The Neighborhoods Committee approved bill 20250876 as substituted, authorizing the sale of the city-owned Armory property with revised parcel size, adjusted purchase price and conditions intended to protect the city's fiscal interests.

Staff told the committee the substitute revises parcel size to about 2.49 acres, sets the in-progress assessed value at $3,217,874.20 and the purchase price at $2,547,513.60, and clarifies that $496,537.10 of the purchase price will repay previously dispersed CDBG funding rather than be deposited into the Jacksonville Recreational and Environmental Land Acquisition Fund. OED and housing staff explained the developer had originally planned an adjacent affordable-housing component that was later removed at the city's request and that the building requires substantial remediation—including asbestos and lead abatement and flood mitigation—estimated at about $15 million.

Council members pressed staff and the developer on valuation and protections. Councilman Amaro said he was troubled by the appearance of selling a property appraised at roughly $3.2 million for $2.5 million and using part of the sale to reimburse a prior grant: "the appearance of us selling the property that's appraised at 3 for 2.5 and using 500 of that sale price to reimburse the city for the grant ... I find somewhat troubling." Ed Randolph, OED, and developer representative Don Patterson explained the price derives from a contract negotiated in 2020 with a 1% escalator and reflected changed project economics after the affordable-housing parcel was removed; Patterson said the developer expects substantial improvements and "we don't intend to sell the property any sooner than 3 years," adding that tax-credit compliance further discourages an early sale.

The committee adopted auditor-recommended protections: an amendment prohibiting transfer to entities exempt from non‑ad valorem taxes and a 3‑year nontransfer condition starting from closing, with a negotiated foreclosure exception for lenders. After debate on appraisal, remediation costs and long-term viability, the committee approved the substitute 5–1. Members asked staff to clarify closing mechanics and to ensure the repayment of CDBG funds is documented at closing.

Next steps include finalizing contract language, documenting the CDBG repayment mechanism at closing, and tracking remediation and historic-preservation requirements as the project advances.