Council sets aside up to $8 million to purchase building for UF graduate campus in LaVilla

Ron Salem’s proposal to buy the Interline Brands Inc. property is an alternative to a land swap supported by Mayor Donna Deegan.


  • By Ric Anderson
  • | 12:44 a.m. March 26, 2025
  • | 4 Free Articles Remaining!
The Interline Brands building at 801 W. Bay St. in the LaVilla area of Downtown Jacksonville.
The Interline Brands building at 801 W. Bay St. in the LaVilla area of Downtown Jacksonville.
Photo by Monty Zickuhr
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The city of Jacksonville will have up to $8 million to offer to the owners of the Interline Brands Inc. building should it opt to purchase the property to provide for the University of Florida graduate center campus in LaVilla.

In a 14-2 vote on March 25, the Jacksonville City Council agreed to set aside the funds to buy the building at 801 W. Bay St. from Gateway Jax, the development partnership that has owned the building since October 2024.

Council members Matt Carlucci and Rory Diamond cast the no votes. Members Reggie Gaffney Jr. and Jimmy Peluso were not present.

An outright purchase is one of two options in play for the city to acquire the building, in which UF hopes to begin offering classes in August 2025. The alternative is an exchange of a 1-acre development parcel in Riverfront Plaza, the name of the former Jacksonville Landing property, and an option on an adjacent lot to the east.

The Interline Brands Inc. building at 801 W. Bay St. is south of the Prime F. Osborn III convention center and the Jacksonville Transportation Authority headquarters in LaVilla.

Council’s vote came on Ordinance 2025-0135, which originally would have provided $4 million for the swap. That was amended to a cap of $8 million, the amount that Gateway principal Bryan Moll said the building was valued in an appraisal obtained by the developers.

An appraisal for the Downtown Investment Authority put the value at $5.5 million, but that was solely for the building and not the parcel, which includes developable area on the grounds.

A third appraisal has been ordered and is expected to be delivered on March 27.

Mayor Donna Deegan and the DIA board both support the land swap, saying it will save the city from dipping into operating reserves and supports the DIA’s mission to dispose of city-owned land Downtown for development.

Salem, who introduced the ordinance, has questioned whether city is getting a fair deal with the land swap and said he believes an outright purchase is a simpler solution. 

During Council discussion of the ordinance, some members sought assurance that both options would remain available if they approved the measure. 

Gateway Jax wants to acquire two city-owned riverfront parcels for a 17-story mixed-use development of residential, hotel and other spaces. The site is on what was part of the Jacksonville Landing.

“I think we’re waiting on some information from the DIA,” Council member Matt Carlucci said. “I want be able to see the two side-by-side.”

DIA CEO Lori Boyer told Council that approving the ordinance would not take the land swap off the table. 

“I think we’re in a good place if we move this forward,” Council member Michael Boylan said. “It gives us the option to do one or the other. “

Salem said he did not believe the city would offer the full $8 million, which he referred to as a “loan” that would be replenished in the fall of 2025 with a portion of JEA’s annual contribution to the city. 

Salem said he did not believe the city would have to pay the full $8 million for the property. 

He said the city would pay for the property with funding from its operating reserves that would be replenished by JEA’s annual contribution to the city in the fall.

JEA is poised to approve an agreement providing a record $137.4 million to the city this year, with an annual 1% increase through 2029.

Council member Will Lahnen called the outright purchase the best option, saying a land swap would eventually generate an incentives request from Gateway to build on the Riverfront Plaza site. As part of the proposed land swap, Gateway has committed to build a mixed-use development on the Riverfront Plaza development pad that would include 11 floors of residences, five floors of hotel rooms, two floors of podium parking and lobbies, a floor of public food and beverage space, and a public sky garden terrace. 

The Downtown Investment Authority wants to swap these riverfront parcels with Gateway Jax for a site in LaVilla near the Prime F. Osborn III Convention Center.

Lahnen said cash incentives approved by former Councils have contributed to projections of deficits in the city budget in coming years. 

“My concern with the land swap is we’re going to be asked for a big cash incentive after the swap,” he said.

Moll told the DIA board the Riverfront Plaza development would require at least $20 million in completion grants.

If the land swap reaches fruition, the deal says Gateway Jax would have 15 months to reach a redevelopment deal for the Riverfront Plaza property with the city. If a deal can’t be reached, the city can buy back the property for $6.75 million.

The Interline Brands building is among six parcels that the city is seeking to provide for the UF campus. 

The 2.04-acre lot the city wants to acquire for the University of Florida graduate campus is near the Prime F. Osborn III Convention Center and Jacksonville Transportation Authority headquarters building.

In February, the DIA board voted unanimously to place four city-owned properties up for disposition – the historic Jacksonville Terminal rail station; the adjoining newer portion of the Prime F. Osborn IIII Convention Center and land stretching west to Interstate 95; an unimproved lot north of the train station; and a neighboring parking lot to the east across Park Street.

The city is considering a second land swap for an undeveloped parcel owned by multifamily developer Vestcor along West Bay Street north of the parking lot of the convention center parking lot.

UF’s plans call for new construction on the unimproved lot and parking lot. The newer portion of the convention center would be razed to make way for more new buildings, while the historic train station would remain intact and be adapted to include retail, restaurants and other uses.

A closer look at the rendering of the University of Florida graduate campus Downtown in LaVilla. The campus is planned surrounding the Prime F. Osborn III Convention Center.

The Council committed $50 million in the spring of 2023 to bring the campus to Jacksonville and Deegan committed an additional $50 million in conjunction with the university announcing plans for the Florida Semiconductor Institute to be part of the campus. 

Including the Vestcor-owned lot and the Interline building, the properties the city aims to provide UF is about $30 million.

 

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