The city Office of Economic Development is requesting legislation for $5.5 million in incentives for the $37.94 million Phoenix Arts & Innovation District project in North Springfield.
The Mayor’s Budget Review Committee will consider the request at its 2 p.m. April 22 meeting in the mayor’s conference room on the fourth floor at City Hall, 117 W. Duval St.
If the committee approves the request, the department can introduce legislation to the Jacksonville City Council that includes an Economic Development Agreement outlining the terms of the deal.
Companies associated with Miami-based Future of Cities are planning a mixed-use development on the 8.3-acre site about 2 miles north of Downtown Jacksonville.
Also called PHX JAX, the project is expected to include dining options, artists’ studios, a market area, co-working space, offices, retail and event space.
The project would transform the neighborhood, primarily comprising old warehouse and vacant space at 2336 N. Liberty St., a site bounded by Main, 15th and Liberty streets and the rail line, with three parcels south of the line.
According to the project overview, work will be done in two phases starting in June and ending in 2026.
Phase One
Phase One is an estimated $14.15 million renovation of two buildings at 2320 and 2336 N. Liberty St. Construction would start in June and be completed by June 30, 2025.
The city would provide a completion grant totaling $2 million for those buildings.
Also part of the Phase One agreement, the developer will lease a finished 150-square-foot interior space to the city at 2320 N. Liberty St. for $1 a year for three years.
This space will be used to support small business growth and development within the project and surrounding area. Conference rooms will be made available to Jacksonville Small and Emerging Businesses and city staff.
Phase Two
Phase Two is an estimated $23.79 million project to renovate two buildings at 2402 and 2303 Market St. with work starting in January 2025 for completion by June 30, 2026.
The city would provide completion grants totaling $2 million and a Recapture Enhanced Value Grant of up to $1.5 million over 15 years. A REV grant is a refund on ad valorem tax revenue generated by a new development.
The agreement says the developer is committed to use Jacksonville Small and Emerging Businesses equal to 20% of the total of the Completion Grant, or $800,000, to assist in building the project. It will also provide quarterly reports on their use and how much they are paid.
The Phoenix Arts & Innovation District project is estimated to have a positive return on investment of $1.07 for every $1 invested.
“The Phoenix Arts & Innovation District is an opportunity to co-create in partnership with the neighborhood of North Springfield a new vision for its future,” said Tony Cho, CEO and founder of Miami-based Future of Cities and founding managing partner of PHX JAX, in a December news release.
Since 2020, companies owned by Future of Cities have been buying the property to regenerate the neighborhood.