JACKSONVILLE, Fla. — A proposed land swap deal that would trade riverfront property for land and office space in LaVilla for the new UF grad school campus is moving ahead, but now it has some competition.
On Wednesday, the Downtown Investment Authority pushed the land swap deal forward.
Under the deal, the city would get a two-story office building and two acres of land in LaVilla, which would go to the university and allow classes to begin as early as August.
In exchange, the city would give up one acre of land in Riverfront Park to developer Gateway Jax, which plans to build a tower full of residential units, a hotel and food and beverage options.
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Gateway Jax CEO Brian Moll said his company has valued the LaVilla property at $8 million during the DIA meeting.
That’s twice as much as the company purchased it for last year.
The city on the other hand values both properties at roughly $5.5 million.
Mayor Donna Deegan’s Chief of Staff Mike Weinstein argued the swap will save taxpayers money and bring the promise of new riverfront development.
“The city already is putting in money for the university to come here. We’re definitely invested in it. We didn’t want to spend any more money,” said Weinstein.
PHOTOS: Plans for the UF downtown graduate campus
But Council Finance Chair Ron Salem (R-Group 2 At-Large) threw a curve ball into the mayor’s plan, promising to file legislation for a clean purchase of the LaVilla property, with a starting offer of $4 million.
“I think this is the cleanest way to get this property to the University of Florida. It’s a six-week process,” said Salem. “We will negotiate, if Gateway Jax wants, to a price they’re comfortable with. We’ll buy the property and then we’ll provide it to the University of Florida.”
Some DIA board member raised concerns about a lack of details related to Gateway Jax’s development plans.
They pointed to the fact closing incentives could reach $20 million, and that’s even without an estimate for the total cost of the project.
Still, a vote to remove the land swap option in favor of a straight purchase of the LaVilla property failed.
Now the competing proposals will head to City Council for consideration.
Weinstein argued at the end of the day, the savings on the LaVilla property and the value of a big downtown development project contemplated in the land swap deal would be a boon for the city.
“It’d be easy to spend the $8 million if you had it. You know, you say go ahead and spend it, well you know, we’ve got to stop spending money,” said Weinstein.
Ultimately, the council will have the final say as to whether it will pursue the mayor-backed land swap deal or Salem’s outright purchase.
Expect a lot more debate over these competing proposals over the next several weeks.
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