Developers are building downtown housing units with the city's help.

Grants, loans, tax breaks and credits are being provided by city officials to make it easier for developers to build different kinds of housing, such as apartments, condominiums and townhouses.

The rationale used by city officials to provide incentives to developers is to jump-start a nonexistent downtown housing market.

City officials are pushing downtown housing in expectation that it will make the area more vibrant. They expect that if people live downtown, then more stores, restaurants and entertainment establishments will be attracted to set up shop downtown.

And with that, abandoned buildings and property will be added to the city's tax rolls.

"Downtown is the heartbeat of the city," said City Council President Matt Carlucci. "We don't have a healthy heart right now. And it is going to take some investment like downtown housing to bring life back to downtown."

"Pretty soon we will be able to buy a cup of coffee on a Saturday morning downtown somewhere else besides the Jacksonville Landing."

So far, there are 716 housing units that are being built or planned in downtown Jacksonville by 2003.

In most cases, the high cost of downtown land and issues associated with gutting and converting old buildings makes the downtown projects too costly for developers to finance on their own or even with a standard bank loan.

In the case of all of the projects being built, financial assistance from city officials is just enough to make the projects happen.

City officials admit that incentives sometimes don't make economical sense.

"It is an investment, that's what it is," Carlucci said.

"In the long run, the amount of taxes you collect is a wonderful return on your initial investment and is also a growth management tool."

But city financial assistance could taper off in the years to come.

"I think there will be a time when it will require less and less city financial support, and we will be much more choosy about what we want to do," said Paul Krutko, executive director of Downtown Development Authority.

Krutko has spearheaded efforts to put together deals with developers and present them to city officials for a decision.

At times, he has borne the brunt questions from city officials, including members of the Jacksonville Economic Development Commission, DDA and City Council.

Developer Mike Langton said even though some downtown projects are planned or being built, including the loft apartments he is developing at the W.A. Knight Building at 113 W. Adams St., city participation will still be needed by developers who want to redevelop other vacant downtown buildings for at least the next three years.

"The days of giving inducement are not over or these kind of projects won't work," Langton said. "But they probably won't be as significant as in the past."

Will there come a day when the city will not offer any incentives to developers?

"Oh yeah, I think there is no question about that," Krutko said.