Questionably timed land deals and proposed city-owned land swaps conjured up in private negotiations by Jacksonville Mayor Donna Deegan to expedite the donation of the Prime Osborne Convention Center to facilitate the University of Florida's graduate campus have hit a bump in the road. During a February 13 meeting, the Downtown Investment Authority (DIA) Retail Enhancement and Property Disposition Committee resisted what some members saw as an attempt by DIA CEO Lori Boyer to push the proposal through the committee and relinquish negotiation authority to her.

Committee Raises Concerns

The committee deferred the vote until the full DIA board meeting on February 19, citing a need for greater transparency and additional information. Key concerns included the potential public incentives Gateway Jax might seek for the Riverfront Plaza project and the valuation of the Interline building, which developers had offered to trade instead of selling outright to the city.

Boyer emphasized that securing the Interline building was crucial for the UF campus plan, asserting that without it, the university’s selection of LaVilla “probably doesn’t proceed.” This statement raises questions, as the Board of Regents and Mayor Deegan had already announced the deal's approval in December 2025. The agreement was based on 22 acres comprised entirely of the Prime Osborn Convention Center and surrounding city-owned property. If the Interline building was not part of the originally announced selection what's the basis of Boyer claiming that without it being included now it would kill the deal announced in December?

Committee members questioned the fairness of the trade, given that the Duval County Property Appraiser valued the Interline building at $5.55 million.

Gateway Jax acquired the two-story, 38,136-square-foot property for $4 million in October 2024. Gateway Jax principal Bryan Moll claimed at the meeting that they could sell it for $7.5 to $8 million, but that they ultimately agreed to a property exchange. We don't know the property value of the city-owned waterfront property. Is it closer to $4 million or $8 million? “We would be happy to continue to own 801 W. Bay St.,” Moll told the committee. “This is not a land grab. Even though it’s not sexy, it is a valuable site that we’d be trading.”

Moll declined to specify the public incentives that would be requested for the Riverfront Plaza development but acknowledged that some form of assistance would be necessary. “Any property development Downtown today requires incentives,” he said, according to the Jacksonville Daily Record. In downtown Jacksonville, such incentives—including forgivable loans, grants, and tax benefits—have become commonplace for a range of development projects, from historic restorations to bars and short-term rentals.

Timing and Transparency Issues

The broader deal, which includes the Prime Osborn Convention Center and surrounding properties, has raised concerns about transparency. Jacksonville Mayor Donna Deegan negotiated the UF deal privately, and the timing of the land swap has fueled speculation. Moll claimed that Gateway Jax was under contract for the property before the mayor’s offer to donate the Prime Osborn and surrounding land to UF. However, there has been no explicit denial that the consortium—including JWB Real Estate Companies and DLP Capital—was coordinating with the mayor and DIA CEO during negotiations.

Public Records and Delayed Responses

To gain clarity, public records requests were submitted to the City of Jacksonville regarding the negotiations. A January 4, 2025, Freedom of Information Act (FOIA) request sought:

• A complete list of properties included in the reported 22-acre donation to UF,

• Documents outlining the development phases beyond the initial 3.62 acres,

• Clarifications on how the project would impact convention center parking and capacity.

The city responded on February 6 with a press release posted on its website. The timing was notable, as just days earlier, on February 3 and 4, Boyer had presented details of the property swap to City Council members.

Under DIA Resolution 2025-02-04, the city would offer Riverfront Plaza along with an option for additional parking lot property. The resolution also granted Boyer authority to finalize negotiations, stating: “If no alternate responsive and qualified proposals are received, or if they are determined by the CEO to be lower in value or unresponsive, the DIA authorizes its CEO to finalize negotiation of a Redevelopment Agreement with Gateway.” Representatives from Gateway Jax and UF were present to make their case for the swap.

City Council Scrutiny

On February 7, Finance Chair Ron Salem (R-Group 2 At-Large) told Action News Jax that he had significant concerns about the deal. A major issue is the timing of Gateway Jax’s purchase of the Interline building, which closed in October—just two months before LaVilla was announced as the future site of UF’s graduate school campus.

“I have a number of questions,” Salem stated. “We must make sure the taxpayers are protected and that the swap is a fair swap.”

Moll reiterated in a Jacksonville Business Journal interview that Gateway Jax was under contract for the Interline building in May 2024, months before the UF announcement. However, no supporting evidence was provided to verify that claim or that they weren't in communication or coordinating with Mayor Deegan about the potential land swap during that time.

A Push for Greater Transparency

Given the lingering concerns, the DIA Retail Enhancement and Property Disposition Committee made the prudent decision to delay approval of the deal. Greater transparency is needed to understand the negotiations between Mayor Deegan, Boyer, Moll, and UF officials. More detailed disclosures would ensure that Jacksonville taxpayers receive fair value for the city’s prime riverfront real estate rather than being pushed into a potentially unfavorable agreement.

Additional FOIA requests have been submitted to the City of Jacksonville and the Florida Board of Regents to obtain:

• Any communications between Mayor Deegan, Gateway Jax, and/or DLP Capital, their subsidiaries, and associated LLCs and attorneys related to the Interline building purchase and the proposed UF campus between Jan 1, 2024, and Feb. 11, 2025.

• Any communications between DIA, Gateway Jax, and/or DLP Capital, their subsidiaries, and associated LLCs and attorneys related to the Interline building purchase and the proposed UF campus within the same timeframe.

The DIA board and City Council should be equal parties alongside the mayor and DIA CEO in negotiations that directly impact Jacksonville’s future. Eliminating the Prime Osborn Convention Center coincides with a proposal to build a new convention center on the site of the existing jail, which would first need to be demolished and rebuilt elsewhere. These projects could cost hundreds of millions of dollars, while city auditors are already projecting annual budget deficits of $40-$100 million.

Could a better deal have been negotiated for UF’s graduate campus? Jacksonville is a vast city with available properties that would not require sacrificing a convention center and building a new jail. Transparency from the mayor’s office, the Downtown Investment Authority, and City Council is essential to ensuring the best outcome for Jacksonville’s residents.