The Jacksonville City Council will vote Tuesday night on legislation that would award 8000‑1 LLC a $1.5 million property‑tax refund – known as a Recapture Enhanced Value (REV) grant – for the redevelopment of the former FBI headquarters on Arlington Expressway. The grant is intended to help the developer complete the conversion of two remaining vacant office‑park buildings that have become eyesores due to vandalism and graffiti.
Council backing and local impact
Councilmember Ken Amaro, who represents Arlington, secured support from the Neighborhoods, Rules and Finance committees to increase the grant from the original $1 million request by $500,000. “This project has been in the works for a while. The work that has been done thus far has been transformative. They’ve taken the old FBI building and turned it into a very beautiful apartment complex,” Amaro said. He added that the ongoing construction of an amenity center and the planned renovation of the two remaining structures will further improve the area.
Arlington resident and councilmember Ron Salem echoed the sentiment, noting that the long‑standing blight has marred the Expressway corridor for “probably 20 or 25 years.” Salem argued that the city’s financial support is essential to turning the neighborhood around and restoring community pride.
Project details and financing
The Interra Apartments opened in January with 95 market‑rate units and are currently about 70 % occupied. The developer, Marc Kozman, has invested $35 million in the overall 16.41‑acre site, with the former FBI building’s final redevelopment cost reported at $28.5 million. Investors are seeking 90 % occupancy before pursuing financing for the two additional apartment conversions.
According to city director of economic development Ed Randolph, the city expects to receive $1.34 in return for every $1 invested under the new agreement – a reduction from the 2021 estimate of $2.01 to $1. The REV grant refunds 75 % of the new property tax generated from the building and site improvements over an 11‑year period, with $1.5 million representing the maximum refund the city would provide.
Opposition and concerns
Finance Committee member Michael Boylan cast the lone no vote in that committee, expressing concern that the larger refund would diminish the city’s return on investment. He voted yes in the Rules Committee but questioned the lack of affordable‑housing units in the project. No other council members publicly opposed the measure.
Attorney Steve Diebenow, representing the developer, told council committees on September 14 that the timeline for the two remaining buildings remains uncertain, though Kozman has moved from his Arlington home into the new apartments to oversee the work.
Broader economic context
The city’s decision comes as construction financing becomes more expensive following the Federal Reserve’s September 19 rate hike aimed at curbing inflation. Higher borrowing costs could affect future real‑estate development projects in Jacksonville.
Despite 24‑hour on‑site security and surveillance, the two unrenovated structures continue to suffer vandalism, underscoring the urgency of completing the redevelopment to eliminate the ongoing blight.
Next steps
If approved, the REV grant will be the city’s second economic‑development agreement for the Arlington site. The original 2021 deal, approved with Theotokos Holdings LLC, awarded an $820,000 tax refund but expired before project completion due to construction delays.
Council members are expected to vote on the legislation Tuesday night. Approval would provide the developer with the financial incentive needed to finish the remaining buildings, potentially boosting occupancy, tax revenue, and neighborhood quality for Arlington residents.
Original reporting: Jacksonville Today — read the source article.
