http://www.bizjournals.com/jacksonville/stories/2008/05/05/daily7.html?jst=b_ln_hl
QuoteFinancial services giant Deutsche Bank is considering an operations hub in Jacksonville that could create 1,000 full-time jobs in the area.
The Frankfurt, Germany-based company filed for several incentives including the state's Qualified Target Industry Tax Credit through the Jacksonville Economic Development Commission.
Jacksonville is among the cities in the Southeast that the bank is evaluating for a U.S "nearshore" operations hub for operations and technology jobs that will support its corporate, investment banking, and asset and wealth management businesses, according to the project summary filed with the JEDC.
Deutsche expects to have 1,000 new, full-time jobs within three years beginning in 2009. The average wage of the positions would be about $49,200 plus benefits. The average annual payroll would be an estimated $49.2 million.
The bank plans to hire individuals with knowledge of investment banking and technology to work within two of its subsidiaries; DB Services New Jersey Inc. and DB Security Services New Jersey Inc.
Deutsche is also considering a $12.1 million investment in technology infrastructure and tenant improvements.
The grants the bank is seeking total about $4.8 million and would offset the cost of locating the hub in Jacksonville if the company selects this city.
The Qualified Target Industry Tax Credit totals $3 million, of which, $600,000 would come from the city of Jacksonville.
The incentive will first be voted upon at the JEDC meeting Thursday and if approved, it will then move to City Council for approval.
Deutsche Bank has a location in Nashville that it stated in the summary could be expanded for the project. The bank also stated based on its research that the other sites under consideration have projected to be at lower overall expense but the incentives would offset that if approved.
This would be a great asset, if we can get it.
Hopefully, we can land Deutsche. Our economy could definately use a boost.
1000 jobs averaging 50k every city could use that. Go JEDC and let us know if you need any help.
Jax to be more and more international. I like it! Business atracts more business ;D
I'm trying to find a list of other cities that are being considered, but I can't find any more info on this.
Man, this could be huge. I really hope the city works with them on finding a suitable property downtown. A great incentive would be a killer price on a vacant lot in the CBD for a nice new tower. I'd hate to see something like this lost to Southpoint, although it'll still be good to have them.
This would definitely be great....
Having this downtown would be amazing, but I bet Peyton is eyeing a nice spot on Gate Parkway. ;)
As Stephen said, I don't think its going to be downtown. The Nashville location is a sprawling campus well outside of that city's downtown. Anyway, I did notice they already have listings for a Jacksonville office on Monster.com.
http://64.233.167.104/search?q=cache:SNqnz4GaYrQJ:jobsearch.monster.com/Florida/Jacksonville/get-jobs-12.aspx+Deutsche+Bank+jacksonville&hl=en&ct=clnk&cd=5&gl=us
Plenty of land for a project like this at the Cecil Commerce Center, too. Or in the Northwest quadrant. If we can't have it downtown, I think it makes sense to place it somewhere other than Southpoint. But for a host of reasons, I know that won't happen.
Ahhhh can we please ahve this downtown, would be good for the housing of appartment buildings too!
Please, please, please?? Can't the city give them some downtown land for free... this would spark the other developments as well. :-\
Man, the synicism is running rampant these days...
Don't give your hopes up yet guys, this can still happen. With this, the courthouse finally moving forward, and hopefully the other related follow-on development we may actually see another mini boom downtown. Sounds like COJ would be missing a huge opportunity by letting them slide out to Southpoint, and hopefully they understand.
Remember, the city doesn't own as much land in the burbs and could easily use a vacant lot downtown as a HUGE bargaining chip to seal the deal with these guys.
Cynical yes but also very happy. First the gays and now the bankers! This is going to be a cool city ;D
Quote from: Jimmy on May 05, 2008, 03:13:52 PM
Plenty of land for a project like this at the Cecil Commerce Center, too. Or in the Northwest quadrant. If we can't have it downtown, I think it makes sense to place it somewhere other than Southpoint. But for a host of reasons, I know that won't happen.
Cecil would not be a bad location. Its long overdue for a large scale high paying corporate company to anchor the old base and the Westside.
from the article
QuoteDeutsche is also considering a $12.1 million investment in technology infrastructure and tenant improvements.
This gives me the impression that the location could involve existing office space. Do we have any large scale office buildings sitting empty around town?
Their website tells me they already have two locations on southside:
8120 Nations Way
Suite 207-210
FL 32256 Jacksonville, FL
USA
and
8657 Baypine Road
Building 5, Suite 105
FL 32256 Jacksonville, FL
USA
This is basically a done deal. They are very keen on Jacksonville. They are still looking for a site as we speak. They will utilize about 150,000 SF of office space. Unfortunately, I seriously doubt it will be in downtown.
While I certainly hope this happens, let's not count chickens just yet. There are other cities being considered and it could be a manevuer to get Nashville to ante up on incentives.
How reliable is your source Chipwich?
Is this a Fortune 500 or 1000 company?
Edit: Just found out they are #48 on the Fortune 500 list.
Anyone know have a listing of our office vacancy rate downtown. The biggest obstacle I see is that while we might have some vacancies downtown, they are far from contiguous for a company this size.
Quote from: thelakelander on May 05, 2008, 03:04:48 PM
As Stephen said, I don't think its going to be downtown. The Nashville location is a sprawling campus well outside of that city's downtown. Anyway, I did notice they already have listings for a Jacksonville office on Monster.com.
http://64.233.167.104/search?q=cache:SNqnz4GaYrQJ:jobsearch.monster.com/Florida/Jacksonville/get-jobs-12.aspx+Deutsche+Bank+jacksonville&hl=en&ct=clnk&cd=5&gl=us
I wonder if they're just trying to look at the local talent pool before they make their final decision.
My information is very reliable. I prefer not to disclose how I know this information.
They are still looking around for space this week, so I cannot say with 100% certainty the deal is done. They obviously still need to find somewhere to go.
We do not have 150,000 SF of contiguous class A office space downtown. Also, if this is a processing/ operations center (which I believe it is), then there is no need to spend $25/SF for downtown office (plus $100/month for each parking space) when they can get a build-to-suit for much cheaper in the suburbs.
Here is a good link to Jacksonville market reports (look under the office reports section).
http://www.colliers.com/Markets/Jacksonville/MarketReports/
Great news, chipwick. If they cant come downtown, I would still love to see the jobs and $$ come to Jacksonville. This is significantly higher than the average salary too. Hopefully this is all accurate. :)
Quote from: stephendare on May 05, 2008, 05:57:05 PM
I just got off the phone with JEDC, they confirm that the Deutsche Bank deal will NOT be happening downtown.
They needed 400 thousand square feet for the campus and were very set on a suburban design. Also they felt that downtown would not provide them with parking in the manner that they prefer it (suburban style)
If the deal happens it will happen on the Southside.
Apparently this mentality is at odds with their European model and approach, which is almost an entirely urban development strategy (in keeping with European land use laws) But here in America, they prefer the less dense model.
I wish they would take their incentives in the form of a city-funded parking garage and build on Riverside Ave. in Brooklyn. It would make a great addition to the 'power corporate corridor' that that part of Riverside Ave. is intended to be.
It shouldn't be a suprise that they won't be coming downtown. Nationwide, you'll be hard pressed to find offices this large headed to most US downtowns. Without heavy incentives, its just not feasible compared to the burbs.
If we would build the Court House vertical, the city would have 2 or 3 blocks they could give to them.
If the courthouse covered 10 blocks there would still be plenty of land left over.
Lake, am I wrong to assume that a midrise office building with a built-in garage downtown can be built cheaper than a low rise building in the burbs with acres of surface parking (land cost aside)?
I think part of the suburban decision is that it is more efficient for such operations to have very large areas on each floor as opposed to smaller spaces on multiple floors. I remember reading this somewhere and I bet it is still true. Also, most of their future employees will probably live out in that area.
With no transit system employing 1000 people downtown is much harder than the southside if everyone drives to work.
I know the Germans being that I lived in Germany for two years, and have German friends. They love to be in the heart and epicenter of a town. They will pick a spot downtown, I guarantee you. The only way they will pick a spot elsewhere is if those dummies in City Government talk them into it. This will be good for Jax and if it happens will be a good exposure marketing initiative for the City to bring other business, whether domestic or international in.
Heights Unknown
just got this off of the times union
QuoteJacksonville on list for Deutsche Bank hub
Posted: Thursday, May 8th, 2008 at 12:00 pm
By DAVID BAUERLEIN
The Times-Union
Deutsche Bank, a global financial powerhouse, has put Jacksonville on its shortlist of cities for a hub that would employ 1,000 people on the Southside, according to the Jacksonville Economic Development Commission.
The JEDC on Thursday approved a package of financial investments that would be matched by state government to attract Deutsche Bank.
The proposal, which goes next to City Council, would earmark up to $884,071 in city dollars. The city would call on the state to put forward at least $3.9 million.
Deutsche Bank is considering other sites in the Southeast, said Lindsey Ballas, business development chief for JEDC. She said Jacksonville’s reputation as a financial center attracted Deutsche Bank’s attention because the city already has an experienced workforce in the financial sector.
She said Jacksonville officials don’t know what other cities are on Deutsche Bank’s shortlist. But the company currently has a location in Nashville that could be expanded, according to a JEDC summary. North Carolina and Alabama have competed with Jacksonville for such development deals in the past.
Deutsche Bank is eyeing office space on the Southside at 5022 Gate Parkway where Mortgage IT, a subsidiary of Deutsche Bank, is located.
http://news.jacksonville.com/justin/2008/05/08/jacksonville-on-list-for-deutsche-bank-hub/
What a shock.
Oh well. At least another 1,000 jobs could be comming to town.
There was zero chance that they would ever realistically consider downtown Jacksonville, so the location is definately not suprising.
The location is on Gate, just south of the JTB interchange. I hope someone has some serious road infrastructure improvements planned for that area.
Quote from: thelakelander on May 08, 2008, 01:24:37 PM
There was zero chance that they would ever realistically consider downtown Jacksonville, so the location is definately not suprising.
The location is on Gate, just south of the JTB interchange. I hope someone has some serious road infrastructure improvements planned for that area.
I hope we get some nonroad transit improvements.
QuoteThe Jacksonville Economic Development Commission has approved the city portion of three incentives for Deutsche Bank that would total nearly $4.8 million statewide.
Commissioners unanimously approved $884,071 from the city in the hope that one of the world's largest financial services companies will select Jacksonville as the site for its new Southeast "nearshore" operations hub bringing in 1,000 new full-time jobs to the area by the end of 2011.
On Monday, The Business Journal reported the bank was considering Jacksonville among sites where it would place operations for two of its subsidiaries, DB Services New Jersey Inc. and DB Security Services New Jersey Inc. The positions, in investment banking and technology, will have an average wage of about $49,200 plus benefits.
About 950 positions will be local hires and the 50 others will be reallocations from the bank's New Jersey and New York operations, said Mike Anson, a Deutsche Bank managing director who spoke before the JEDC Thursday.
The bank will invest about $49.2 million in annual payroll and $12.1 million in tenant leasehold improvements and infrastructure. A mortgage subsidiary of the bank, Mortgage IT, is partially occupying 51,000 square feet of office space on the Southside. The company has proposed leasing and renovating 100,000 square feet to 125,000 square feet of space.
Anson told the JEDC that Deutsche Bank could not ensure it would build operations in Jacksonville just based on receiving all the incentives, but if it did receive them, "the likelihood of coming to Jacksonville is very high."
The city incentives must also be approved by the City Council.
If the company selects Jacksonville, Anson said, it will begin moving in "shortly after" the council approves the incentives.
Sounds to me like these guys were interested in Jacksonville all along and were just fishing around for a the best deal. Can't blame them because their impact on Jax, in the midst of the shaky economy and layoffs around town, will be VERY beneficial.
Hiring 950 local residents would be icing on the cake, if they come.
Deutsche Bank is a smart company; they know that Jax is going to be a very big port and they will become the first big international bank with a large presence in Jax. I wouldn't be suprised if more int. banks will follow. More business will attract more business and I believe that Jax Port is the big engine!