Amendment 3 is having an impact on downtown development in Jacksonville before voters have even taken a stance on the property tax cuts.
The city council finance committee delayed a vote on approving a grant for construction of a new Publix as part of Pearl Square until after Election Day.
The land on Hogan Street is just about cleared and ready for a high rise with a Publix to anchor it, but before that happens, the developer and investors are looking for the city to meet them halfway.
With a possible looming budget impact of hundreds of millions of dollars with Amendment 3 a month away from a ballot, city leaders are holding off until they see how the chips fall.
“From day one, the incorporation of a grocery store downtown was a clear indication that we made it.,” said Jacksonville City Council Member Michael Boylan.
Boylan said downtown revitalization was one of the first conversations he was a part of after he was elected.
He said a grocery store was always central to those conversations, so he was pleased to learn of Gateway Jax’s plan to incorporate a Publix in Pearl Square.
“It really takes us to the point in time where we truly can look at downtown as a viable place to live, work and play,” Boylan said.
However, before we get to that “point in time,” city council members have a hurdle to consider – Amendment 3.
“Let’s take, for the sake of discussion, that amendment three passes,” Boylan said. “Is there still a rationale or an argument to invest in this?”
Boylan and the rest of the finance committee agreed Tuesday to delay a vote on a $28 million completion grant for the Publix and adjoining residential and retail space until after the property tax referendum is voted on on Election Day.
If the property tax cuts are approved, city staff projects the city could lose around $200 million from the budget.
Boylan wonders if incentives for downtown development, like the Publix, will be an obvious target for budget cuts.
“It’s very real, the possibility, we may not see this happen, and I think it’s going to stunt any additional development downtown,” Boylan said.
“I’m looking to create five to ten jobs at this property, a few blocks west of Publix, because, in large part, of this development,” said The Raven Owner Eric Adler during public comment at the committee meeting.
The committee heard from a restaurant owner who said he understands the budget concerns, but hopes they don’t keep the Publix from coming to fruition.
“Ask you to consider the other small business owners and the knock on effects this development will have for downtown business, residents and Jacksonville, in general,” Adler said.
Boylan did say, regardless of how Amendment 3 plays out, he’s optimistic the city is getting to the point where downtown development will happen without city incentives.
The city council will consider the Publix grant November 4th now, and they’ll have the decision, one way or the other on Amendment 3 to factor in.