JEA’s former Downtown Jacksonville headquarters—the landmark Universal Marion building at 21 W. Church Street, along with the adjacent six-story Customer Center and Adair Building parking garage—has a buyer. Live Oak Contracting and its partners plan to transform the campus into The Jewel at 21 West, a mixed-use project with 180 residential units, rooftop amenities, office space, and ground-floor retail and restaurant uses.

On paper, the plan fits perfectly with Jacksonville’s downtown vision: turning aging office stock into residential space that could bring new life and foot traffic to the urban core. But while renderings of rooftop decks and lively streetscapes are eye-catching, the numbers behind the deal raise serious questions about transparency and public stewardship.

The Math Doesn’t Add Up

According to the Duval County Property Appraiser:

• JEA Tower (21 W. Church St.): $23,783,546

• Adair Garage (421 Laura St.): $6,189,700

• Customer Center/Booth (21 E. Church St.): $930,865

Total assessed value: $30,904,111

Sale price: $1,000,000

That’s just 3% of assessed value—a staggering gap.

Yes, assessed value isn’t always the same as market value, especially for dated office towers in a market still grappling with remote work and high vacancy rates. But a 97% discount from assessed value for public property demands explanation.

Incentives and the DIA Factor

Downtown redevelopment in Jacksonville almost always involves public incentives, largely administered through the Downtown Investment Authority (DIA). From apartment towers along the river to hotel projects and office conversions, the DIA has leveraged millions in tax rebates, grants, and other tools to entice private development.

Live Oak’s bid for The Jewel at 21 West explicitly anticipates applying for these incentives. Their proposal notes a capital stack composed of 65% debt, 20% private equity, and 15% public funding through tax credits and city incentives. Consultation with incentive counsel and city officials is already underway, with formal applications expected within months.

This means the $1 million purchase price is unlikely to be the city’s final investment in the property. Between potential tax rebates, historic preservation credits, and other DIA-backed tools, public resources could play a significant role in subsidizing the redevelopment—on top of JEA’s decision to sell at a bargain-basement price.

Fiduciary Duty and Public Accountability

Here lies the heart of the matter: JEA is not a private company flipping a distressed asset. It is a publicly owned utility with fiduciary responsibilities to its ratepayers and taxpayers.

• Did JEA obtain an independent market appraisal before selecting the winning bid?

• How is selling for 3% of assessed value consistent with the duty to safeguard public assets?

• What precedent does this set for other public property sales?

• If additional DIA incentives are approved, will taxpayers essentially be “paying twice” for the transfer—first through an undervalued sale, and then through subsidies for redevelopment?

Historic Significance, Bargain Price

The irony is that these buildings are not just “obsolete office stock.” They are contributing properties in the Downtown Jacksonville Historic District and are listed on the National Register of Historic Places. The Universal Marion tower, topped by its once-famous revolving restaurant, is a signature mid-century modern landmark.

With such prominence, and given JEA’s own sponsorship of an office-to-residential symposium in 2023 that flagged its headquarters as a prime conversion candidate, shouldn’t this property command a more carefully structured deal?

The Bigger Picture

Jacksonville has made huge bets on downtown revitalization. From taxpayer-backed incentives for new towers to multimillion-dollar infrastructure upgrades, the city has shown a willingness to invest in shaping its core. But as the public shoulders these costs, the disposal of major publicly owned assets for pennies on the dollar cannot escape scrutiny.

The vision for The Jewel at 21 West is compelling. Yet the way this deal is structured invites an equally important conversation:

• Should JEA and the City of Jacksonville establish stronger guardrails to ensure public assets are not undersold?

• How should we balance the need to activate dormant downtown properties with the obligation to protect public resources?

• If redevelopment requires both a steeply discounted sale and future city subsidies, who is truly benefiting—the community at large, or the developers positioned to acquire marquee properties at fire-sale prices?

What’s your take? Is JEA’s $1 million sale of property assessed at over $30 million a smart play to jumpstart redevelopment—or a breach of its duty to the public it serves?