The proposed land swap between the city of Jacksonville and a Downtown developer for property for the University of Florida’s graduate center in LaVilla will soon go up for consideration by City Council after being endorsed by a committee April 21.
The Mayor’s Budget Review Committee voted unanimously to allow the Downtown Investment Authority to submit legislation on the exchange of city-owned property at Riverfront Plaza to acquire the Interline Brands Co. building at 801 W. Bay St.
In the proposed deal, Gateway Jax would receive a 1-acre development parcel in the plaza, the former site of the Jacksonville Landing, and an option on another piece of land to the east.
Gateway purchased the Interline building in October 2024 for $4 million. The city values the two city-owned parcels together at $5.02 million, and an appraisal obtained in March by the DIA placed the value of the Interline property at $6.75 million.
Gateway Jax is a partnership between principal Bryan Moll, JWB Real Estate Capital and DLP Capital. The team is carrying out a Downtown development that, if fully realized, would surpass $2 billion in investment and spread over more than two dozen properties.
As part of the exchange, Gateway has committed to building a 17-story tower that would include a hotel, condos, restaurants, retail and public spaces. Through such means as a hotel room surcharge and homeowners association fee on condominiums, Gateway says it would provide funding for upkeep of the park that is under construction on the western half of Riverfront Plaza and would be extended to the east half under a second phase.
“From our perspective, it accomplishes multiple things,” DIA CEO Lori Boyer told the MBRC about the proposed swap. “It saves city cash right now. It also gets the Riverfront Plaza pad developed quickly and in a way we want to see, and it provides funding in the future for maintenance and programming of the park, which will be very significant long-term.”
The land swap is one of two options under consideration for the city to acquire the property. Resolution 2025-0291, introduced by Council member Ron Salem, would direct the DIA and city administration to purchase the building and grounds outright for up to $8 million.
Salem said the city’s payment for the building would be replenished in the fall of 2025 when city utility JEA makes its annual contribution to the city budget. JEA is finalizing plans to provide a record amount, including a $40 million one-time infusion.
In approving the resolution and Ordinance 2025-0135, which set aside the funding for the outright purchase, several Council members said they wanted to consider the sale and swap side-by-side.
Proponents of the exchange say it promotes the DIA’s mission to place dozens of city-owned Downtown properties back on the tax rolls and will help facilitate private development that will attract visitors and residents to Downtown’s historic core.
Opponents say it favors Gateway over the city and, despite what supporters say, would come at a cost to the city in the form of financial incentives that would be sought by Gateway for the tower development. Moll told the DIA that the project would require $20 million in completion grants, among other incentives.
UF plans to invest $7 million to retrofit the Interline for classroom use. Instruction in the building would begin in the fall of 2025, with UF proceeding toward the first new construction on the campus in properties directly north and northeast of the historic Jacksonville Terminal train station.