DIA board backs $58.79 million in incentives for Related high-rise

Jacksonville City Council will consider the package for final approval.

  • By Ric Anderson
  • | 6:26 p.m. May 15, 2024
  • | 4 Free Articles Remaining!
The Related Group is proposing a 25-story residential tower on the Downtown Southbank at 835 Museum Circle.
The Related Group is proposing a 25-story residential tower on the Downtown Southbank at 835 Museum Circle.
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A $58.79 million package of city incentives for The Related Group’s proposed high-rise development on the Downtown Southbank is headed to the Jacksonville City Council after the Downtown Investment Authority board voted May 15 to recommend its passage.

The Miami-based developer plans a 25-story tower on the former site of River City Brewing Co., a 3.02-acre property at 835 Museum Circle between the Acosta Bridge and Friendship Fountain. The project would include an additional eight-floor apartment building, a 550-space parking garage, a river-facing restaurant and a ship store that would sell beverages, ice and other items to patrons of the adjacent boat ramp.

In addition, Related would also manage and execute improvements to the Riverwalk and deed a 4,200-square-foot parcel to the city to permit expansion of St. Johns River Park and Friendship Fountain. 

Under terms of a development agreement between the DIA and Related, the developer would invest a minimum of $202.75 million for the project. 

The DIA’s incentive package comprises a $39 million completion grant and a $19.79 million Recapture Enhanced Value grant. The REV grant would offer a 75% refund on increased ad valorem tax revenue generated by the new development over 15 years.

The DIA voted 8-0 to advance the incentives to Council. The incentive was on the consent agenda of the nine-member board after being unanimously recommended by a DIA committee. The nine-member DIA board has one position vacant. 

Related first came to the Southbank with a proposal that included an eight-story apartment building but no high-rise tower. 

A new proposal that emerged in 2023 and included a tower, among other new elements, fell victim to increased construction prices that left the estimated cost of the project $30 million higher than anticipated. 

The new incentives package includes changes in methodology the DIA is proposing for evaluating high-rise developments. Instead of basing the city’s return on investment of incentives over 20 years, the DIA is proposing extending the calculation period to 30 years. 



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