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Controversy over a parking lot appears to be at the core of the stalled sale of the Duval County Public Schools (DCPS) headquarters to its intended buyer.
JACKSONVILLE, Fla. — The planned sale of the DCPS headquarters has hit a roadblock as the prospective buyer, Chase Properties, has withdrawn from its purchase agreement with the district. Initially, Chase Properties agreed to acquire the site for approximately $17.2 million following approval from the school board in November 2025.
Michael Balanky, CEO of Chase Properties, decided to back out of the agreement just two months later, citing concerns related to the so-called ‘Community Development District’ (CDD).
The CDD, established in 2018, is a special-purpose governmental entity designed to facilitate the development of the 30-acre Southbank project, now known as RiversEdge. The district is overseen by the investment firm Preston Hollow Capital.
That same year, developers executed a land swap agreement with DCPS, trading the parking lot adjacent to the DCPS headquarters for the parking lot across the street and a section of Prudential Drive.
Jacksonville City Councilman Joe Carlucci, who represents the Southbank, said the root of the problem is with the parking lot next to the headquarters which is used for employee parking. That parcel of land still falls under the CDD. Carlucci said this creates some hurdles for anyone looking to buy the property.
“With that comes a certain amount of debt obligation on that parcel and restrictive development rights. So when someone buys it, they cannot just build whatever they want. And if they do build what is agreed upon by RiversEdge, it’s still going to carry a certain level of CDD fees,” Carlucci explained.
CEO of Chase Properties Michael Balanky said he was not aware of the CDD and its financial impacts until weeks after the school board approved the deal while he was working with appraisers.
In a statement provided to First Coast News, a spokesperson for DCPS said the potential CDD was disclosed in the purchase and sale agreement.
“Duval County Public Schools confirms that the potential Community Development District (CDD) encumbrance was disclosed in the purchase and sale agreement for 1701 Prudential Drive. Buyers were advised to contact the county property appraiser or the CDD for details, and due diligence materials also included CDD information. Buyers were advised to contact the county property appraiser or the CDD for details, and due diligence materials also included CDD information.”
The CDD is mentioned in item 24 of the purchase and sale agreement. Balanky told First Coast News this is a generic paragraph, and according to item 12 of the agreement, the seller had 10 days after the sale was approved to provide a ‘cure’ for things like liens or encumbrances.
Carlucci believes there are ways to move forward with the deal. He said the CDD could either be dropped from the parcel if Preston Hollow signs off, or Balanky could look into purchasing just the parcel of land with the headquarters building.
“The end goal is to get everyone to work together, to have the school board to get a new headquarters and to get an amazing riverfront development project done,” Carlucci said.
Balanky told First Coast News he is open to other options and wants to see the deal move forward. He added he does not believe this situation happened maliciously nor does he blame the school board.