A proposed $49.66 million incentive package for a Publix-anchored mixed-use project is set to go before the Downtown Investment Authority board Dec. 17.
The incentives would go toward the Gateway Jax development team’s Block N7 project, which according to a DIA staff report, is a 14-story residential tower with 259 residential units plus the Publix and integrated parking.
The project is planned at 119 W. Beaver St., the former main auditorium of First Baptist Church.
Gateway Jax plans to demolish the structure and replace it with the tower.
In September, Gateway Jax and Publix announced a partnership to locate a full-service, 31,000-square-foot grocery store on the ground floor of the development.
The proposed incentive package comprises a 75%, 17-year Recapture Enhanced Value Grant of up to $21.41 million and a $28.25 million completion grant. If approved by the DIA board, it would advance to the Jacksonville City Council for final consideration.
Gateway comprises principal Bryan Moll, JWB Real Estate Capital and DLP Capital.
The N7 project is part of Pearl Square, Gateway’s $750 million, multiproperty development in the NorthCore area of Downtown. Pearl Square is part of a larger development that, if fully built-out, would be a $2 billion investment over 32 acres.
On Nov. 24, DIA CEO Colin Tarbert told the Council Special Committee on the Future of Downtown that Gateway Jax planned to seek at least $43.2 million in incentives for Block N7.
Responding to an emailed question after that meeting, a representative for Gateway put the number at $48 million but said the amount could change as the project worked its way through the DIA process.
Tarbert’s report to the special committee drew concerns among some members over how the city would meet its obligation for the incentive amid other budget priorities and looming payouts for grants approved by Council in past years.
In recent years, some Council members have pressured the city to rein in completion grants and other incentives that, unlike REV Grants, are drawn directly from the city operating budget.
A REV Grant is a refund on ad valorem tax revenue generated by a new development or property enhancement.
Unlike a REV Grant, which involves the city forgoing a portion of tax revenue, completion grants draw down the city’s general fund when they’re paid out.
Among the city’s pending completion grant payouts is $25.8 million for Jaguars owner Shad Khan’s Shipyards project, which includes the Four Seasons Hotel and Private Residences, and $39 million for Miami-based Related Group’s proposed 25-story Southbank residential tower.
Others are for Gateway itself, including $38.95 million in completion grants approved by Council in August 2025 in a $98.58 million incentives package for four blocks of Pearl Square. They were designated as Blocks N4, N5, N8 and N11.
As for Block N7, the DIA staff report lists the total development cost at $147.95 million.
Under a term sheet for the proposed redevelopment agreement between the city and Gateway, the tower would include 21 studio units, 207 one-bedroom units and 31 two-bedroom units. A minimum of 37,000 square feet of retail space would be required.
Tarbert told members of the special Downtown committee that N7 is critical to Pearl Square and, with the inclusion of Publix, to Downtown revitalization overall. He said that if Council limited completion grants, the project would be at the top of his priority list.
The DIA’s revitalization strategy hinges on attracting residents to create greater demand for restaurants, retail, nightlife, attractions, etc., while also encouraging more employers to locate Downtown.
Downtown advocates say the addition of a full-service Publix with a pharmacy would help draw new residents.
In December 2024, the DIA board endorsed a $2.1 million incentive package aimed at incorporating the grocery into the Block N7 project. The vote came on a resolution comprising a $1.36 million Retail Enhancement Program grant and a $741,000 REV Grant.
The Publix would be the fourth grocery store open or planned in the eight districts that make up Downtown.
Fresh Market opened in 2014 at 150 Riverside Ave. in Brooklyn. A Whole Foods Market is nearing completion at 1 Riverside Ave. in the One Riverside retail, apartment and park development on the Downtown Northbank at the base of the Acosta Bridge.
Germany-based grocer Aldi Inc. is renovating the former Harveys Supermarket at 777 N. Market St. to convert that space to its brand.
Corner Lot and JWB Real Estate Capital bought the 103,016-square-foot auditorium and adjoining parking garage as a joint venture in 2022. That same year, the two companies spent nearly $750,000 to prepare the auditorium for “Beyond Van Gogh: The Immersive Experience.” The space, which was renamed the NoCo Center, later hosted the “Beyond King Tut” exhibit.
Property records show 712 Hogan Street North LLC bought the auditorium for $2.3 million through 119 Beaver Street West LLC and paid $6.09 million for the adjoining parking garage.
State records list Moll as a title member of 119 Beaver St W LLC.
The DIA board meeting is scheduled for 2 p.m. Dec. 17 at the main Jacksonville Public Library, 303 N. Laura St.