Councilman Salem proposes removal of $12M incentive for Riverfront Plaza Pad B

The City of Jacksonville's Finance Committee convened on August 15, 2025, for Budget Hearing #4, focusing on critical financial decisions that will shape the city's fiscal landscape. The meeting highlighted significant discussions around budget allocations, unallocated funds, and the status of ongoing development projects.

One of the key topics was the handling of unallocated budget revenue, which was discussed in relation to the Downtown Investment Authority (DIA). The committee examined a recommendation from auditors to adjust the unallocated funds, which had been reduced from approximately $1.98 million to about $1.19 million due to various adjustments, including an error in assessed property values. This reduction raised questions about the future allocation of these funds, with members expressing concerns about whether the remaining unallocated revenue should be returned to the city’s general fund or retained for future use.

Councilmember Salem emphasized the importance of ensuring that any unallocated funds are protected from being reallocated without council approval. He proposed that the $12 million earmarked for potential incentives related to the Riverfront Plaza project be removed from the budget until a formal decision is made by the council. This proposal sparked a debate about the appropriateness of including such a significant amount in the budget without prior council approval.

The meeting also addressed the status of a land swap agreement involving the Gateway team and the University of Florida (UF). Steve Kelly from the DIA reported that the agreement is still pending execution, with an expected timeline for completion within the next 90 days. This delay raised concerns about the impact on the timeline for UF's planned classes in downtown Jacksonville, which are now projected to begin in January 2026, rather than the previously anticipated date.

Additionally, the committee discussed the Downtown Preservation and Revitalization Program (DPRP), which has historically been funded through the general fund. Councilmembers expressed a desire to see dedicated funding for this program in the current budget, with proposals to allocate funds from unallocated expenditures to support ongoing preservation efforts in historic neighborhoods like LaVilla.

As the meeting progressed, the committee voted to approve several auditor recommendations, including adjustments to property tax revenues and the allocation of funds for various capital projects. The discussions underscored the committee's commitment to ensuring fiscal responsibility while addressing the city's development needs.

In conclusion, the Budget Hearing #4 highlighted the complexities of managing the city’s finances amid ongoing development projects and the need for careful consideration of budget allocations. The committee's decisions will play a crucial role in shaping Jacksonville's economic future, with further discussions anticipated in upcoming budget hearings.