Jacksonville Council Pauses Purchase of Interline Building for UF Campus

News Summary

The Jacksonville City Council Committee has delayed the purchase of the Interline Brands Inc. building, crucial for the University of Florida’s new graduate campus. The postponement is to await an appraisal due by March 26. The ordinance includes a spending cap of $8 million from the city’s general fund, with future plans involving a potential land swap to support urban development. Concerns regarding funding and the broader implications for the community have been raised, as the city looks to enhance educational opportunities in LaVilla.

Jacksonville City Council Committee Hits Pause on Interline Building Purchase for UF’s New Graduate Campus

In Jacksonville, excitement is brewing over the potential establishment of a University of Florida graduate center campus right in LaVilla! However, the City Council committee has decided to hit the brakes on the direct purchase of the Interline Brands Inc. building, a key piece of this educational puzzle. The committee’s decision to delay was influenced by the need for an appraisal, which is currently on the way.

What’s Happening Now?

The proposed Ordinance 2025-0135, put forth by Council member Ron Salem, is currently under scrutiny as the Committee awaits the appraisal results from Jacksonville Commercial Appraisers. This appraisal is expected to land on their desks by March 26, providing critical information that will influence the city’s next steps.

In a move to maintain financial oversight, an amendment was approved that puts a cap on the city’s spending for the former Interline building at $8 million. This funding is proposed to come from Jacksonville’s general fund—a pot of money that the city can replenish in the fall of 2025 thanks to a portion of JEA’s annual contribution. This year alone, JEA is expected to contribute a record-breaking $137.4 million to the city, with a promise of a 1% annual increase through 2029.

How Much Will the Property Really Cost?

801 W. Bay St.—is at least $4 million. It’s worth noting that the property was obtained by Gateway Jax for the same amount back in October 2024. Now, here’s the twist: while a former appraisal from Colliers placed the value at $5.35 million, another from CBRE valued it a tad higher at $5.5 million. However, Gateway Jax principal developer Bryan Moll has his eyes set on a higher worth for the property, suggesting it could be closer to $9 million—especially when factoring in developable parcels. Take into account estimated costs of $1 million for parking improvements, and the net value reduces down to the city’s cap of $8 million.

A Broader Plan for Development

The acquisition of the Interline building isn’t just about snagging a new space for the UF graduate campus; it’s part of a larger strategy that includes the granting of four city-owned parcels to the University of Florida as they build their new campus, slated to welcome students by August 2025.

The Downtown Investment Authority (DIA) is fully on board with this initiative and is particularly keen on pursuing a land swap deal with Gateway Jax. This swap would allow Gateway Jax to receive a 1-acre piece of land along with an option on an adjacent parcel in exchange for the Interline building, valued at $5.5 million. It’s important to note that this swap hinges on Gateway Jax committing to a robust plan to develop a 17-story mixed-use development on the property.

Concerns and Future Steps

Committee member Jimmy Peluso expressed concerns regarding the use of operating reserves for the purchase. He favors the land swap instead, as it helps to preserve necessary funding reserves. However, the proposed land swap isn’t without its own costs—the city may need to invest an additional $20 million to ensure the Riverfront Plaza project sees the light of day.

Should this land swap not yield any redevelopment deals within 15 months, the city would have the option to buy back the property for $6.75 million, preventing potential losses.

Meanwhile, the DIA board unanimously voted in February to propose multiple properties for disposal, including the historic Jacksonville Terminal rail station, further opening the door for transformative projects in the city.

As everything stands, both Salem’s ordinance and the proposed land swap are being sent to further committee reviews, and the Jacksonville community will be watching closely. Get ready, Jacksonville; the future of education in LaVilla might just be bright!

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