A proposed downtown Jacksonville grocery store is waiting on more than a construction start. It's waiting on an election.
Jacksonville City Council members met publicly Thursday with Gateway Jax to discuss the developer's request for a $49.65 million incentive package for its Block N7 project, which includes a proposed downtown Publix, Action News Jax reported.
The project
Block N7 is a $140 million development along West Beaver Street that would bring a full-service Publix, 259 apartments and retail space to the heart of downtown, News4JAX reported. It is part of Pearl Square, a mixed-use neighborhood of more than $1 billion that Gateway Jax is building on the northwest side of downtown near City Hall.
The incentives
The $49.65 million package has two parts, according to News4JAX: a property tax rebate of about $21 million paid back to the developer over time, and a cash completion grant of about $28 million that is paid only after construction is finished. Action News Jax reported the completion grant at $28.25 million, drawn from the city's general fund.
"I'm here to say this will be the last completion grant that we will be asking for from the general fund of the city," Gateway Jax CEO Bryan Moll said, according to Action News Jax. He said he believes the grant would help unlock future involvement from Gateway Jax and other developers.
"This is not just a request we're making for one block in Downtown but it's for the entire city," Moll told News4JAX. "And the project would not be possible without the investment."
Supporters on the council
Councilman Matt Carlucci, who held the meeting, supports the package and said downtown developers face different obstacles than suburban builders, Action News Jax reported.
"I believe it's important that we pass this ordinance and we honor this incentive because this project is so key," Carlucci told News4JAX. "And without that, I think it's a setback to all of the efforts that we've been putting forth for downtown development."
District 7 Councilman Jimmy Peluso pointed to the developer's track record. "We've seen a lot of renderings in the past and a lot of things have never been built," he said. "The fact that we have a real developer with serious capital behind them real private money actually developing stuff it signals to me that we have a serious developer."
The Amendment 3 holdup
Earlier this month, the council's Finance Committee deferred the incentive vote over uncertainty about Amendment 3, a statewide homestead property tax exemption on the Nov. 3 ballot. If it passes, the City Council Auditor's Office estimates Jacksonville would see a $200 million drop in revenue in fiscal year 2027-28 and $300 million by 2028-29, according to News4JAX.
Council President Nick Howland, who supports the deferral, said approving the deal before knowing the outcome would be fiscally irresponsible.
Moll argued the project matters even more if the amendment passes, because it would generate commercial property taxes. "It is a commercial property tax, not residential," he said. "With Amendment 3, we think it's even more important if Amendment 3 passes."
The incentive package returns to the Finance Committee on Nov. 4, the day after the election.
Why it matters for contractors
A $140 million mixed-use tower with a grocery store, 259 apartments and retail space is a significant job for Jacksonville's construction market, touching nearly every trade from foundations and structure to MEP, interiors and the specialized refrigeration and fit-out work a full-service grocery requires. And it's one piece of a Pearl Square neighborhood that Gateway Jax says will top $1 billion.
But this project shows how public money and politics can control the schedule. The largest piece of the incentive is a completion grant paid only after construction is finished, and Moll says the project would not be possible without the investment. Until the council votes, contractors hoping to bid on Block N7 are effectively waiting on the Nov. 3 election and the Nov. 4 committee meeting.
The Amendment 3 debate could affect more than this one project. If the city faces the revenue drop its auditor estimates, council members may look harder at every incentive request and public works budget. Contractors who rely on city-backed downtown projects or public infrastructure work should follow the outcome closely.