Neptune Beach's Old Kmart Site: A 150-Room Hotel, 90,000 Square Feet of Shops and a $100 Million Plan Return for More Reviews

NEPTUNE BEACH, Fla. - A plan to replace the long-vacant Kmart at 500 Atlantic Blvd. with a boutique hotel, two restaurants and about 90,000 square feet of shops and offices is working its way through city reviews, with the developer's attorney putting the cost at more than $100 million. The project, called Town Center West, is proposed by TriBridge Residential, which has owned the property since 2019, according to the Jacksonville Daily Record. It needs development plan approval and variances before it can move toward construction.

The Community Development Board held a public hearing on the proposal on Wednesday, Oct. 21, at City Council Chambers, 116 First St., according to the city's meeting notice reported by News4JAX. The reports reviewed do not give a vote count from that hearing. The Daily Record reported on Oct. 26 that the project returns to the Community Development Board in November and goes to the City Council in December, with no specific dates published.

What is proposed

The plan is a hybrid of three options presented to the City Council over the summer, according to the Daily Record, and it was refined after input from city staff, council members and residents. The Kmart, which closed in 2016, would be demolished. Earlier plans for the site, including a Walmart, never came to be.

The Daily Record reported that no hotel brand has been named, and that Diebenow said the community has been asking for a steak restaurant but that nobody has been identified. The Beach Gazette reported that the hotel would be operated by Sage Hospitality Group, a detail that the Daily Record's account did not include. Traffic would flow down the middle of the property under the plan.

The two variances

TriBridge has applied for two variances, according to the Beach Gazette and other outlets: one for frontage requirements and one for a building larger than 60,000 square feet. Diebenow told the Daily Record the site is already zoned for the proposed uses. The variances and the development plan are what the city boards must act on.

Parking, water and sewer questions

The Beach Gazette reported on a Sept. 29 community meeting where parking was a central issue. The site requires 463 spaces, and city staff said the plan falls about 63 short even with a shared-parking agreement with the neighboring Publix, according to the Gazette. TriBridge disputes that, saying its analysis shows 105 spaces above the requirement.

The same report said the city's wastewater treatment plant can handle 88,000 gallons a day and that the project would generate about 44,000. Fire suppression water pressure was described as a major concern. Atlantic Beach denied a shared water connection for fire suppression, and TriBridge plans to ask again after Neptune Beach approval, according to the Gazette, with a new water tank as another option.

Neighbors and the timeline

The Daily Record reported that residents raised concerns about light pollution at neighboring properties, and the developer plans a light study that residents will be able to review. Diebenow said the developer wants construction to start as soon as possible. An earlier schedule in the Beach Gazette listed council dates in November, but the later Daily Record account points to December, so readers should check the city's posted agendas.

What to watch

The next public steps are the board's November meeting and the council's December consideration, according to the Daily Record. Agendas and meeting notices are posted by the City of Neptune Beach. The meetings are open to the public, and written agenda packets are normally available before they are held.