JACKSONVILLE, Fla. – The 5 Points area will soon have a new pot of money to address safety concerns.
With a 14-5 vote, the Jacksonville City Council approved legislation on Tuesday night to create a special district, called the Business Improvement District, in 5 Points.
The legislation, introduced by Council member Jimmy Peluso, requires commercial property owners in the district to be assessed a fee that would go toward funding for landscaping, security and promotion to attract more visitors to the area.
PREVIOUS COVERAGE: Plan to create special district to collect fees from 5 Points businesses set for City Council vote
Council President Kevin Carrico and Council members Rory Diamond, Terrance Freeman, Mike Gay and Ron Salem voted against the measure.
“The issue with these dependent districts is you’re essentially forcing people to pay a tax,” Diamond said.
Freeman also voiced his opposition to the bill.
“I’m just not going to support a tax on small businesses. I’m an advocate for it. I have one myself, and I feel like that’s what we’re doing,” Freeman said.
The legislation comes after the area has experienced outbreaks of crime in recent years. This month, several stores were hit by a string of break-ins, costing owners thousands in damages.
Last week, BREW Five Points, a fixture in the community for 11 years, said the business was left with approximately $3,000 in property damage after burglars shattered windows and stole cash.
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The special district drew support from business leaders and property owners in the district.
“I’m very supportive of this ordinance. I think it’s the best solution for the merchants, the landowners, the neighbors, the community in Jacksonville, it’s a win-win,” said Cheryl Croft, owner of Edge City.
While many business owners support the plan, not everyone is happy about having to foot the bill themselves.
“It’s definitely not a bad idea, but as far as putting the fee onto the businesses themselves, I am not really sure how I feel about that,” Makayla Pittman, manager at Bark on Bark, said.
According to legislation, the special district will be funded by the fee for commercial properties, which will be assessed annually. Property owners in the district, which comprises all or parts of 21 blocks, will be charged separate fees per heated square foot and parking square footage.
Peluso said the first year would be funded with about $150,000 from the city’s community benefits agreement with the Jacksonville Jaguars.
Under the $300-million CBA, a complement to the city’s $1.4 billion stadium deal with the team, each of the 14 Council districts was allotted $1 million.
Peluso said stationing JSO officers full-time in Five Points would be implausible, as they are needed elsewhere in a city encompassing 840 square miles.
During the Finance Committee’s discussion, Diamond added an amendment to the bill that would allow businesses to opt out. The city’s Office of General Counsel cautioned that the opt-out could open the city to litigation.
An amendment offered by Peluso, and passed by city council on Tuesday, removed the opt-out amendment.
“Based upon the nature of this district, the services that are being provided, I don’t see how an opt-out provision would properly meet the two-prong analysis for how a special assessment needs to run,” said Dylan Reingold, chief deputy general counsel.
Peluso said in August, when the legislation was introduced, that he expected fees to start at 20 to 25 cents per heated square foot during the first assessment period in 2026. The legislation allows for per-square-foot fees of up to 55 cents for structures and 50 cents for parking during the first year.
According to a document filed with the ordinance, the district will assess the fees on about 100 commercial properties held by 80 owners. The district will operate on revenue generated by the fee instead of a budget based on expected revenue.
The district’s budget will be approved by the city council each year.
Council members in favor of the special district said they supported Peluso as the 5 Points district Council representative, or felt the legislation could benefit Jacksonville as it continues to grow.
“In my own district, I understand the value of having one of these,” said District 11 Council member Raul Arias. “If we allow anybody to just opt out any year, then from 94 business owners, it could easily go to 10, which is not fair.”
The assessment will take effect in 2026.