News Summary
A Jacksonville manufacturer is seeking city incentives for Project Newark, investing $135 million to create 240 jobs in the production of smokeless nicotine and caffeine pouch products. The economic development initiative includes a proposed $3.5 million grant to aid the project’s establishment, promising substantial returns on investment. Additionally, plans for a University of Florida campus and another project named Blue Sky emphasize the city’s focus on enhancing job opportunities and economic growth.
Jacksonville – A manufacturer operating in Jacksonville is currently seeking city incentives to support a new project called Project Newark. The company intends to invest $135 million into the production of smokeless nicotine and caffeine pouch products, with plans to create 240 new jobs by the end of 2028. This endeavor is expected to generate an annual payroll of approximately $11.12 million, not including employee benefits.
The Office of Economic Development (OED) is requesting approval from the Mayor’s Budget Review Committee (MBRC) for legislation that would provide a 50%, five-year Recaptured Enhanced Value (REV) Grant worth up to $3.5 million. The REV grant is designed to act as a refund on ad valorem tax revenue produced by new developments. According to the OED, the anticipated return on investment for Project Newark is projected at an impressive $4.69 for every dollar of incentives provided.
The OED summary suggests that Project Newark will significantly enhance investment in Northwest Jacksonville. This growth is expected to improve job opportunities and strengthen the company’s presence in the region, which will ultimately contribute to an increased tax base for the area. To assess the proposal, the next MBRC meeting is scheduled for June 23.
In addition to Project Newark, plans are underway for the acquisition of the former Interline Brands property to support the establishment of a campus for the University of Florida (UF). The Gateway Jax development group advocates for swapping land instead of purchasing the property outright. The owner of the Interline property has suggested exchanging a 1-acre parcel in Riverfront Plaza along with an option for an adjacent lot, as an alternative to an outright purchase. A recent appraisal values the Interline property at $6.75 million, which is $1.25 million less than a previous appraisal conducted by CBRE.
Gateway Jax acquired the Interline building for $4 million in November 2024, and the Riverfront Plaza properties have a combined appraisal value of about $5.5 million, according to the Downtown Investment Authority (DIA). The Riverfront Plaza development project includes a commitment to create a 17-story mixed-use space, which will feature a hotel, residences, retail spaces, restaurants, and public areas.
The Jacksonville City Council has allocated up to $8 million for the potential outright purchase of the Interline Brands building. However, discussions among council members have surfaced concerns regarding financing cash incentives for various projects. The city is determined to acquire the Interline facility to facilitate the UF campus, which was selected near the Prime F. Osborn III Convention Center. The initiative aims to provide six parcels of land necessary for the establishment of the UF campus, allowing it to begin offering an architecture master’s program by fall 2025. The overall development could take up to 20 years, with an estimated enrollment of over 20,000 students.
An additional proposal discussed is Project Blue Sky, associated with an undisclosed company that would receive $4.35 million in city incentives for relocating its headquarters to the Southbank. Project Blue Sky is anticipated to invest $20 million in capital improvements and $10 million in computer equipment, with plans to create 150 full-time jobs in Downtown Jacksonville while retaining an additional 650 existing local jobs.
As Jacksonville advances these economic development projects, the focus remains on job creation and realizing substantial investments in the community that will have lasting impacts on the region’s economy.
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Additional Resources
- Jax Daily Record: Project Newark
- Wikipedia: Economic Development
- Jax Daily Record: Gateway Jax Developer
- Google Search: Land Swap in Urban Development
- Jax Daily Record: Eckart Supply Expansion
- Google Scholar: City Incentives for Business Expansion
- Jax Daily Record: DIA Incentives
- Encyclopedia Britannica: Job Creation
- Jax Daily Record: Riverfront Plaza Green Space
- Google News: Urban Green Space Preservation
