What's Actually Planned for Neptune Beach's Old Kmart, and What Neighbors Are Still Asking

What would it take to get rid of the "big green monster"? That is the 29-foot water tank behind the homes on Cherry Street. A developer put it up in December 2022 to give the smaller-format Publix in the old Kmart plaza enough pressure for its sprinklers. The question came up at a packed community meeting at Neptune House in Jarboe Park on Sept. 29, and it led straight to the most practical issue facing the new plan for 500 Atlantic Blvd.

The plan is called Town Center West. It would replace the Kmart building, which closed in 2016, with a boutique hotel, two restaurants, and office and retail space. Earlier attempts stalled over what kind of project belonged on the site. This one sticks to what the zoning already allows, so the conversation has shifted. Neighbors are asking about water pressure, wastewater, parking spaces and light from third-floor windows.

How the argument moved from density to plumbing

The site has been through a few rounds already, and the order they came in explains why this plan looks the way it does.

1. 2016. The Kmart closes.
2. August 2018. Neptune Beach City Council turns down TriBridge Residential's mixed-use plan, which included apartments, shops and a parking garage. According to WJCT, council member Fred Jones cited density, design and consistency with the comprehensive plan.
3. February 2019. A revised plan drops the apartments and proposes a small hotel, shops and restaurants. News4JAX reported that some residents were still worried about congestion while others wanted the vacant property redeveloped.
4. 2019. TriBridge buys the property through TBR Neptune Owner LLC.
5. Summer 2026. The development team brings three options to City Council. At the September meeting, attorney Steve Diebenow described them as another big-box store, a hotel with residential townhomes, or a fully residential project.
6. Late August 2026. TriBridge submits a development order for the current plan.

Diebenow told the Community Development Board on Oct. 21 that a Walmart effort and an earlier plan similar to this one had both fallen through. He said the current plan is a hybrid of the three summer options, put together after talks with city staff, council members and residents, and that the site is already zoned for the uses proposed. He also explained the approach at the September meeting, as the Beach Gazette reported: "We did not want to get into a protracted legal battle."

Diebenow's argument is that density is no longer the central question. The project still needs two variances, one for frontage requirements and one for a building larger than 60,000 square feet. Neptune Beach Mayor Cori Bylund told the Jax Daily Record it was "the biggest development for Neptune Beach in decades."

What would stand on the lot

Here is the build-out the developer described to the Jax Daily Record, at an expected cost of more than $100 million.

The maximum height is 35 feet. No hotel brand has been named. At the September meeting, according to the Beach Gazette, TriBridge managing partner Steve Broome said the hotel would be operated by Sage Hospitality Group, which runs Dune House in Atlantic Beach. No restaurant tenants have been signed either. Diebenow said the community has been asking for a steak restaurant and he expects one to be high on the target list. The developer is using the name Town Center West to tie hotel guests to the shops and restaurants of Beaches Town Center a few blocks east.

The tank behind Cherry Street

Water pressure was a chief concern at the September meeting, and it is the issue most likely to change what neighbors see from their backyards. State fire-suppression standards require a certain pressure for sprinkler systems. The development team asked the City of Atlantic Beach for a shared connection to its water supply, for fire suppression only, and Atlantic Beach said no.

Diebenow laid out three possible paths, and he said nothing was final:

• Neptune Beach supplies the required pressure itself.
• TriBridge goes back to Atlantic Beach after Neptune Beach approves the plan, asking for a pressure-only agreement. Diebenow invited residents to come along.
• If neither works, the site gets another water tank.

The tank on Cherry Street depends on which path wins out. "There is a path toward getting rid of the green monster," Broome said, as the Beach Gazette reported. "If water pressure becomes available, [the city of Neptune Beach] has to tap in and get rid of the green monster." So the same plan that adds a hotel could end with the Cherry Street tank removed, or with another tank added for the new buildings.

Wastewater is a separate question. Diebenow said the city's treatment plant can handle 88,000 gallons a day and the project would generate 44,000, but he said the existing lift station connection may not be enough to carry it there. "How it gets there is still under conversation," he said.

Two parking counts, one site

The parking figures depend on who is counting. City staff say the site needs 463 spaces. Community Development Director Heather Whitmore put the plan at 148 spaces on the north side and 138 on the south, "basically 300 total," plus about 100 more through the existing shared-parking agreement with Publix. That comes to roughly 400, about 63 short of what staff say is required.

The developer's own analysis shows 105 spaces more than the requirement. Diebenow pointed across Third Street to make the comparison:

"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."

That's from the Beach Gazette's account of the meeting. City code allows shared off-site parking and valet, similar to the arrangements at The Local and other restaurants in town. Several residents asked whether a parking garage would come later. That was part of the 2018 plan council rejected. Broome said this project does not generate enough demand to need one.

Light from the third floor

The hotel sits on the south side of the property, which backs up to the Neptune by the Sea subdivision. Residents raised concerns about light from third-floor rooms overlooking their homes. One resident suggested a lower-density project would make a better neighbor. Diebenow responded that "if you don't have enough units, you don't have a viable product." He said the room count is unlikely to change and that the city's code and comprehensive plan consider a hotel compatible next to residential.

Lighting came up again on Oct. 21. The development team said it will do a light study, and residents will be able to see the site's lighting plan. Room count is the one thing the developer has said is fixed. Lighting design is where neighbors along the south edge can still affect the outcome.

The calendar from here

The schedule has already moved. In late September, the Beach Gazette reported a City Council first reading on Nov. 2 and a final hearing on Nov. 16. After the Oct. 21 board meeting, the Jax Daily Record reported that the project is scheduled to return to the Community Development Board in November and go to City Council in December. Board and council meetings are held in City Council Chambers at 116 First St., and the city posts its meeting schedule on nbfl.gov.

Approval would not mean construction starts soon after. Diebenow said design and permitting would take about 9 to 12 months once the variances and development plan are approved. The lighting plan, the wastewater route and Atlantic Beach's answer on water pressure are all still open, and the water-pressure answer is the one tied to the Cherry Street tank.

If you own a home near Atlantic Boulevard and want to talk about how Town Center West fits into your own plans for the next few years, I'm glad to sit down with you and go over what's known and what's still being decided. Michele Tremblay offers each neighbor the same careful, personal attention. Request a Private Consultation whenever you're ready.