JACKSONVILLE, Fla. — Major downtown Jacksonville developments might be slower to pop up, as funding for the Downtown Investment Authority could see a major change.
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The Four Seasons, Pearl Street development, and Related Group’s skyrise on the Southbank all have a “completion grant” in common. The Four Seasons was the most recent to be awarded nearly $26 million for the grant, which comes directly out of the City’s general fund.
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City Council’s Special Committee on the Future of Downtown could change funding for future projects like those as there’s more in the works.
“There’s a concern over the magnitude of the commitments coming down the pipe over the next couple of years,” Lori Boyer, the CEO of the DIA, said.
In a memo to board members she wrote, “Since 2022, requests for incentives that rely on City General Fund resources have grown significantly in number and value and are having a material impact on General Fund budgets.”
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Council members on the special committee are looking to cap the amount and give DIA its own budget so it doesn’t have to go through council for every major project. Action News Jax told you last week, Committee Vice Chair Rory Diamond called for a DIA “overhaul.”
Members are considering up to $50 million, which would cut down the number of completion grants that can be given out. Action News Jax Robert Grant asked Boyer if that would slow down development.
“I think that’s an unfair characterization,” she said. “Maybe that’s slowing down momentum. But it’s not realistic. It’s not something we can do for fifty projects.”
Boyer added that downtown can still grow with DIA’s traditional funding sources like retail enhancement and REV grants, which give refunds based on tax revenue generated by a development. Boyer argued only major projects requiring those completion grants could lose steam.
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“I’m not saying it’s unwarranted. We need to use [completion grants] right now if we are going to move these [projects]. But do we move one or two or three of them and then let them spawn further development,” she explained.
She agreed with the special committee’s idea to give DIA its own budget so major projects don’t have to go through council and it will have more authority to streamline the process.
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