Faced with challenges in amassing capital over the past few years, Tony Cho says his investment in the Phoenix Arts & Innovation District tripled from his initial expectation as he sought to keep the project moving forward.
Cho, the district’s lead developer, saw his commitment to the district begin to pay off Oct. 30 when he joined local elected officials and community leaders for a ribbon cutting at the Phoenix’s first renovated building, the Emerald Station.
“It took a lot of faith in a lot of ways and belief in myself and the project – and the city, frankly,” Cho said during an interview with reporters.
“I think it was a really good bet, but it was risky. It’s less risky now that it’s established, but it was much more risky a year ago, two years ago, three years ago.”
Cho is the CEO of Miami-based Future of Cities and founding managing partner of PHXJAX, which are developing the 8.3-acre property in North Springfield. He said funding the project had been difficult due to high interest rates and what he described as skepticism of plans and renderings among potential investors in Jacksonville. “Now you have something to show,” he said.
“When you’re just showing people vacant warehouses, they don’t see the vision. Now you have an event, and you have air conditioning, you’ve got bathrooms and you’ve got things going on,” Cho said.
“I always believe in having vision, but showing instead of telling. People are very distrustful in Jacksonville around plans and renderings. You’ve got to start with a vision, but vision without execution is just dreaming. So we’re all about executing.”
Speaking to about 100 people, Cho said he was drawn to the site partly because of its proximity to the Emerald Trail, the system of trails, greenways and parks under construction along a route of 30-plus miles in and near Downtown.
“You guys are now in the Wizard of Oz of Jacksonville,” he said. “This is the Emerald Station in front of the Emerald Trail.”
The 17,000-square-foot Emerald Station is a repurposed warehouse that includes 7,000 square feet of creative offices, conference rooms, an in-house catering kitchen and a space for the city of Jacksonville’s Small and Emerging Business incubator.
It also houses a 10,000-square-foot event space, managed by the Twinkle Collective, which was used for the ceremony.
The district is mostly on property bordered by Main, 15th and Liberty streets and an east-west rail line. The site primarily comprises abandoned industrial properties and green spaces.
Fully built-out, the district will include 10 separate properties, including conversions of four warehouses and green spaces into office space, artist studios, galleries, retail establishments and restaurants. Affordable housing also will be included.
Attendees included Mayor Donna Deegan, City Council President Randy White and Council members Jimmy Peluso, Ken Amaro, Raul Arias and Rahman Johnson.
Several speakers praised Cho and his team for choosing to redevelop property in a low-income area.
“It’s so easy to buy 100, 500 acres in the middle of nowhere in Duval County or maybe one of the counties nearby and build a massive HOA or a massive development, and you can make a lot of money,” said Peluso, whose Council District 7 includes the Phoenix site.
“Or you could look at these old, historical structures, these old neighborhoods that have been here over 100 years and withstood the Great Fire, and you could reinvest in those neighborhoods. And you can make sure those neighborhoods remain here, they’re uplifted and that they’ll be here for another 100 years.”
In June 2024, Council approved $5.5 million in incentives for the Phoenix district, with the package comprising a $1.5 million Recapture Enhanced Value Grant plus $2 million completion grants for each of two phases of construction.
A REV grant is a refund on ad valorem tax revenue generated by a new development.
Council also approved a rezoning request to Planned Unit Development to permit commercial and multfamily uses in the district.
Cho applauded the city and community organizations such as Springfield Preservation and Renovation for their work on the public-private partnership. Support also came from the Local Initiatives Support Corp., which provided a $7 million loan for the project.
The ceremony came a day after several of the individuals involved took part in the groundbreaking for Pearl Square, the first phase of the $2 billion-plus Gateway Jax project Downtown.
Deegan, White and Peluso all spoke during the Pearl Square event, which was held about a week after construction began on the $45 million Block N11 building at 515 N. Pearl St.
Deegan said the Phoenix district is among numerous Downtown or Downtown-adjacent projects that are changing the face of the community. They include the upcoming Jacksonville Jaguars stadium renovations and the companion $300 million community benefits agreement for improvements in the Eastside neighborhood and beyond.
“Once complete, all of these projects along with many others will help Jacksonville’s urban core be the place to live, work and play in Northeast Florida and beyond,” Deegan said.
