Gainesville City Commission approves ground lease for Lot 10
BY JENNIFER CABRERA
GAINESVILLE, Fla. – At the January 15 meeting, the Gainesville City Commission approved a ground lease and development agreement for a mixed-use development on Lot 10.
Property will be transferred back to the City and then leased to AMJ
City Manager Andrew Persons said that under the agreement, the property, which is currently owned by AMJ, would be transferred back to the City, and the City would enter into a ground lease with AMJ for 60 years, with the first 30 years’ lease payments coming from the original purchase price of the property; Persons said this is being done because recently-adopted state laws allow for property tax exemptions for affordable units (at 120% AMI) on government-owned properties with a minimum 30-year lease.
After the 30-year property tax exemption expires, AMJ will have the option to purchase the property at its then-current appraised value or continue the ground lease. The project will be a minimum of seven stories and will include at least 104 residential units, with at least 70 of the units restricted to households making 120% AMI (Area Median Income). The project will also have a minimum of 5,500 square feet of non-residential, commercial space.
AMJ has already applied for ConnectFree funding to help offset water/wastewater connection charges, and the City will use $1 million from the purchase price (which Persons said has always been allocated for affordable housing), supplemented by the City’s surtax funds that were previously set aside for affordable housing, to purchase 11 units in the project as affordable housing.
Persons said a timeline is built into the agreement, and there are performance requirements that give the City recourse in the form of liquidated damages if the project “does not end up coming to fruition.”
AMJ expects to build 115 residential units
AMJ Vice President Anthony Lyons said that the company expects to submit a foundation permit sometime in April. He said they expect to build 115 units, and the leasable commercial space will likely be leased to a coffee shop, restaurant, or boutique. He said they hope to break ground in 2026, depending on how long the permitting process takes.
Mayor Harvey Ward said, “I will tell you that I’m very much looking forward to this — I’m excited… and hope we can get there today.”
City Manager Persons: “We’re going to move heaven and earth, in terms of making sure that they’re not waiting on the City at any point along the way.”
In response to a question from Commissioner Casey Willits about what would happen if AMJ does not start construction on the timeline in the agreement, Persons said there are sequential phases in the contract, including the approval phase, and “we’re going to move heaven and earth, in terms of making sure that they’re not waiting on the City at any point along the way.”
Mayor Ward: “There’s sort of a best-of-both-worlds opportunity here, and we’re so close that I can smell the dirt.”
Ward said, “We are closer than we have ever been to changing [Lot 10] from a surface parking lot, which I think most people would agree is not the highest and best use of that property… As we turn this into a ground lease, we will maintain and retain some ownership of the property — there’s sort of a best-of-both-worlds opportunity here, and we’re so close that I can smell the dirt.” He said if this agreement does not move forward, the best case is that it would take three or four years to “get something moving there again.”
Motion
Commissioner Bryan Eastman made a motion to approve the ground lease and development agreement for a mixed-use development on Lot 10. The motion passed unanimously, with Commissioner James Ingle absent; Commissioner Ingle anticipates being absent for six weeks to recover from surgery on January 15.
Where is Lot 10? More parking gone from Gainesville, and more need for parking being created?
It’s the empty lot – except for some nice oaks – across from Loosey’s. Ive wondered what the history of it is, because those oaks are old, and also wondered why no one has advocated it becoming a park. Some surrounding properties – the old In and Out, Mac’s, Rice Hardware – can’t be that valuable that they couldn’t be the residential space across from a bice park.
When I am in that area I always admire those stately old oaks. Very sad that they will be cut down.
They’d get more downtown residents if they just moved GRACE to Lot 10. Then they wouldn’t have to walk far for their court hearings.
Given the details as stated, looks like it’s beneficial to two entities—the City and AMJ.
AMJ likely gets a fast track to development, a serious reduction in taxes, they have to provide the City with only 11 “affordable” units out of 115. The City maintains ownership, someone else develops the property and they get to tell the public they provided affordable housing.
Friends with benefits or wolves in sheep’s clothing? You decide.
And don’t forget, to get one of the 11 “affordable” spots, it will be who you know that counts. I wouldn’t be surprised if they work it out where only POC will get those spots.
Other downtowns and their Commissions are much more creative than this liberal led Commissioin. Whats the advatage of putting up tall buildings that block out everything surrounding them. This isn’t what Gainesville is supposed to be like. Downtown with the parking debicle is a miserable place to go. What they are doing isn’t progress at all.
This is a tax dodge scheme–the City Commission is exploiting a loophole in state law to basically force Gainesville taxpayers to subsidize a private developer for 30 years. Could this project even succeed without a government bailout?
The city gives up 30 years of taxes (notice they don’t say how much that would have been) plus $1 million of our money just to get 11 units.
City Manager Andrew Persons’ quote about “moving heaven and earth” is concerning–is AMJ going to get special treatment, easy inspections, and expedited permitting that other businesses do not?
The reason Mayor Ward can “smell the dirt” is that he has been groveling on the ground in desperation, begging AMJ for this project against the best interests of the taxpayers.
I asked the Copilot AI to make a proposal for an empty lot, one directed to a liberal commission and one directed to a conservative commission. I’ve pasted just the core goals sections below. GCC can pay me a consultant fee of $100,000 for the rest of it.
Liberal Core Goals
– Deliver permanently affordable housing using a community land trust or long‑term deed restrictions.
– Activate the downtown area with street‑level retail, community space, and green design.
– Demonstrate the city’s commitment to equity, sustainability, and smart growth.
Conservative Core Goals
– Provide workforce housing for essential employees (teachers, police, nurses, service workers).
– Use public‑private partnerships to minimize taxpayer burden.
– Increase downtown economic activity and strengthen the tax base.
– Maintain orderly, attractive development that fits the city’s character.
– Ensure long‑term affordability through market‑aligned mechanisms, not heavy subsidies.
Another shady Sweetheart deal.
Always the same set of clowns 🤡 reuniting for a different scheme.