As Jacksonville Mayor Donna Deegan celebrated the groundbreaking of the Gateway Jax development Oct. 29, she hailed the start of construction on the mixed-use project and called for a stop to something else.
“Can we officially put an end to the ‘city of renderings’ comment?” she said.
If construction goes as planned, the renderings of the Gateway Jax project will begin becoming reality in mid-2026 with the completion of the $45 million Block N11 building at 515 N. Pearl St.
A week after the actual start of construction on the seven-story building, Deegan was among well more than 100 people who turned out for the groundbreaking.
In addition to the mayor, speakers were Gateway Jax lead developer Bryan Moll; U.S. Rep. Aaron Bean, R-Florida; City Council President Randy White; Council member Jimmy Peluso; Downtown Investment Authority CEO Lori Boyer; and project partner Alex Sifakis of JWB Real Estate Capital.
In addition, the event drew Council members Ron Salem, Nick Howland, Chris Miller, Reggie Gaffney Jr. and Ken Amaro.
Pearl Square
The Block N11 building is the starting point for what is now called Pearl Square, formerly the Pearl Street District. The seven-story building will comprise 205 apartment units and 24,086 square feet of retail, commercial and storage space.
A fully built-out Pearl Square would include 1,250 residential units, about 200,000 square feet of retail space, a curbless festival street with outdoor dining, and new public spaces.
The groundbreaking was held on the site of what will be called Porter House Garden, a public area with a central fountain.
A full-service grocer and an expansive fitness club are part of the plans, with Moll saying the identities of those tenants would be announced in the coming months.
SK+I Architecture is the project designer for the 515 Pearl St. building, with interiors by Streetsense. Jacksonville-based FaverGray is the general contractor, with England-Thims & Miller Inc. providing civil engineering.
Colliers’ Urban Division is leading the leasing of the project’s retail spaces, and Hoerr Schaudt is designing the new parks and public spaces.
A $2 billion project
Pearl Square is the first phase of the broader Gateway Jax development, which if fully built-out would infuse $2 billion of investment into Downtown across more than 22 acres.
The Gateway Jax development team, which includes St. Augustine-based DLP Capital LLC, says it has acquired holdings spanning 28 city blocks Downtown. At full build-out, the redevelopment is expected to create about 2,700 permanent jobs and produce more than $750 million in annual economic impact.
The project was announced in September 2023 during an event held at the same place as the groundbreaking, under a canopy at Julia and Church streets.
In his remarks, Moll reflected on the announcement.
“A lot of people didn’t believe it,” Moll said. “A lot of people thought this was just another rendering in the city that would never come to fruition. But here we are today, already under construction.”
In mentioning renderings, Moll and Deegan were referencing previous Downtown redevelopment projects that have been proposed – and in some cases even permitted and approved for incentives – but failed to materialize. Those fizzles prompted expressions of skepticism from the community as to whether Downtown revitalization was feasible.
In describing Gateway Jax, city officials and elected leaders often use the word transformational or versions of it, saying it will not only revitalize the NorthCore area where it is centered but could spur other development Downtown.
Bean used a similar term in his remarks.
“What Pearl Square really is, it’s a magnet,” Bean said. “And when you build a magnet, it’s going to attract young people, family, diners, retailers. It’s going to be a place where people want to go. … And then here come the jobs. All of this together is what makes a city great.”
City incentives
The ceremony was two months after Council approved a $98.58 million incentives package for the first phase of the project. The package comprises $59.63 million in Recapture Enhanced Value Grants and $38.95 million in completion grants that were recommended for approval by the DIA board in mid-November 2023.
A REV grant is a refund on ad valorem tax revenue generated by a new development.
Several speakers called the successful start of the project a product of teamwork among the developers, the DIA, Deegan’s administration and Council members.
Peluso praised Moll, Sifakis and DLP for “doing something no one else has been able to figure out.”
“If you’re a developer who’s listening right now and wants to know how to make sure development gets done correctly in our Downtown, they’re showing you the blueprint for it,” he said.
“They’ve gotten the public sector and the private sector to marry up perfectly.”
Boyer called Gateway Jax a “truly model project” based on its collaborative nature, the efficiency and speed in which it came together and how it fits into the Downtown master plan as a multiuse development with offerings for Downtown residents and visitors.
Another groundbreaking is expected in early 2025, with Boyer saying that would involve the second Pearl Square building.
“I cannot wait until I can stroll a few blocks from City Hall and take in the new Pearl Square, check out the shops and eateries and see people enjoying this new Downtown hub,” Deegan said.
Phoenix Arts & Innovation District
Other attendees at the groundbreaking included Tony Cho, the principal behind the Phoenix Arts & Innovation District redevelopment project in North Springfield. A grand opening is scheduled Oct. 30 for the district’s Emerald Station, a renovated warehouse with 17,000 square feet of creative offices, conference rooms, a community lounge and more.
Deegan, White and Peluso are scheduled to attend the ribbon-cutting along with Cho, the CEO of Phoenix developer Future of Cities.
The city approved a $1.5 million REV grant for the $37.9 million project, plus $2 million completion grants for each of two phases of construction at the 8.3-acre site mostly bordered by Main, 15th and Liberty streets and an east-west rail line.
The fully built-out development would become what Future of Cities describes as a “regenerative placemaking demonstration project” comprising 10 separate properties.
The incentive funding will support the adaptive rehabilitation of four warehouses and green space into office space, artist studios, galleries, retail establishments and restaurants.
