Issues remain between city, Shad Khan over The Shipyards property

[thelakelander]

It sounds like the Shipyards could cost the city a lot more than $35 million for cleanup....

Among the key sticking points outlined in the DIA analysis:

■ Iguana is seeking the ability to terminate its contract if the environmental cleanup — which the city would be responsible for paying — exceeds $35 million.

The DIA has proposed an option for the city and Iguana to mutually agree the city can cover costs above $35 million, rather than an automatic termination.

The city is still working to determine the extent of environmental contamination at the site, which formerly housed heavy industrial uses that exposed it to lead, arsenic and other toxins. City officials don't yet know how much the cleanup will cost.

The city currently has about $13 million set aside for that cleanup. Curry's long-term plan for big-ticket projects doesn't include any money for cleanup in the upcoming fiscal year, though he's pledged
$17.5 million for the 2016-17 fiscal year.

■ Iguana has proposed the city oversee and pay for mooring space for the USS Adams — for years, locals have suggested turning the retired vessel into a naval ship museum.

The DIA flatly rejected that idea.

"No. This will be between Iguana and USS Adams," the analysis says.

■ Iguana wants all tax increment financing funds — the increase in property taxes generated by the project — to be spent on the property.

But the DIA says 85 percent of the tax increments funds are dedicated toward paying debt service and the operation and maintenance of public space.

■ Iguana has proposed that the city would retain ownership of the riverwalk and its associated bulkheads and public spaces, though the building pads would belong either to Iguana or other companies that purchase them.

The DIA comments express reluctance to "piecemeal" the property.

Iguana wants the city to approve 1 million square feet of office space, 100,000 square feet of commercial space, 662 residential units, 350 hotel rooms and 525 marine slips on the property.

The DIA says only 400 marine slips are available and that no other slips exist.

■ Iguana would oversee the design and construction of improvements on Bay Street; the riverwalk, which would extend the current Northbank all the way to Metropolitan Park; public spaces and restoration/construction of the bulkheads. But the city would pay the cost of those projects.

But investment authority officials want the city and Iguana to partner on the design of those improvements because they "have an interest in ensuring that Bay Street and other public areas are designed in accordance with DIA's long-term needs."

Full article: http://jacksonville.com/news/2015-07-24/story/issues-remain-between-city-shad-khan-over-shipyards-property

[Tacachale]

Wow, what a hosing. Hopefully we can now work on a deal that's doable without being so lopsided.

[Keith-N-Jax]

I was thinking the same thing and quickly. This site has remained empty far to long.

[UNFurbanist]

Well hopefully like most deals this is Khan's attempt at coming in asking for everything but secretly willing to accept a deal somewhere in the middle. I just think that with Brown he was able to get everything he wanted with few questions asked. $33 million for huge scoreboards? Sure. Why not? With Curry he knows he'll really have to bargain and come down a bit on these demands. Personally I think both parties really want the shipyards so it will eventually get done. There will be plenty of "less than enthusiastic" press in the mean time but I think it will happen. I think it makes really good business sense for Khan to have a vibrant downtown around his team. It's not only for development partnerships and entertainment attractions but also just making Jax a better city to attract more potential Jags fans to move here or visit. Regardless this is a long haul project so really no use stressing every bit of news between now and grand opening.

[Keith-N-Jax]

People kill me with the score board references, and I don't see how just jags fans are the only who would benefit from the shipyards ( a large barren land on the water that's been empty for decades) being developed.

[For_F-L-O-R-I-D-A]

UNFurbanist is right.

Khan and his people are business minded and cut throat. We see that with the foreclosure proceedings with Barnett and Edgewood Bakery. This is not charity. However, they will negotiate and of course this was the start of those negotiations which means they will meet somewhere closer to a middle range that is acceptable to both sides.

[Gunnar]

Wow, what a hosing. Hopefully we can now work on a deal that's doable without being so lopsided.

Sounds so to me, as well - all the expenses are borne by the COJ, all income / opportunities by the developers. The best / worst part is that Iguana wants the increase in property taxes generated by the project  to be spent on the property.

I agree that it would be great if the area were developed, however not by giving it all away for free.

[Adam White]

People kill me with the score board references

Why is that? Khan got a great deal on what many see as a waste of taxpayer money.

[vicupstate]

Yet another pie-in-the-sky impossible deal that the city does not need to waste any time on. The city doesn't have the money and even if it did, it should not submit to such ridiculous demands. Take the time, energy and money and put it in the Barnett/Trio project, before mother nature removes the opportunity.  Then work on the Ambassador or some other synergy creating project. 

The future of DT JAX lies with the Sweet Pete's and Ron Chamblin's of the world, not with these grandiose Fool's Gold schemes. 

[thelakelander]

■ Iguana is seeking the ability to terminate its contract if the environmental cleanup — which the city would be responsible for paying — exceeds $35 million.

■ Iguana has proposed the city oversee and pay for mooring space for the USS Adams

■ Iguana has proposed that the city would retain ownership of the riverwalk and its associated bulkheads and public spaces, though the building pads would belong either to Iguana or other companies that purchase them.

■ Iguana would oversee the design and construction of improvements on Bay Street; the riverwalk, which would extend the current Northbank all the way to Metropolitan Park; public spaces and restoration/construction of the bulkheads. But the city would pay the cost of those projects.

Any idea of how much cash we could be potentially looking at? $100 million or more? If the city is truly committed to seeing development on the shipyards site, it can pretty much do this stuff without Iguana's involvement. With that in mind, how much has Iguana suggested it would spend on purchasing the building pads?   

[pierre]

Well hopefully like most deals this is Khan's attempt at coming in asking for everything but secretly willing to accept a deal somewhere in the middle. I just think that with Brown he was able to get everything he wanted with few questions asked. $33 million for huge scoreboards? Sure. Why not? With Curry he knows he'll really have to bargain and come down a bit on these demands...

What in the world gives you the idea Curry will somehow be less favorable?  Giving public money to businesses, especially rich ones that don't need it, is a central tenent of the "pro-business" republican platform.  If anything, Curry is at least as likely as Brown to approve this stuff.  It'll create jerbs!

Not to mention Curry has spent the past week tweeting pictures of him and his son with Jaguars players and coaches. I think Curry will be in Khan's back pocket as much as Brown was.

[Tacachale]

Well hopefully like most deals this is Khan's attempt at coming in asking for everything but secretly willing to accept a deal somewhere in the middle. I just think that with Brown he was able to get everything he wanted with few questions asked. $33 million for huge scoreboards? Sure. Why not? With Curry he knows he'll really have to bargain and come down a bit on these demands...

What in the world gives you the idea Curry will somehow be less favorable?  Giving public money to businesses, especially rich ones that don't need it, is a central tenent of the "pro-business" republican platform.  If anything, Curry is at least as likely as Brown to approve this stuff.  It'll create jerbs!

Not to mention Curry has spent the past week tweeting pictures of him and his son with Jaguars players and coaches. I think Curry will be in Khan's back pocket as much as Brown was.

That hardly means he's likely to hand over the key to the city's coffers. This is such a bum deal that anyone who didn't get $200k in campaign money from Khan can see it at a glance.

[Gunnar]

■ Iguana is seeking the ability to terminate its contract if the environmental cleanup — which the city would be responsible for paying — exceeds $35 million.

■ Iguana has proposed the city oversee and pay for mooring space for the USS Adams

■ Iguana has proposed that the city would retain ownership of the riverwalk and its associated bulkheads and public spaces, though the building pads would belong either to Iguana or other companies that purchase them.

■ Iguana would oversee the design and construction of improvements on Bay Street; the riverwalk, which would extend the current Northbank all the way to Metropolitan Park; public spaces and restoration/construction of the bulkheads. But the city would pay the cost of those projects.

Any idea of how much cash we could be potentially looking at? $100 million or more? If the city is truly committed to seeing development on the shipyards site, it can pretty much do this stuff without Iguana's involvement. With that in mind, how much has Iguana suggested it would spend on purchasing the building pads?

+1
Sounds like a more sensible idea - clean up the lots, develop the infrastructure (i.e. make them more attractive and then sell them to interested developers - does not even have to be the same one for the entire area (i.e. not one huge project).

It amazes me that  finding investors for riverfront property in a large (warm) city is that difficult.

[Tacachale]

^It's harder when you write the RFP with only one developer in mind.

[hiddentrack]

The parallel I see is something like a home renovation. I suppose I could renovate a house myself, but I'd rather pay a contractor to worry about all the horrible details that would drive me insane. If the city feels the same way about this site that I do about renovating a house, and they want to pay someone like Iguana to handle that stuff, it's a reasonable thing to do.

It shouldn't come with a blank check, of course, and everyone should be clear about what will be paid for and what won't. I think that's all that's happening right now. Just because they're not in agreement right now doesn't mean a) the city is about to be screwed over or b) the project is doomed.

If these negotiations don't work out and the city wants to do some of the the initial work (environmental cleanup and site prep) before selling off parcels of land to multiple developers, that'd be fine with me. Even in that scenario, I'm sure Iguana will get in line to buy some of the land closest to EverBank Field.