The Jacksonville City Council signed off on a $2.38 million grant for Kelco Brooklyn LLC’s proposal to build a Home2 Suites by Hilton on a vacant lot along Park Street in Brooklyn.
Council voted 15-4 to approve the incentive for what the developer told the city will be a $16.2 million, six-story hotel with 100 rooms at 600 Park St.
The project is a partnership between Kelco Management and Development Inc. and Corner Lot Development Group, which also plans a ground-floor restaurant with outdoor seating at the hotel.
Council’s vote waived the public investment policy rules to approve the incentive because the Downtown Economic Development Grant is not included in the existing policy.
Council members Danny Becton, Rory Diamond, LeAnna Cumber and Al Ferraro voted against the bill.
There was no debate before the vote May 24, but the incentive for the project faced opposition from the Downtown Investment Authority staff and two board members in 2021.
DIA staff recommended its board deny Kelco’s original request in November for a Recapture Enhanced Value Grant, a property tax refund, to build the hotel.
The DIA staff thought the hotel was financially feasible without the incentive, and the city agency does not offer a tax incentive for hotel development.
But the board decided it wanted to invest in the project and asked its staff to develop an incentive structured to be repaid, like a REV grant, in annual installments.
The board voted 6-2 on Dec. 15 to ask Council to approve the grant.
Former DIA board member Bill Adams and current member David Ward voted against the deal.
According to Ordinance 2022-0316 and the bill summary, the grant will be paid in 10 installments of $238,522 over 10 years.
The developer will forfeit the grant if it partially or fully sells the property or reduces its equity investment below $5.95 million before the fifth year of the agreement.
Duval County property records show 600 Park Street LLC owns the 0.86-acre site near Interstate 95 and the Five Points business district. It currently is a parking lot used by Florida Blue.
Kelco is led by President Kelley Slay and Corner Lot by CEO Andy Allen.