JACKSONVILLE, Fla. – The Mayor’s Budget Review Committee voted unanimously on Monday to support a proposed land swap between the City of Jacksonville and a downtown developer. But, Councilman Ron Salem said he wants the property to be purchased instead.
The committee’s endorsement would allow the Downtown Investment Authority (DIA) to submit legislation on the exchange of city-owned property at Riverfront Plaza to acquire the Interline Brands Co. building, which would be used for the University of Florida’s graduate center in LaVilla.
Click here to read the full memo and legislation reviewed by the MBRC
In the proposed deal, the developer, Gateway Jax, would receive a 1-acre development parcel in the plaza and an option on another piece of land to the east. As part of the exchange, Gateway has committed to building a 17-story tower that would include a hotel, condos, restaurants, retail and public spaces.
RELATED | ‘Another step closer’: City and UF make strides toward new graduate campus in downtown Jacksonville
But the land swap isn’t the only option on the table to acquire the property.
Jacksonville Councilman Ron Salem introduced a resolution on Tuesday to direct the DIA and city administration to buy the building and grounds outright for up to $8 million. Salem said money from the reserves would be replenished in the fall with money from JEA.
RELATED | Read Salem’s resolution here
Salem also said he has questions for the developer. Specifically, he said he wants a list of the investors who may benefit from the land swap.
“I asked in a committee meeting just last week, ‘Who are the investors in Gateway Jax?’ and my colleagues are all getting calls from various people about this deal, and I’d like to know who are investors and who are not investors so I can evaluate their comments,” Salem said. “I think it’s only prudent for the council to know who the investors are in this process. So, if I’m getting a call from a Jacksonville citizen, are they invested in Gateway Jax? Is that why they’re calling me, or are they a concerned citizen?”
Gateway purchased the Interline building in October 2024 for $4 million. The city values the two city-owned parcels together at $5.02 million, and an appraisal obtained in March by the DIA placed the value of the Interline property at $6.75 million, the Jax Daily Record reported.
Mayor Donna Deegan has long supported the land swap deal. On Tuesday, she told News4JAX it’s the option that makes the most sense.
“If you look at the analysis of what the land is worth, it’s a great swap,” Deegan said. “It’s a great opportunity for us. Or we can take millions of dollars out of a coffer that really is pretty bare right now and do it that way and possibly end up with the same result, only out a bunch of money. So, to me, the swap makes perfect sense for exactly what we want to accomplish on the riverfront.”
No matter what method is used to get the building ready for UF, Salem said having the campus at that location will mean great things for Jacksonville.
“I have two degrees from the University of Florida. Have been a Florida fan since I was a youngster, and having this campus here is extremely important,” Salem said. “This has got nothing to do with the University of Florida. This is, how do we obtain this piece of property for the University of Florida and at the same time, protect the taxpayers?”
UF plans to invest $7 million to retrofit the Interline building for classroom use. Instruction would begin in the fall of 2025.
News4JAX reached out to Gateway Jax for a response to Salem’s questions and responded with the following statement:
“As a real estate developer, we do have to maintain a level of trust and confidentiality with our investors and honor their requests. That said, we always want to be as transparent as possible. If Councilman Salem has specific, individual concerns, I would invite him to send over a list of names of those contacting him and we can cross reference them with our investor list.
Gateway Jax has been soliciting feedback from the business and development community as well as citizens, and we have received a lot of positive feedback asking how they can help. I believe he is getting a lot of calls in support of this land swap disposition because it’s truly a great deal for both the City of Jacksonville as a whole, and for the taxpayers. Through this agreement, the City would receive the deed to the 801 W. Bay property, and Gateway Jax would receive the deed to the two Riverfront parcels. It’s important to note that these parcels together are valued less than our property, so we would be leaving some money on the table in this deal, but are willing to do so because it’s an important opportunity for Downtown to activate the Riverfront. The City would also get the immediate tax benefit of the land, and receive a net return of 2.8X the completion grant over 30 years. Additionally, the City would receive an approximate $700,000 per year over 30 years as a fund for programming and maintenance for public Riverfront Park, something the City does not have in the budget, and the DIA has maintained that it was always intended to come from the development on this parcel.
I know Councilman Salem has previously stated he was getting a lot of calls that were against this swap, and now he’s getting calls in support. We are getting those calls as well, with the vast majority of the individuals we have talked to who understand the benefits are now in support of the land swap, saying Jacksonville needs this deal today and encouraging us and the City to not let this opportunity get away."
Gateway Jax spokesperson
A final vote about the land swap versus outright purchase is expected at the May 27 council meeting.
