the water.
However, city officials noted that the action does not commit the city to purchasing the land. Instead, the approved funding will pay for two independent real estate appraisals and a fresh environmental site assessment. The goal is to give elected officials a clear, objective picture of the property’s true market value and any hidden cleanup costs before asking taxpayers to foot the bill for the purchase.
Under Florida law, municipalities are required to follow strict guidelines when buying real estate for public use. State statutes mandate that local governments obtain independent property appraisals to verify that the agreed-upon price aligns with fair market value. Because a $3.5 million transaction represents a significant commitment of public funds, city procedures require two separate, professional real estate evaluations to ensure complete financial transparency.
Beyond the purchase price, the property’s long history as a commercial boat facility makes a thorough environmental review equally critical. The waterfront site has hosted commercial marina operations for decades, including fuel storage and boat maintenance activities that leave behind a historical footprint.
According to state environmental records, the property previously contained an underground unleaded gasoline storage tank with a 2,000-gallon capacity. That tank was dug up and removed from the ground back in March 1991. At the time of the removal, inspectors reported evidence of a petroleum leak, triggering official state oversight and subsequent groundwater and soil monitoring.
Over the past decade, environmental engineering consultants working through state restoration programs conducted multiple rounds of testing on the dirt and water at the marina site. Those past testing reports offer a mixed picture of the land’s current condition.
On a positive note for the city, water testing completed over recent years confirmed that the groundwater beneath the property is clean. Tests conducted across two consecutive quarters showed no petroleum contamination exceeding state safety thresholds in the local water table, allowing engineers to recommend sealing off the old monitoring wells on the property.
However, soil tests tell a different story. In late 2023, environmental contractors drilled 13 shallow test borings across the property to check the ground for remaining fuel pollution. Laboratory testing on those soil samples revealed that eight of the test holes contained elevated levels of petroleum-related chemical compounds above state cleanup safety targets.
Environmental engineers explained in their reports that these remaining soil contaminants are tied to the old underground gas tank and historical land fill used on the property decades ago. Crucially, previous site assessments ended before workers could fully map out how far across the property the contaminated dirt spreads. As a result, the exact volume of soil that might need to be dug up or treated remains unknown.
The newly authorized Phase I Environmental Site Assessment will allow the city to conduct an independent review of those existing environmental issues. The updated study will tell city officials whether further ground testing is needed and help estimate what it might cost to clean up the dirt if the city takes ownership.
According to City Manager Helfrich, staff will return to the board of commissioners once the two appraisals and the environmental report are complete.
At that time, staff will present the findings, outline expected remediation costs if any, and propose specific funding sources that could be used to finance the $3.5 million purchase. Then, the Board of Commissioners will hold a full public discussion and take a formal vote on whether to execute a final purchase and sale agreement.