Author Topic: The District wants $26 million in public incentives  (Read 33461 times)

KenFSU

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Re: The District wants $26 million in public incentives
« Reply #120 on: March 26, 2018, 03:31:40 PM »
David Cawton's twitter has more info. This seems to be making more sense now, but still not sure as I'd like to see the full report and read it.

I think most of what he reported was a bit off, actually.

jagsonville

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Re: The District wants $26 million in public incentives
« Reply #121 on: March 26, 2018, 04:09:35 PM »
http://www.jacksonville.com/news/20180326/new-deal-for-district-has-56-million-in-property-tax-rebates

Another updates. Looks like they are being a bit more specific about the project. 725 apartments, 200 condos, 25 townhomes, etc.
« Last Edit: March 26, 2018, 04:22:26 PM by jagsonville »

KenFSU

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Re: The District wants $26 million in public incentives
« Reply #122 on: March 26, 2018, 04:25:05 PM »
Here's my understanding of the new framework, based on the JBJ and T-U's reporting today:

1) Elements buys the land outright from JEA, at the $18.5 million originally agreed upon.

2) The city loans the DIA $26.4 million to spend on infrastructure for the project, specifically to develop parkland (a riverfront park up to 5 acres, a seperate park, a walking trail around the development), a half-mile extension of the riverwalk, roads, public parking, etc. Ownership of the public spaces would be transferred to the city. The DIA will pay the city back over the next 20 years, exclusively using revenue from the Southside TID.

3) A Community Development District is established for the project, with $30 million in bonds being issued to jumpstart development. Elements has a financial backer on board ready to put down the $30 million (the backer hasn't been identified, but has been in talks with Aundra Wallace for the last week or two).

4) The District would pay back the $30 million in bonds over the next 22 years, via a a 22-year REV grant from the DIA.

5) No clue if it's binding, but per the timetable given to the City Council, the entire project - 725 apartments, 147 hotel rooms, 200 condominiums, 25 townhomes, 125 marina slips, plus 134,600 square feet of retail space and 200,000 square feet of office space - would be built-out by 2022.

The City Council would need to agree to the loan to the DIA, and because the REV grant exceeds 15 years, the council would also need to sign off on that too.

Aside from the CDD aspect, and the switch back to Elements purchasing the property outright, I think the biggest difference I've seen here is the post-purchase transfer of ownership of the riverfront greenspace (4-5 acres) back to the city.
« Last Edit: March 26, 2018, 04:27:35 PM by KenFSU »

marcuscnelson

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Re: The District wants $26 million in public incentives
« Reply #123 on: March 26, 2018, 05:40:12 PM »
Here's my understanding of the new framework, based on the JBJ and T-U's reporting today:

1) Elements buys the land outright from JEA, at the $18.5 million originally agreed upon.

2) The city loans the DIA $26.4 million to spend on infrastructure for the project, specifically to develop parkland (a riverfront park up to 5 acres, a seperate park, a walking trail around the development), a half-mile extension of the riverwalk, roads, public parking, etc. Ownership of the public spaces would be transferred to the city. The DIA will pay the city back over the next 20 years, exclusively using revenue from the Southside TID.

3) A Community Development District is established for the project, with $30 million in bonds being issued to jumpstart development. Elements has a financial backer on board ready to put down the $30 million (the backer hasn't been identified, but has been in talks with Aundra Wallace for the last week or two).

4) The District would pay back the $30 million in bonds over the next 22 years, via a a 22-year REV grant from the DIA.

5) No clue if it's binding, but per the timetable given to the City Council, the entire project - 725 apartments, 147 hotel rooms, 200 condominiums, 25 townhomes, 125 marina slips, plus 134,600 square feet of retail space and 200,000 square feet of office space - would be built-out by 2022.

The City Council would need to agree to the loan to the DIA, and because the REV grant exceeds 15 years, the council would also need to sign off on that too.

Aside from the CDD aspect, and the switch back to Elements purchasing the property outright, I think the biggest difference I've seen here is the post-purchase transfer of ownership of the riverfront greenspace (4-5 acres) back to the city.

Wow, so this… this could actually happen.

But do they really think they'll have everything built out within 4 years? That doesn't sound very doable, unless they start, like, tomorrow.

TimmyB

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Re: The District wants $26 million in public incentives
« Reply #124 on: March 26, 2018, 05:46:45 PM »

Wow, so this… this could actually happen.

But do they really think they'll have everything built out within 4 years? That doesn't sound very doable, unless they start, like, tomorrow.

This will all be in the press release on Sunday, if you follow my drift.

KenFSU

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Re: The District wants $26 million in public incentives
« Reply #125 on: March 26, 2018, 07:17:40 PM »
Sounds like Lori Boyer is a pretty big proponent of the new framework.

From the T-U:

Quote
Boyer said that “puts the burden” on the developer to fully build out The District in order to get the full amount of REV grants.

The city would focus its spending on projects that the public can use. The $26.4 million budget for the city’s portion of the work would mainly go toward construction of a riverfront bulkhead, extending the Southbank Riverwalk, building a boardwalk and a paved trail around the edge of the property, and creating a riverfront park and “pocket parks” on the site. The city would get the land for the parks at no cost.

Boyer said even if The District never builds anything, the city still would have the benefit of increasing public access to the St. Johns River with the parks and a longer riverwalk. The city also would extend Prudential Drive and Broadcast Place into the development site, and construct Riverside Drive along the area where the riverfront parks would go.

KenFSU

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Re: The District wants $26 million in public incentives
« Reply #126 on: March 26, 2018, 07:45:00 PM »
P.S. So we know that the state budget has $10 million set aside for demolition of the section of the Hart Bridge ramps between the stadium and Met Park. We also know that as soon as that ramp comes down, Shad Khan wants to develop Met Park. And we also know that in order to do so, because federal grant money was used to build Met Park, the city would need to execute an in-kind land swap and build a park elsewhere.

If the proposed framework for the District is approved, resulting in the city owning five acres of riverfront parkspace on the Southbank, with additional pocket parks and trails surrounding it, there's your land swap, right? Clearing way for further development on the river in front of the stadium. Ideally, we'll have an amazing parkspace in a future Shipyards development, but in terms of satisfying the swap on paper, and clearing that hurdle for immediate remediation and development of the Met Park space, this could be a side benefit that I haven't seen anyone mention yet.

thelakelander

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Re: The District wants $26 million in public incentives
« Reply #127 on: March 26, 2018, 07:51:29 PM »
Met Park is way bigger than five acres. A land swap for it is most likely taking place within the Shipyards site.
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KenFSU

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Re: The District wants $26 million in public incentives
« Reply #128 on: March 26, 2018, 08:58:23 PM »
Met Park is way bigger than five acres. A land swap for it is most likely taking place within the Shipyards site.

Current Met Park, for sure, but wasn't original Met Park (phase one), which was built using the federal grant, much, much smaller? Like under 10 acres?

Also, correct me if I'm wrong, but pure acreage is only one variable considered when weighing the merits of a land swap. Appraised value is equally important. As is age/obsolescence. Five acres of clean waterfront land might not carry that much different a value than a dead park on 20 acres of contaminated land, bounded by highway and shared with a TV station.

Love the Shipyards park floated by Khan, particularly with the USS Adams integration, it has to happen, and to me, it's the absolute ideal location for an urban riverfront park to bridge the CBD and the Sports district, but it's realistically years off by the time that the Hart ramps are fully demolished and the Shipyards is fully remediated. The existing Met Park site, conversely, might be less than two years from being shovel ready, depending on how quickly the ramp comes down and the Met Park land is cleaned up.

If the arctic pace of Shipyards remediation is holding up a land-swap that will allow Met Park redevelopment to begin, might be worth at least thinking about whether all of this new combined greenspace the city is potentially bankrolling and owning would qualify for the swap. Might move along redevelopment of that site more quickly and get the pure financial liability of a future swap off the books.



thelakelander

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Re: The District wants $26 million in public incentives
« Reply #129 on: March 26, 2018, 10:32:58 PM »
Metropolitan Park is 32 acres. I have to go back and check but I don't believe the original park was smaller than 10 acres. Also from my understanding, it makes sense to turn a portion of the Shipyards into green space because of the contamination issue. Also, the green space proposed for the District was always a part of the plan. Maybe time will prove me wrong but at this point, I don't see a strong link between Metro Park and what's proposed at the District.
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Shirt Tail Johnson

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Re: The District wants $26 million in public incentives
« Reply #130 on: March 27, 2018, 10:47:17 AM »
The original plan was $433M in costs, but it looks like this plan is is calling for a reduction of 25% or so, so we can only estimate the new cost will be 325M give or take a few mill.  The 56M that the city is kicking in property taxes and 26M in infastructure improvements represents about 82M which is approximately 25% equity stake in the deal.  Take out the 26M and leave the tax rebates its a 17% equity stake. Not bad  a bad deal for the developer.  If i were a betting man, My guess is Rummell and Co are will have less than that "in the deal" once completed. 

thelakelander

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Re: The District wants $26 million in public incentives
« Reply #131 on: March 27, 2018, 11:02:24 AM »
If Shirt Tail is correct, sounds like this year's Christmas gifts will be provided by the Rummell household!
"A man who views the world the same at 50 as he did at 20 has wasted 30 years of his life.” - Muhammad Ali

KenFSU

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Re: The District wants $26 million in public incentives
« Reply #132 on: March 27, 2018, 11:13:09 AM »
A little more granular detail from the Daily Record:

Quote
First, the DIA would fund $26.4 million in public infrastructure.

The DIA would build three riverfront parks totaling 3.5 acres, another 1-acre pocket park, a 1,900-foot expansion of the Southbank Riverwalk and bulkhead construction, a walking trail around the development, a parking lot for 100 public spaces and the expansion of three roads for public access.

While Elements plans to buy the property from JEA, it would need to convey the land marked for public use to the city – free of any loans or other encumbrances – before it could begin development.

Wallace said the DIA has $5 million allocated for public infrastructure costs set aside for the project and about $4 million more earmarked over the next two fiscal years.

Wallace said Mayor Lenny Curry’s administration advised him the city would provide a loan to the DIA to make up the difference, about $16 million to $20 million, at an interest rate of 2.66 percent over 20 years. That would need council approval.

“Under this scenario, we can afford to do The District and other projects as well,” said Wallace in response to a question from council member Tommy Hazouri.

Wallace said the loan would be repaid from tax revenue generated in the Southside Tax Increment Financing District, which encompasses part of the Downtown Southbank.

He said the fund has enough cash to cover the loan obligation and assist other projects on the Southbank during that time.

https://www.jaxdailyrecord.com/article/dollar26-4m-deal-for-the-district

Steve

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Re: The District wants $26 million in public incentives
« Reply #133 on: March 27, 2018, 12:43:09 PM »
I'd like to know if the $26.4M is for this, and only this:

"The DIA would build three riverfront parks totaling 3.5 acres, another 1-acre pocket park, a 1,900-foot expansion of the Southbank Riverwalk and bulkhead construction, a walking trail around the development, a parking lot for 100 public spaces and the expansion of three roads for public access."

If so, no issue with that part of it. I do think the City should be on the hook for these items. Save for the "walking trail around the development" and the "1-acre pocket park" which is probably a small percentage anyway, the rest of the items could legitimately be used by anyone in the city.

(I find it unlikely that someone would make their way over there to enjoy a small pocket part or a walking trail around the place).

JBTripper

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Re: The District wants $26 million in public incentives
« Reply #134 on: March 27, 2018, 03:50:03 PM »
I believe the walking path around the development will be part of a shared-use path through San Marco, the Southbank, and connecting with Riverside across the Fuller-Warren. It certainly can and will be used by anyone in the city.