JACKSONVILLE, Fla. — An $18 million package to buy out the owner of the Jacksonville Landing and demolish the downtown mall will head to a vote by the full City Council next week with a majority of council members already in support of the legislation to make a clean break from the past on the riverfront site.
The council’s finance committee voted 7-0 for the legislation Wednesday after the neighborhoods committee gave its backing 6-1 on Monday.
If the full 19-member council agrees at its Tuesday meeting, demolition could happen before the end of the year.
At the finance committee meeting, most questions from council members centered on what will happen next for displaced mall tenants and how the city will position the property for redevelopment after razing the mall.
“I’m concerned that most cities are building things, and we’re knocking things down,” City Council member Matt Schellenberg said. “I’d rather build things going forward.”
Brian Hughes, who is chief of staff for Mayor Lenny Curry and also interim CEO of the Downtown Investment Authority, said the city already has fielded inquiries from developers about the Landing site.
He said the redevelopment of that site could move forward in the same way the DIA is seeking to attract private development on downtown land where demolition has been knocking down the old county courthouse and city hall annex along Bay Street.
The DIA board is scheduled to vote at its meeting Wednesday afternoon to hire a real estate specialist to create a development plan and the criteria the city will use while seeking a private developer at the courthouse and city hall annex land.
Hughes said the DIA staff will meet with Landing tenants interested in remaining downtown to show them retail spaces where they can relocate.
“If we have retailers who are successful and want to stay in downtown, we’re going to work with them to try to make that happen,” Hughes said.
The city would pay $15 million to Jacksonville Landing Investments, a subsidiary of Sleiman Enterprises, to buy out the company’s long-term lease through 2056 for occupying the city-owned land. That payment would settle a legal battle between the city and Sleiman Enterprises. The city tried in court to evict Sleiman from the property for failing to operate the Landing as a first-class retail facility, while Sleiman said the city failed to hold up its end of the lease agreement and that hurt the Landing.
The legislation also authorizes $1.5 million to handle terminating sub-leases by businesses that still are in the Landing.
Hughes said 27 of the existing tenants have month-to-month leases. Of those who have longer leases, Chicago Pizza announced last week it is closing. Fionn MacCool’s and Hooters have buyout terms in their leases, and the city has been in talks with BBVA Compass about its branch in the Landing, Hughes said.
Finally, the city would set aside $1.5 million to demolish the 31-year-old mall and get the site ready for redevelopment.
The legislation originally called for borrowing $18 million to finance the full amount, but an amendment approved this week would lower the share being borrowed to $14.5 million with the rest coming from existing city dollars.
But Hughes said the Landing is outdated as a retail facility and the Curry administration favors demolition. He said the replacement for the Landing could be a site with open space for the public plus some buildings for commercial activity.
At the two committee meetings this week, the Landing legislation gained support from 11 council members, which is a majority of the 19-member council. Two of the supporters, Joyce Morgan and Sam Newby, serve on both the finance and neighborhoods committees.
City Council member Garrett Dennis cast the lone vote against the bill, saying he thought the city was paying too much to buy out Jacksonville Landing Investment’s lease and take control over the future of the site.