JACKSONVILLE, Fla. – The Jacksonville City Council has deferred consideration of nearly $49 million in incentives for a planned Publix-anchored development at the Pearl Square redevelopment, not because members oppose the project but because they want more clarity on how the city would pay for it.
Gateway Jax asked the council for $48.6 million in incentives for the Block N7 portion of the project, a $138 million development that would replace the former First Baptist Church auditorium with a 15-story tower containing about 500 apartments, parking and a 31,000-square-foot Publix grocery store.
Council members have expressed particular concern about a completion grant that could exceed $28 million.
“No, no, it’s certainly about the way the money gets spent,” City Councilmember Jimmy Peluso said. “…I believe that we have a couple of council members that are a little uncomfortable with the size of the completion grant when the completion would be paid out.”
Peluso called the proposed Publix “the last major piece of the puzzle” for downtown and said many residents and leaders want the project to move forward, but only with an incentive structure the council can support. Possible changes under discussion include reducing the size of the completion grant.
Gateway Jax CEO Brian Moll said the company has been negotiating alternative incentive structures with the city for months and views the council’s decision as additional time to finalize details.
“I have the utmost confidence that we’re going to be able to get a deal done,” Moll said, adding that most of the council, the administration and the downtown development authority support the project.
Negotiations over a revised incentive package will continue before the proposal returns to the council for consideration. Construction on other parts of the Pearl Square development is already underway.