An artist's rendering of the planned 37,000-square-foot Publix at 119 W. Beaver St., part of a new building that will also include a 15-story residential tower and 400 parking spaces. | Gateway/Pearl Square
Published on November 4, 2026 at 4:49 pm
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After a monthlong delay waiting on the results of Constitutional Amendment 3, it’s still unclear what city lawmakers want to do with a multimillion-dollar cash incentive proposal to bring a residential tower and Publix grocery store to Downtown Jacksonville.
With no debate Wednesday, the Jacksonville City Council’s Finance Committee deadlocked 3-3 on Ordinance 2026–0541.
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The legislation includes a development deal with Gateway Jax Inc., brokered by the city’s Downtown Investment Authority and mayor’s office, that would offer a $28.25 million cash completion grant and up to $21.4 million property tax refund.
A completion grant is an incentive paid to a developer after a project is finished.
In return, the developer says it would build a $140.15 million, 14-story residential and retail high-rise near City Hall that Gateway says will house a full-service Publix.
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The Finance Committee deferred the measure in October to see if Florida voters passed Amendment 3, the homestead property tax cut that is expected to drop local city and county government revenue across the state by $45.8 billion by 2032. That includes a $300 million shortfall for Jacksonville by the 2028-29 fiscal year.
The council’s more conservative members worry Jacksonville would not be able to afford the private investment in the project once Amendment 3 kicks in next year.
On Tuesday, voters in Florida approved the tax cut with 62% support — exceeding the 60% threshold needed for passage. In Duval County, voters approved the amendment 56.5% to 43.5%, according to unofficial results from the Associated Press.
Before the incentives vote, Finance Committee member Rory Diamond, who is a perennial no on city-backed incentives for developers, gave a speech that was highly critical of how the city is budgeted and operated.
He stated his intention to file a series of bills during his final months in office to eliminate vacant City Hall positions; slash salaries by 25% for employees making more than $100,000 per year; and eliminate Community Redevelopment Areas, which is where the city awards incentives dollars.
“The first thing that needs to be cut in Jacksonville is every dollar people want to send to Downtown developers. It’s ridiculous,” Diamond said.
Finance Committee Chair Will Lahnen and others had already grown weary of continuing to offer cash incentives to developers with about $68.1 million in unbudged completion grants outstanding, according to the council auditor.
Supporters of the Publix-anchored project say the city investment is worth the cost.
The project would bring a Publix grocery store to the Downtown Northbank, which has seen a surge in residents over the past decade, and to the estimated $1.269 billion Pearl Square neighborhood Gateway is building near City Hall.
Once complete, Pearl Square is expected to have 1,200 residential units. Downtown business owners and residents came before the committee Wednesday saying that is enough of a reason for the city to offer financial support for an essential service like a grocery store and pharmacy.
Dimitri Demopolis has lived in Downtown Jacksonville since 2010. He said he doesn’t envy the position council members are in with Amendment 3 in place.
“There is a shared frustration as to why Jacksonville needs to provide so many incentives and why it is that things just don’t catch on their own. Having said that, I’m also aware of all the other variables involved in why we don’t have an established workforce in this town to sustain large scale development,” he said.
But Demopolis fears the decade of momentum redeveloping the urban core could stagnate.
“Here we are, finally, at a point that I have not seen in the 17 years I’ve been here and waiting for development Downtown,” he said. “I am starting to see the kind of spark that suggests that we have a fire that’s the right kind of fire we want in Downtown Jacksonville that’s going to spur opportunity and economic growth. These developers seem to have been willing to put a great deal of skin in the game.”
Tim Hoal is a partner-owner of Hardwick’s Bar a few blocks east of Pearl Square.
“I believe the new Publix represents much more than a grocery store,” he said. “It represents progress, investment and confidence in the future of Downtown Jacksonville. For years, we have talked about what it will take to make Downtown more vibrant, active and a livable community. One of the most important things we can do is provide the everyday service and amenities that residents, workers, families and visitors need.”
Downtown Publix showdown?
City Council rules say a tie vote constitutes a deferral of the bill and locks the bill in committee. To discharge it and send the legislation to the full council, it would take an order from council President Nick Howland.
Howland told Jacksonville Today that he will decide whether to discharge the bill by Friday.
Council members Mike Gay and Lahnen joined Diamond on Wednesday to oppose the incentives for Gateway, which has already been awarded almost $30 million in completion grants for other components of Pearl Square.
Committee members Rahman Johnson, Randy White and Michael Boylan voted in favor. Committee member Chris Miller was absent Wednesday.
Wednesday’s vote could lead to a fever pitch next week if the full City Council gets the chance to make a final decision on the incentives package. And the city lawmakers will see a split recommendation.
A month before the Finance Committee’s rejection, the council’s Neighborhoods, Community Services, Public Health and Safety Committee voted 5-2 to recommend the city investment in the Downtown residential and Publix project.
Council member Matt Carlucci has been one of the most vocal backers of the project. He had his own public meeting in October in an attempt to galvanize support on Council and from the public.
