The city land swap deal approved Tuesday by City Council would see this 1-acre site next to the Main Street Bridge used for a 17-story mixed-use tower. | Downtown Investment Authority
Published on June 10, 2025 at 7:24 pm
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Developer Gateway Jax received Jacksonville City Council approval Tuesday for a land swap deal that will allow the University of Florida to move into the former Interline Building in LaVilla to start graduate classes this fall, and give Gateway control of a 1-acre site next to the park under construction at Riverfront Plaza.
Council’s 17-1 vote Tuesday gives the city the 2.85-acre Interline site at 801 E. Bay St., which it will turn around and give to UF.
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Council member Ron Salem, who has been the chief opponent of the land swap endorsed by the city’s Downtown Investment Authority board and the mayor’s office, offered an amendment to Ordinance 2025-0319 that he called a compromise to gain his support.
Salem’s amendment removed language about city incentives Gateway could seek in the future to develop the riverfront parcel and reduced the amount of time the developer has to return to council with a DIA-approved plan for the site, from 15 down to 12 months.
It was a sudden reversal for Salem, who in late May called for Gateway to reveal its investors so the public could see who will financially benefit from the swap.
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Salem, who is the council’s Finance Committee chair, withdrew his alternative bill Tuesday that would have instead paid $6.95 million in cash for the Interline Building.
Salem said he worked on the amendment with the Council Auditor, city lawyers and attorneys for Gateway Jax.
“What I have found over the last week or so is this land swap was getting in the way of what I care deeply about, the University of Florida and that campus coming up in LaVilla,” Salem said. “… I think it’s a good compromise for both the city, Gateway Jax and the city to move forward.”
Council member Rory Diamond was the only no vote. Ju’Coby Pittman was absent.
Before Tuesday, it was unclear if the swap or purchase would reach the finish line. Committee meetings last week did not reach a quorum of members to take any action.
Gateway Jax CEO Bryan Moll told Jacksonville Today there is a due diligence period for the Riverfront Plaza site through December, but it could be shortened if UF signals to DIA it’s ready to accept the deed transfer on the Interline Building earlier.
The developer’s plan would bring a 17-story hotel and condominium tower to the riverfront site with ground-floor lobby and restaurants. Gateway would pay $50 per month, per residential unit, to pay for Riverfront Plaza park maintenance.
The proposal would also build out phase II of the park’s design.
Moll says Gateway – which is also under construction with investors DPL Capital LLC and JWB Real Estate Capital on a separate $2 billion, 32-acre development project Downtown – could bring the riverfront project before the DIA board and designs to the Downtown Development Review Board within four months.
“We’re ready to go and looking forward to getting in front of the DIA pretty soon. The good thing about going through the detailed process that we went through here is we already had 90% of our underwriting complete,” Moll said. “Pretty advanced for where we’re at in the process.”
When Gateway returns to DIA and council next year, the company has told officials it could seek $20 million in public incentives. An amendment proposed Tuesday by member Joe Carlucci requires those incentives to be funded by Downtown Northbank’s Tax Increment Financing Districts fund, managed by the DIA, and not through the city’s general fund.
Carlucci’s amendment also requires a third-party underwriting review of Gateway’s development plan in addition to the standard DIA process.
Mayor Donna Deegan, who has long supported the land swap, said in an email Tuesday after the vote, “The City of Jacksonville is moving forward on two projects that will ignite our downtown: the UF graduate campus in LaVilla and the Gateway Jax development next to Riverfront Plaza. I’m grateful to [Council] President White and the bipartisan group of City Council members who reviewed and approved this fiscally responsible proposal that will accelerate downtown Jacksonville’s momentum.”
With the lnterline Brands building now acquired, the council is expected to vote by the end of the month on legislation clearing the way for a development agreement with UF so it can start construction on the rest of the school’s 20-year plan to create a 23.2-acre graduate campus in LaVilla.
