Author Topic: Jaguars’ stadium, sports district could cost City of Jacksonville more than $1B  (Read 46536 times)

marcuscnelson

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Big new article in Florida Politics today.

https://floridapolitics.com/archives/616416-jags-stadium-cost/

Here's the critical part:

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The Jaguars and the Shahid Khan vehicle “Iguana Investments” envision a total investment that could cost as much as $2.068 billion, a number that could include stadium improvements costing between $1.2 and $1.4 billion, as well as between $550 and $668 million for development of a “sports district.” That sports district essentially could be a reboot of the Lot J concept rebuffed by the City Council earlier this decade.

Overall, this would be a 50-50 cost share between the city and the team, according to a document dated May 11 — just days before the mayoral election.

The stadium cost would be largely shouldered by the city government, which could be on the hook for anywhere between $800 and $934 million — two-thirds of the overall price tag. The city share would be more than the $760 million Nashville is spending on its $2.1 billion domed stadium, with the state of Tennessee adding $500 million — an option the state of Florida will not offer.

It would include a presumably retractable roof that affords “sun protection on all seats (and) protection from rain and other severe weather conditions,” as well as better elevators and escalators.

The sports district development, meanwhile, would be largely funded by Khan, with the city obligated to spend between $75 million and $100 million, just 14% of the overall project cost.

All told, the city might spend as little as $875 million, or as much as $1.034 billion. That would be a 50/50 cost split on the whole project with Khan, whose net worth of $11.4 billion is more than seven years of the city’s general fund budget.

There's a lot more analysis and information in there, but that's probably the topline stuff.
So, to the young people fighting in this movement for change, here is my charge: march in the streets, protest, run for school committee or city council or the state legislature. And win. - Ed Markey

marcuscnelson

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Oh, almost forgot the other big thing, which I'll also post in its thread.

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In both documents, the Jaguars also hope to “bring the University of Florida graduate campus to the current Fairgrounds property.” That location would unlock money from Tallahassee, which has already committed $75 million to the UF campus in the 2023 Session, sidestepping the state’s unwillingness to contribute to stadium projects.

The Jaguars offer deal sweeteners in both documents, including $5 million to help meet the statutorily required local fundraising requirement, a donation of the 14-acre Fairgrounds to UF, and the creation of a “vibrant mixed-use neighborhood.”

The May 24 document includes more aspirational language to “support development in the downtown core,” including a so-called “barbell effect” with the proposed mixed-use Eastside development as a “catalyst” for westerly development downtown.

Meanwhile, both iterations enthuse about the Gator Bowl becoming part of the college football playoffs and continuation of the neutral-site Florida-Georgia game. The Gator Bowl is stressed as a reason to get the deal done “at least 12 months in advance” of the expiration of the TV deal and naming rights deal, which runs through the 2025 game.

Both the Gator Bowl and Florida-Georgia would relocate during 2026 and 2027 and return to Jacksonville in 2028 if this timeline holds.
So, to the young people fighting in this movement for change, here is my charge: march in the streets, protest, run for school committee or city council or the state legislature. And win. - Ed Markey

marcuscnelson

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1st DownTown will be unveiling the new stadium renderings tomorrow morning (June 7th) at 10am.

https://twitter.com/1stdowntownjax/status/1666086407025364996?s=20
So, to the young people fighting in this movement for change, here is my charge: march in the streets, protest, run for school committee or city council or the state legislature. And win. - Ed Markey

Ken_FSU

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Make it happen.

The combination of a new stadium, Lot J 2.0, UF at the Fairgrounds, and a long-term lease extension for $1 billion is a no brainer in my opinion.

Was honestly expecting over $850 million just for the stadium.

Swallow the frog, get it done in two years, and let the Jags grow the regional fanbase in Gville, Orlando, and Daytona.

Hoping we cap London home games at 1 per season, and don’t let the overseas game become a stupid dealbreaker.


landfall

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Personally if being picky, I'd want UF in center of the urban core, but its not a deal breaker to me if that absolutely has to be out east, I could concede that. Very much for this whole thing on the face of it. Nothing else is happening in DT Jacksonville of substance. It might even turn out rejecting Lot J the first time is a blessing as since the acquisition of the fairgrounds has also opened things up further.

Renderings, for once, will be very interesting in this city, as this actually has a reasonable chance provided politicians don't kill it. Very intrigued to see if they're going for the whole package at one time with the district/stadium or it'll just be the stadium on its own we see tomorrow.
« Last Edit: June 06, 2023, 01:41:05 PM by landfall »

Ken_FSU

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Personally if being picky, I'd want UF in center of the urban core, but its not a deal breaker to me if that absolutely has to be out east, I could concede that. Very much for this whole thing on the face of it. Nothing else is happening in DT Jacksonville of substance.

In a vacuum, I totally agree that the true urban core would be the best location for UF.

But ultimately, I think it has its best shot at success if Shad Khan has a vested interest in the project. If he's willing to donate the land, put up $5 million+ in private donations, and integrate the campus into his plans for the stadium district, I think I trust that more than letting the city figure out how to maybe, possibly combine it with FSCJ and JEA Utility parcels. I think it happens faster, on budget, and potentially with short-term financial support from the state and more long-term financial support from the Khans at the Fairgrounds.

We'll still have the same problems in the urban core that we've been unable to overcome for decades if the deal goes through, but man, when you talk about a new stadium, Lot J 2.0, a Four Seasons, UF, MOSH, Shipyards West park, and a refurbished Met Park and marina, Union Terminal Warehouse, and a potential soccer stadium, you've got the makings of a really, really interesting area starting to come together down by the sports district.

Charles Hunter

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Something caught my eye from the article -
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would include a presumably retractable roof

This is the first I've seen mention of a retractable roof. How much does that add to the cost?  Is that a potential negotiation point between the City and the Jags?

Zac T

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Personally if being picky, I'd want UF in center of the urban core, but its not a deal breaker to me if that absolutely has to be out east, I could concede that. Very much for this whole thing on the face of it. Nothing else is happening in DT Jacksonville of substance.

In a vacuum, I totally agree that the true urban core would be the best location for UF.

But ultimately, I think it has its best shot at success if Shad Khan has a vested interest in the project. If he's willing to donate the land, put up $5 million+ in private donations, and integrate the campus into his plans for the stadium district, I think I trust that more than letting the city figure out how to maybe, possibly combine it with FSCJ and JEA Utility parcels. I think it happens faster, on budget, and potentially with short-term financial support from the state and more long-term financial support from the Khans at the Fairgrounds.

We'll still have the same problems in the urban core that we've been unable to overcome for decades if the deal goes through, but man, when you talk about a new stadium, Lot J 2.0, a Four Seasons, UF, MOSH, Shipyards West park, and a refurbished Met Park and marina, Union Terminal Warehouse, and a potential soccer stadium, you've got the makings of a really, really interesting area starting to come together down by the sports district.

I'd imagine this could affect the future of FL/GA as UGA may not consider Jacksonville a true "neutral" site game with a UF campus immediately adjacent to the stadium.

Otherwise, for everything that's included I believe this is a no-brainer although the devil is always in the details and I hope both sides negotiate in good faith. A good first test for the Deegan administration

Captain Zissou

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Quote
would include a presumably retractable roof

This is the first I've seen mention of a retractable roof. How much does that add to the cost?  Is that a potential negotiation point between the City and the Jags?

The roof won't be retractable.

tufsu1

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1st DownTown will be unveiling the new stadium renderings tomorrow morning (June 7th) at 10am.

https://twitter.com/1stdowntownjax/status/1666086407025364996?s=20

I can't wait for the renderings, which likely change dramatically (and if past is prologue, not for the better)!

thelakelander

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I'm interested to learn more about the potential of a community benefits agreement for the Eastside and plans for equitable economic development opportunities north of the expressway.

And for the love of God, take that barbell development nonsense out back and kill it for good. There's a good amount of development happening in the core of the Northbank now. It's not reliant on what takes place in the Eastside (i.e. Sports District). Nevertheless, no one is really going to complain about better using underutilized surface parking lots around the stadium. Hopefully, COJ sells the land around the stadium, so that the development ends up on the tax rolls.
"A man who views the world the same at 50 as he did at 20 has wasted 30 years of his life.” - Muhammad Ali

jaxlongtimer

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Putting aside whether having the taxpayers pay $1 billion (that's about $1,000 for every man, woman and child in Jax, not counting interest on the likely bond debt) is fair and appropriate, I have to be convinced the final cost to taxpayers isn't going to be higher than the amount that is going to be arrived at via negotiations. 

Like almost any large civic building project this City has ever been involved with, the original stadium was way over the budget promised taxpayers and I believe there is a good chance this will be too given its complexity and lengthy time frame.  Deegan should insist on any agreed taxpayer contribution being capped and having the Jags take on the risk of any cost overruns, whether due to change orders, inflation, unforeseen circumstances, etc.

Steve

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I expect that’s the way the deal will be. Jags manage construction, COJ portion capped, Jags responsible for overages.

Every project Khan has done with the Jags here has been that way.

fieldafm

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Putting aside whether having the taxpayers pay $1 billion (that's about $1,000 for every man, woman and child in Jax, not counting interest on the likely bond debt) is fair and appropriate, I have to be convinced the final cost to taxpayers isn't going to be higher than the amount that is going to be arrived at via negotiations. 

Like almost any large civic building project this City has ever been involved with, the original stadium was way over the budget promised taxpayers and I believe there is a good chance this will be too given its complexity and lengthy time frame.  Deegan should insist on any agreed taxpayer contribution being capped and having the Jags take on the risk of any cost overruns, whether due to change orders, inflation, unforeseen circumstances, etc.

Your history lesson forgets that in the original 1993 stadium construction, the City's contribution was capped with the Jaguars covering any cost over runs. The subsequent 2004 renovation (for Super Bowl), 2013 and 2017 renovations also had that same provision. Kahn's own entirely self-financed upgrades in 2010 didnt have any taxpayer contributions. However, the construction of the Miller Performance Center set to open next month (on time and on budget) once again capped taxpayer contributions in the case of cost overruns.  The 1993 stadium construction did not come in over budget, and the Jags had incentive sweeteners in previous construction projects to encourage cost management to be kept in check.

The initial pre-cast construction method based upon copying the West upper deck and subsequent incremental approach to enhancements over the last 30 years (which also produced an Ampitheater that the City had been unable to build going back to the massive Better Jacksonville Plan almost 25 years ago) has probably been one of the most fiscally prudent ways to have financed an NFL stadium in the entire league. In that same timeframe, some NFL cities have built two new stadiums or substantially upgraded newly constructed stadiums. Jax didn't follow those approaches.  For the past 30 years, the stadium and surrounding developments have not caused a strain on the City budget, and for the most part the bonds have all been paid by specific user fees tied to the stadium and not from diverting funds that would otherwise be used all over the wider Duval County area.  If you get beyond the rhetoric and people's personal bias about wealthy NFL owners, the actual stadium financing to date has been very sound.

Mike Weinstein, who was in charge of most of the previous stadium construction/renovation agreements, has been tasked to lead the new stadium development agreement on the City's behalf.
« Last Edit: June 07, 2023, 09:49:22 AM by fieldafm »

Jax_Developer

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I'm interested to learn more about the potential of a community benefits agreement for the Eastside and plans for equitable economic development opportunities north of the expressway.

And for the love of God, take that barbell development nonsense out back and kill it for good. There's a good amount of development happening in the core of the Northbank now. It's not reliant on what takes place in the Eastside (i.e. Sports District). Nevertheless, no one is really going to complain about better using underutilized surface parking lots around the stadium. Hopefully, COJ sells the land around the stadium, so that the development ends up on the tax rolls.

As soon as property values hit near Springfield levels (aka new construction is profitable) the Eastside should be able to revitalize fairly quickly given the of it size and how it is platted. Interesting to see how that is handled of course given the significant % of renters living here.

That last part I couldn't agree more. Didn't realize how much land COJ has even behind the JAGS stadium too. This is probably the time to let that go.. there is also a block size assemblage for sale one block from the JAGS stadium right now.. could be a DORO part 2. Lots of good RE activity going on here.. need to make sure locals aren't taken advantage of and displaced.