The Downtown Investment Authority board has endorsed a $2.1 million incentive package aimed at incorporating a grocery store into the Gateway Jax development.
The board voted 8-0 on Dec. 18 to recommend approval of the incentives, which are part of plans to redevelop Downtown’s NoCo Center into a 16-story mixed-use property. The DIA vote constitutes final action on the resolution, which does not require City Council approval.
The NoCo Center is the former First Baptist Church main auditorium at 119 W. Beaver St. In recent years, it has been the venue for immersive experiences such as “Beyond Van Gogh” and “Beyond King Tut.”
As shown in the resolution containing the package, 2024-12-01, the incentives comprise a $1.36 million Retail Enhancement Program grant and a $741,000 Recapture Enhanced Value Grant.
According to the resolution, the grocery space would be part of Gateway’s Block N7, where plans include 250 multifamily units, a structured parking garage with about 400 spaces, and 38,000 square feet of retail space.
The retail space would include 31,500 square feet for “a leading, full-service grocery store.” A term of the redevelopment agreement encourages the developer, Gateway Companies LLC, to land a full-service pharmacy with the grocery store. The inclusion of a pharmacy is not a requirement for the incentives.
Among the terms, the store must be open seven days a week with minimum hours of 8 a.m. to 7 p.m. and be closed for no more than three national holidays per year.
The grocer must offer fresh produce, fresh meats, a deli, frozen foods, dairy products, dry goods, beer and wine, a bakery, health and beauty aids, and other items typically found in full-service grocery stores.
The operator cannot be a department store offering groceries as a separate department, a limited-service operation or a warehouse club requiring membership.
The REV grant is for 75% over 18 years. A REV grant is a refund on ad valorem tax revenue generated by a new development.
DIA CEO Lori Boyer said funding for the incentives would come through the Downtown Tax Increment Finance district and not from the city general fund. A TIF allows for tax revenue generated within a district’s boundaries to remain within that district for reinvestment.
A staff report attached to the resolution states that build-out of the grocery store will require a capital investment of at least $5 million.
The goals of the DIA’s Business Investment Development Plan include opening a full-service grocery store Downtown by 2025 and a second one by 2030. A Whole Foods Market is part of the $250 million One Riverside mixed-use development under construction in Brooklyn.
In October 2024, Gateway Jax broke ground on the first phase of its development, Pearl Square, at 515 N. Pearl St.
So far, Gateway Jax has announced five blocks of its project, N11, the first, and N4, N5, N8 and N9, all in the NorthCore district of Downtown. The N7 block, also in NorthCore, has yet to be announced.
As of Nov. 1, Gateway’s holdings included 28 acres across 24 blocks. If fully built-out, the development would infuse $2 billion of investment into Downtown.