Neptune Beach residents turned out Tuesday to hear from the developers of a planned mixed-use project at 500 Atlantic Blvd., known to locals as the old Kmart, designed to activate the vacant property and connect it to Beaches Town Center.
City staff coordinated the meeting to give residents a forum to ask questions about the preliminary site plan, which the Community Development Board is scheduled to consider Oct. 21.
Developer Tribridge submitted a development order, which functions similarly to a site plan application, in late August. The request calls for a three-story, 150-room hotel on the south side of the property, which backs up to the Neptune by the Sea subdivision. A two-story retail plaza is planned for the north side.
The City Council is scheduled to hear the first reading Nov. 2, with a final public hearing Nov. 16. Tribridge also has applied for two variances, one for frontage requirements and one for a building larger than 60,000 square feet.
“Get your questions answered and start communicating,” said Community Development Board member and meeting facilitator Tony Mazzola. “This is going to happen very quick.”
Steve Diebenow, an attorney representing Tribridge, addressed the packed crowd at Neptune House in Jarboe Park about plans for a mix of hotel, retail and office space.
“I want to hear what everyone has to say to head off any potential issues. Our goal is to answer your questions and address any issues head on,” he said. “Our hope is we get this done by the end of November. Tribridge has owned the property for five years. We are not trying to rush or push anything through.”
Steve Broome, managing partner of Tribridge, also answered questions about density, traffic and infrastructure capacity, including wastewater and the water pressure required for fire suppression.
An existing lift station connection may not be sufficient, Diebenow said, and the team is working to identify options for access to the city’s wastewater treatment plant.
“For now, we know the wastewater treatment plant can handle 88,000 gallons a day. This application generates 44,000 gallons a day, so half as much, but how it gets there is still under conversation,” he said.
Water pressure for fire suppression was a chief concern among residents, who remember the “big green monster,” a 29-foot water tank that still stands behind homes on Cherry Street. A developer installed it in December 2022 to supply sprinkler pressure for the smaller-format Publix in the former Kmart plaza.
Diebenow said the development team asked the city of Atlantic Beach for a shared connection to its water supply for fire suppression only, but the city denied the request.
“Our plan when we get this plan approved by Neptune Beach, we plan to reapproach Atlantic Beach. We’d love for you to come with us,” he said. “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 cannot provide the water pressure required by state fire suppression standards and Atlantic Beach again refuses shared access to its water supply, a third option would be another water tank, Diebenow said, though nothing is final.
“There is a path toward getting rid of the green monster,” Broome said. “If water pressure becomes available, [the city of Neptune Beach] has to tap in and get rid of the green monster.”
Other concerns included light intrusion from third-floor rooms overlooking neighboring homes. Resident Todd Baxter suggested that lower density would make the development a better neighbor.
“There is a point at which if you don’t have enough units, you don’t have a viable product,” Diebenow said. “They are more than likely not going to abandon the number of units. Your code and your Comp Plan says it’s compatible with a hotel adjacent to residential. I can assure you every configuration has been looked at.”
Diebenow said three plans initially were considered for the site: another big-box store to replace the Kmart, which has been closed for about 10 years; a mix of hotel and residential townhomes; or a fully residential development.
“We said we want to hear back from the City Council, what they liked, what they hated. We did not want to get into a protracted legal battle,” he said. “We know we’re not going to please everybody, but we did our homework and came up with the current plan for a hotel with a mix of retail and office.”
Broome said the boutique hotel would be operated by Sage Hospitality Group, which operates Dune House in Atlantic Beach. “They are very good partners,” Broome said. “They do nothing but quality hotels and they like this location for a variety of reasons. This group has the right brand and concept that we were looking for.”
Several residents raised concerns about a future parking garage, but Broome said the project does not generate enough demand to require one.
The site requires 463 parking spaces, and even with an existing shared parking agreement with Publix, it falls about 63 spaces short, according to city staff.
“They have 148 parking spaces on the north and 138 on the south side, which is basically 300 total,” said Community Development Director Heather Whitmore. “Plus they get another 100 parking spaces from Publix, which puts them at about 400.”
City code allows shared off-site parking and valet parking, similar to arrangements at The Local and other restaurants that use off-site parking.
Diebenow said the project is being promoted as “Town Center West” to connect hotel guests with the businesses and amenities of Beaches Town Center.
Diebenow disputed the city’s count, saying the developer’s own analysis shows a surplus.
“We submitted our parking analysis that shows 105 spots available above and beyond what is required. We believe we meet the code,” he said. “If you compare apples to apples, we have more spaces pro rata than the other side of Third. Let’s see if the council agrees with us.”
