JACKSONVILLE, Fla. – Plans for a full-service Publix grocery store in Downtown Jacksonville remain on track, but questions are emerging about whether the city will ultimately be able to fund millions of dollars in incentives tied to the project.
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The proposed Publix is slated to anchor the Pearl Square development, one of the largest redevelopment projects planned for downtown. In December, the Downtown Investment Authority advanced a completion grant worth nearly $30 million to support the project.
But incoming Jacksonville City Council President Nick Howland recently suggested the city may not have the financial capacity to fulfill that commitment.
Speaking on First Coast Connect, Howland said city leaders support the project but must grapple with the city’s financial realities.
“Everyone agrees that that would be a fantastic project,” Howland said. “The question is, do we have the money?”
Howland indicated the city may need to explore alternative funding mechanisms if traditional incentive dollars are unavailable.
“We may just have a simple case here of not having the money for that,” Howland said. “Could we have someone else foot the money on behalf of the city in return for us giving them a discount off their future taxes?”
Whether the city has the funds available could depend largely on the outcome of a property tax referendum expected to appear before voters in November. City officials have warned that the measure could significantly affect future revenues and the city’s ability to fund major economic development incentives.
Councilman-At-Large Matt Carlucci said they could vote on the incentives for Pearl Square Publix as soon as September but it would be difficult to vote on.
“Unless we find the dollars somewhere, I would see that kind of being put on the back burner until we know what happens after the [property tax] referendum,” Carlucci said.
Officials say they are considering multiple financing options should the tax measure impact available funding. Those options could include a combination of completion grants and tax rebates to support the project.
Despite the uncertainty surrounding incentives, development plans continue moving forward. Carlucci suggests that more than just the Pearl Square development will be impacted if the city loses property tax revenue.
“They need those incentive dollars in that downtown area to make it work and so if they don’t get I mean, if there’s just no way we can do any incentives, it might crash the deal,” Carlucci said, referring to the incentive package for Publix. “But I don’t think they would back out of it until we know what’s happening after November.”
Demolition of the former First Baptist Church auditorium at 119 W. Beaver St. is expected to begin next month. The site will eventually become home to the Publix grocery store and pharmacy as part of the broader Pearl Square redevelopment led by Gateway Jax.
In a statement to News4JAX, Gateway Jax CEO Bryan Moll said the company looks forward to continuing discussions with city leaders.
“We are excited to work with incoming Council President Howland to continue building on the success of the previous public-private partnerships between Gateway Jax and the City Council to advance shared goals for the infrastructure of Downtown Jacksonville,” Moll said.