JACKSONVILLE, Fla. — Gateway Jax is asking for more money from the city for its latest planned project -- a 20-story tower that would be built on the spot of the former Jacksonville Landing.
Renderings show the building, which is expected to cost $271.5 million.
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It would include up to 100 residential units and more than 160 hotel units, along with restaurants and other amenities.
While speaking ahead of the Downtown Investment Authority’s vote on a $59 million incentive deal sought by the developer Gateway Jax, the company’s Vice President of Development Eric Shullman explained Gateway needs to presell 50 percent of the condo units before it can break ground.
“Typically, a condo project just to get financing does have to be around 50 percent sold to get out of the ground,” Shullman said.
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DIA members noted the Four Seasons down the street has only sold seven of 26 condo units and that project is nearing completion.
Meanwhile, Gateway would only have a 21-month window to get construction started under the deal after council approval.
Despite the concerns, the board voted unanimously to approve the proposal, as members argued it’s worth the risk.
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Part of the incentive package is a $20 million cash completion grant, something the Jacksonville City Council has not been favorable towards recently.
But this request is slightly different than others, like the $28 million Gateway Jax sought for its project that will include a downtown Publix.
Instead of coming from general revenue, this money for the Riverfront Plaza Tower would come from a special downtown fund called a TIF, which Finance Chair Will Lahnen (R-District 3) said could make it easier to stomach.
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“In other words, if you live in one of Jacksonville’s 13 other districts, you’re not going to be paying for it. It’s gonna be kept within the funds raised within that seat within that CRA,” Lahnen said. ”So, I’d potentially be okay if that’s the funding source.”
Gateway representatives noted if the project does fail to break ground on the project on time, the city has the option to buy this property back.
That was part of the land swap deal that saw the city trade the Riverfront Plaza property to Gateway in exchange for the building that now houses the University of Florida grad campus in LaVilla.
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