After receiving a tax rebate to help fund the Artea apartment complex on the Downtown Southbank, the developer is working with the city administration on a proposal to convert the rebate into a completion grant in exchange for reserving dozens of units for affordable housing.
Downtown Investment Authority CEO Colin Tarbert outlined the plan from Jacksonville-based Corner Lot on June 23 during a presentation to the Jacksonville City Council Special Committee on the Future of Downtown.
The $93 million, 340-unit Artea at 944 Broadcast Place opened in March 2025. It was built on property owned by the Jacksonville Transportation Authority, which approved a 99-year lease with Corner Lot in October 2022 for the project.
In February of that year, the DIA board approved a 55%, 15-year Recapture Enhanced Value Grant of up to $6.3 million for Artea. A REV grant is a refund on ad valorem tax revenue generated by a new development.
Tarbert told the Special Committee on the Future of Downtown that Corner Lot approached the city with a “creative” proposal to convert the REV grant to a lump payment in exchange for devoting 71 units in the complex to renters earning 120% or less of area median household income.
According to the U.S. Department of Housing and Urban Development, the area median income in Jacksonville is $108,700. The city of Jacksonville uses HUD statistics in determining affordable housing policy.
Tarbert said Corner Lot’s commitment on affordable units would be part of a Land Use Restrictive Agreement with a 30-year lifespan.
He said the DIA projects a rising need for affordable housing on the Southbank amid development of housing aimed at higher-income consumers. Projects include Miami-based The Related Group’s Southbank Residences high-rise luxury project, the Pier 95 development comprising 58 town homes, and 40 town homes by Pennsylvania-based Toll Brothers as part of the RiversEdge development.
Tarbert described the proposal as a “win-win,” saying it would help satisfy the need for affordable housing while not increasing the amount of the city’s incentives in the project.
“The city is not spending any money because we’ve already agreed to the REV, but this is providing the REV value up front,” he said.
The converted grant would include $4.3 million from the city’s operating fund and $2 million from the city’s Southbank Community Area. The CRA was created under a state law aimed at incentivizing redevelopment of depressed areas. In those areas, new tax revenue generated by redeveloped properties can be reinvested in those areas versus being funneled into the citywide operating funds.
The matter comes as Council members debate whether to reduce or eliminate completion grants, which unlike REV Grants involve drawdowns in the city budget versus the city foregoing incoming tax revenue.
Some Council members say the city can no longer afford completion grants, but instead must focus on paying off previous commitments while facing investments such as a new jail, convention center and satisfying its $775 million in funding for the “Stadium of the Future” conversion of EverBank Stadium.
Committee member Ron Salem asked Tarbert whether the proposed Corner Lot deal would set a precedent for other developers to seek conversion of REV Grants into completion funding.
“This one is unique,” Tarbert said.
Committee Chair Joe Carlucci, whose District 5 includes the Southbank, said the $4.3 million in city funding was designed to come from more than $8 million in recaptured tax revenue. That is a term for tax revenue that the city receives in excess of its budgeted projection of revenue.
However, Council Auditor Phillip Peterson said Mayor Donna Deegan’s office filed legislation seeking to use the entire amount for other purposes.
Carlucci identified that legislation as Ordinance 2026-0453, which seeks to spend $8.48 million on projects that do not specifically include the Artea grant.
Carlucci said the availability of the recaptured revenue was critical for the conversion.
“That’s where that money has to come from, or this isn’t going to work,” he said.
The DIA board is scheduled to consider the Artea deal at its June 24 meeting, which is scheduled for 2 p.m. in Conference Room 851 of the Ed Ball Building at 214 N. Hogan St.