On behalf of the Diversity, Equity, and Inclusion committee, we would like to highlight the story of the historic Eastside neighborhood in Jacksonville as a promising case of how economic development and growth may happen in a way that benefits the incumbent residents of a historically marginalized community. In May, the DEI committee shared a letter that highlights how ULI and its past members have contributed to instituting and perpetuating systemic racism in real estate practices, concluding by urging the current members to make conscious actions and choices that can help to mitigate and reverse the legacies of the past practices. The story of Eastside presents an example of how growth with racial equity may look like on the ground.

The Eastside neighborhood is a historic black neighborhood located in Jacksonville, with a population of approximately 4,000. The neighborhood emerged in the 1860s immediately following the Civil War, as an area settled by freed-men. It has been the birthplace, residence, and place of refuge to numerous historic figures, such as A. Phillip Randolph, Bob ‘Bullet’ Hayes, Dr. Charles McIntosh, Zora Neal Hurston, James Weldon Johnson, and Earth M. White. It is also known as the birthplace of the civil rights movement in northern Florida. Moreover, it is known as the last historic intact black neighborhood in Jacksonville that has successfully maintained its unique cultural characteristics and social structures over time.

Despite the neighborhood’s historic significance, it is undeniable that race has played a significant part in the development trajectory of Eastside. Similar to the experience of other historically black neighborhoods, Eastside has suffered from discriminatory real estate practices. For example, Eastside has always been a redlined neighborhood in HOLC and FHA maps, discouraging investments and developments due to discriminatory appraisal practices. Illustratively, in Springfield, a wealthy, majority white neighborhood just across railroad tracks, homes are easily valued over $400,000, with many homes worth more than a half a million dollars. By contrast, the average home value in Eastside is roughly one third of Springfield’s. Low property values have acted as a negative indicator of the neighborhood’s growth potential, resulting in a severe lack of private investments in the neighborhood. There hasn’t been any new private commercial development in nearly 50 years; the main commercial corridor has suffered from over 50% vacancy for the last nearly 20 years.

With all its past and ongoing challenges, the historic Eastside sits at a pivotal moment. While systemic patterns of disinvestment have suppressed the neighborhood for decades, Jacksonville’s Sports and Entertainment District and Downtown – both in close proximity to the Eastside – is anticipated to attract over $3 billion worth of development within the next few years. The possibility of gentrification looms in the air for Eastside’s future.

LIFT JAX, a nonprofit organization driven by the mission to end generational poverty in the Eastside, is working to develop strategies and catalytic projects that can take advantage of the anticipated growth. LIFT JAX believes that strategic investments and development will create the sustainability needed to assist in lifting a community out of systemic poverty, while ensuring that the neighborhoods’ incumbent residents benefit from the improvements and that preventing displacement of existing residents and businesses. Examples of such strategies include investments focused on education, home repair assistance programs for the most vulnerable homeowners, improving parks and green spaces, capacity building programs for local residents and community-based organizations, placemaking projects along the commercial corridor in collaboration with local business owners, and mixed-income infill housing developments.

One concrete example is the development of Debs Store. Like many other formally redlined communities, the historic Eastside is a designated food desert. LIFT JAX, along with many partners in both the public and private sectors (Jaguars, City of Jacksonville, Florida Blue, State of Florida, Baptist Hospital, and VyStar Credit Union), is addressing this challenge with a $2.5 million investment to build a neighborhood market in Spring of 2024. The structure will house a neighborhood market on the first floor, with access to banking, provided by VyStar Credit Union, and a Good Careers Center provided by Goodwill of NE Florida on the second floor. This strategic investment will provide access to quality food while also enhancing access to credit and workforce development needs.

Developments and redevelopments of urban land are indeed a fascinating and powerful tool for community revitalization. Nevertheless, history has shown us that the tool can be misused and have unintended consequences, disproportionately impacting the most vulnerable population. The story of the Eastside demonstrates that there are opportunities to redeem the tool of real estate development and put our professional arms around projects and initiatives that can undo some of the historical consequences of discriminatory real estate practices. The redemptive qualities of real estate can be seen in projects that create quality affordable housing and climate-resilient buildings and communities; hire and feature racially and socioeconomically diverse professionals; and create and sustain wealth building opportunities for our historically most vulnerable populations.

Minjee Kim
Assistant Professor
Florida State University