Ahead of a construction start as early as October, developers of the Gateway Jax mixed-use project in Downtown Jacksonville can now move forward knowing they have $98.58 million in city incentives awaiting them upon the completion of the first phase of the project.
The Jacksonville City Council approved the incentives package Aug. 13 on an 18-0 vote with member Ron Salem abstaining. The funding will be for the $419 million first phase of the project, also known as The Pearl Street District.
Plans for the initial phase call for a mixed-use development comprising residential and retail development across four blocks in Downtown’s NorthCore district.
After the vote, lead developer Bryan Moll high-fived Downtown Investment Authority CEO Lori Boyer. Council member Jimmy Peluso, whose District 7 includes Downtown, also hailed the vote.
“Cranes in our Downtown is the best way to properly show that we’re back,” he said. “To see this type of private activity occurring in that area is really going to demonstrate to our city and to the people who are driving Jaguars games that there’s real activity here. And then when it’s operational in 2027, 2028, we’re going see thousands of new residents in our city. And that’s an exciting prospect.”
Moll said building permits for one of the four blocks is under city review and site development plans for two other blocks had been filed. He said construction was poised to begin in October provided the city approves the permits as expected.
The incentives, contained in Ordinance 2024-0495, comprise $59.63 million in Recapture Enhanced Value Grants and $38.95 million in completion grants that were recommended for approval by the DIA board in mid-November 2023.
The Gateway Jax development is a partnership between Moll, DLP Capital LLC and JWB Real Estate Capital.
The partners said the full project could grow to 22 acres and more than 20 blocks with a more than $2 billion investment over the next decade.
According to documents attached to the ordinance, the incentive package for The Pearl Street District breaks down as follows:
• Block N4: A $14.1 million Recapture Enhanced Value Grant and $6.84 million completion grant for a minimum six-story building to include at least 266 residential units and 19,155 square feet of leasable retail space. The block is bounded by Union, Pearl, Beaver and Clay streets.
• Block N5: A $2.57 million REV grant and $1.9 million completion grant for redesign and redevelopment of the 800-space former First Baptist Church lighthouse garage bounded by Union, Julia, Beaver and Pearl streets. The repurposed garage would include 15,000 square feet of leasable space.
• Block N8: A $33.88 million REV grant and $25.55 million completion grant for a minimum 21-story building with at least 508 residential units and about 30,000 square feet of ground floor leasable retail space. The block is bounded by Beaver, Pearl, Ashley and Clay streets.
• Block N11: A $9.06 million REV grant and $4.63 million completion grant for a minimum six-story building with at least 194 residential units and 21,333 square feet of leasable retail space. The block is bounded by Ashley, Pearl and Church streets and the Porter Mansion property.
In addition, the incentives would apply to a new public park and public space at what would be known as Pearl Square, both of which would be used for street fairs, farmers markets, art festivals and pop-up events.
Peluso said that although other high-profile Downtown developments had stalled, he was confident Gateway Jax would move forward based on the high amount of capital that the development partners were bringing to the project and on Moll’s involvement in developing projects in Washington, D.C., and Water Street Tampa in Florida.
“They are real investors with real money, and they have a proven leader in Bryan Moll,” he said. “For him come to us was just a massive boost of confidence for the development community, and we now have somebody who knows how to execute and certainly has done that.”
In abstaining, Salem said he had investments in JWB Real Estate. He said that although the investments were not in the Gateway Jax project, he had been advised to abstain in an abundance of caution over a possible conflict of interest.
The Council Finance Committee voted 6-0 on Aug. 8, with Salem abstaining, to advance the incentive package. Committee member Rory Diamond, who consistently opposes incentives for development projects, said it was a “painful morning for me because I don’t think I’ve ever voted for something like this,” but added that he would make an exception because of the potential of the project to spur revitalization of Downtown.
“If it works, this will pay back the city 500 times, over and over again,” he said.
