Neighbors call it the "big green monster." It's a 29-foot water tank behind homes on Cherry Street, put up in December 2022 so the smaller Publix in the old Kmart plaza would have enough pressure for its sprinklers. At the packed Sept. 29 community meeting at Neptune House in Jarboe Park, that tank came up more than any hotel room count or rendering. The Beach Gazette reported that water pressure for fire suppression was the top concern for the residents who showed up.
That says a lot about the proposal for 500 Atlantic Blvd. The hotel, shops, offices and restaurants TriBridge wants are mostly allowed on that land already. The open questions are water, wastewater and parking. The cleanest answer to the water question would come from a neighboring city that has already said no once.
The Tank Is the Precedent
In First Coast News coverage, the developer who built it said the city's water system didn't have the capacity or pressure the Publix and other businesses needed, and put the tank and pump system at more than $600,000. The store it serves sits at 580 Atlantic Blvd. in the old Lucky's Market space. It opened in 2023, about 500 feet from the larger Publix at 630 Atlantic, as News4Jax explained in 2024.
A 150-room hotel and two commercial buildings have the same problem, only bigger. Steve Diebenow, the attorney representing the developers, laid out the order of options for the Beach Gazette:
- A connection to Atlantic Beach's system, used only for fire-suppression pressure and not for drinking water, with the developer paying for it. Atlantic Beach has already turned that request down once.
- Adequate pressure from Neptune Beach's own system, if it can meet state fire-suppression standards.
- A tank, as the fallback. That could mean a second tank, or reworking the existing one to serve both Town Center West and the Publix at 580 Atlantic. Diebenow said neither is the preferred solution.
The team plans to go back to Atlantic Beach once Neptune Beach approves a plan. "We'd love for you to come with us," Diebenow told the room at Neptune House. TriBridge managing partner Steve Broome presented the project as a way to get the existing tank removed. "There is a path toward getting rid of the green monster," he said. He added that if water pressure becomes available, the city would tap in and take the tank down.
Of the three options, only the Atlantic Beach connection needs a second city to agree.
What the Plan Is Already Allowed to Be
According to the Jax Daily Record, the Kmart section of the strip would be torn down for a project TriBridge calls Town Center West, at an estimated cost of more than $100 million.
| Piece | What's proposed |
|---|---|
| Hotel | Three stories and 150 rooms on the south side, with a drop-off area. No brand named. Broome said Sage Hospitality Group, which runs Dune House in Atlantic Beach, would operate it |
| Hotel size | 150,000 square feet per Diebenow; 133,580 square feet per the meeting information the Daily Record cited |
| Retail and office | Two two-story buildings running north and south, about 43,000 square feet each |
| Restaurants | Two one-story spaces beside the hotel |
| Height | 35 feet maximum |
On the restaurants, Diebenow told the Daily Record that "the community is advocating for a steak restaurant," but no one has been identified.
Diebenow has said every use on that list is permitted by right under the site's land use and zoning. When the application came in on Aug. 27, Community Development Director Heather Whitmore told a City Council workshop that it met the basic standards for setback, lot coverage, density, height and floor area ratio. What was missing was a full utility plan and a lighting plan, which she said she takes seriously so close to homes.
The project needs two exceptions, and those are what the Community Development Board is being asked to grant. City code caps gross floor area at 60,000 square feet and requires buildings to cover at least 70% of the applicable frontage. The proposal covers 45%. The size cap came from this same parcel. City officials adopted it after the failed attempt to put a Walmart there.
Wastewater and Parking Are the Other Two Gaps
Water pressure is the most visible infrastructure issue, but there are two more, and each comes with a number.
Wastewater. Diebenow said the city's treatment plant can handle 88,000 gallons a day and the project would generate 44,000. Capacity at the plant isn't the issue. Getting the flow there is, because the existing lift station connection may not be enough and the route is "still under conversation."
Parking. City staff and the developer have reached different answers.
| Count | Source |
|---|---|
| 463 spaces required | City staff |
| 148 north + 138 south on site, "basically 300 total," plus about 100 shared with Publix, which "puts them at about 400" | Heather Whitmore |
| About 63 spaces short | City staff |
| 105 spaces above what's required | Developer's parking analysis, per Diebenow |
City code allows shared off-site parking and valet, which is how The Local and some other restaurants handle it. Broome said the project doesn't generate enough demand to need a parking garage, which several residents had asked about. "Let's see if the council agrees with us," Diebenow said.
At the board's October meeting, a resident pointed out that the applicant had asked for vested rights to the traffic and utility demand of the old Kmart, a store that closed 10 years ago, the Beach Gazette reported.
Board member Rene Atayan put the limit plainly: "We are a small barrier island. That is what we are. We cannot change that, and we have limited resources."
The Back-Fence Questions Have Gotten Specific Answers
Neptune by the Sea sits directly south of the site, where the hotel would go. Mayor Cori Bylund and that subdivision's homeowners association set up the Sept. 29 meeting. Some changes have already come out of it:
- No rear balconies. Diebenow said there will be no balconies on the back of the building, possibly a Juliet-style architectural feature, "but there is not going to be a landing."
- A required light study. City staff has required a photometric study to set acceptable lighting levels, and residents will be able to see the lighting plan. One neighbor told the Gazette that when the Kmart was open, their living room "looked like daylight at 9 p.m."
- No cut in room count. When a resident suggested lower density, Diebenow said the developers are "more than likely not going to abandon the number of units." He pointed to the city's code and Comprehensive Plan, which he said treat a hotel next to residential as compatible.
The Corner Has Seen Several Plans Since 2016
TriBridge's slower approach this fall makes more sense next to the site's history.
- 2016. Kmart closes. A later effort to bring in a Walmart falls through and leads to the 60,000-square-foot cap.
- Before February 2019. The city votes down a plan with dozens of apartments and a boutique hotel after residents raise congestion and parking concerns.
- February 2019. TriBridge Residential files a new plan for a small hotel, shops and restaurants with no residential, News4Jax reported. TriBridge bought the property that year through TBR Neptune Owner LLC. Diebenow told the board this October that a plan similar to Town Center West also died.
- Summer 2026. The team shows council three directions: a big-box store, a hotel with townhomes, and an all-residential project. The current plan combines elements of the three.
"We did not want to get into a protracted legal battle," Diebenow said at Neptune House.
The Calendar From Here
The schedule has already slipped. In September, the Gazette had the Community Development Board on Oct. 21 and City Council on Nov. 2 and 16. At TriBridge's request, the board pushed both variance applications to Nov. 18. If the board approves the variances and the preliminary development plan that night, City Council would hold public meetings on Dec. 7 and Dec. 21 to consider the final development agreement. That agreement sets the schedule for the infrastructure improvements described above. After approval, Diebenow estimates 9 to 12 months for design and permitting before construction.
As of late October, the city's online calendar doesn't show a Nov. 18 board meeting. Its December calendar shows a regular City Council meeting at 6 p.m. Dec. 7 and nothing on Dec. 21. These dates have moved before, so check the City of Neptune Beach calendar for a posted agenda, time and location before you go. Diebenow has said he wants residents' questions and feedback while the plan is still being shaped.
If you live near Atlantic and Third and want help thinking through what a hotel, two restaurants or a second water tank down the street could mean for your home, The Real Jacksonville keeps up with Town Center West through every hearing. Schedule a consultation with Bella, and we'll go over what's changed since the last meeting and how it applies to your block.
