Mayor Brown calls on rich and powerful to start investor fund

[mtraininjax]

I knew he would use Public Private Partnership again, he loves that phrase, he already has his slogan working for the next election.

Jacksonville Mayor Alvin Brown plans to ask the city’s power players to chip in for a $200 million fund that would be used to complete key projects, like Downtown redevelopment initiatives.

After an architect expressed frustration over banks’ stringent lending practices at Thurday morning’s Urban Land Institute breakfast, Brown told those in attendance of his plans to start the investor fund. In his vision, the investors would be willing to settle for a lower rate of return in order to get certain projects off the ground.

“It’ll be seasoned investors â€" those who are well off, who’ve made millions selling the Jaguars,” Brown said, smiling and referencing former Jaguars owner Wayne Weaver. “You guys each put up $2 million, and we’ll raise a couple hundred million. By the way, Preston [Haskell], Peter [Rummell], and Wayne, let’s do a public private partnership and call it a ‘take Jacksonville to the next level’ fund.

“There are ways to work deals. There’s no limit to all the talent we have in this city. We have to take a step back and make it happen.”

In November, Rummell told The Business Journal that it was easier to find equity for deals than to obtain debt financing.

“There’s so much money out there chasing deals â€" on some of the national work I’m doing, it’s unbelievable how much money is out there looking for things to do,” he said.

Brown said after the breakfast that he hasn’t had any formal meetings about the fund but he’s “put it out there.” He said the fund could be used for projects like Downtown redevelopment â€" a new movie theater and grocery store, and of course, the Laura Street Trio project.

He also named Gary Chartrand, chairman of the board of directors at Acosta Sales & Marketing; Robert Stein, president of Regency Centers Corp. (NYSE: REG); Michael Ward, president and CEO of CSX Corp. (NYSE: CEO); and fundraiser Robert Shircliff.

“You all know power brokers,” Brown told the ULI members. “I’m just a meat cutter from Winn-Dixie.”

[Garden guy]

Paybacks are hell and the haves always want a return in many ways. This city is the cheapest to live in and our system including schools have suffered greatly due to conservative councils year after year incessant lowering of this tax and that fee....now we have a fucked up system that's killing our downtown year after year. Private money can help  but at what cost? isn't that what has already happened? past investors that fucked it up through the hands of council. an historically white and wealthy council.

[CityLife]

I'm not a real estate finance guy, but wouldn't be easier to just establish a REIT with the sole focus on Downtown Redevelopment? That way there would be some distance between the city and the investors. The board/staff of the REIT would then have the ability to pick which projects to finance or develop.

Or perhaps that is what Brown has in mind.

A REIT would also make it easier for Joe MetroJaxer to put in 5, 10, 20k or whatever.

[Jimmy]

mtrain, could you link to the source?  Is that from the TU?

[downtownjag]

It's from the business journal, he spoke at a ULI event this morning.  He's a very inspiring person.  Glad I voted for him!

[MusicMan]

QUOTE: “There’s so much money out there chasing deals â€" on some of the national work I’m doing, it’s unbelievable how much money is out there looking for things to do,” he said.

US and multinational corporations have made a killing over the last 5 years, and that statement is proof of it. Sure would be nice of they decided to re-invest in the communities (like ours) that have such huge potential but need a kickstart to get it going.

[Jimmy]

Thanks, downtownjag.  I was hoping to read it in its entirety.

[Kaiser Soze]

PUBLIC PRIVATE PARTNERSHIP!

[downtownjag]

Thanks, downtownjag.  I was hoping to read it in its entirety.

Ask and you shall receive:

http://www.bizjournals.com/jacksonville/blog/2012/05/mayor-brown-calls-on-rich-and-powerful.html

[Jason]

Its this kind of partnership that could get the convention center ideas off the drawing board and into fruition.

[vicupstate]

This is very much needed and long overdue.  The Laura St. Trio should be their first project, with other historic buildings getting a leg up too, such as the Ambassador Hotel. 

[fsujax]

I dont know why he keeps referecing a movie theatre or grocery store Downtown. Just focus on the Trio and get it done!

[Debbie Thompson]

If you build cool downtown housing people can actually afford, with parking available, they'll move there.  Not everyone can afford a high rise on the riverfront.  Do open lofts, stained concrete floors, more affordable.  (And there is a grocery downtown, just not in the very center of it.) 

[fsujax]

good points Debbie. I made that same statement at a ULI breakfast a few weeks ago. Directed at Ed Burr and Don Shea.

[MusicMan]

Quote: "Cool downtown housing that people can actually afford"

Can't get much cheaper than the units at City Place. 1 bedroom condos (somwe with great views) in the $20,000's.
Would that be cheap enough?

Just checked the MLS. One unit at City Place, 1 bed 1 bath, 454 sq ft, for $17,500.

One unit, studio, 900 sf, for under $100,000 at Churchwell Lofts. Granite /stainless appliances plus washer dryer
and private parking.

One unit, 17th floor at City Place, 1 bedroom 1 bath, 543 sf, nice upgrades (granite + cherry cabs)
asking $59,000.