Convention center funds may be diverted to football stadium, sports complex

[thelakelander]

By Matt Galnor

As speculation over a possible Jacksonville Jaguars exit builds, the city has identified about $5 million a year that can be used to pay for needed maintenance at the Sports Complex â€" primarily Jacksonville Municipal Stadium.


City Council President Richard Clark said Tuesday evening he’s planning on introducing a bill that will redirect bed tax money now going to the Prime Osborn Convention Center to the city’s three major sports and entertainment venues.


With the convention center debt scheduled to be paid off in October, Clark will propose that the money going to the Prime Osborn instead go to the Baseball Grounds of Jacksonville, Veterans Memorial Arena and the stadium, home of the Jacksonville Jaguars.


“The Jaguars are an enormous economic driver in this city, and we owe it to them as much as we owe it to the taxpayers who own the stadium,” Clark said.


Every Jacksonville hotel bill generates six cents on the dollar for three funds: two cents go to the Sports Complex; two cents go to the Tourist Development Council; and the rest goes to the convention center.


The proposal comes at a time when the Jaguars are making national news for facing the prospect of having every home game blacked out due to poor attendance. The team’s viability in one of the NFL’s smallest markets is also being questioned.


“This shows their commitment to having this team here for the long term,” said Bill Prescott, chief financial officer and vice president of stadium operations for the Jaguars.


In 2007, the Jaguars identified $148 million in work that would be needed over the next 30 years â€" including replacing all of the stadium’s seats and upgrading sound equipment from analog to digital.


In the short term, smaller work is being done at the stadium. Last week, crews were replacing part of an air-conditioning system that had been leaking in the room where Jaguars coach Jack Del Rio addresses the media.


Other workers were waterproofing concrete stairs leading to seats on the west side of the 15-year-old stadium.


Mayor John Peyton said Tuesday night that Clark’s proposal would allow the city to keep its commitment to “maintain a world-class facility.”


Clark said he has scheduled a public meeting for Thursday morning to discuss the issue with Council Vice President Jack Webb.


The proposal would be introduced to the full council next month.


The ballpark and arena, both opened in 2003, are much newer and smaller facilities, so the football stadium will likely need most of the maintenance attention in the short-term, city leaders said.


The city collected about $6.7 million in the 2007-08 budget year from events at the stadium. That includes money from rent, ticket surcharges and a cut of parking proceeds.


The two-cent bed tax already going to the stadium, combined with revenue from stadium events, totaled about $12 million that year, with the city getting another $2 million in sales tax from the state.


Even with those revenues, the city subsidized $11.2 million at the stadium.
The culprit? Debt service.


The city paid about $11.6 million in 2007-08 on past debt, including improvements made for the Super Bowl, hosted by Jacksonville in 2005.

That leaves little room for routine maintenance needed to keep a 1.5 million square-foot facility in working order, officials said.

Peyton has been more vocal recently about finding a way to take care of the ongoing needs at the stadium, and the budget approved by the City Council on Tuesday includes $1.5 million for maintenance.

http://jacksonville.com/news/metro/2009-09-29/story/convention_center_funds_may_be_diverted_to_football_stadium_sports_compl

[ac]

I don't see anything wrong with that.  The bed tax wasn't going to be repealed anyway, and now it can be moved from a satisfied debt to an ongoing expense.

[ralpho37]

"Peyton has been more vocal recently about finding a way to take care of the ongoing needs at the stadium, and the budget approved by the City Council on Tuesday includes $1.5 million for maintenance."

Gee, I have an idea... get someone to buy naming rights for the stadium!

Having blown off that steam, even though I'm a huge proponent for a new convention center, this is a very good use of those funds.  The Jaguars are the #1 asset this city has and we need to do everything we can to solidify their future here.  Well done reallocating those funds!

[Ocklawaha]

If this is really coming out of our DO NOTHING government, I will now officially agree, we are in REAL DANGER of losing our team. Cut a new keeper deal with Wayne, and run the damn SKYWAY right into the second floor of the stadium. THATS something he isn't going to get in Los Angeles!

OCKLAWAHA

[vicupstate]

Disturbing to say the least. The cost of keeping the stadium in "NFL" condition just went up dramatically.  Don't expect this to be the end of that for now either.  That 2 cents could have gone a long way to fund a new convention center.   

Given the major upgrade the stadium received just 4 years ago, what is the additional $148 needed for? 

If a stayrafoam container lasts 1 million years in a landfill, why do those plastic seats need to be replaced after 20-30?

[blizz01]

Plastic seats exposed 30 years in the Florida sun?  I'm surprised that they lasted 15, really.  There is a silver lining, however.  The seats that have been tarped over should have a bit more longevity.    I agree on the skyway, too, but so many of us have said that forever, now...........

[ac]

vic-

The $148 milion number is misleading.  That is the total estimated cost across the remaining lifespan of the facility, IIRC from the previous article about the renovations.

[JeffreyS]

It seems like an appropriate funding source.

[thelakelander]

That 2 cents could have gone a long way to fund a new convention center.

I agree.  Without looking at the books I don't know if its best long term, unless they already have an idea of what they're going to do on the convention center end in the future.  However, I can see the benefit in splitting the money to help progress both issues.  

[ac]

It's not like they can't move the money around again.

Or--here's an idea--we can pay taxes comparable to the cities we wish to emulate.  If we want modern city amenities, we should be willing to pay modern city prices.  That isn't to say the city shouldn't be better stewards of our money, but we citizens need to step up, too.

[Tripoli1711]

AC... Amazingly I agree with you.  I say amazingly because I am about as fiscally conservative as they come.  However, if I make the choice to pay more in taxes for specific projects I want, then I do not believe that compromises my principles.

That being said... your viewpoint has NO CHANCE.

I frequently read the T-U comments after stories because I want to see who the most recent lobotomy recipients in Northeast Florida are.  The comments after the article today on the property tax increase are representative of the city as a whole.  The taxes for homeowners are going up $75 a year for the average citizen.  That is $0.20 a day.  Big deal. 

You would think from the comments that we are just one step away from Stalin riding down the street in a T-40.

The problem is, "we should be willing to pay" must mean the majority of citizens.  The majority of citizens could give a flip about modern city amenities.  As long as they have a People magazine on the endtable, "Rock of Love 2" on the TV and some Cheetos in the cabinet, they are stoked and have no interest paying even another $0.20 a day to keep the city from being in dire shape.

[ac]

We're a city that believes it can operate as a small town, and that kind of thinking has to die out or be overcome for us to grow- or even subsist at this point.

The thing I find most ironic is that many of those people who rail at the property tax increase and stormwater/JEA fuel and franchise fees/etc. are many times the same who complain, "there's nothing to do here" and ask, "Why don't we have X business/service/amenity here?" or, "Why doesn't the city pay for X?"

[mtraininjax]

So our property taxes are officially going to help pay for the Jaguars improvements......and people call our town backward. Who gets credit for the idea? Clark or Peyton?

This marks the sad decline to the Prime Osborn. In 10 years, I'd be suprised if it doesn't have MAJOR issues with itself due to the shifting of revenue. This won't be the last shift in revenue from the City to the Jags, I promise you that! Pretty soon the Jags will be a line-item on the City Budget.

[Tripoli1711]

Right.  But it is not ironic so much as it is emblematic.  Everyone wants something for nothing.

I am all for using whatever means we need to in order to keep the stadium up to par.  I am troubled, however, by anything that suggests the government is content to leave the convention center situation as-is.  I believe moving the convention center from the old terminal to the old courthouse site is THE big move downtown needs.  Streetcar down Bay, past the Landing and through the infant nightlife district complete with new convention center and anchor hotel, all begins with action on the convention center.  

[Tripoli1711]

Local tax revenue has always been used to maintain and upgrade the Stadium as far as I know.  I do not think this is a new development, nor is it much if any increase or expansion of the previous norm.