How promises to revive Jacksonville's depressed Northwest side fell short

[thelakelander]

By MATT GALNOR and ABEL HARDING

Not a soul reports for work at the shell of a car dealership along Interstate 95, the cornerstone of a massive project that aimed to create more than 600 jobs.

Same goes for the empty building slated for LaVilla Bistro on the outskirts of downtown. The parking lot at Union and Beaver streets is now dotted with a mound of dirt and piles of bricks - not cars belonging to hungry customers and 100 employees.

The unfinished projects are glaring examples of costly meltdowns marring the $25 million Northwest Jacksonville Economic Development Trust Fund.

The fund, aimed at sparking private investment in a long-neglected part of town, helped win African-American support for Mayor John Delaney's far-reaching $2.2 billion Better Jacksonville Plan in 2000.

A decade later, smatterings of success have been overshadowed by prominent failures, and many black leaders say the fund was just another initiative aimed at impoverished neighborhoods that was long on promises and short on results.

"The black community is still waiting on those jobs," said Deborah Thompson, former president of the First Coast African American Chamber of Commerce.

Spotty tracking and record-keeping make it impossible to determine exactly how many jobs were created.

One thing's for sure: The number is less than half the "more than 1,900 jobs" claimed by fund director James Richardson in November in an address to a City Council committee.

He would later admit he was wrong - after a months-long investigation by The Times-Union revealed the fund's rocky performance.

The key findings:

- The program failed to meet its goals as a job-generator. Forty-seven percent of the companies receiving trust fund money either didn't create the number of jobs promised or failed to provide any proof of doing so - a program requirement. A review of records could find evidence of only 923 jobs spawned by the fund.

- The city gambled big on risky startups and lost. The failed bistro and car dealership-related ventures alone swallowed $5 million and haven't created a single job.

- Oversight was lax and requirements laid out to safeguard taxpayer dollars often were ignored. A $1.7 million facade grant program was under the control of one employee who ended up doctoring documents from contractors and forging signatures to steal $95,000.

- Politics played a role in where the money went. Elected officials and connected players, including big-name developers, received major funding and City Council members pressed the fund's advisory board to approve pet projects.

One controversial deal involved $250,000 in grants and loans for a Soutel Drive strip center redevelopment project proposed by former state Sen. Betty Holzendorf and contractor Bill Gay, a millionaire.

A. Wellington Barlow, a local attorney, was so upset by the types of projects getting funded that he resigned from the oversight board in protest in 2003.

"I saw the greedy coming in and getting money that should have gone toward the needy," he said.

Barlow managed to derail approval for the Holzendorf-Gay project before he left the board. It was approved weeks later.

'Very sexy concept'

Out of a massive $2.2 billion civic improvement plan, $25 million seems like an afterthought.

But while other Better Jacksonville money was tied to specific projects - building and renovating libraries, fixing roads and getting neighborhoods off septic tanks - the trust fund was the pool of money that businesses could apply for and, in theory, earn based on merit.

Gripes in other neighborhoods center on bad roads and schools, but it's a lack of investment that's plagued the Northwest side. The economic development fund, neighborhood leaders believed, was a chance to finally get in on the boom the rest of the city was experiencing in the pre-recession years.

In the scarred communities designated for sorely needed help, crime, poverty and unemployment rates are among the highest in the city. Strip centers are dotted with empty storefronts. New development is rare.

More than half of the trust fund money was targeted for small businesses, with another $8 million for large-scale projects and a separate pot of cash for facade improvements, dispensed in $7,500 chunks.

Typical of the mom-and-pop businesses that benefited were the gas station near Edward Waters College that got $54,000 for a renovation and the pizza shop on Lem Turner Road that received $21,000.

There was also corporate muscle, like a $250,000 grant to help Morningstar Foods expand its plant to make its Silk soy milk product in Jacksonville and another $250,000 for Sysco Food Service to expand its warehouse and distribution center.

Some worked: The gas station and Morningstar generated more jobs than promised.

Others didn't: The pizza shop wound up closing, despite receiving $13,500 in start-up cash. Sysco scrapped its project, and never took the city dollars.

"It was a very sexy concept that people bought into," said Reggie Fullwood, who represented parts of Northwest Jacksonville on the City Council from 1999 to 2006.

"Unfortunately, it didn't meet the expectations most of us thought it would meet."

full article: http://jacksonville.com/news/metro/2010-03-28/story/broken-trust-how-promises-revive-depressed-northwest-side-fell-short

[thelakelander]

- The city gambled big on risky startups and lost. The failed bistro and car dealership-related ventures alone swallowed $5 million and haven't created a single job.

The city ought to really take a look at rail and "connectivity" and their impact on economic development in communities like this.  Applying $5 million towards a "no-frills" mile of track (part of a larger system) or into improving a commercial pedestrian shed's appearance and connectivity, would have gone a long way further in stimulating growth/jobs in these areas than to isolated miniscule projects.

[strider]

I agree with Lake. Any remaining funds should be geared towards areas with an eye on future light rail spurred development.  As to the failed businesses, what happens to the assets?  I know the city ended up with 9th and Main for instance, but the failed and uncompleted car dealership seems like more than just the fund’s money was used and so does the other lender end up with it and the city is out? 

[mtraininjax]

Running a city program where there is absolutely no accountability is disgusting and is the prime reason many of us are so disgusted with city "leaders", because they take little to no responsibility for the results. There are a few articles in the TU about the money the JEDC loaned out in the NW program, the quote by the city chief for community affairs where she says "you can put in all the checks and balances you want, but bad people will still steal money" is complete BS. She has to idea what it takes to be a leader in the community and with her comments, shows she is incapable of leading the Community Services Department. She'd better represent the community as a file clerk.

[JagFan07]

There wasnt enough space set aside for actual dining, and while the walls were covered in amazing art, the three partners just didnt know anything about restaurant management (pretty common actually)

So true Stephen, when we were in Orlando our accountant was so amazed at how much money we were making that he decided he would front his brother-in law who had never stepped foot into a commercial kitchen. Needless to say they were never able to make it. In fact I think they closed within 30 days of grand opening. He didn't take into account that between me and my partner we had close to 25 years in the restaurant biz.

[Dog Walker]

That whole program worked exactly as it was intended.  It just wasn't really intended to create jobs only to create political support, which it did.  When you look at the real intent of the program all of the things that look like poor judgment and corruption make perfect sense.

[vicupstate]

Stephen, the restaurant in the article is the open that never opened.  The other one, Lavilla Bistro, pre-dated the BJP funding for NW, I believe.

The article was good and it's scary to think if such investigations will even take place if newspapers don't survive. BTW, Stephen, TWO people were credited with the article. 

This article confirms nearly EVERY negative stereotype about Jacksonville government, politics and good old boy control.   Good luck ever getting the next BJP approved.  The BJP items that were specific were largely completed, but the lack of specificity for the Enterprize fund was an invitation for abuse.     

[Houseboat Mike]

Is any of this money left? Utterly amazing how we piss away money around these parts.

[Noone]

The money wasted on pet projects by the fund was simply amazing.


James Richardson, who administers the fund now is a pretty amazing man, almost one hundred percent of the craziness was done before he took over, and I can tell you that his initial vibe over the projects when he took over, was generally one of disbelief. 

Is this the same James Richardson that is now over the EPB (Environmental Protection Board)?

[Ocklawaha]

- The city gambled big on risky startups and lost. The failed bistro and car dealership-related ventures alone swallowed $5 million and haven't created a single job.

The city ought to really take a look at rail and "connectivity" and their impact on economic development in communities like this.  Applying $5 million towards a "no-frills" mile of track (part of a larger system) or into improving a commercial pedestrian shed's appearance and connectivity, would have gone a long way further in stimulating growth/jobs in these areas than to isolated miniscule projects.

Be interesting to relay the Davis Street Streetcar line from the so-called JRTC to Beaver and hence east to the stadium (yes, I know there is a gap on the east end of Beaver, but remember this is a railway, streets are NOT needed). This brings back the opportunity to recycle the SAX SEAFOOD building into a streetcar heritage museum next door to the RITZ. Dallas, which has collected 3-4 Jacksonville type 'Turtle Back' streetcars (that big green car operating in downtown Dallas) is now seeking a new home for the unrestored cars, the same cars they offered to 'horse trade' with us if we ever got serious.

0r establish a line from State Street @ Rosa Parks straight up Hogan through the College campus, curving into the SW edge of the park and continuing to the hospital. A pedestrian bridge from the Skyway at Rosa Parks to the Streetcar station over State Street could set the stage for some eventual rational solution to the Skyway.

[Know Growth]

That whole program worked exactly as it was intended.  It just wasn't really intended to create jobs only to create political support, which it did.  When you look at the real intent of the program all of the things that look like poor judgment and corruption make perfect sense.

Yep........a contributing factor to Delaney's eventual political stall.