The city of Jacksonville will provide an additional $6 million in tax breaks to the developer of the Four Seasons Hotel and Residences after City Council action Nov. 25.
Council voted 17-0 in favor of increasing the limit of a 20-year, 75% Recapture Enhanced Value Grant for the development to $56.58 million from $50.58 million. The vote came on Ordinance 2025-0815, which contained the increase. Council members Ken Amaro and Jimmy Peluso were absent for the vote.
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.
The increase would go toward traffic-calming improvements to Bay Street, along which the hotel is developed, to increase safety for motorists and pedestrians, according to a Downtown Investment Authority staff memo.
The memo says the project developer, Iguana Investments, has undertaken the road project. Iguana is Jacksonville Jaguars owner Shad Khan’s real estate development company, which is building the hotel and adjacent One Shipyards Place office building.
According to DIA documents, Iguana obtained a $3 million commitment from the state of Florida for the first phase of the traffic-calming project. Because the work involves city property, the city REV grant would cover the entire $6 million cost of the first phase if the state fails to follow through on its commitment.
The REV grant would be reduced if the state provides all or some of the money it has committed.
The ordinance also reflected an increase in Iguana Investments’ minimum capital investment in the project to $373.96 million from $334.55 million. The developer’s minimum direct investment also will climb to $321.35 million from $281.94 million.
Iguana said the project’s estimated cost had risen about 20.75% since 2021, climbing to $387.6 million from $321 million. Iguana attributed the added investment to rising costs of construction, changes in design of the hotel and other factors.
Additionally, the legislation extends the required completion date for the Four Seasons by one year to June 30, 2027. The deadline for completion of the adjacent marina, bulkhead improvements, Riverwalk improvements and construction of a marina support building would be extended two months to Aug. 30, 2026.
The DIA board voted 9-0 in August in favor of the amended agreement between the city, the DIA and Iguana.
The planned Four Seasons is under construction across Bay Street from EverBank Stadium, which is under renovation for the Jaguars’ “Stadium of the Future.”
Plans for the Four Seasons, according to the legislation, include 176 rooms and 25 Class A condominium units.
In January 2023, Council approved a revised $129.75 million incentives deal with Iguana for what is now the Four Seasons Hotel and Residences and One Shipyard Place.