The city of Jacksonville could provide the developer of the Four Seasons Hotel and Residences with up to $6 million in added tax breaks as reimbursement for improvements being made to Bay Street.
Jacksonville City Council is set to consider Ordinance 2025-0815, which would increase the limit of a 20-year, 75% Recapture Enhanced Value Grant for the development from $50.58 million to $56.58 million. The ordinance, sponsored by the Downtown Investment Authority, is scheduled for introduction at the Oct. 28 Council meeting.
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 where the hotel is situated, to increase safety for motorists and pedestrians, according to a DIA 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.
Details of the traffic-calming project were not presented at an August DIA board meeting in which the board voted to recommend approval of the increased REV grant.
To justify the increased REV grant, Iguana Investments’ minimum capital investment would rise from $334.55 million to $373.96 million, and its minimum direct investment would climb from $281.94 million to $321.35 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.
The higher investment by Iguana was needed to satisfy requirements of the DIA’s REV Grant program, which is based on a formula that includes the amount of private funding a developer is bringing to a project.
Additionally, the legislation extends the required completion date for the Four Seasons to June 30, 2027, a one-year extension. The deadline for completion of the adjacent marina, bulkhead improvements, Riverwalk improvements and construction of a marina support building would be extended to Aug. 30, 2026, a two-month extension.
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 renovations for the Jaguars planned “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.
The amendments increased the overall incentives package for the Four Seasons and office building to $129.75 million from $114.4 million, a 13.42% increase.
The bill is scheduled to appear before the Council Finance; Rules; and Neighborhoods, Community Services, Public Health and Safety committees.