Council approves downtown Jacksonville Publix tower deal 11-8

Jacksonville City Council voted 11-8 Tuesday to approve up to $49.7 million in incentives for a downtown apartment tower built around a Publix grocery store.

The vote on Ordinance 2026-541 came after the council changed how it intends to pay the largest piece of the deal. The bill now goes to Mayor Donna Deegan for signature, according to the council’s legislation record.

Our preview of the vote has the full plan for the site, a 1.52-acre block known as N7 bounded by West Union, North Laura, West Beaver and North Hogan streets.

How council members voted

The council took two roll calls. The first passed 10-8, with council member Reggie Gaffney Jr. recorded as not voting. The council then reconsidered the bill and passed it again 11-8, with Gaffney voting yes, according to the meeting minutes.

The bill reached the full council without a recommendation. Its Finance Committee split 3-3 on Nov. 4.

What the amendment changed

Council member Randy White offered a floor amendment, and it passed on a show of hands. Its text was not yet posted on the city’s legislation site Wednesday evening. Council staff summarized it at the meeting, according to the city’s video of the meeting.

The amount of the incentives did not change. The bill still carries:

• a property tax rebate of up to $21,412,000, paid over 17 years from the Downtown Northbank redevelopment trust fund
• a $28,250,000 completion grant, which council must fund in later legislation

The new language states the council’s support and intent that $19 million of the completion grant come from other money instead of the city’s General Fund:

• $4 million from the Shipyards West redevelopment project
• $4 million from the Riverfront Plaza restaurant project
• $7 million moved from the completion grant already approved for one of Gateway’s earlier downtown projects
• $4 million in other redevelopment funding the Downtown Investment Authority may recommend in future years

That leaves about $9.25 million of the completion grant for the General Fund, by our arithmetic.

The Downtown Investment Authority told the council it would pause the Shipyards West parcel and the Riverfront Plaza restaurant to free the money. It said it would look for the last $4 million over the next couple of budget years.

What council members said

Council member Rory Diamond, who voted no, said the amendment saves money only if those other projects are canceled. “It’s marginally better, but it doesn’t actually change what happens,” Diamond said of the amendment.

Council member Will Lahnen said he backed the amendment as less damaging but would still vote against the bill. He said the city already faces unbudgeted completion grants in the next few years.

Council member Ron Salem, who voted no, explained his vote by pointing to Amendment 3, which voters passed Nov. 3. He said the city should start cutting its budget now instead of waiting for next spring.

Council member Matt Carlucci, who voted yes, said the city has $33 million in a contingency fund for completion grants next year.

A Downtown Investment Authority official told the council the authority’s analysis returns up to $1.45 to the city for every dollar it puts in. “Publix is not receiving a dime of the money,” the official said. The incentives go to the developer, 119 Beaver St W LLC, managed by Gateway Companies.

What happens next

The deal’s term sheet sets these deadlines once the law takes effect:

• the city, the authority and the developer sign the agreement within 30 days
• construction starts within eight months
• the building is substantially complete within 36 months of the start

The completion grant is paid only after the building is finished and a 10-year grocery lease is signed, with a final $2,160,000 when the store opens, according to the October committee amendment.

What it means for you

Downtown would gain a full-service grocery and about 259 apartments if the developer meets the deadlines. The Downtown Investment Authority told the council a grocery in the downtown core is the top request it hears from residents.

Taxpayers still carry most of the risk on the completion grant. The $19 million plan is a statement of intent, not a transfer: council will decide where the money comes from when it votes to fund the grant. That vote is a chance to speak at public comment.

Frequently asked questions

Did the downtown Jacksonville Publix deal pass?

Yes. City Council approved Ordinance 2026-541 by 11-8 on Tuesday, Nov. 10. The bill now goes to the mayor for signature.

How much will the city pay for the downtown Publix tower?

The bill keeps a property tax rebate of up to $21,412,000 over 17 years and a $28,250,000 completion grant. A floor amendment says council intends $19 million of the completion grant to come from other downtown projects, leaving about $9.25 million for the General Fund by our arithmetic. The completion grant still needs a separate council vote to set the money aside.

Is Publix getting the money?

No. The incentives go to the developer, 119 Beaver St W LLC, managed by Gateway Companies. A Downtown Investment Authority official told the council Publix is not receiving any of the money.