As Jacksonville prepares to welcome the University of Florida’s much-hyped Downtown graduate campus, city officials face a pivotal choice that will reverberate well beyond LaVilla. At the center of the debate: how to acquire the Interline Brands building at 801 W. Bay Street, the anchor site for UF’s first classrooms. Two starkly different proposals are headed toward City Council—an outright purchase, or a controversial land swap with private developer Gateway Jax.

But this isn’t just a real estate transaction. It’s a referendum on transparency, accountability, and whether Jacksonville’s taxpayers are being asked to subsidize backroom deals at their own expense.

Option 1: Outright Purchase

Sponsored by Council member Ron Salem, this proposal would direct the city to spend up to $8 million to buy the Interline building directly from Gateway Jax, which acquired the property for $4 million just six months ago. A March 2025 city-commissioned appraisal pegged the building's value at $6.75 million.

Pros:

• Clean Transaction: No additional incentives or entanglements. The city pays, takes title, and moves forward.

• Avoids Depleting Valuable City Assets: Retains public control over premium waterfront parcels at Riverfront Plaza.

• Transparency: A straightforward purchase avoids complicated value negotiations and perceived favoritism.

Cons:

• Immediate Cash Outlay: The purchase would require upfront use of city funds, although Council members argue the cost will be offset by a one-time $40 million JEA contribution this fall.

• Missed Redevelopment Opportunity: Critics argue it delays private activation of riverfront property the city has long sought to revitalize.

Option 2: Land Swap

Backed by the Downtown Investment Authority (DIA), Mayor Donna Deegan, and Gateway Jax, this deal would trade two prime city-owned parcels at Riverfront Plaza—appraised at $5.02 million—for the Interline building. Gateway would then be cleared to construct a 17-story mixed-use tower.

Pros:

• No Upfront City Expenditure: Avoids tapping reserve funds, a key selling point amid looming budget deficits.

• Immediate Downtown Activation: Gateway commits to developing a high-rise that would add residents, hotel rooms, and retail, all theoretically boosting tax revenue.

• Future Park Maintenance: Gateway says condo fees and hotel surcharges would help fund maintenance of the adjacent Riverfront Plaza park.

Cons:

• Developer Windfall: Gateway bought the Interline property for $4 million, now potentially swapping it for riverfront land and access to $20M in completion grants—plus future REV grants.

• Loss of Prime Land: The Riverfront parcels are key city assets. Swapping them removes long-term control and limits future public use.

• Hidden Subsidies: The swap may appear cash-neutral, but incentives tied to the tower development will hit the city’s general fund—potentially during a looming $105M deficit window.

Transparency in Question

The core concern isn’t just the mechanics of either deal—it’s the suspicion that key decisions have been made behind closed doors. Despite Mayor Deegan’s public commitment to transparency—including new rules on nonprofit contracting—her administration has stonewalled public records requests related to Interline and UF campus negotiations. Those requests, dating back to February, seek communications between the mayor’s office, Gateway Jax, and the DIA. More than two months later, the documents remain unfulfilled.

This opacity is compounded by Deegan’s short-lived attempt to restrict City Council access to staff through the MyJax system, a move widely seen as an attempt to centralize—and politicize—communications.

Conflict Concerns: Colliers and Gateway Jax

Adding to the credibility concerns is the role of Colliers International. The firm is deeply involved in Downtown real estate, serving as the leasing agent for Gateway Jax, while also providing property valuations cited in public discussions of the Interline deal. This dual role raises red flags. Can Colliers objectively assess values that directly impact its client’s bottom line?

Colliers’ political activity and ongoing lawsuits elsewhere only add to the perception of potential conflict. If city-owned land is being undervalued while private property is being appraised generously, taxpayers deserve to know why—and who benefits.

The Billion-Dollar Elephant in the Room

The Interline deal is just the start. The placement of the UF campus at the Prime Osborn site will eventually require demolishing the convention center and relocating it and the city jail. Estimated price tags: $1.2 billion each. City leaders have offered little clarity on how these capital projects—totaling more than $2 billion—will be financed. All while budget deficits are projected to hit $100 million annually over the next four years.

The land swap makes short-term sense on paper but locks in long-term obligations. Incentives for Gateway’s tower, construction of a new jail and convention center, and maintenance commitments for the expanded Riverfront Park all come with costs that could snowball over time. At minimum, the public deserves a full, clear-eyed financial picture—before Council signs off.

Conclusion: A Moment for Accountability

The University of Florida’s expansion into Jacksonville is an opportunity. But it shouldn’t come at the cost of public trust, fiscal stability, or basic transparency.

Council members must weigh more than just the appraisals and incentives—they must also consider what kind of city government Jacksonville wants to be. One that operates in the open, or one that shields public assets behind private deals.

It’s time to demand full disclosure. Time to scrutinize the true costs of these transactions. And time to decide whether Jacksonville’s future will be shaped by backroom deals or public interest.