For and Against: The Mobility Fee Moratorium (2013-094)

According to ULI, infill projects are some of the hottest in today's real estate market.

10. FOR MORATORIUM: According to the Urban Land Institute, for 2013 Jacksonville ranks 39 out of 51 major U.S. cities in overall real estate prospects.  The data from the first waiver period proves that a second waiver would have a positive and needed economic impact.

AGAINST MORATORIUM: According to the Census Bureau, Jacksonville is currently ranks as the 40th largest MSA in the country (366 MSA overall), suggesting that our ranking is on par for our size, given the economic recession and recovery process. According to the Urban Land Institute’s Emerging Trends in Real Estate for 2013, the emerging plays for real estate investment and development are:

1. Acquisitions on budding infill locations.
2. New-wave office and build to core in 24-hour markets.
3. Industrial facilities near ports and international airports.
4. Using caution investing in secondary and tertiary cities.
5. Backing off apartment development in low-barrier-to-entry markets.
6. Single-family housing funds.
7. Repurposing the surfeit of obsolescent properties.

The entire concept of the 2030 Mobility Plan and fee structure feeds into these nationwide economic trends.  As Jacksonville repositions itself to align with what the marketplace is looking for, our overall real estate prospects will rise in a similar fashion to peer secondary cities such as Charlotte (17 in real estate, 33 in MSA size), Salt Lake City (21 in real estate, 48 in MSA size), and Nashville (18 in real estate, 37 in MSA size), and Oklahoma City (32 in real estate, 43 in MSA size).

US Metropolitan Areas by Population:
http://en.wikipedia.org/wiki/List_of_metropolitan_statistical_areas

ULI 2013 Emerging Trends in Real Estate:
http://www.uli.org/emerging-trends/emerging-trends-in-real-estate-2013/



11. FOR MORATORIUM: Development Agreement 2012-703 for the Pope & Land project in Brooklyn authorized a loss of $5.15 million in revenue to the City.  Development Agreement 2012-270 for the 220 Riverside project in Brooklyn authorized a loss of $4.9 million in revenue to the City.

AGAINST MORATORIUM: Why should taxpayers view Development Agreements 2012-703 and 2012-270 be viewed under a microscope but not take a similar approach with the hundreds of projects that would be subsidized under an all out moratorium, that features no checks and balances to protect public fiscal interest?

The 2030 Mobility Plan and fee creates a situation where projects, such as Pope & Land and 220 Riverside become market rate.  This is done by removing the indirect subsidies given to fed an unsustainable development pattern that historically has not generated the return we tend to assume, resulting in immediate budget deficits as soon as growth ends.

Development Agreements 2012-703 and 2012-270 should be viewed under the same microscope as projects, such as service jobs created by Waffle House, Family Dollar, etc. via mobility fee waivers. In the case of the Lane Avenue 7-11, it received a $325,000 subsidy to create a store that produces an average annual payroll of $90,000. Notwithstanding 7-11’s five year area development agreement. Even jobs created by a typical LA Fitness have an average per capita wage in the range of $25,000. These are clear cases of projects that are better off for the taxpayer being evaluated on an individual basis for their true Return on Investment (ROI) than being granted a subsidies without oversight via a mobility fee moratorium.

Article by Ennis Davis. Contact Ennis at edavis@moderncities.com