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Salem's $4M Interline Offer Casts Shade on Mayors Deal with Gateway Jax

John Hawley

Feb 20, 2025

A $4 million purchase proposed by Jacksonville Councilman Salem for the Interline building, instead of a land swap for the UF grad center, casts shade on Mayor Deegan and DIA CEO Boyers' private negotiation with Gateway Jax, where they would have gained the remaining city-owned riverfront property worth twice as much.

Council member Ron Salem's at the Feb. 18 Downtown Investment Authority meeting proposed purchasing the Interline Brands Inc. building at 801 W. Bay St. for $4 million, rather than trading city-owned riverfront property for it. This move added another layer of complexity to the already controversial plan to secure the building for the University of Florida graduate center campus in downtown Jacksonville. While Mayor Deegan's chief of staff, Mike Weinstein, has publicly stated the mayor's continued support for the land swap and her reluctance to commit additional public funds, Salem's legislation highlights the council's prerogative and raises crucial questions about fiduciary responsibility and potential conflicts of interest.


The public may view the mayor's and DIA's resistance to Salem's proposal with skepticism, especially given the already substantial public investment in the UF campus, reportedly exceeding $100 million. The additional $4 million for the Interline building pales in comparison to the overall project budget, which could potentially balloon by hundreds of millions more, particularly when considering the associated costs of redeveloping the Prime Osborn site and constructing a new convention center and jail that the new campus sets in motion. This raises concerns about the total cost to taxpayers and the justification for prioritizing the land swap over a direct purchase, especially if the swap involves undervaluing city-owned waterfront property negotiated without input from the city council.



Gateway Jax's involvement in the Interline building acquisition further complicates the situation. The consortium purchased the building for $4 million in October 2024 and, just months later, is proposing to exchange it for a city-owned waterfront property, potentially double its value. This raises questions about whether Gateway Jax is acting as a true partner with the city or seeking to capitalize on its privileged position in the negotiations. The timing of the purchase, just before the public announcement of the UF campus location and the subsequent proposed swap, fuels speculation about potential coordination between Gateway Jax, Mayor Deegan, and DIA CEO Lori Boyer. The fact that this proposed trade for the Interline building was not revealed to the public until February, despite the initial UF announcement in December, intensifies concerns about transparency. Why was this crucial element of the deal kept secret for so long? What was the full context of the private negotiations between the mayor, DIA CEO, Gateway Jax, and UF?


The DIA board's unanimous vote on February 19th, authorizing the disposition of the Prime Osborne and Interline building (once acquired, regardless of the method), underscores the urgency of the situation and the board's commitment to securing the Interline building. However, it also begs the question: why such haste?  Why not allow for a more thorough and public vetting of all options, including Salem's proposal, before committing to a potentially unfavorable deal?


The existing background information detailing the DIA committee's initial resistance to the swap, the questions surrounding the Interline building's valuation, and the concerns about Gateway Jax's involvement in private negotiations, provide further context for Salem's intervention. The fact that Gateway Jax acquired the Interline building for $4 million and now claims it's worth $7.5 to $8 million raises red flags, particularly in light of their receipt of millions in city incentives for other projects and current insistence that this one will also require them. The optics aren't good of a private company potentially profiting significantly from a land swap with the city being lobbied for by the mayor, DIA CEO, and UF, especially if that swap had been negotiated prior to the initial announcement of Jacksonville winning the UF campus bid, but withheld until their February push claiming it was critical to start classes this Fall.


The ongoing lack of transparency surrounding the proposed land swap for the UF graduate center campus in downtown Jacksonville is deeply concerning. The mayor's office has resisted public records requests to uncover communications between city officials, Gateway Jax, and UF regarding the Interline building and the campus development. This lack of cooperation fuels suspicion and raises legitimate questions about how public and private interests are being prioritized.


Beyond the immediate concerns about the Interline building and the land swap, the larger financial picture remains alarmingly unclear. The mayor and city council should provide comprehensive answers to the following:

  • What is the total projected cost of the UF campus development for taxpayers? This must include all associated costs, not just the initial building acquisition.

  • What is the estimated cost of replacing the convention center and jail, necessitated by these negotiations?

  • How will all of these projects, including the UF Campus, Convention Center, and jail, be financed in light of the city's projected $40-$100 million budget deficits over the next four years? 


Councilman Salem's proposed purchase of the interline building at a fair price from Gateway Jax is a good deal for the city, considering the developer is already receiving substantial financial incentives and stands to gain from the UF campus near their developments. The community deserves a clear and detailed financial plan that's not clouded by concerns over backroom deals but transparent and inclusive of the total cost to taxpayers of the UF campus, convention center, and jail replacement.  

Florida Condo assessments skyrocket
Florida Condo assessments skyrocket
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