The University of Florida’s downtown Jacksonville graduate campus is poised to cost city taxpayers far more than the $100 million cash commitment now under consideration.Because the project is centered at the Prime Osborn Convention Center and surrounding property, it has triggered a cascade of costly capital projects — including the need for a new convention center, a new county jail, and potentially billions in additional infrastructure spending over the next five years.

While the Jacksonville City Council prepares for a June 24 final vote to allocate another $50 million toward the campus — atop the $50 million already pledged — the full financial ripple effect is just starting to come into focus.

The high price tag stems from private negotiations last year between UF officials, Mayor Donna Deegan, and Downtown Investment Authority CEO Lori Boyer. By selecting the Prime Osborn site for the UF campus, city leaders effectively committed taxpayers to replace critical civic infrastructure without conducting a public cost-benefit comparison of alternate sites across Jacksonville’s 840 square miles.

City Council Finance Committee Chairman Ron Salem warned that the upcoming development agreement deserves rigorous review, even as he remains supportive of the campus concept. "We have to make sure everything is set up correctly," he said.

Behind-the-Scenes Deals and Land Speculation

Meanwhile, developers and land speculators have already positioned themselves to benefit. Gateway Jax, a politically connected downtown development firm, purchased the Interline Brands headquarters at 801 W. Bay St. just two months before the UF campus announcement. They are now negotiating a land swap with the city for coveted riverfront property — a transaction that could result in a substantial private profit fueled by public investment.

Such moves raise questions about who knew what, and when, during the secretive UF site selection process. City Hall’s closed-door approach left local residents and taxpayers out of discussions that will reshape the urban core for generations.

Projected Costs and Unclear Financial Details

The basic numbers attached to the project are already steep:

• $150 million from the State of Florida

• $50 million from UF private donors (for academic programs, not construction)

• $100 million from City of Jacksonville taxpayers (pending council final vote)

• $45 million additional from the state for the Florida Semiconductor Institute

That funding pool totals $345 million, but only $295 million is dedicated to construction. No detailed estimates were provided at the April 24 council information session for the cost of UF's planned two academic buildings or subsequent phases of expansion.

UF Vice President of Strategic Initiatives Kurt Dudas told council members that "we're early in the process" and that an architectural design contest will shape final plans. Still, the absence of specific building costs or a construction timeline leaves unanswered how far existing funds will stretch.

The project’s second phase calls for demolishing most of the Prime Osborn Convention Center, renovating the historic train terminal for public retail and dining, and building 1 million square feet of additional academic and innovation space — none of which has formal pricing attached yet.

Enrollment vs. Investment

At launch, UF expects just 85 students enrolled across architecture and MBA programs in Fall 2025. Enrollment could rise to 685 students by 2030, with a long-term target of 1,500 students.By comparison, Jacksonville University currently enrolls over 4,200 students and the University of North Florida more than 16,000.

In short: a massive public investment is being made to support a campus smaller than many Northeast Florida high schools — at least initially.

The city’s escalating financial exposure also comes as local higher education faces headwinds. Jacksonville University recently announced layoffs of 40 faculty members and the elimination of 22 undergraduate programs. State and federal crackdowns on DEI initiatives and curriculum content are further straining university budgets across Florida, raising the specter of even greater future public subsidies.

A Semiconductor Play — and Political Tensions

UF’s plans include building the Florida Semiconductor Institute at the new campus, hoping to capitalize on Jacksonville’s military footprint and position the city as a hub for applied semiconductor research tied to national security.

While promising, the semiconductor component represents just a fraction of the total financial undertaking.

City Council members sympathetic to the UF project are now under pressure to identify funding sources, likely leading to cuts in other downtown incentive programs managed by the DIA — the same agency whose past land negotiations have already raised transparency concerns.

Expect fierce debate in the coming weeks about how Jacksonville balances developer incentives, public infrastructure needs, and university ambitions — all while grappling with a $100 million general budget shortfall.

In the end, the story of the UF graduate campus isn’t just about education. It’s about who pays, who profits, and whether the long-term vision for downtown Jacksonville matches the extraordinary public investment being demanded today.

Stay tuned.