In two Sept. 2 votes, the Duval County Public Schools board authorized Superintendent Christopher Bernier to negotiate the sale of the DCPS central administration building on the Southbank Downtown and the purchase of new offices in Baymeadows.
With the 6-1 votes, the board took a step toward moving from the current school board headquarters at 1701 Prudential Drive to a proposed location at 8928 Prominence Parkway in Prominence Office Park.
Board Chair Charlotte Joyce, Vice Chair April Carney and board members Reginald Blount, Melody Bolduc, Cynthia Pearson and Anthony Ricardo voted in favor of both motions. Board member Darryl Willie voted against both.
Willie said he has concerns about the proposed new location, specifically that moving to a building in Baymeadows could limit the public’s access to the school board and could also cause a commuting hardship for some school board employees.
The board has scheduled a public workshop Sept. 17 to evaluate the terms for the proposed sale and purchase.
Bernier said there is still a lot to work through, including independent appraisals of both properties.
“Nothing is final without board approval,” Bernier said.
A $20 million deal
If the deals are adopted, retirement community developer Fleet Landing will acquire the DCPS riverfront headquarters for $20 million, Daily Record news partner JaxToday.org reported Aug. 21. A district spokesperson told the news organization that the agreements were “on track” for a vote at the board’s next meeting Oct. 7.
The site said Fleet Landing plans to tear down the building and develop a senior living community on the site.
Property records show the Duval County School Board owns the almost 123,000-square-foot building on 3.15 acres.
Duval Schools has operated since 1981 at the six-story building, where it has 600 employees.
District officials told the school board at a meeting Aug. 19 they chose Fleet Landing’s offer from the 10 it received through its real estate partner, Trinity Commercial Group.
Fleet Landing’s flagship property is in Atlantic Beach. The nonprofit is developing another in Nocatee.
Winn-Dixie and Harveys Supermarket parent company, Jacksonville-based Southeastern Grocers, has leased the building in Baymeadows since 2016. It is owned by Dream Finder Homes LLP.
The company’s lease of the four-story, 165,000-square-foot structure expires at the end of 2025.
Southeast said it is preparing to move its headquarters to its Edgewood Support Center at 5050 Edgewood Court in West Jacksonville.
Outside criticism
The proposed sale has drawn criticism outside the board.
In a letter sent to school board members Sept. 2, Build Up Downtown Inc. CEO Linzee Ott urged the board to consider the long-term financial implications of the decision on the school district and the revitalization of Downtown.
Ott, also the chair of the city Downtown Development Review Board, pointed out that the school board’s building is within a Community Redevelopment Area and therefore contributes to tax increment financing to fund Downtown improvements.
“A sale to an entity such as Fleet Landing that receives a retirement home property tax exemption would drastically decrease this property’s level of ad valorem revenue, preventing it from fully contributing to this vital funding mechanism,” Ott wrote.
“This decision would result in a significant, multi-generational loss of potential revenue for both the City and DCPS itself. According to developer estimates, a traditional redevelopment of the site could generate between $1.8 and $3.5 million in annual ad valorem taxes, representing hundreds of millions of dollars in lost revenue over time with Fleet Landing’s exemption,” she wrote.
Ott also cites state law as a factor to consider in the proposed sale.
“Florida State Statute § 1013.28 states that school boards ‘shall take diligent measures to dispose of educational property only in the best interests of the public.’ The codified CRA Plan and Downtown Overlay that guide Downtown’s redevelopment provide a clear vision for Downtown’s best interests,” she wrote.
“A sale that diminishes future tax revenue would run counter to the spirit of these approved plans. The intent of moving the DCPS headquarters is to free up the valuable waterfront parcel for its optimal use, which is predicated on the assumption that it will be a positive and powerful contributor to our community’s financial future.”
Ott suggests an alternative that would allow Fleet Landing to develop part of the site and the city to realize more ad valorem tax revenue.
“I suggest that DCPS divide the property parallel to the river, allowing a traditional developer to build a residential or mixed-use tower directly on the waterfront and Fleet Landing to develop a tower adjacent to Prudential Drive. This approach would facilitate maximization of the property’s full potential, providing both a valuable project for Fleet Landing and a significant tax-generating asset for the city,” she wrote.