Jacksonville City Council gave final approval Tuesday to a revised incentive package that will allow developer Gateway Jax to move forward with a Publix‑anchored residential high‑rise in the Pearl Square neighborhood. The 11‑to‑8 vote reflects a compromise that moves cash from the city’s general fund to other downtown projects, addressing concerns raised after the passage of Amendment 3, the state‑wide property‑tax cut.
Deal structure and funding shifts
The updated agreement, introduced by Councilmember Randy White, redirects $15 million of the original cash grant to two previously approved downtown initiatives – $4 million from the Shipyard West Park project, $4 million from a proposed Riverfront Plaza restaurant, and $7 million from a completion grant earmarked for another Gateway high‑rise. The Downtown Investment Authority (DIA) will contribute an additional $4 million from property‑tax dollars it manages, while the remaining $9 million will still come from the city’s general fund, to be paid out 36 months after construction begins.
In addition, the package retains a maximum $28.25 million property‑tax refund (a REV grant) spread over 17 years. Council members noted that the refund was never contested, underscoring the broad support for the project’s long‑term tax‑revenue potential.
Economic and community benefits
Mayor Donna Deegan, a longtime champion of the Pearl Square development, praised the council’s decision as a vote for Jacksonville’s growth. She highlighted that the Publix store – roughly 31,000 square feet on the tower’s ground floor – will provide essential grocery services to downtown residents, helping to retain and attract the “additional density” needed for a vibrant urban core.
Gateway Jax CEO Bryan Moll said the grocery anchor will boost the tower’s 260 apartments and the attached parking garage, creating jobs and generating “hundreds of millions of dollars in commercial tax revenue” that can be reinvested across the city’s neighborhoods.
Council reactions
Supporters on the council, including Michael Boylan, Kevin Carrico, and Ken Amaro, emphasized the project’s role in doubling downtown’s population to nearly 10,000 over the past decade. Boylan noted that independent restaurateurs have repeatedly stressed the importance of the development for local businesses.
Opponents – Council President Nick Howland, Vice President Joe Carlucci, Finance Chair Will Lahnen, and members Rory Diamond, Raul Arias, Mike Gay, Chris Miller, and Ron Salem – argued that the city’s fiscal outlook is strained by Amendment 3, which will cut roughly $300 million per year from the general fund by FY 2028‑29. Diamond warned that continued developer grants could “shove taxpayer money” away from essential services such as police and fire.
Will Lahnen, while voting against the measure, called the compromise “less damaging” than the original cash‑grant structure, acknowledging the council’s effort to balance growth with fiscal responsibility.
Future outlook
The deal also paves the way for a second Gateway proposal: a $250 million luxury hotel, condo, and apartment tower at Riverfront Plaza. That project seeks a $35.4 million property‑tax refund over 20 years and a $20 million cash grant sourced from downtown‑generated tax revenue, not the general fund.
City officials say the Riverfront Plaza tower will complement the nearby $80 million park, integrating public restaurants and a terrace into the park’s design. However, final approval will require another council vote, and upcoming budget adjustments related to Amendment 3 will shape the city’s capacity to fund further incentives.
Original reporting: Jacksonville Today — read the source article.
