Legislation to pave the way for the University of Florida’s proposed graduate campus in Jacksonville has been finalized.
On May 12, the Mayor’s Budget Review Committee will consider a request from the Downtown Investment Authority to file an ordinance for consideration by Council containing a redevelopment agreement between the city, the DIA and UF to provide five properties to the university for the campus along with an additional $50 million in city funding.
Elements of the proposed redevelopment agreement include:
• A $50 million city contribution for the Florida Semiconductor Institute. That funding would add to $80 million provided by the state of Florida for the institute, which according to UF officials is designed to induce more than 10,000 high-wage jobs, create public-private partnerships and expand the semiconductor industry in the state. The city funding would come on top of $50 million already budgeted for the campus after being approved by Council in March 2023.
• Conveyance of the Interline Brands Inc. building at 801 W. Bay St. and two city-owned lots directly west of that property to UF.
• Options for UF to acquire the historic Jacksonville Terminal train station, the attached portions of the Prime F. Osborn III Convention Center and its parking lots.
• A provision to reimburse UF up to $5 million to acquire a privately held property along Bay Street adjacent to the convention center parking lot. That property is owned by multifamily developer Vestcor. The provision would kick in if the city is unable to obtain that property to provide it to UF.
In December 2024, UF announced it had chosen LaVilla as the site for its Jacksonville campus, contingent on the university being provided with property for the project.
As noted in a memo that the DIA will present to the MBRC, a keystone for the redevelopment agreement is for the city to acquire the privately owned Interline building. The Gateway Jax development team bought that property in October 2024 for $4 million.
“If the city is not successful in acquiring the 801 W Bay Street parcel … UF has the right to unilaterally terminate the agreement in its entirety, or may otherwise extend or modify the agreement within parameters outlined in the RDA,” the memo states.
The DIA board, in a split vote, approved a proposed exchange of city-owned property in Riverfront Plaza for the Interline building. As part of the exchange, Gateway agreed to develop a 17-story mixed-use tower with a hotel, condominiums, retail, restaurants and public spaces to complement the park under construction in the plaza, the site of the former Jacksonville Landing.
Mayor Donna Deegan supports the swap, which would provide Gateway with a 1-acre development pad in the plaza and an option on an adjacent property to the east.
Gateway is a partnership between principal Bryan Moll, JWB Real Estate Capital and DLP Capital. The group is underway on construction of a Downtown development that would spread over more than two dozen properties and involve an investment of more than $2 billion if fully built.
Council member Ron Salem filed legislation, Ordinance 2025-0291, that would reject the land swap in favor of an outright purchase of the Interline building for up to $8 million.
On March 25, Council approved legislation also introduced by Salem, Ordinance 2025-0135, to set aside up to $8 million from city operating reserves for the purchase.
Salem said the funding would be replenished when city utility JEA makes its annual contribution to the city. JEA is planning to include a $40 million one–time infusion as part of its contribution for the 2025-26 fiscal year, which begins Oct. 1.
In addition, Council member Nick Howland proposed a third option for acquisition of the Interline building. In Howland’s alternative, the city would purchase the property and put the Riverfront Plaza properties back up for proposals from private developers, with Gateway being offered a first right of refusal on competing bids.
Council is on track to consider all three options in coming weeks.
In February, the DIA voted to allow disposition of the Riverfront Plaza properties, launching a competitive process required under state law for sale or transfer of city-owned properties to private developers.
DIA CEO Lori Boyer said Gateway was the only developer to submit a compliant proposal within the deadline.
Among terms of the disposition, respondents were required to provide either property in LaVilla for the UF campus or $8 million for the city’s purchase of the Interline building.
Salem believes the Riverfront Plaza properties should be put back up for disposition without that term.
Howland says his option allows the city to seek additional proposals while giving value to Gateway in the form of the refusal right.
Deegan has signaled support for the legislation on the MBRC agenda, including the land swap. Her administration proposed the additional $50 million for the semiconductor institute after former Mayor Lenny Curry brought forward the initial $50 million for the campus.
UF says it needs a redevelopment agreement approved by the end of June to facilitate its plans to start classes on the campus in the fall of 2025 in the Interline building.
The university says it plans to spend $7 million to retrofit the two-story, 38,186-square-foot building for instructional use.
The lots directly west of the Interline building would be the sites of the first new construction on the campus.