New legislation would provide tax exemption for Union Terminal Warehouse

As work nears completion on the adaptive reuse of the Union Terminal Warehouse building, newly filed Jacksonville City Council legislation would provide a property tax break for the project.

Ordinance 2024-0844 would give the property owner, East Union Property Owner LLC, a 10-year, 100% exemption on the increase in assessed ad valorem tax value of the property resulting from the historic restoration of the building. The ordinance is scheduled to be introduced at the Nov. 12 City Council meeting.

The legislation was triggered by the adaptive reuse project being declared substantially complete by the Planning and Development Department, making it eligible for the Historic Rehabilitation Tax Exemption provision adopted by the city in 1994.

In 2021, Council named the warehouse a local landmark at the request of East Union Property Owner, a subsidiary of property developer Columbia Ventures of Atlanta. The designation helped make the property eligible for the tax exemption.

The building also is listed on the National Register of Historic Places.

The 330,000-square-foot warehouse, built in 1912 and 1913, was the largest commercial building in Florida upon completion and helped the state pioneer modern grocery distribution.

Conceived in the aftermath of the 1901 fire that destroyed much of Jacksonville, the four-story structure was designed with fire protection in mind. Its features include a series of reinforced-concrete bays protected by steel-clad doors that could automatically roll into place during a fire. Concrete stairways and elevator shafts also were incorporated.

A rooftop 50,000-gallon water tank that fed a sprinkler system has been retained and repainted as part of the adaptive reuse.

The $73 million project will include 228 apartments and 50,000 square feet of space for small offices, food and beverage operations and maker studios.

In addition, a portion of the 30-mile Emerald Trail will run through "subway" tunnels used for freight loading on the east side of the building.

East Union Property Owner purchased the 7.35-acre property near EverBank Stadium in 2018 for $4.6 million.

In 2022, Council authorized $8.29 million in forgivable and deferred principal loans for the project. Developers also have received federal historic rehabilitation tax credits for the project, Florida Brownfields tax credits, Opportunity Zone equity and a $41.35 million mortgage from Bank United of Miami Lakes.

Council meets at 5 p.m. at City Hall.