Financial company seeks $21 million in incentives for $216 million Jax Expansion

[Ken_FSU]

https://www.jaxdailyrecord.com/news/2024/oct/04/financial-company-seeks-21-million-in-city-incentives-for-216-million-jacksonville-expansion/

https://www.bizjournals.com/jacksonville/news/2024/10/04/financial-services-company-considers-jax-expansion.html

A code-named financial services company is planning a new $216 million headquarters division in Jacksonville and is seeking $21 million in city incentives, according to an Office of Economic Development project summary.

The code-named Project Paper Company already has a presence in Jacksonville. The five-year project comprises construction, equipment and building improvements for the headquarters of its national mortgage/technology division, according to an OED document released Oct. 4.

The OED document said the minimum capital investment is $173 million with the spending anticipated at $216 million over the five years

[thelakelander]

Any idea of what company this is or where they are looking to locate their headquarters?

[Steve]

If this is that many jobs and we don't tie this to downtown development, it's a giant miss. This seems like a big one.

[WarDamJagFan]

Given the description of "mortgage and technology divisions" I'm thinking either SoFi or Macquarie.

[Ken_FSU]

Any idea of what company this is or where they are looking to locate their headquarters?

I normally like to avoid speculating, but it's a Monday, there's a hurricane coming, the Jags might never win again, it's not a professional contact, and there's a shitload of public money involved, so:

I've heard a rumor from multiple people now in the last month that ICE/Black Knight has quietly set the wheels in motion for a move from Brooklyn to Deerwood to make room for 500 more employees.

Sub-rumor is that their existing Brooklyn building will be sold for residential conversion.

Not sure if it's the same project, or even if the rumor has veracity so take with a grain of salt, but seems to be a close fit.

[Des]

Any idea of what company this is or where they are looking to locate their headquarters?

I normally like to avoid speculating, but it's a Monday, there's a hurricane coming, the Jags might never win again, it's not a professional contact, and there's a shitload of public money involved, so:

I've heard a rumor from multiple people now in the last month that ICE/Black Knight has quietly set the wheels in motion for a move from Brooklyn to Deerwood to make room for 500 more employees.

Sub-rumor is that their existing Brooklyn building will be sold for residential conversion.

Not sure if it's the same project, or even if the rumor has veracity so take with a grain of salt, but seems to be a close fit.

A friend of mine works at Black Knight and has mentioned there's plenty of space on their floors as a lot of people work from home. That conversation was probably at the beginning of this year so there might've been a policy change, idk. My FIL works at FNF and has mentioned that half the floors at the Black Knight building are empty - so if they are moving I don't believe it's to make room for more employees.

[Captain Zissou]

A friend of mine works at Black Knight and has mentioned there's plenty of space on their floors as a lot of people work from home. That conversation was probably at the beginning of this year so there might've been a policy change, idk. My FIL works at FNF and has mentioned that half the floors at the Black Knight building are empty - so if they are moving I don't believe it's to make room for more employees.

Black Knight issued a return to office order a few months ago.  They had many employees fully remote for years after covid.  That campus still has room for further development, so I hope they don't move out of the area.

[jaxlongtimer]

The Daily Record provided the below list of suspects but they left off some.  Some that come to mind are Ameris Bank, PNC and Fidelity Investments that also have a big presence here.  BofA also has Merrill Lynch here but they are moving now to the old Barnett Park at the Avenues and abandoning their multi-building campus next to Florida Blue at Deerwood Park, starting this month.  This is also where Home Depot's HD Supply just relocated to from the Southbank.  These big office occupiers are clearly rethinking their needs, post-COVID.

There are several financial services companies in Jacksonville.

In January, JPMorgan Chase & Co. CEO Jamie Dimon told the Daily Record that besides growing the branch network in the Jacksonville area, the company may also look to add back-office operations in addition to its large mortgage center.

JPMorgan employs about 1,700 people in Jacksonville and said it will hire 100 more for the new branches and other needs.

In 2022, Fidelity National Information Services Inc. opened its new $156 million headquarters on Riverside Avenue, for which the city and state provided $29.9 million in incentives. FIS employed about 1,200 people at that time and said it was 75% of the way toward adding 500 jobs, a commitment it made in its development agreement with the city.

Another firm in the mortgage business is Black Knight Inc., headquartered at 601 Riverside Ave., in Brooklyn near the FIS headquarters.

Citi, Deutsche Bank, Wells Fargo and Bank of America also have campuses in Jacksonville.

[/quote]

[Ken_FSU]

A friend of mine works at Black Knight and has mentioned there's plenty of space on their floors as a lot of people work from home. That conversation was probably at the beginning of this year so there might've been a policy change, idk. My FIL works at FNF and has mentioned that half the floors at the Black Knight building are empty - so if they are moving I don't believe it's to make room for more employees.

For what it's worth, I was led to believe that the 500 jobs would be on the corporate side, and that there would be cost savings involved with moving these specific jobs down to Florida.

[copperfiend]

The incentives seem to be specific for mortgage and technology operations. I know some of the big banks with local presence (Citi, Chase, Wells Fargo) have really scaled back their mortgage business in recent years. Something like Sofi would make sense.

[Ken_FSU]

The incentives seem to be specific for mortgage and technology operations. I know some of the big banks with local presence (Citi, Chase, Wells Fargo) have really scaled back their mortgage business in recent years. Something like Sofi would make sense.

Given the description of "mortgage and technology divisions" I'm thinking either SoFi or Macquarie.

SoFi has fewer than 300 employees in Jax. Macquarie is right in that same ballpark.

The project summary filed with the Office of Economic Development notes a company that currently has 1,500+ employees in Jax (including an incentive to keep all 1,500 here), with plans to bring 500 more "executive level and front office staff" positions to Jacksonville.

Screw it, storm is now a Category 5, Travon Walker has now gotten credit for 4 sacks yesterday, a vagrant in JWJ Park referred to me as "Baby Blue" when I walked by, I'm gonna double down on my prediction:

Project Paper Company = Black Knight, moving to the Southside to create a campus for an expanded corporate staff, while trying to parlay their existing campus into residential conversion.

[jaxjags]

Not very subtle reference to International Paper for International Exchange.

[thelakelander]

Council members push for renegotiation of $21 million incentive package for Project Paper Company

Two Jacksonville City Council members have asked for a proposed incentive package to fuel expansion of a local financial services company to be renegotiated and revised.

After legislation containing the $21 million package for the code-named Project Paper Company began making its way through the Council process, members Nick Howland and Will Lahnen contacted parties involved in negotiating the deal in hopes of reducing its impact on the city budget and lowering the city's financial risk.

Based on details in city documentation, Project Paper Company matches Intercontinental Exchange Inc. The city says the company's expansion plan would add 500 employees to its current 1,500-member workforce.

According to a Sept. 30 city memo, Project Paper Company is an existing financial services company seeking to expand and establish its national headquarters for its Mortgage/Technology Division in Jacksonville.

The project plans at least a $173 million capital investment and possibly more than $216 million over five years in construction, equipment and building improvements, it says.

The memo says the incentives are a material factor in remaining and expanding in Jacksonville instead of relocating and expanding in "another large Southeastern metropolitan area in which it has a presence."

ICE, best known as the operator of the New York Stock Exchange, also said it is upgrading the former Black Knight headquarters at 601 Riverside Ave. in the Brooklyn area of Downtown Jacksonville.

During ICE's year-end conference call with analysts Feb. 8, Chief Financial Officer Warren Gardiner said its capital spending plans for 2024 include "$100 million related to the new office space and expansion and improvement across New York, London and Jacksonville," according to a company transcript of the call.

ICE, which lists headquarters offices in New York and Atlanta, now owns the 327,000-square-foot Black Knight building along the St. Johns River.

Full article: https://www.jaxdailyrecord.com/news/2024/nov/07/council-members-push-for-renegotiation-of-21-million-incentive-package-for-project-paper-company/