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Groundbreaking for New Mixed-Use Development in Jacksonville

Construction site of a mixed-use development in Jacksonville

News Summary

Jacksonville’s Gateway Jax is set to begin construction on a new mixed-use development on Beaver Street, aiming to revitalize the area with 286 residential units and 20,000 square feet of retail space. Following a site-clearing permit granted recently, this development will include a parking garage and is designed to cater to community needs, with plans for a boutique hotel and additional residential units in the future. Despite its ambitious goals, concerns about the developer’s background and political connections linger among community members.

Jacksonville – Groundbreaking for Gateway Jax’s second project, a mixed-use development on Beaver Street, is scheduled for May 29. This new venture aims to revitalize the area located at 425 Beaver Street, previously known as Block N4, and is set to include 286 multifamily residential units alongside approximately 20,000 square feet of retail space.

This seven-story mixed-use building will also feature a parking garage, ensuring ample space for both residents and visitors. The property is bounded by Union, Pearl, Beaver, and Clay streets, placing it conveniently within reach of essential services and amenities.

Details regarding the project were submitted to the city earlier this month, with a site-clearing permit for Block N4 issued on May 16. This development follows closely behind the first phase, known as Block N11, which is currently under construction at 515 N. Pearl St. Block N11, with an investment of $45 million, will consist of 205 apartment units and over 24,000 square feet of retail, commercial, and storage space.

As part of the broader Gateway Jax project, the partnership is looking ahead to additional developments within the Pearl Square area, with expectations for construction to begin in 2025 and 2026. The fully developed Pearl Square is designed to include over 1,250 new residential units and approximately 200,000 square feet of retail space, along with a 100-key boutique hotel and a curbless festival street, which aims to enhance community interaction.

The plans emphasize catering to daily community needs, with envisioned tenants such as a full-service grocer, a high-end fitness club, and an array of restaurants and shops. The total investment for the complete buildout of Gateway Jax is estimated to reach around $2 billion over the next decade.

The Gateway Jax partnership, which includes Bryan Moll, JWB Real Estate Capital, and DLP Capital, is committed to revitalizing downtown Jacksonville. The project team consists of various architectural and engineering firms, with Faver Gray serving as the general contractor. Public spaces and parks will be designed by the landscape architecture firm Hoerr Schaudt.

In August 2024, the Jacksonville City Council approved a $98.58 million incentive package aimed at supporting the Pearl Square district’s development. This package contains financial grants across multiple blocks, including a $14.1 million Recapture Enhanced Value grant for Block N4. Other funding includes a $2.57 million grant for Block N5, a $33.88 million grant for Block N8, and a $9.06 million grant for Block N11.

However, various concerns have emerged regarding the Gateway Jax partnership, particularly its background, which includes legal disputes and potential political connections. A lawsuit filed by Legal Aid against JWB alleging tenant rights violations under the Fair Housing Act has sparked considerable scrutiny. Additionally, JWB has settled prior allegations related to wrongful evictions.

Furthermore, community members and advocacy organizations are raising alarms over JWB’s perceived political influence and the need for transparency in its business operations. A proposed land swap between the City of Jacksonville and Gateway Jax, which would involve exchanging Riverfront Plaza for Gateway’s Interline Brands building valued at $4 million, has also drawn mixed reactions. Mayor Donna Deegan supports this swap as a strategy to revive the downtown area, but many community members are demanding further scrutiny and feasible negotiation terms prior to proceeding.

As groundbreaking approaches for the new development on Beaver Street, the local community remains attentive to how Gateway Jax will address these challenges while aiming to create a vibrant new living and shopping area for Jacksonville.