Author Topic: JEA hunt for headquarters site is silent on evacuation risk  (Read 1986 times)

Steve

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #30 on: January 10, 2019, 08:18:50 AM »
The only way Khan has enough cash to do anything is if he sells something.  Like most wealthy people, he doesn't have a Scrooge McDuck vault with a diving board.  He might be worth a lot but he isn't liquid.  The Jags alone account for 1/3 of his wealth.  The dude even has to rent our his yacht.

https://www.yachtcharterfleet.com/luxury-charter-yacht-37804/kismet.htm

Not sure you understand Khan’s money. Just because he rents the Kismet II our doesn’t mean he isn’t liquid. This is the guy that bought the Jags for $770 million by writing a check. He didn’t sell anything when he did it.

A few weeks afterwards he sold the Kismet, and the rumor going around was he needed the money after buying the Jags. He laughed when asked in an interview about it. Once the boat sold, he bought the Kismet II.

I’m not going to say he’s a saint and will do anything for Jacksonville, but there’s a reason Forbes said he was the 3rd richest NFL owner. Quite a club to be in the top 3 of. I have no doubt if he needs liquid cash he’ll have it about as fast as I can pull my ATM card out.

CityLife

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #31 on: January 10, 2019, 09:29:19 AM »
The only way Khan has enough cash to do anything is if he sells something.  Like most wealthy people, he doesn't have a Scrooge McDuck vault with a diving board.  He might be worth a lot but he isn't liquid.  The Jags alone account for 1/3 of his wealth.  The dude even has to rent our his yacht.

https://www.yachtcharterfleet.com/luxury-charter-yacht-37804/kismet.htm

Not sure you understand Khan’s money. Just because he rents the Kismet II our doesn’t mean he isn’t liquid. This is the guy that bought the Jags for $770 million by writing a check. He didn’t sell anything when he did it.

A few weeks afterwards he sold the Kismet, and the rumor going around was he needed the money after buying the Jags. He laughed when asked in an interview about it. Once the boat sold, he bought the Kismet II.

I’m not going to say he’s a saint and will do anything for Jacksonville, but there’s a reason Forbes said he was the 3rd richest NFL owner. Quite a club to be in the top 3 of. I have no doubt if he needs liquid cash he’ll have it about as fast as I can pull my ATM card out.

Khan isn't exactly desperate to rent the Kismet out either. He charges $1.2 million per week. I have doubts that he actually even rents it out to anyone. My guess is he uses it as a tool to maintain and build business relationships, and probably as a tax write off. If he lets a business associate or Flex N Gate use it for a week for free, he can probably write off the $1.2 million as a business expense.

The point I was trying to make earlier is that Khan has more than enough cash to self-subsidize a project to make up for existing market deficiencies and he can be patient, which typical development or equity groups cannot do. Ultra-wealthy guys like Khan are far more likely and capable of doing legacy type developments. Will be interesting to see what Khan has up his sleeve and whether or not he is committed to a legacy type project.

Also, I've said it before and will say it again, the changes to the SALT deduction will have huge implications on the business world in the coming years. Everyone has known it is coming, but the financial impacts will not start hitting the pockets of workers in NY, Mass, Illinois, etc until this spring. Illinois has serious long term financial issues coming up related to their pension debt, and now many residents will not be able to write off much of their state and local taxes. Khan will likely have employee retention challenges in Illinois in the coming years. He would be smart to either relocate Flex N Gate HQ or open a large corporate office in Jax. Even if he does not relocate Flex N Gate, he should have a lot of companies from high tax states knocking on his door.

vicupstate

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #32 on: January 10, 2019, 09:53:36 AM »
Quote
For Lot J, I'd love to see something where a portion of the subsidies for the office component are reliant on either net new jobs to Jacksonville, net new jobs to downtown, or net saved jobs (companies that would have left the city otherwise).

I understand the rationale, but this would be far too easy to simply manipulate.  A company that had every intention of moving to JAX, or moving to DT, could easily say the subsidies were the critical component.  No one could prove otherwise. 
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KenFSU

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Re: JEA hunt for headquarters site is silent on evacuation risk
« Reply #33 on: January 10, 2019, 10:57:57 AM »
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For Lot J, I'd love to see something where a portion of the subsidies for the office component are reliant on either net new jobs to Jacksonville, net new jobs to downtown, or net saved jobs (companies that would have left the city otherwise).

I understand the rationale, but this would be far too easy to simply manipulate.  A company that had every intention of moving to JAX, or moving to DT, could easily say the subsidies were the critical component.  No one could prove otherwise. 

For this reason, St. Louis required signed affidavits and I believe actually required companies to be allow full investigation.

But I agree, the opportunity for abuse is definitely there.

Won't pretend to know a thing about Khan's liquidity, but wasn't he trying to buy Wembley for $1 billion in cash just three months ago?