JACKSONVILLE, Fla. – Members of the Jacksonville City Council must decide whether to move forward with the project to overhaul the Berkman Plaza II tower, which has sat unfinished for more than a decade along the Northbank Riverwalk.
As The Florida Times-Union first reported Tuesday, a member of the project development firm is late on paying thousands of dollars in property taxes on a condominium project in New Orleans. That detail was not brought up to City Council members who recently spoke with members of the development team, Barrington Development.
Work stopped on the Berkman Plaza II project in 2007 after a garage under construction nearby collapsed, killing one person and injuring several others. After 11 years, it's close to being redeveloped. The situation was the same in 2014 with the condo project in New Orleans, which is still having issues.
The idea behind the Berkman site as a resort hotel is expected to help draw attention to downtown and spur more development. Barrington Development would spend around $122 million to redo the site. After it's built, the company would receive tax breaks from the city.
According to a 2018 article from the New Orleans Advocate, one member of the Barrington Development team was involved with the condo project in New Orleans. The project has stalled, and the group behind it has more than $200,000 in unpaid property taxes.
The same investor is also the primary financial backer of the Berkman project. A spokesperson said the project failed because the bank that the developer was using went bankrupt and that delayed the process of paying taxes.
Matt Brockleman, a lobbyist representing Barrington Development, said the company is working to sort things out.
"The tax issue is in the process of getting resolved," Brockleman said. "It's never been an issue where the development team has not been willing to pay taxes."
The Downtown Investment Authority has been pushing the Berkman deal. Brian Hughes, the interim CEO, said situations like this are not unusual. He emphasized that taxpayers in Jacksonville are not at risk.
"The taxpayers of Duval County are not a lender. We are not putting money upfront before this project breaks ground," Hughes said. "The incentive programs are built-in after the completion, so there is no risk to the taxpayer."
The City Council is due to discuss the deal during a committee meeting next week.