FRIDAY August 2, 2019
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Daily Record JACKSONVILLE
Lot J deal: $233.3M in city incentives
City could JACKSONVILLE INCENTIVES use bed tax BREAKDOWN to fund deal
Daily Record A $25 million REV grant, which is a partial property tax rebate over 20 years.
Incentives deal is greater than other recent projects seeking city assistance.
Daily Record Daily Record
The $450 million project would bring an entertainment venue, office, residential and a hotel next to TIAA Bank Field. BY MIKE MENDENHALL STAFF WRITER
Up to $50 million, 50% of the development cost, for a Live! District entertainment venue.
The city is proposing $233.3 million in taxpayerbacked incentives for Jacksonville Jaguars owner Shad Khan’s Lot J project at TIAA Bank Field. A term sheet released by the city Thursday outlines the deal. It states the city would finance nearly half the $450 million development through tax rebates, a Recaptured Enhanced Value grant, a development grant and infrastructure improvements. The term sheet lists the developer as Jacksonville I-C Parcel One Holding Company LLC. The company is a joint venture of The Cordish Companies and Gecko Investments LLC, an affiliate of the Jacksonville Jaguars. Plans for the development detailed in the term sheet comprise a 300-unit residential tower, 200-room boutique hotel, 120,000-square-foot Class A office tower and a Live! entertainment district. The Lot J property is owned by the city and any development agreement must be approved by the Downtown Investment Authority and City Council. Under the terms of the agreement, the city would retain ownership of the Live! district. It would be operated by Cordish, the company that developed similar properties in Philadelphia and St. Louis. The deal also includes a land transfer. The city wants to give the property to the developer where the luxury high-rise residential tower(s), boutique hotel, office tower and the mid-rise residential building(s) will sit. The term sheet did not list a value for the property. According to the agreement, the property transfer would occur immediately before construction. The deal also includes details about parking, which would remain under city ownership. The agreement says that 1,300 parking spaces will be created within the Lot J development. That’s similar to the number there now. A surface lot with 700 spaces will be built above the stormwater retention pond west of Lot J. An additional
JACKSONVILLE BY MIKE MENDENHALL
$92.8 million in infrastructure improvements, including: n $33.3 million in site improvements n $6.3 million for environmental remediation n $44.9 million for structured parking n $8.3 million for surface parking
JACKSONVILLE
A $65.5 million development grant.
600 parking spaces would be shared among the hotel, residential and office towers and/or street parking. The developer would operate the parking facilities, as well as TIAA Bank lots M, N and P. The cost of parking would be required to remain at market rate. Revenue from parking at Lot J would be split — the city receiving all money “up to historic levels” while the developers would receive any new parking revenue. The deal says the developer would be responsible for all costs during construction, but does give the developer leeway to substitute or modify elements of the project based on market conditions.
A mixed-use development including an entertainment venue is proposed for Lot J on the west side of Daily's Place and TIAA Bank Field. Photo by Monty Zickuhr
MMENDENHALL@JAXDAILYRECORD.COM @MIMENDENHALL (904) 356-2466
STAFF WRITER
Terms of the city’s proposed agreement with Jacksonville Jaguars owner Shad Khan to develop Lot J released Thursday include a $233.3 million package of incentives. If approved, the combination of tax rebates, Recapture Enhanced Value grants, a development grant and infrastructure improvements will back the proposed $450 million development of the parking lot west of TIAA Bank Field. What’s unclear is how the city will pay for the taxpayer-backed deal. District 3 City Council member Aaron Bowman chairs the Finance Committee, which will lead the council’s review of the deal. Bowman, a sec- Bowman ond-term Republican, said Thursday that he had not read all the details of the proposed agreement, but he is supportive of the Lot J project. Developer Jacksonville I-C Parcel One Holding Company LLC — a joint venture of Gecko Investments LLC, an affiliate of the Jacksonville Jaguars, and The Cordish Companies — plans a 300-unit residential tower, 200-room boutique hotel, 120,000-square-foot Class A office tower and a Live! entertainment district on the site. “It’s transformational,” Bowman said. “It’s not often someone comes knocking at your door saying I want to invest half-a-billion dollars in your city.” Bowman said one way the city could pay for a portion of the deal would be through the transient rentals tax — commonly known as the hotel bed tax. Florida statute allows SEE LOT J, PAGE 2
Lineage Church approved to rise in Southpoint Southside Assembly of God, now called Lineage Church, pulled a permit to build in Southpoint after selling its San Marco area property for apartment development. Sonlight Construction Inc. of St. Cloud will build up to a 450-seat church at 6851 Southpoint Parkway at a cost of $2.7 million. Construction could take up to a year. The total project cost is $6.2 million. The church sold its San Marco area property for $6 million in March 2018.
VOLUME 106, NO. 182 • ONE SECTION