Jacksonville’s downtown core is facing a crisis that could significantly impact its economic future. Citizens Property Insurance, one of the largest employers in the area, has expressed strong concerns about the safety of its employees, citing incidents involving homelessness-related crime and harassment. As a result, the company is considering relocating its operations away from downtown. If Citizens leaves, it could set a precedent for other businesses, threatening the city’s economic revitalization efforts.

At the heart of this issue is the intersection of public safety, economic development, and the city’s response to homelessness. The city has struggled to balance its duty to ensure public order with its responsibility to care for the vulnerable homeless population. A new state law, HB #1365, mandates the prohibition of unauthorized public camping and sleeping on public property but does not provide funding for enforcement or solutions. This puts additional pressure on Jacksonville’s leadership to find funding and implement policies that comply with the mandate while addressing homelessness in a humane and effective way.

Employee Safety Complaints and the Downtown Exodus Risk

Citizens Insurance employees have reported at least 41 safety complaints since 2023, including incidents of public intoxication, violent altercations, and public exposure. One employee reported a bullet piercing a window at the EverBank Center, while another recounted a homeless individual exposing himself in front of employees. These reports highlight the severity of the issue and the challenges businesses face in maintaining a secure work environment in downtown Jacksonville.

Despite efforts from city officials and business leaders, including the JAX Chamber, to keep Citizens Insurance downtown through incentives, company leadership has indicated that incentives alone will not address the fundamental safety concerns. If Citizens relocates its more than 1,000 employees to a Southside office, Jacksonville's downtown risks losing not only jobs but also the momentum for downtown redevelopment.

Downtown’s High Office Space Vacancy and the City's Investment Priorities

Adding to the concern is the highest office space vacancy rate with the lowest rate per square foot in the state of Florida for a major metropolitan area. While millions in incentives have been funneled into downtown projects such as Gateway Jax, a large-scale mixed-use development aimed at transforming key sections of downtown, the ongoing homelessness crisis presents a significant deterrent to potential investors and employers. Gateway Jax won't want to contend with the issue once they have their first property "Pearl Square" available for lease.

At the same time, the City of Jacksonville is making a substantial financial commitment to upgrade the Jaguars’ stadium, EverBank Field. While the stadium improvements aim to enhance Jacksonville’s appeal as a sports and entertainment hub, the lack of corresponding investment in addressing homelessness in the downtown core raises questions about the city's funding priorities. A vibrant, thriving downtown requires more than just marquee projects; it demands a safe and welcoming environment for businesses, employees, and residents alike.

Mayor’s Proposal vs. Council’s Actual Allocation

Understanding the gravity of the situation, Mayor Donna Deegan proposed an $11 million allocation in her 2024 budget to address homelessness, aiming to expand shelter capacity, enhance outreach programs, and provide wraparound services. However, the Jacksonville City Council allocated only $2 million, significantly underfunding recommendations in the Homelessness Plan to Address the Passage of State Law 1365. Mayor Deegan has difficulties

This funding gap is particularly concerning given that the city auditors estimate Jacksonville will face annual budget deficits between $40 million and $100 million over the next four years. At the same time, the city of Jacksonville will be raising taxes to afford $2 billion to replace the jail and the convention center, the latter of which is being relocated to make way for the UF graduate campus. With such financial pressures, a long-term sustainable funding solution for homelessness initiatives is critical.

Reevaluating Downtown Investment Authority Funding

The city council has been considering a fixed annual general fund allocation of $20M–$50M to support Downtown Investment Authority (DIA) approved projects, allowing more autonomy in decision-making. One potential solution is to reallocate funds from the DIA to address homelessness. By redirecting a portion of DIA’s budget to comprehensive homelessness solutions, the city could create a safer, more attractive downtown environment for businesses while also meeting state mandates and community needs.

The finalized homelessness plan outlines a path to functional zero homelessness in Jacksonville, including a $13.6 million first-year investment in shelter expansion, outreach teams, and housing-focused case management. If DIA funding were to contribute even a portion of this cost, Jacksonville could make substantial progress. However, it's simply not a holistic approach to provide financial incentives to businesses that come but then leave because the environment is not good for their employees and business associates.

The Path Forward: Balancing Economic Growth and Social Responsibility

In conclusion, balancing investment in startups with efforts to address homelessness will have a better chance of creating a thriving downtown that benefits all. This approach fosters economic growth and enhances community stability in Jacksonville, paving the way for a future where businesses and residents flourish together.