The Downtown Investment Authority expects most uses in Fleet Landing's proposed 31-story Jacksonville retirement tower to be taxable, despite the developer's nonprofit status. The Duval County Property Appraiser will make the final determination.

DIA CEO Colin Tarbert clarified the agency's tax assumptions in response to a reader question reported by the Jacksonville Daily Record. The clarification followed the DIA board's 7-0 vote on Oct. 21 to approve a proposed $49.27 million tax incentive for the project at 111 Riverside Ave., the former Haskell headquarters site. City Council approval is still required.

How DIA modeled the tax bill

Florida law considers how each portion of a property is used when deciding whether a nonprofit qualifies for an ad valorem tax exemption. Property used exclusively for exempt purposes may qualify for a full exemption; property used predominantly for exempt purposes may qualify for a partial exemption, subject to the statutory tests in Florida Statutes Section 196.192 and Section 196.196.

In its underwriting, the DIA treated the 238 independent-living units, parking garage, land, restaurant, coffee and wine bar, and amenities such as the performing arts center, fitness center, spa and pool as taxable. It treated 28 assisted-living units and 18 memory-care units as potentially exempt. Those are the agency's assumptions, not a final appraisal; the Duval County Property Appraiser will decide which portions qualify.

The proposed incentive

The proposed Recapture Enhanced Value Grant would rebate 75% of eligible new property-tax revenue over 20 years, up to $49.27 million, according to the Daily Record's coverage of the DIA vote. The package does not include a completion grant, which would be a separate lump-sum payment.

The agreement estimates total project costs at $635.58 million and requires at least $371.56 million in private capital. It calls for at least 275 residences; its listed program includes 238 independent-living units and 46 assisted-living and memory-care units. Between years 10 and 20 of the grant, Fleet Landing would have to reinvest at least 133% of the value of its property-tax reductions into the project. Tarbert told the Daily Record the provision is intended to preserve the project's high-end profile.

Fleet Landing's Beaches history

Fleet Landing's first campus is in Atlantic Beach. A group of military officers founded the organization in 1985, according to the Daily Record. The organization began planning a Nocatee campus after more than 400 families joined a waiting list for its first community. CEO Josh Ashby told the Daily Record that the $146 million Nocatee campus sold out while under construction.

The grant still needs City Council approval. Beaches Beacon reported Oct. 22 that a Council hearing date had not been announced.