City seals $12M deal to keep Winn-Dixie HQ — and a Brentwood store open

City lawmakers struck a deal this week with the Winn-Dixie Co. that keeps its store in Brentwood open while approving millions in public incentives to retain its headquarters in Jacksonville.

The Jacksonville City Council voted 16-2 on Tuesday to approve Resolution 2026-0326, which clears the way for a $12 million deal to expand and add 200 workers to Winn-Dixie’s corporate headquarters on the city’s Westside – bringing the number of employees to 700. 

For Winn-Dixie’s promise to invest at least $65 million in its Jacksonville operations, the council approved a $5.5 million property tax refund – known as a “recapture enhanced value” grant – and a $6.5 million HQ “retention” grant.

According to the legislation, the tax grant would refund 50% of the city property tax revenue gained from the project over the next 20 years. 

An amendment by council member Will Lahnen negotiated tighter job creation requirements than was in the original deal, requiring the company to fill the 200 new positions faster and hit annual benchmarks to receive the retention grant.

The agreement was nearly derailed last week after residents in the Brentwood neighborhood protested the deal made after Winn-Dixie’s announcement in March that the company planned to close its Harveys Supermarket at 201 W. 48th St. and a second Harveys in Arlington.

Winn-Dixie deal that almost wasn’t

Northside residents said it was unfair to give the Jacksonville-based grocer $12 million from the taxpayers if the company closed the store at 48th and Main streets, which they said would create a food desert and also remove a pharmacy from the neighborhood. 

Council member Ju’Coby Pittman, whose district includes Brentwood, held a public meeting last week where Winn-Dixie agreed to keep the store open until 2029 and give the city an 18-month notice if it decides to close the store after its three-year lease is up. 

“This should be a pretty easy choice,” Council Vice President Nick Howland said before the vote Tuesday. 

“If we approve this amendment and the bill as amended, there’s a 100% chance that 500 employees stay here, the West 48th Street store stays open, we hire 200 new employees in Jacksonville and Winn-Dixie invests $65 million in capital investment. Otherwise … we get our money back,” he said. “If we don’t approve this tonight, the only thing we’re 100% sure of is more uncertainty and that the West 48th Street store will close.”

The agreement with the city also requires Winn-Dixie to operate 13 stores total in Jacksonville. The company announced Thursday it will cut ribbons on May 16 for two new stores in Jacksonville, at 5909 University Blvd. W. and 5250 Moncrief Road W. It’s also opening a store this weekend in Folkston, Georgia. 

The company says $48 million of its $65 million investment pledged in its agreement with the city will be store renovations, with $17 million going into its headquarters. The 200 new corporate jobs will have an average salary of $100,000, according to the agreement.

Council President Kevin Carrico and member Rory Diamond voted against the bill.

Diamond, who has a history of voting against public incentives for private companies, argued that the agreement may not save the 48th and Main streets store past 2029.

He called the deal “corporate welfare.”

“This is extortion,” Diamond said. “All the uncertainty we’re trying to put to bed is because Winn-Dixie is giving us the uncertainty. They’re the ones shutting down the stores. They’re the ones saying, ‘We love Jacksonville. We grew up our entire company here. We are the history of Jacksonville. But we’re going to leave if you don’t give us cash.’” 

Pittman said Tuesday she was taken back by Diamond’s comments. 

“When you haven’t lived in a community that’s distressed or have issues, you can’t relate to that,” she said.

Council member Jimmy Peluso, who ultimately voted in favor of the bill, said he feared that it would set a precedent for other companies that want public money to remain in Jacksonville. 

He said he hopes the debate over giving Winn-Dixie city dollars leads to a debate on fully funding the city’s food desert program.

The U.S. government considers an area a food desert if at least 500 residents and/or at least 33% of the population live more than 1 mile from a supermarket or large grocery store.

After the vote, Winn-Dixie Chairman and CEO Anthony Hucker thanked the Deegan administration and city council for finalizing the deal.

“As Jacksonville’s hometown grocer, this is a meaningful milestone for our company and for the community we have proudly served for generations. Today’s approval is an investment in the future of Jacksonville and in the long-term growth of The Winn-Dixie Company,” Hucker said in a news release. “This decision allows us to move forward with plans to invest $65 million over the next five years in our Jacksonville operations to strengthen our Store Support Center, invest in our local store footprint and support future job growth.”

The deal was negotiated by Mayor Donna Deegan’s admission and the city’s Office of Economic Development. The mayor said on WJCT News 89.9’s First Coast Connect on Tuesday that it’s important to keep the “homegrown company” in Jacksonville. 

Winn-Dixie officials told city leaders it was considering relocating to another city despite what they consider a favorable business climate in Jacksonville. 

“The only case that I can really make for you on this is that this is a lot of jobs. It’s also a company that’s been here forever. We didn’t want to lose that to Tampa,” Deegan said.