DCPS plan move from Southbank to Baymeadows, raising accessibility concerns

[Skybox111]

Well school board is staying for the bad reasons and screws southbank development around that area.   Heights Unknown here is why it died and school board is at fault of debt and failure of their schools read all.  Hope this doesn't create a domino effect again with other developments. I believe riversedge was banking on this as a catalyst for greater development for them and the area as they were waiting hoping this would create a better selloff of parcels to developers.



The situation surrounding the Duval County School Board (DCSB) headquarters and Mike Balanky's Chase Properties just took a major turn for the worse. As of February 12, 2026, the entire deal has officially imploded.

The Current Collapse (February 2026)
The district announced today that the relocation plans are being "adjusted" because Chase Properties terminated its agreement to buy the Southbank headquarters.
* The Reason: Balanky stated that his team discovered a "substantial Community Development District (CDD) encumbrance" on the property that was not disclosed during the initial negotiations or appraisal.
* The Fallout: Because the sale fell through, the School Board also terminated its $13.65 million purchase of the new Dream Finders Homes building in Baymeadows.
* Result: The district is staying put at 1701 Prudential Drive for the foreseeable future, with no new timeline for moving.

Why the Delay Feels Like "Incompetence" to Critics
The frustration you're feeling stems from years of flip-flopping that ultimately led to this dead end:
* Years of Indecision: The district has been trying to leave this "Class B" 45-year-old building since 2005.
* The Fleet Landing Snub: In October 2025, the board rejected a $20 million offerfrom Fleet Landing because they didn't like the payment terms.
* The 4-3 Split: When they finally approved Balanky's lower $17.2 million bid in November 2025, it was by a razor-thin, divided vote.
* The "Screwing" of the Developer: Balanky had spent nearly 20 years pursuing this specific site. He had already begun planning a $300 million "masterpiece" featuring luxury branded condos (like a Ritz-Carlton or St. Regis) and retail.

The "Poor Mike Balanky" Aspect
For Balanky, this isn't just a lost contract; it's a massive blow to his Southbank strategy.
* Synergy Lost: The HQ site was meant to be the anchor for his nearby TrailView Townhomes and the broader RiversEdge development.
* Wasted Due Diligence: After finally winning the bid in late 2025, he entered a 90-day inspection period that uncovered the undisclosed CDD debt—a massive financial "red flag" that essentially made the $17.2 million price tag unviable.
With the district facing a $1.4 billion capital shortfall, the board's inability to close this deal means they are stuck with an aging, high-maintenance riverfront building while their "fiscally responsible" exit plan has completely evaporated.


The "incompetence" you're seeing reached a boiling point on


February 12, 2026, when the entire relocation deal officially collapsed, leaving the district exactly where it started in 2005.
The Community Development District (CDD) debt was the "poison pill" that finally killed Mike Balanky's $17.2 million deal.

The CDD Debt Issue
A CDD is a special-purpose government that issues tax-exempt bonds to pay for infrastructure (roads, utilities, amenities). This debt is repaid by the property owners through long-term assessments.
* The Discovery: During his 90-day due diligence period, Balanky's Chase Propertiesdiscovered a substantial, undisclosed CDD encumbrance on the 1701 Prudential Drive site.
* The Conflict: Balanky stated this debt was not disclosed during the district's initial solicitation, appraisal, or negotiation process.
* The Financial Hit: For a developer, inheriting millions in unexpected CDD debt fundamentally changes the "math" of a $300 million project. It lowers the land's actual value because the buyer must either pay off the bonds or bake those high annual assessments into their operating costs, which would have made his planned luxury condos less competitive.

How the District "Screwed" the Process
The failure is being blamed on a combination of poor disclosure and the Board's historical flip-flopping:
* Appraisal Failure: The fact that the district's own appraisal reportedly missed a "substantial" government-linked encumbrance suggests a major oversight in their real estate management.
* The "Domino Effect": Because the Board insisted on a "no-overlap" policy—refusing to own two buildings at once—Chase's termination forced the district to immediately cancel its $13.65 million purchase of the Dream Finders Homes building in Baymeadows.
* Wasted Leverage: Critics point out that by ignoring this debt earlier, the Board wasted months of work and potentially permanently damaged their relationship with one of the only local developers willing to tackle the site.

What Happens Now?
The district has "unpacked the moving boxes" and is staying at the aging Southbank HQ indefinitely, with no new timeline for a sale. They are still facing a $1.4 billion capital shortfall and will continue to sink money into the maintenance of a building they've been trying to sell for 20 years.
Do you want to look into whether the District's real estate consultant (Trinity Commercial Group) or the Superintendent has faced any official blowback for the disclosure oversight?

[Charles Hunter]

Very clear summary of the situation, Skybox.

Two questions
1. How much is the CDD encumbrance?
1a. What is the annual payment, and for how much longer?
2. Why didn't the DCPS consultant know about the encumbrance?
2a. Do they face any consequences, financial or otherwise?

[Skybox111]

At least 1.4 to near 2 billion and not much known of the annual cost but a $100 million projected shortfall, with reports indicating potential costs to fix school buildings could rise to $3.9 billion. So they are screwed with handling of debt. Also the consultant probably is incompetent or they knew and were hoping the developer didn't look into it but did and he would taken on that debt. Also no consequences  yet.

[copperfiend]

Once again, we'll always have the renderings

[Ken_FSU]

Very clear summary of the situation, Skybox.

Two questions
1. How much is the CDD encumbrance?
1a. What is the annual payment, and for how much longer?
2. Why didn't the DCPS consultant know about the encumbrance?
2a. Do they face any consequences, financial or otherwise?

If I'm understanding all of this correctly, it seems like a failure on all fronts. If the property is inside the RiversEdge CDD (e.g. encumbered), isn't it Florida Law that Chase would inherit a share of the CDD's bond obligation for shared infrastructure? How would all parties involved not know this and adjust for it in a deal?

[acme54321]

I'm really confused how the dcps property ended up in the cdd and if in fact it is in the cdd, how did no one know about it??

[Ken_FSU]

I'm really confused how the dcps property ended up in the cdd and if in fact it is in the cdd, how did no one know about it??

JaxToday had a good summary:

Part of Duval Schools' headquarters property — 1.73 acres — is a parking lot along the river and east of the building itself.

Almost a decade ago, board members agreed to swap some of the school district's land with Elements Development. According to School Board meeting minutes, they finalized the land swap in June 2018.

That contract foreshadows today's dispute; it details Elements' plan to create a community development district.

In this case, one of the things The District CDD paid for was the Duval school district's new parking lot — to the tune of nearly $1 million. Although Duval Schools was never going to have to pay CDD fees, documents show the expectation was that a future owner might have to.

https://jaxtoday.org/2026/02/12/duval-schools-headquarters-sale/

[thelakelander]

All of this was recent (i.e. less than a decade ago). I don't understand why the CDD element was unknown. Nevertheless, from the Duval County taxpayer's perspective, DCPS just failed up and downtown keeps 800 plus workers there for the foreseeable future. Whatever benefit would have came from the sale was immediately lost with the Baymeadows purchase.

Call it a day, revamp the freaking building and move on. Sell off the parking lot between the building and Prudential Drive for infill development or partner for some infill development on those lots to make a little revenue.

[jaxlongtimer]

I have yet to be convinced it was financially appropriate to move from their current building.  Everything I have picked up on appears to indicate the move was driven more by political optics (get them off the river) rather than a real need or financial rationale to move.  It has always been questionable about whether the numbers added up to saving any significant dollars, if any at all, by moving.

So, I think this is a blessing, perhaps.  I don't see an urgent demand for more riverfront property to be put in the hands of developers when there is already so much that is going begging.  Let developers deliver on the existing and past promises first.  School board is going to get far less dollars today than if they can hold off until most or all existing land inventory is spoken for.

Sorry for Mr. Balanky & Co. getting taken for a ride.  Someone should be shamed for failure to uncover or disclose this lien up front.  That said, I wonder how $1 million, if that is the issue, would be enough to kill a multi-$100 million project.

I don't see this as a monkey wrench in the area's development, again, given that River's Edge and other real estate is in a holding pattern, it appears.  Add this to the false narrative that Downtown on either bank is headed toward smooth sailing at the moment.

[tufsu1]

Once again, we'll always have the renderings

Likely that's all you would have had from Balanky anyway

[Ken_FSU]

I have yet to be convinced it was financially appropriate to move from their current building.  Everything I have picked up on appears to indicate the move was driven more by political optics (get them off the river) rather than a real need or financial rationale to move.  It has always been questionable about whether the numbers added up to saving any significant dollars, if any at all, by moving.

So, I think this is a blessing, perhaps.  I don't see an urgent demand for more riverfront property to be put in the hands of developers when there is already so much that is going begging.  Let developers deliver on the existing and past promises first.  School board is going to far less dollars today than if they can hold off until most or all existing land inventory is spoken for.

Sorry for Mr. Balanky & Co. getting taken for a ride.  Someone should be shamed for failure to uncover or disclose this lien up front.  That said, I wonder how $1 million, if that is the issue, would be enough to kill a multi-$100 million project.

I don't see this as a monkey wrench in the area's development, again, given that River's Edge and other real estate is in a holding pattern, it appears.  Add this to the false narrative that Downtown on either bank is headed toward smooth sailing at the moment.

Agree with all of this.

Sucks for Balanky (though I will say, he did himself no favors by publicly saying that he looked forward to leveraging Rivers Edge's amenities without sharing the cost on infrastructure), but I think it's good for the taxpayers, and for the downtown workforce, to have DCPS stick around.

End result of this move would have been another $20 million+ ask from the general fund for luxury living on the riverfront. Hard pass, at the moment.

[landfall]

Would be awesome if Gateway Jax could partner with them on a purpose built HQ on the Northbank.

[thelakelander]

I know much of the DCPS focus is on the future of their downtown headquarters, but they are closing schools all over. All tend to be large tracks of land where various projects from adaptive reuse to infill mixed-income and affordable housing could be viable revenue generating options for them. Thinking of LaVilla, that school property consumes 9 urban city blocks, four of which they don't and have not used since the school was built two decades ago. JEA is also sitting on a couple of blocks of prime undeveloped property across Davis Street and COJ has three undeveloped blocks immediately to the north. Three local public entities sitting on 9 undeveloped connected blocks in the middle of the Northbank CRA. Partner development, sell it off or build your own headquarters on your own property. So many options to explore but finding the best solutions forward means breaking down silos and everyone working together.

[heights unknown]

I know much of the DCPS focus is on the future of their downtown headquarters, but they are closing schools all over. All tend to be large tracks of land where various projects from adaptive reuse to infill mixed-income and affordable housing could be viable revenue generating options for them. Thinking of LaVilla, that school property consumes 9 urban city blocks, four of which they don't and have not used since the school was built two decades ago. JEA is also sitting on a couple of blocks of prime undeveloped property across Davis Street and COJ has three undeveloped blocks immediately to the north. Three local public entities sitting on 9 undeveloped connected blocks in the middle of the Northbank CRA. Partner development, sell it off or build your own headquarters on your own property. So many options to explore but finding the best solutions forward means breaking down silos and everyone working together.

Those parcels and blocks of land in LaVilla is my old Childhood Neighborhood. Being that they razed the old residential homes back in '99 I believe, it would be nice to see new residential, and some office and commercial pop back up in that Neighborhood. And whoever thought up the idea of closing off Ashley Street and building commercial there, needs to be............(I won't even say it; I would be kicked off the forum).

[thelakelander]

^Whatever they do, re-establishing the missing portion of Ashley Street is a must!