JACKSONVILLE, Fla. — Jacksonville city leaders say they’re not sure whether the city will be able to afford a $28.25 million completion grant sought by Publix for its planned downtown location.
That store is considered to be the anchor tenant of Gateway Jax’s $1 billion Pearl Square development, which promises 1,250 new downtown residential units.
But with the city facing an uncertain financial future, city leaders, including Council President-Elect Nick Howland (R-Group 3 At-Large), are questioning whether the city can afford such a large cash incentive to make the grocery store a reality.
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“Everything is kind of on hold until November,” said Councilmember Matt Carlucci (R-Group 4 At-Large).
Councilmember Carlucci explained the biggest question mark is whether voters approve the property tax phaseout proposal in November, which could tank city revenues by $183 million starting next year, according to an updated analysis published by the Florida Association of Counties.
“We’re going to have to just prepare and just hold off on making any big promises or commitments to a lot of these projects because the money just will not be there,” Carlucci said.
Action News Jax sat down with Mayor Donna Deegan Tuesday to discuss the project’s future.
“Out of anything that we’re giving completion grants for, that is the most important one because so much hinges on it,” Deegan said.
The Mayor argued city leaders need to find a way to fund the completion grant, but also said she is open to other potential funding solutions that might be presented.
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Despite concerns over potential lost revenues that could come to fruition if voters approve the property tax cut later this year, she said she views this particular project as a must-fund item.
“Obviously, we need to start planning, but I think to assume what the voters are gonna do and to create havoc in this year’s budget as a reaction to what they may or may not do is not the way to go if we want to continue the momentum of our city,” Deegan said.
In a statement, Gateway Jax indicated it’s working with city leaders to identify a path forward.
“We are excited to work with incoming Council President Howland and Mayor Deegan’s administration to continue building on the success of the previous public-private partnerships between Gateway Jax and the City of Jacksonville to advance shared goals for the infrastructure of Downtown Jacksonville,” a Gateway Jax spokesperson said in an emailed statement.
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Action News Jax also reached out to Publix and asked whether the grocer would still be able to make the planned downtown store a reality in the absence of city incentives.
We have not heard back.
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