JACKSONVILLE, Fla. – The News4JAX I-TEAM has uncovered new details about an ongoing legal dispute between JEA and one of Northeast Florida’s largest medical providers, Mayo Clinic, over millions of dollars in utility fees.
Sources tell News4JAX the disagreement has drawn questions from the Jacksonville Office of Inspector General (OIS) related to millions of dollars in water and sewer capacity charges that JEA claims were never paid.
The inquiry appears unrelated to recent controversies involving JEA leadership or the Jacksonville City Council. Instead, the dispute centers on utility service and whether additional fees should have been assessed as Mayo Clinic expanded its campus.
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Dispute over capacity fees
Capacity fees are charges assessed to developers or property owners when new or expanded buildings connect to JEA’s water and sewer systems.
According to legal documents, JEA attorneys argued in October 2025 that Mayo Clinic owes more than $12 million in additional capacity fees because its water and sewer usage increased dramatically over time.
Mayo Clinic attorneys dispute that claim. They argue the organization is not required to pay those charges, citing a 1986 agreement with the City of Jacksonville.,
Growth at Mayo campus
The dispute focuses on the Mayo Clinic campus near Jacksonville Beach, which has expanded significantly since connecting to JEA’s system in the 1990s.
A legal memo prepared for JEA in October 2025 states Mayo Clinic paid an initial capacity charge when it connected to the system in 1995. That charge was based on projected water and sewer usage.
But the medical campus has grown through multiple expansion projects totaling more than $1 billion.
According to the memo, the facility’s water and sewer usage increased from about 142,000 gallons per day in 1995 to more than 546,000 gallons per day today — an increase of more than 380%.
JEA argues that increase should trigger additional capacity fees totaling more than $12 million.
Mayo Clinic response
In legal filings, Mayo Clinic attorneys contend JEA did not identify the full scope of the facility’s water usage until 2022.
They also point to a 1986 agreement with the City of Jacksonville that they say exempts Mayo Clinic from paying capacity charges because the organization helped fund infrastructure construction decades ago.
Inspector general questions
It is not yet clear whether the inspector general has formally opened an investigation, but sources say the office has begun asking questions about the agreement.
News4JAX has also learned that other properties may be involved in similar disputes with JEA over capacity fees.
Jacksonville City Council member Rory Diamond recently posted on social media about what he described as another JEA “scandal,” estimating the potential total could reach $100 million. There has been no confirmation of a “scandal”.
Diamond declined to elaborate when contacted by News4JAX.
JEA responded to the ongoing legal battle with The Mayo Clinic, writing, “JEA is continuing to work collaboratively with Mayo Clinic to review the historical records and reach a fair and reasonable resolution.”