The fate of a Publix envisioned for downtown Jacksonville will wait until after the dust settles on Amendment 3 and its proposed expansion of the homestead exemption.
The City Council Finance Committee deferred taking a vote on legislation containing a $28 million cash completion grant for a residential tower and Publix until its Nov. 4 meeting, the day after Florida voters go to the polls and make their choice onAmendment 3.
City Council President Nick Howland said given the financial stakes involved in Amendment 3, City Council should know the results of that election before deciding whether the city should commit to paying a cash completion grant.
Gateway Jax, the developer behind the proposed residential tower and Publix, agreed to the deferral,
even though two other committees — Neighborhoods and Rules — voted in favor of the legislation and sending it to the full City Council for a vote on Oct. 13.
"I think this is a terrific move for not only Finance Committee but City Council and for Gateway to be prudent here and to be vigilant on behalf of taxpayers," Howland said. "Your cooperation here is not unnoticed."
If more than 60% of Florida voters statewide approve Amendment 3 on Nov. 3, the homestead exemption will go from about $50,000 now for non-school taxes to $150,000 in 2027 and $250,000 in 2028. The homestead exemption is for owner-occupied homes.
City Council Auditor Phillip Peterson said if that change takes effect, it would cut the city's property tax collections by about $200,000 in the 2027-28 budget and by $300,000 in the 2028-29 budget with the impact likely increasing in following years.
The cut in property tax revenue would cause a hit to everyday services that city leaders would have to grapple with in future budgets. Committing to a cash completion grant would add to that financial squeeze. The grant would be payable after construction of the tower is finished which could be in 2030.
Gateway Jax is the most active developer currently in downtown with its Pearl Square development for creating an urban community where people can live and walk to their daily needs. The mix of residential, retail and restaurants is going on the side of downtown closest to the Springfield neighborhood.
The Publix store would offer a full-service grocery store for Pearl Square residents and also draw customers from the rest of downtown and Springfield.
The Downtown Investment Authority supported incentives last December totaling $49.6 million for construction of the the 15-story tower with 259 apartments, the 450-space parking garage and 37,000 square feet of ground-floor retail space that would be mainly for the Publix.
The biggest piece of the incentives is a $28.25 million grant payable to Gateway Jax it completes the building on land where the developer has been demolishing the vacant structure that used to be First Baptist Church's main auditorium.
The incentive package also would provide property tax rebates over a 17-year period totaling up to $21.4 million.
The property tax rebates would be 75% of the additional property tax revenue generated by the new development for city taxes.
This article originally appeared on Florida Times-Union: High stakes of Amendment 3 push back council vote on downtown Publix
