A Downtown Capital Infusion?

[Cheshire Cat]

I alluded to the fact that there would be growing pressure after "One Spark" for an infusion of cash into downtown.  Here is is in print.  If I had to guess, I would say there will be a ton of pressure put on the mayor to see the shipyards money go here.  Whether or not the council will buy into that is one unanswered question.


http://www.bizjournals.com/jacksonville/news/2014/04/23/as-real-estate-cycle-ramps-up-downtown.html (click link for full article)


But for Downtown Jacksonville, a place where rents are too low to justify even the smallest construction jobs, it will start with public investment, Halverson said. He said some individuals are talking about a patient capital fund for Downtown projects— capital that is willing to wait for and accept low returns in exchange for doing projects for the greater good of the community.
The private sector will not jump in until the city leads the way, he said.

[simms3]

Agree with the article, 100%.  The times we are in don't come by very often.  The capital markets overall are healthy.  Public discussions are being had.  Optimism about things is high.  This opportunity to get something done and really plant more than just a mustard seed should not be squandered.

Every city that we all love to visit because of their cool downtown (and all that that implies) has at one point or another had to bite the bullet and spend money, public money.  And that required a political will.  I think Jax is about in this perfect time to follow suit...you don't spend public money when times are bad!

[Cheshire Cat]

This is another article that talks about the idea Mayor Alvin Brown floated the that private Downtown Investors could help fund the needed capital infusion for downtown revitalization.  The idea fell on deaf ears the first time it was floated.  Now Haskell is saying the attempt to get that private funding has begun again.  This will be a contest of who invests first the city or the private sector. Note, the excerpt below which indicates who was initially tapped to help and who did not.  Apparently Haskell is considering the investment, no word on Peter Rummell or Wayne Weaver.  Just a reminder how who controls the politics locally influences if and when money funds downtown.  I know some don't want to believe that fact, but it's true. Part of the landscape when it comes to finding the mojo Khan is talking about.  Lets see if our millionaires whom he declared are without mojo can find some now.  lol

http://www.bizjournals.com/jacksonville/news/2014/04/23/patient-capital-fund-in-the-works-for-jacksonville.html
(click link for full article)

Patient capital is investment dollars that doesn't expect high or immediate returns. It's a concept that's been successful in other cities, but hasn't caught on in Jacksonville yet. Mayor Alvin Brown floated the idea in 2012, calling on Peter Rummell, Preston Haskell and Wayne Weaver, among others, but it never gained any traction.

[simms3]

^^^Steve Halverson is CEO of Haskell Co and has no direct person affiliation with Preston Haskell, who is now long since retired from that position.  The article doesn't indicate if anyone is considering it.

However, along with Shad Khan, Preston Haskell, Peter Rummell, Wayne Weaver, Tom Petway, and maybe a couple others I'm missing (Bill Walton, for instance, who is kind of removed from the Jax scene from what I understand) are a few of the very few big whig private sector names we have in this city.  Any of them banding together to pool capital and create investment would be a good thing, even if it comes with strings attached (I regard all of these guys to be FAR FAR FAR more competent than *anyone* in city government right now).  Again, just as if Shad Khan were to turn into Jacksonville's Paul Allen, if this group created a sizable fund and there was real opportunity there, it would peek my interest, for sure.

I don't get why you seem to have a problem with any of this.   

[Cheshire Cat]

Simms just read the article and hush and quit trying to decide what it is I am thinking.  For me this about helping people realize how the private/political landscape in Jacksonville works as it regards money, development revitalization and most everything else in the core. You know Jacksonville, the place you have plenty to comment about but also the place you don't live. I take that in to account when reading your posting.  You are your own full blown peanut gallery.  As to the Haskell comment, seriously?  Again just read the dang article.

A group of private investors is considering putting together a patient capital fund, Steve Halverson, CEO of Haskell Co., said Wednesday.

I put no spin on what they wrote.  I had hoped you had used the "block" mechanism on the forum by now.  For heaven sake please do! Borrowing a word created by Stephendare, stop the Jackassery please!

[simms3]

Can't find the function, but believe me I looked   (you clearly haven't blocked me either though!)

[Cheshire Cat]

So those who support the creative class are clueless Stephen?  Got it. Did anyone imagine that support of the creative class would fund downtown revitalization?  I didn't and that is not even hinted to in the above article.   I can however see how some would think I went after the "guy" who did fund some of the last new enterprise event and pretty much attached his persona to the entire deal. lol  That was not my intent, it was rather to lift a veil but people got all up in their "feelies".  However, I clearly understand that lifting the veil and pointing out some truths is a big no no in the eyes of some who post here.  Got that as well.  Now what does any of that have to do with the article I posted above? 

[Cheshire Cat]

Can't find the function, but believe me I looked   (you clearly haven't blocked me either though!)

Never said I was going to Simms.  I have pretty thick skin actually, but when the dialog becomes about me and not the topic at hand it wears thin right quick.  If anything that is one of the undersides of online discussion on this forum. Tit for tat, attack the poster etc.  What a shame.

Perhaps staying on topic is a good idea.  Now about funding downtown progress...

[vicupstate]

Every city that we all love to visit because of their cool downtown (and all that that implies) has at one point or another had to bite the bullet and spend money, public money.

Jax HAS spent money, lots of it, with little to show for it.  What it has spent has been largely without a overall long-term vision (not to be confused with 'studies', of which there have been many).  The spending has been in 'fits and starts',  Billion dollar decade,  'River City Renaissance, Better Jax Plan, etc.

That is at least part of the reason why the private money hasn't followed the public investment. 

If I were one of the deep pockets in town, I would want strong assurances that the past will not be prologue for the future. 

[Cheshire Cat]

Every city that we all love to visit because of their cool downtown (and all that that implies) has at one point or another had to bite the bullet and spend money, public money.

Jax HAS spent money, lots of it, with little to show for it.  What it has spent has been largely without a overall long-term vision (not to be confused with 'studies', of which there have been many).  The spending has been in 'fits and starts',  Billion dollar decade,  'River City Renaissance, Better Jax Plan, etc.

That is at least part of the reason why the private money hasn't followed the public investment. 

If I were one of the deep pockets in town, I would want strong assurances that the past will not be prologue for the future. 

Correct and your words echo much of what I am hearing from others.  Right now the new DIA has presented what they call a plan that reaches 20 years into the future.  The problem with such plans is that the administration, department leaders and council membership will change over and over during that time. There will be no continuity.  To me the DIA plan is a conglomerate of Metrojacksonville ideas interjected with past studies by groups like the JCCI.  It offers nothing new idea wise born of the DIA itself and to my eye is a very weak approach to what should be action now.  I think Shad Khan should take a look at what our city offers up when it comes to making an area viable.  It will only reinforce his current view that the movers and shakers here lack mojo.  We continue to fail. 

To my eye, the money from the shipyards settlement should go back into the downtown.  However I would also like to know that the funding would be wisely used.   We don't need more cobblestone round-abouts.  lol

[edjax]

^^ what would you like the public sector money to go toward?  Infrastructure?  Such as?  Incentives?

[Cheshire Cat]

I actually think it should go mostly toward incentives for plans that would get some occupancy in local storefronts and create some activity.  I think the city needs to complete the promised inventory of city owned and un-used properties and get them sold and put that into infrastructure.  I would also like to see some of the money go to helping the group that wants to open the Snyder church at Hemming park and have it functioning to support the musical arts.  Would also like to see some spent on completing the entry to the Brewster Hospital and adding the required handicap ramp at the back so  the building can be occupied.  I would imagine there would be a use for some of the funds in the "plans" for Hemming park if indeed they are realized as opposed to just talked about.

I have no problem with incentives for downtown.  I just want to see them well spent.  Of course there will be a tug-o-war over the funds as the city council has now started looking at the new budget.  They are not waiting on mayor Brown this time around.

Of course the drainage mess in front of the courthouse is outrageous.  I would like to know what happened with the infrastructure funding in that case.  I would not be surprised if someone in the city tried to tap these funds for that.

[Cheshire Cat]

So those who support the creative class are clueless Stephen?  Got it. Did anyone imagine that support of the creative class would fund downtown revitalization?  I didn't and that is not even hinted to in the above article.   I can however see how some would think I went after the "guy" who did fund some of the last new enterprise event and pretty much attached his persona to the entire deal. lol  That was not my intent, it was rather to lift a veil but people got all up in their "feelies".  However, I clearly understand that lifting the veil and pointing out some truths is a big no no in the eyes of some who post here.  Got that as well.  Now what does any of that have to do with the article I posted above?

?

What is 'support' really?  All the well wishes in the world do not pay bills, nor do they actually install public exhibitions, showings, performances etc.  No invention was ever funded by people who were 'for' something but unwilling to raise or spend cash, you know.

I think thats my point.

In order to criticize, I think that its important to have a solution or alternative ready, and I havent heard that.

If a private investment group doesnt form to capitalize redevelopment downtown, should we just leave it abandoned until some nebulous group of outsiders funds it?

Thats what Im asking.

What is your alternative to the emergence of private capital groups who have a local interest in this place and economy?

And if there is an alternative investment group, how would you suggest activating them to achieve these laudable goals?

Why are you asking about an alternative to private capital groups?  At no point did I say capital groups were a bad idea.  I offered no criticism here on the issue at all.  Why do some seem intent upon creating a dialog outside of my comments?  lol  I have just concluded that we are talking on two different levels in this discussion.  Let me be clear, I have no problem with private investment money in this city or the events it holds if that money comes without political strings attached to it. If there are strings attached then people need to be aware of what those may be because it impacts how our city is influenced.   On this thread the discussion is focused around private investment being used in downtown incentives/revitalization efforts.  That is what I commented to on this thread and I support the idea.  Is that clear?  lol

[Gamblor]

you don't spend public money when times are bad!

I can't disagree more on this issue. If anything public investment is the key when times are bad, as interest rates are low to zero, labor cost are significantly lower, and most suppliers will be looking to cut a deal to move product. In short it's better to spend when things are cheap.

[Cheshire Cat]

Stephen, over the years I have come to understand that sometimes we miss each others points and that is okay.  Of course I can explain more about the strings that tie all things together, but it appears to me that a lot of folks don't want to hear it right now.  lol  Now you know my feelings have never been the type that put me on the sidelines of all that is Jacksonville only to stand by and say let it rot.  Quite the opposite.  It's the long history of why things fail in this city that needs to be understood in order for it to ever go forward.  That means standing back, putting all the touchy feels behind ourselves and objectively looking at the playing field that is Jacksonville from private, to public and our own perceptions about why things are the way they are in Jacksonville.  If people would open their eyes to it and understand it, they would be far better equipped to know how to work to change our system in a way that makes forward motion possible.  That means looking at the status quo and the players who have defined our past to give us the status quo of today.  If folks are gonna get all defensive about real talk, it's hard to imagine a dialog that will move us beyond hopes, dreams and hot air to the forward motion (mojo) that Jacksonville has lacked for far too long.  I have been ready for real talk for years now.