One other thought: We need to add all the "extras" that Kahn is asking for with the Hart Bridge ramp removal, Lot J or its future incarnations, the Shipyards/Four Seasons, etc. These extras, totaling hundreds of millions in additional taxpayer dollars are all supposedly provided to keep the Jags in town too. In my mind, it is all part of the "package" and should be accounted for accordingly.
The city makes 100% of its money back on the Four Seasons incentives and that was something hashed out between the DIA and the Jaguars. The bulk of the incentives for the development come in the form of a REV grant on land that was previously contributing zero dollars to the city tax rolls. Shad will get a reduced property tax bill for the first 20 years of the project, but after that he will be paying millions per year in property taxes. Even before the REV grant ends he will be paying millions in taxes annually. Add to that the bed tax money, sales tax, the $4M contribution to Met Park and the work done to renovate the marina at Met Park and you can see the city is getting a lot for their contribution. The city is including as part of the incentives both the parkland that he is actually building on as well as the new park space where the Orleck and the Firehouse will be. If you compare this to the deal at One Riverside, Shad is not getting as favorable of terms as other developers in this city.
Captain, points noted. However, underlying your assumption, right off the bat, is that the Four Seasons is immensely successful. We heard the same story when they City bent over to get the Adams Mark, now Hyatt, that it "had to have" to bid for a Super Bowl. That hotel has gone bankrupt at least twice by my count. I also believe you are potentially way overstating the tax revenues the hotel will generate. Additionally, I note that it is in a Federal Opportunity Zone enabling Kahn to potentially pay zero Federal income tax on a sale of the hotel in future years and, until then, to defer capital gains taxes for a decade or so.
To my point, based on the info in the below article, Kahn will be paying only $795,000/year in property taxes for 20 years. That is hardly the "millions" you appear to be counting on and, when adjusted for present value, is further greatly reduced.
The city also would rebate 75 percent of city property taxes generated by the value of the new development for a 20-year period. That would be an incentive worth up to $47.7 million.
https://www.jacksonville.com/story/news/local/2021/10/10/four-seasons-hotels-nashville-and-jacksonville-show-downtown-contrast/6042894001/
As to any bed taxes, it has already been noted here those will likely benefit back to Kahn to help pay for his stadium upgrade. That isn't a return to the rank and file citizens of Jax who are fronting his incentives from the general fund. If correct, this would be an example of the shell game played on these deals since the general fund will ultimately be funding the stadium.
All in all, there is a good bit of risk to the payback and it may take far longer (decades!) to pay back the City's $114 million (in today's dollars and if that ends up being the real number) if it ever comes. Adjusted for inflation, we may never see it all back.
Keep in mind my underlying cynicism is based on the City's track record as a terrible negotiator, rigging presentations to get what the Mayor wants, not being business savvy, not doing well running numbers (see Lot J)and Kahn having the Mayor in his pocket. On the other hand, Kahn didn't get rich being outmaneuvered on business deals. If I am a betting person, I give the win over the taxpayers to him, hands down.
