Mayor Donna Deegan called Gateway Jax's Publix completion grant her highest priority in June. Just weeks later, her administration introduced legislation to set aside nearly $34 million for existing developer obligations. Now City Council faces a decision on another $28.25 million cash completion grant as Jacksonville prepares for declining property-tax revenue.

A $34 Million Fund and a $28 Million Request

Jacksonville City Council is scheduled to vote Tuesday, November 10, on Gateway Jax's request for a $28.25 million cash completion grant for its proposed Publix-anchored Downtown development. Council President Nick Howland cleared the way Thursday night after the Finance Committee deadlocked 3–3, leaving the legislation unable to advance through the usual committee process.

The timing brings another decision back into focus. Just months earlier, Mayor Donna Deegan's administration introduced legislation to set aside $33.958 million from Jacksonville's General Fund balance for previously approved developer obligations. Council approved that transfer unanimously on August 25.

The two amounts invite an obvious comparison. The $34 million set aside in August is more than enough, in dollar terms, to cover Gateway's $28.25 million cash request. But that money was designated for earlier approved commitments, not this pending grant. Any new Gateway obligation would require a separate funding authorization.

The broader Gateway package also includes approximately $21.41 million in future property-tax rebates, bringing the total proposed incentives to $49.66 million. But the focus here is the cash: how Jacksonville has been setting money aside for developer payments, and what another $28.25 million commitment would mean for future budgets.

Gateway and Deegan Have a History That Goes Beyond Publix

Gateway Jax's relationship with the Deegan administration didn't begin with the proposed Downtown grocery store.

In November 2024, Gateway purchased the former Interline Brands building at 801 W. Bay Street for approximately $4 million. The following month, the University of Florida announced that LaVilla would be the location of its new Jacksonville graduate campus.

The city subsequently negotiated with Gateway over acquiring that property for the university. Deegan supported a proposed land exchange involving city-controlled riverfront property, while some Council members favored a direct purchase.

The arrangement drew scrutiny because of the property's purchase history and the potential value of the proposed exchange. Ultimately, the negotiations demonstrated how closely Gateway's Downtown property holdings intersected with the administration's larger redevelopment plans.

It shows that Gateway was already an important participant in the mayor's Downtown development strategy long before the latest Publix incentive proposal reached Council.

December 2025: The Publix Incentive Package Takes Shape

The Downtown Investment Authority advanced Gateway's proposed Block N7 incentive agreement in December 2025.

The project includes approximately 259 apartments and 37,000 square feet of ground-floor retail space, anchored by a Publix grocery store and pharmacy. Gateway presents it as a major component of its larger Pearl Square redevelopment near City Hall.

The incentive package totals approximately $49.66 million, but it contains two very different types of financial assistance.

About $21.41 million would come through future property-tax rebates, commonly called REV grants. The other $28.25 million would be a cash completion grant, payable after construction and subject to future city appropriation.

That's an important distinction. A tax rebate returns a portion of future taxes generated by a project, while a cash completion grant requires Jacksonville to find the money to make the promised payment.

And that brings us to the events of June and July.

June 4: Deegan Warned Amendment 3 Would Devastate City Services.

Mayor Donna Deegan wasn't subtle about what Amendment 3 could mean for Jacksonville. On June 4, she warned that reduced property-tax revenue would lead to deteriorating roads, closed libraries, parks and pools, slower public safety response times and worsening housing affordability. By September 21, she was citing the Council Auditor's projected $300 million annual revenue loss and warning of a devastating impact on police, fire, parks and libraries. She also raised concerns about cuts to mosquito control, road resurfacing and children's programs.

Those warnings came while Jacksonville was already approving funding for developer obligations, including the nearly $34 million transfer requested by her administration. Now that Amendment 3 has passed, the city faces the budget pressures Deegan described while Council considers another $28.25 million cash completion grant for Gateway Jax. That raises a question worth asking, is millions to developers more important than all those threatened services she was hackling about?

June 9: Deegan Calls Gateway Her Highest Completion-Grant Priority

By early June, some Council members were already questioning whether Jacksonville could afford additional cash incentives for Downtown developers.

During a June 9 interview with Action News Jax, Mayor Deegan made her position on Gateway's Publix project clear.

"Out of anything that we're giving completion grants for, that is the most important one because so much hinges on it," Deegan said. Hinges on it? Based on what?

The mayor argued that the project was important to Downtown's continued redevelopment and indicated she was open to alternative ways of structuring the incentives.

That statement matters because it came before Gateway's legislation formally entered City Council. It established that the mayor had already identified the project as a priority while concerns about the city's future finances were growing.

June 23: Gateway's $28.25 Million Cash Request Reaches Council

On June 23, Gateway's proposed incentive agreement entered City Council as Ordinance 2026-0541.

The legislation included the $28.25 million cash completion grant, along with the separate future property-tax rebate agreement. Approval would authorize the incentive agreement, but the cash payments would still require future appropriations.

Meanwhile, Council members were already confronting another problem: Jacksonville had previously approved millions in developer completion grants without setting aside all the money needed to pay them.

Those earlier commitments were becoming increasingly important as the city considered how to prepare for potential property-tax revenue reductions.

Gateway's new request would add another substantial cash obligation to that existing list.

July 18: Gateway Asks for More Time to Renegotiate

On July 18, Gateway's attorney contacted Downtown Investment Authority officials and requested a delay in Council consideration of the incentive agreement. Jacksonville Today later obtained the email and reported that Gateway wanted additional time to develop an alternative financing arrangement.

The developer was exploring ways to reduce the immediate cash component, potentially through larger or longer-term property-tax rebates and changes to the timing of other approved Gateway incentives.

In other words, Gateway was already negotiating how much cash Jacksonville would need to provide and when those payments would occur. And were there other reasons?

Ten days later the mayor's administration introduced legislation to transfer nearly $34 million into a fund for existing developer obligations. Was the pause actually to give Deegan's staff time to write the legislation and get introduced to council?

July 28: Deegan's Administration Introduces the $33.958 Million Funding Bill

On July 28, Mayor Deegan's administration requested Ordinance 2026-0572, proposing to transfer $33.958 million from the city's General Fund balance into a multiyear contingency account. Wonder what prompted that?

The account was supposedly intended to fund previously approved, unfunded developer completion grants and forgivable loans. Council member Will Lahnen, who had been raising concerns about the city's growing development commitments, co-sponsored the legislation.

The transfer wasn't written as a new Gateway Publix appropriation. Its stated purpose was to provide money for obligations Jacksonville had already approved.

Still, consider the timing. The mayor had publicly identified Gateway's completion grant as her highest priority, the developer was actively renegotiating its request, and the administration was now proposing to move nearly $34 million into a dedicated account for developer payments. The overlapping decisions make it reasonable to examine how the city was planning to finance its development commitments.

The Mayor Can Introduce Legislation, Too

Here's something many Jacksonville residents may not realize: City Council members aren't the only ones who introduce legislation.

The mayor's administration can also initiate legislation and submit it to Council for consideration. In fact, city records identify bills introduced at the mayor's request, although Council must still vote to approve them.

That's exactly what happened with the $33.958 million transfer. Deegan's administration requested the legislation, and Council ultimately approved it.

So while Council members cast the votes, it's worth paying attention to who requested the legislation in the first place, when they requested it and what was happening at City Hall at the time.

August 5: Gateway Says the Publix Project Can't Proceed Without City Incentives

On August 5, Jacksonville Today reported on Gateway's efforts to renegotiate the Publix incentive agreement.

Gateway CEO Bryan Moll explained that the developer was considering alternatives to the original cash-grant arrangement, including changes to future property-tax rebates.

But he also made clear that the project depended on reaching an agreement with Jacksonville.

"It's not going to happen unless we get something approved with the city," Moll said.

That's a significant statement, although it doesn't mean Gateway was insisting on the original $28.25 million cash grant without modification.

The developer was saying it needed public financial participation to make the project work. The remaining questions concerned the amount, the structure and the timing of that assistance.

August 25: Council Approves the $34 Million Transfer Unanimously

On August 25, City Council approved the administration's $33.958 million funding legislation by an 18–0 vote.

The money was designated for previously approved developer obligations. The legislation did not authorize the pending Gateway Publix grant or establish that the money could automatically be used for it.

Nevertheless, the vote demonstrated that Jacksonville could identify available General Fund balances and formally set money aside to meet developer commitments.

The decision also deserves to be viewed against the city's reserve history. Jacksonville's combined operating and emergency reserves grew from approximately $107.7 million in 2011 to $525.2 million in 2025, supported in part by years of increasing property-tax revenue.

Those reserves aren't all unrestricted cash, and the August transfer was not simply a withdrawal from the city's entire emergency reserve. But it does illustrate how accumulated public funds can become part of Jacksonville's developer-incentive financing process. A slush fund.

October: Jacksonville Funds Earlier Gateway Grants While Debating Another

The Gateway debate continued through October as Council members weighed the project's potential economic benefits against the city's existing financial obligations.

Council President Howland expressed concern about approving another large cash commitment before voters decided Amendment 3. Gateway maintained that the Publix development would generate substantial future economic activity and tax revenue.

At an October 22 public meeting, Moll reiterated that the development depended on public financial support.

Meanwhile, Council approved approximately $9.223 million in completion-grant funding for three previously approved Gateway projects, identified as Blocks N4, N5 and N11.

That adds another dimension to the timeline. Jacksonville was already funding earlier Gateway development agreements while considering whether to authorize another $28.25 million cash commitment for Block N7.

The question wasn't whether the city had supported Gateway before. It clearly had. The question was how much more public cash Jacksonville was prepared to commit. The council has already approved $102.3 million in cash completion grants, excluding this recent Gateway Jax's $28 million demand.

November 4: Council's Finance Committee Deadlocks

Florida voters approved Amendment 3 on November 3, changing the financial assumptions surrounding Jacksonville's future property-tax collections.

The following day, the Finance Committee deadlocked 3–3 on Gateway's incentive legislation.

Council members Will Lahnen, Rory Diamond and Mike Gay opposed advancing the proposal, while Michael Boylan, Rahman Johnson and Randy White supported it.

Supporters emphasized the importance of a Downtown grocery store, new residential development and future tax revenue. Opponents questioned the size of the cash grant and the risks of committing additional money amid uncertain future budgets.

The deadlock left the proposal stalled in committee.

November 5: Howland Sends Gateway's Request to Full Council

On Thursday night, Council President Nick Howland released the Gateway legislation from committee, allowing the full Council to consider it Tuesday, November 10.

The action did not approve the incentive agreement. It simply gave the full Council an opportunity to vote despite the committee deadlock.

That brings the discussion back to the $28.25 million cash grant and the nearly $34 million the administration requested earlier this year.

The amounts are close enough to raise a natural question: if Jacksonville could set aside nearly $34 million for previously approved developer obligations, how would it fund another $28.25 million obligation if Council approves Gateway's request?

The existing account was designated for earlier commitments, so the answer cannot simply be that Gateway's new grant would be paid from that money. But the city would still need to identify a legally available funding source when the new payment becomes due.

Could the $34 Million Fund Eventually Pay Gateway?

The $33.958 million transfer and Gateway's proposed $28.25 million cash grant are separate legislative actions.

The first funded previously approved developer obligations. The second would authorize a new incentive agreement, with cash payments requiring later appropriations.

That means we cannot conclude that the mayor's July legislation was intended to finance Gateway's pending Publix grant, or that the money remains available for that purpose.

But Jacksonville has established a process for moving available General Fund balances into accounts designated for developer payments.

If Council approves another major completion grant, the city will eventually have to identify the money to fulfill that commitment.

Before making that decision, Council could provide a public accounting of how much of the $33.958 million remains available, which developers are scheduled to receive payments and what additional obligations would need to be funded in future budgets.

That information would help taxpayers understand the full financial picture rather than viewing each incentive agreement as an isolated decision.

Gateway Promises Future Revenue. Jacksonville Faces Future Budget Shortfalls.

Gateway argues that its Pearl Square development will strengthen Downtown and expand Jacksonville's commercial tax base.

The developer has presented projections of hundreds of millions of dollars in property-tax revenue over several decades. Those projections form part of the economic case for the project, but they are not guaranteed net revenue available to the city after rebates, public expenses and other obligations.

Jacksonville, meanwhile, faces potentially substantial recurring revenue losses following Amendment 3.

The Council Auditor has projected losses of approximately $200 million in fiscal 2027–28 and $300 million the following year.

That's where the difference between long-term economic projections and cash commitments becomes especially important.

A development may generate future tax revenue, but a completion grant still creates an obligation that Jacksonville must fund when payment becomes due. And one-time General Fund balances cannot permanently replace recurring property-tax revenue.

Tuesday's Vote Is About More Than a Downtown Publix

The timeline establishes several things.

Deegan's administration has worked with Gateway on major Downtown development initiatives. The mayor publicly identified Gateway's Publix completion grant as her highest priority in June. Gateway sought to renegotiate its incentives in July, and the administration introduced legislation to set aside nearly $34 million for previously approved developer obligations later that same month.

Council approved that transfer unanimously in August. Now it faces another $28.25 million cash completion-grant decision involving the same developer.

None of those events, individually or together, proves that the administration created the funding account specifically for Gateway's new Publix project. But they establish the sequence of decisions and the administration's publicly stated priorities.

And that's what makes Tuesday's vote important.

Jacksonville has accumulated substantial financial reserves, approved significant development incentives and established mechanisms for funding commitments that previously lacked appropriations.

Now, with property-tax revenue expected to decline, Council must decide whether to add another major cash obligation.

Before that vote, taxpayers deserve to know how much Jacksonville has already committed to developers, how much cash remains available to meet those commitments and where the money for another $28.25 million grant would come from.

The question is after Amendment Three passed how can the mayor and council justify writing a check for $28 million to a developer.

Sources

• Action News Jax, June 9, 2026 — Mayor Deegan discusses Gateway's completion grant and the project's importance.

• Jacksonville City Council, Ordinance 2026-0541 — Gateway Jax Block N7 incentive agreement.

• Jacksonville Today, August 5, 2026 — Gateway's incentive negotiations, including the July 18 attorney email and Bryan Moll's statements.

• Jacksonville City Council, Ordinance 2026-0572-E — $33.958 million transfer for previously approved developer obligations.

• Jacksonville City Council, August 25, 2026 — Council approval of the funding transfer.

• Jacksonville City Council, October 13, 2026 — Funding for previously approved Gateway Blocks N4, N5 and N11.

• News4JAX, November 5–6, 2026 — Gateway incentive debate, Finance Committee deadlock and Howland's decision to send the legislation to full Council.

• City of Jacksonville and Jacksonville Daily Record, 2024–2025 — UF graduate campus property negotiations and Gateway's purchase of the former Interline Brands building.

The Development Divide Series