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The Old Kmart's Future Comes Down to Water, Sewer and Parking

A 29-foot water tank stands behind the homes on Cherry Street, and people in Neptune Beach call it the "big green monster." A developer put it up in December 2022 so the smaller Publix in the former Kmart plaza would have enough water pressure for its sprinklers. On Tuesday, Sept. 29, residents packed Neptune House in Jarboe Park to hear plans for the empty building next door to that Publix, and the tank was one of the first things they asked about, according to Beach Gazette.

They had good reason. The plan for 500 Atlantic Blvd. is called Town Center West, and three things will shape what gets built there: fire-flow water pressure, a sewer connection and a parking count the city and the developer don't agree on. One way to solve the first could also take down the tank.

What Tribridge Has Filed

The Kmart closed in 2016. An earlier redevelopment plan, with apartments and retail, was never built. The Duval County Property Appraiser lists the owner as TBR Neptune Owner, an entity whose business address includes TriBridge Residential in Atlanta. Tribridge filed a development order in late August.

According to the city's Oct. 21 Community Development Board agenda, the application covers three requests on a C-3 zoned parcel:

  • DP26-05, a preliminary development plan for a 133,580-square-foot hotel with 150 rooms, about 90,000 square feet of shopping center space and shared parking
  • V26-08, a variance to go over the code's 60,000-square-foot cap on total gross floor area
  • V26-09, a variance to allow 45% building frontage where the code calls for 70%

On the ground, Beach Gazette reported, that means a three-story hotel on the south side of the property, backing up to the Neptune by the Sea subdivision, and a two-story retail plaza on the north side. Tribridge managing partner Steve Broome said Sage Hospitality Group would run the hotel. Sage also operates Dune House in Atlantic Beach. No hotel brand or name has been announced.

Neptune Beach Mayor Cori Bylund told the Jacksonville Daily Record that she sees it as "the biggest development for Neptune Beach in decades." Tribridge attorney Steve Diebenow said three options were considered for the site: another big-box store, a hotel with residential townhomes, or all residential. The team chose the current mix after hearing from the City Council.

The Tank Shows the Biggest Unsolved Problem

The new buildings will need sprinkler pressure that meets what Beach Gazette called "state fire suppression standards." The tank on Cherry Street is how the Publix next door got its sprinkler pressure.

For the new buildings, Diebenow said the team asked the City of Atlantic Beach for a shared connection to its water supply for fire suppression only. Atlantic Beach said no. He told the crowd at Neptune House the developer plans to ask again once Neptune Beach approves the project:

"We'd love for you to come with us. Then we can enter into an agreement for water pressure only and they would feel more comfortable that we're not trying to do some bait and switch."

If Neptune Beach can't supply the pressure and Atlantic Beach says no again, Diebenow said a third option would be another water tank. He added that nothing is final. Broome described how the tank could come down instead. "If water pressure becomes available, [the city of Neptune Beach] has to tap in and get rid of the green monster," he said.

So for the Cherry Street homes behind the tank, the outcome could go either way. If Neptune Beach or Atlantic Beach can supply the pressure, the tank could come down. If neither one can, a second tank is one option.

Sewer and Parking Raise the Same Question

The sewer issue is about the connection, not the treatment plant's size. Diebenow said the city's wastewater treatment plant can handle 88,000 gallons a day and the project would produce about 44,000. The problem is that the existing lift station connection may not be enough, and the route to the plant was still being worked out. "How it gets there is still under conversation," he said.

Parking is where the two sides disagree most. Beach Gazette reported both counts from the same meeting:

City staff count Developer's analysis
Spaces required 463 Says it meets code
On-site spaces 148 north, 138 south, "basically 300" Not broken out
Shared Publix spaces About 100 more, for roughly 400 total Included
Result About 63 spaces short 105 spaces above requirement

Community Development Director Heather Whitmore gave the city's numbers. Diebenow said that "if you compare apples to apples, we have more spaces pro rata than the other side of Third," and added, "Let's see if the council agrees with us." City code allows shared off-site parking and valet, the same kind of arrangement used by The Local and other restaurants in town. Some residents asked whether a parking garage would follow. Broome said the project doesn't create enough demand to need one.

Residents also raised light from third-floor hotel rooms shining toward nearby homes, and one suggested fewer rooms would make a better neighbor. Diebenow said that below a certain number of units, "you don't have a viable product," and that the room count was unlikely to change.

All three issues share a pattern. Water, sewer and parking each depend on something beyond the parcel: another city's water main, a lift station, a council vote on how to count spaces. Tribridge can't settle any of them alone.

Why Lemon Street Is Part of the Plan

Diebenow said the "Town Center West" name is meant to connect hotel guests with the shops and restaurants of Beaches Town Center. In practice, guests would walk or drive Lemon Street between the hotel, Town Center and the beach.

First Coast News reported that the North Florida Transportation Planning Organization is studying Lemon Street now. Clark Letter of the TPO said the work will "look at alternatives and suggest design changes to better accommodate those new traffic volumes and match the aesthetics Neptune Beach is looking for in the town center area." A server at Grumpy's told the station that 150 rooms could mean "another 300-400 potential new customers a day" for a breakfast-and-lunch spot within walking distance. He also said the street's potholes would need fixing if traffic picks up.

The developer's statement to First Coast News describes "a walkable, pedestrian friendly and welcoming space with a curated mix of high end hotel, restaurants, office and retail." How walkable it turns out to be depends partly on what the TPO recommends for Lemon Street, and that study runs on a separate schedule from the hotel approvals.

Where It Stands as of Early November

This is the schedule from local reporting and the city's calendar:

  1. Sept. 29. Community meeting at Neptune House in Jarboe Park. Community Development Board member Tony Mazzola, who ran the meeting, told residents, "This is going to happen very quick."
  2. Oct. 21. Community Development Board public hearing on DP26-05, V26-08 and V26-09 at City Council Chambers, 116 First St.
  3. Nov. 2. City Council meeting at 6 p.m. Beach Gazette reported this as the date for first reading.
  4. Nov. 16. Beach Gazette reported this as the final public hearing. The city's meeting calendar lists the 6 p.m. session that day as a City Council workshop.

Diebenow said Tribridge hopes to have it "done by the end of November," and that the company has owned the property for five years and is "not trying to rush or push anything through." That date refers to approvals. No construction start or opening date has been announced. Agendas, packets and meeting video, when available, are posted on the city's CivicClerk portal. That's the most reliable place to check what the board and council decided, and when the final hearing is scheduled.

For homeowners on Cherry Street, along Lemon Street and in Neptune by the Sea, the key questions are about the tank, the traffic and the light from the hotel's south side, and each one will be settled at a public meeting. I'm following Town Center West through every hearing. If you'd like to talk about how a project this size could affect your block or your home's value, Tara Belanger is happy to go through it with you. Let's Connect.

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