Gateway Jax plans to seek about $48 million in public incentives for the Publix-anchored mixed-use tower it has proposed on the site of the former First Baptist Church main auditorium, a firm representing the company said Nov. 24.
Wingard, a Jacksonville-based marketing and communications agency, said in an email that Gateway was preparing to seek a package with an estimated $19.6 million Recapture Enhanced Value Grant and a $28.5 million completion grant for its N7 project.
The email came after DIA CEO Colin Tarbert gave a presentation to the City Council Special Committee on the Future of Downtown in which he said Gateway was seeking at least $43.2 million in incentives for N7.
Gateway is planning to replace the auditorium at 119 W. Beaver St. with a 15-story residential tower with about 250 apartments, integrated parking with 400 spaces and a 31,000-square-foot Publix. The DIA listed total investment in the project at $138.6 million.
According to a slide presented by Tarbert, the Gateway partnership is seeking a $16.8 million Recapture Enhanced Value Grant and a completion grant of $28.5 million. Committee member Ron Salem said the completion grant was listed at $26.4 million in another document provided to the committee, prompting the Daily Record to seek clarification from Gateway via Wingard.
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 of land holdings.
Gateway is a partnership between principal Bryan Moll, JWB Real Estate Capital and DLP Capital. The group has acquired properties spanning 32 acres.
Tarbert said the DIA planned to present the proposed incentives to its board in December. If approved by the board, the package would go to Council.
The inclusion of a completion grant sparked concerns among some committee 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 recent years.
Those completion grants include $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.
“I think you’re well aware of the Council’s concerns about completion grants,” Salem told Tarbert. “We’re going to really struggle in the 2026-27 budget with some completion grants that were approved a while back.”
Salem: Increase REV Grants
Salem encouraged Tarbert and the DIA to find ways to increase the REV Grant funding and reduce the completion grant for N7.
A REV Grant is a refund on ad valorem tax revenue generated by a new development or property enhancement. It can apply to property and tangible personal property.
Completion funds are drawn from the city’s general fund, which supports a broad range of city services, such as public safety, public works and parks maintenance and management.
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.
Tarbert said 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.
Committee member Jimmy Peluso, whose District 7 includes Downtown, said he was “very comfortable” with the incentive request. Besides providing a grocery option in Downtown’s historic core, he said, the Publix would include a pharmacy in an underserved area with a significant senior population.
Tarbert presented the committee with 16 projects in the DIA’s pipeline, including seven blocks of Gateway’s development. Those seven included Blocks 4, 5, 8 and 11, for which incentives have already been approved.
'Whole picture' sought
Committee chair Joe Carlucci requested more information on Gateway’s plans and other potential developments that could involve completion grants.
“I want to see the whole picture,” he said. “I don’t want to see this little snippet and then you bring another $10 million, another $10 million, another $10 million,” he said. “I want to know the total dollar amount.”
Carlucci said Jacksonville was in position to make “big, big strides” Downtown but needed to ensure it wasn’t overcommitting on incentives.
“I want to get all these projects done,” he said. “I want to do it in a meaningful way. I want to do it in a fiscally responsible way.”
Salem, a pharmacist, said he understood “better than anybody in this room” that Downtown needed a pharmacy.
“But I need to make sure I prepare for the next Council as best I can with future spending,” he said.
In September, Publix and Gateway confirmed that the grocer had committed to the N7 project.
Groceries coming
Within the eight districts that make up Downtown Jacksonville, the Publix store would be the fourth grocery either planned or open.
Fresh Market opened in 2014 at 150 Riverside Ave. in Brooklyn. Whole Foods Market is under construction 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 doing demolition work on selective interior and exterior portions of the former Harveys Supermarket at 777 N. Market St. to convert that store to its brand.
Gateway Jax began construction on its first two Pearl Square buildings, 515 Pearl Street and 425 Beaver Street, in late 2024 and spring 2025.
Editor's note: This story has been updated with information provided by Wingard on the incentive amount under consideration by Gateway.