QuoteJacksonville Jaguars owner Shad Khan's development company said April 28 it reached an agreement with the Greater Jacksonville Agricultural Fair Association to buy the fairgrounds property near TIAA Bank Field.
A spokesperson for Iguana Investments Florida LLC said in an email that the company has "entered into an agreement with the Jacksonville Fairgrounds to purchase the fairgrounds and are supporting the fair in its move to a new location that is more aligned with its agricultural roots."
The fair is preparing to relocate to West Jacksonville. After the move, the Jaguars initially will use the Downtown site for parking.
Full article: https://www.jaxdailyrecord.com/article/jacksonville-jaguars-affiliate-agrees-to-buy-downtown-fairgrounds
QuoteCity Council earmarked $15 million to help relocate the fairgrounds out of Downtown when it approved Mayor Lenny Curry's five-year Capital Improvement Plan in September 2021.
Seems like the Fair Association should be paying this or at least some of it.
It's not totally clear but looks like city is doing site prep and utilities only. The Fair Association is doing the buildings and music stage and other above ground work with the sale proceeds.
You must have missed this in the article. (as jaxjags points out)
Quote
Fair President and CEO Bill Olson said ... the fair will use proceeds from the property sale to finance the construction costs and expenses of the relocation.
Quote from: jaxjags on April 29, 2022, 11:14:31 AM
It's not totally clear but looks like city is doing site prep and utilities only. The Fair Association is doing the buildings and music stage and other above ground work with the sale proceeds.
I understood that, but $15 million is a good chunk of money, and I don't know why the city should be total on the hook for that part either. The city didn't own the land that is being sold.
The City's share of the tab is actually $27 million, not $15 million (there's another $12 million earmarked in next year's budget).
For $27 million, that better be some outstanding 'site prep'. The land cost at the new site is probably not even included in that.
Quote from: vicupstate on April 29, 2022, 01:42:04 PM
For $27 million, that better be some outstanding 'site prep'. The land cost at the new site is probably not even included in that.
The City is going to maintain ownership of the new site on the West side and lease it back to Fair group.
Wouldn't be surprised if a chunk of that $27 million goes towards prepping the old fairgrounds for surface parking for the Jags.
Equestrian center? I really don't think there is enough room for a fair there...
The city has been trying to get them to relocate since at least the Peyton administration. $15 million is probably the cherry on top to entice them to go. Otherwise, there's no real reason to move.
Quote from: thelakelander on April 29, 2022, 02:09:29 PM
Otherwise, there's no real reason to move.
I'd imagine there might even be a disincentive for them to move with all the parking revenues they collect at the existing site.
Quote from: BridgeTroll on April 29, 2022, 02:07:47 PM
Equestrian center? I really don't think there is enough room for a fair there...
From this comment in the article about Finger Lake Street, I assume the Fair is going to lease currently unused property just east (or maybe north) of the Equestrian Center. On the map below Finger Lake is the road coming into the Equestrian Center from the northeast.
Quote
Fair President and CEO Bill Olson said April 28 the association is negotiating with the city to lease 80 acres to build a new fairgrounds with access to another 60 acres for future expansion.
...
The new fairgrounds will use Finger Lake Street as an access road off of POW-MIA Memorial Parkway and built several entrances and exits on Normandy Boulevard, Olson said. The site is close to Cecil Commerce Center.
Of course, they will have to negotiate the "several entrances and exits on Normandy Boulevard."
(https://www.jaxdailyrecord.com/sites/default/files/387138_standard.png)
Devil's always in the details, but on the face of it, IMO this is good news for the site and in the long run will be good for the fair. The current Fairgrounds are 14 acres, which is half the size of the Clay County Fairgrounds (28 acres). The Equestrian Center property is 80 acres and underused. Long term, the current space makes much better sense as something that can be active more regularly. I'll miss the fair being Downtown but if the city strikes a good deal for all parties, this could be well worth it.
I think the 80 acres is misleading. If that 80 is the cleared area in the satellite pix... there are camping spots horse trails, baseball fields. I would oppose tearing all that out for 1 event a year. I would also oppose clearing the forest for a once a year event. 80 acres is a lot. But what does it mean?
Good points, BT.
Doing a rough outline with the Google Earth measurement tool, the size of the "cleared area" of the Equestrian Center and adjacent ball fields is very close to 80 acres. I assumed they were talking about a 'new' 80 acres on the east side of the cleared area, wrapping around the ball fields and crossing Finger Lake Street, with frontage along Normandy. Unless they are going into virgin land, I don't see how they can spend that much money for site prep/infrastructure - it should already be there in the existing developed area.
Thats quite the footprint the Jags have got now from the Shipyards all the way up to the Fairgrounds.
Quote from: Charles Hunter on April 29, 2022, 07:11:45 PM
Good points, BT.
Doing a rough outline with the Google Earth measurement tool, the size of the "cleared area" of the Equestrian Center and adjacent ball fields is very close to 80 acres. I assumed they were talking about a 'new' 80 acres on the east side of the cleared area, wrapping around the ball fields and crossing Finger Lake Street, with frontage along Normandy. Unless they are going into virgin land, I don't see how they can spend that much money for site prep/infrastructure - it should already be there in the existing developed area.
Based on the rendering below, it looks like they are clearing a new 80 acres and moving the ballfields eastward with the addition of quite a few more. This rendering appears to cover the master plan of 140 acres, maybe more with the ballfield addition.
FYI, it looks like there is also an existing aquatics center in the white building to the right of the beginning of the current entrance that remains in place.
(https://www.jaxdailyrecord.com/sites/default/files/387253_standard.jpeg)
Hmmm... I used to ride the trails back there. It is old Cecil field property. I hope the trails to the north are left untouched or improved... those bike and walking trails go all the way to I-10. Tons of wildlife...
Quote from: landfall on April 29, 2022, 08:18:38 PM
Thats quite the footprint the Jags have got now from the Shipyards all the way up to the Fairgrounds.
It's almost like they see a ton of opportunity in the city and don't actually have a secret scheme to move the team to London.
Quote from: Ken_FSU on April 30, 2022, 02:04:06 PM
Quote from: landfall on April 29, 2022, 08:18:38 PM
Thats quite the footprint the Jags have got now from the Shipyards all the way up to the Fairgrounds.
It's almost like they see a ton of opportunity in the city and don't actually have a secret scheme to move the team to London.
Lol... ;D ;D
Quote from: Ken_FSU on April 30, 2022, 02:04:06 PM
Quote from: landfall on April 29, 2022, 08:18:38 PM
Thats quite the footprint the Jags have got now from the Shipyards all the way up to the Fairgrounds.
It's almost like they see a ton of opportunity in the city and don't actually have a secret scheme to move the team to London.
Something tells me Lot J 2.0 will just be "phase 1". Lots M, N and P potentially on their radar too if the fairground land gives them replacement parking options.
Quote from: Ken_FSU on April 30, 2022, 02:04:06 PM
Quote from: landfall on April 29, 2022, 08:18:38 PM
Thats quite the footprint the Jags have got now from the Shipyards all the way up to the Fairgrounds.
It's almost like they see a ton of opportunity in the city and don't actually have a secret scheme to move the team to London.
Question is how much of that "opportunity" will be funded on the backs of taxpayers, and not just local ones. Much of this could be "tax motivated" as this area is a Federal opportunity zone that may allow him to shelter unlimited profits Federal income tax-free forever.
Quote from: jaxlongtimer on April 30, 2022, 09:45:11 PM
Quote from: Ken_FSU on April 30, 2022, 02:04:06 PM
Quote from: landfall on April 29, 2022, 08:18:38 PM
Thats quite the footprint the Jags have got now from the Shipyards all the way up to the Fairgrounds.
It's almost like they see a ton of opportunity in the city and don't actually have a secret scheme to move the team to London.
Question is how much of that "opportunity" will be funded on the backs of taxpayers, and not just local ones. Much of this could be "tax motivated" as this area is a Federal opportunity zone that may allow him to shelter unlimited profits Federal income tax-free forever.
You don't seem to understand how Opportunity Zones work. The program is not designed for a developer to invest new capital into a project, and never pay taxes on income generated from that development. Its a way to encourage dormant capital to find new investment opportunities in places that have been traditionally starved of development. You have to first have a realized gain from a liquidity event, in order to then move money into a qualified opportunity zone investment fund, that then invests in a qualified opportunity zone property. Four Seasons, Metro Park, Lot J, etc aren't utilizing opportunity zone capital.
Quote from: fieldafm on May 01, 2022, 11:05:45 AM
Quote from: jaxlongtimer on April 30, 2022, 09:45:11 PM
Quote from: Ken_FSU on April 30, 2022, 02:04:06 PM
Quote from: landfall on April 29, 2022, 08:18:38 PM
Thats quite the footprint the Jags have got now from the Shipyards all the way up to the Fairgrounds.
It's almost like they see a ton of opportunity in the city and don't actually have a secret scheme to move the team to London.
Question is how much of that "opportunity" will be funded on the backs of taxpayers, and not just local ones. Much of this could be "tax motivated" as this area is a Federal opportunity zone that may allow him to shelter unlimited profits Federal income tax-free forever.
You don't seem to understand how Opportunity Zones work. The program is not designed for a developer to invest new capital into a project, and never pay taxes on income generated from that development. Its a way to encourage dormant capital to find new investment opportunities in places that have been traditionally starved of development. You have to first have a realized gain from a liquidity event, in order to then move money into a qualified opportunity zone investment fund, that then invests in a qualified opportunity zone property. Four Seasons, Metro Park, Lot J, etc aren't utilizing opportunity zone capital.
Seems the IRS explains things differently. And, to be clearer, I was referring to profits on the sale of the investment, not its yearly profits from operations. From the IRS website:
Quote QOZs are designed to spur economic development by providing tax incentives for investors who invest new capital in businesses operating in one or more QOZs.
First, an investor can defer tax on any prior eligible gain to the extent that a corresponding amount is timely invested in a Qualified Opportunity Fund (QOF). The deferral lasts until the earlier of the date on which the investment in the QOF is sold or exchanged, or December 31, 2026. If the QOF investment is held for at least 5 years, there is a 10% exclusion of the deferred gain. If held for at least 7 years, the 10% exclusion becomes 15%.
Second, if the investor holds the investment in the QOF for at least 10 years, the investor is eligible for an adjustment in the basis of the QOF investment to its fair market value on the date that the QOF investment is sold or exchanged. As a result of this basis adjustment, the appreciation in the QOF investment is never taxed. A similar rule applies to exclude the QOF investor's share of gain and loss from sales of QOF assets.
https://www.irs.gov/credits-deductions/opportunity-zones-frequently-asked-questions#general
And, based on the IRS-linked QOZ map (https://cimsprodprep.cdfifund.gov/CIMS4/apps/pn-nmtc/index.aspx#?center=-81.625446,30.310748&level=14&tool=layers&visible=OPPORTUNITYZONE), it appears that all of Khan's plans (Lot J, Four Seasons, Metro Park, Fair Grounds, stadium improvements) are in the Opportunity Zone. How can you be so sure Khan isn't leveraging the Opportunity Zone program? Do you have insight into how he sources his capital for investment?
(https://www.lisc.org/media/filer_public_thumbnails/filer_public/a5/fd/a5fdaddb-973c-477d-a96e-0f09c00e5389/opportunityzone.jpeg__680x380_q85_crop_subsampling-2_upscale.jpg)
^Khan/Lamping have flat-out said numerous times that the opportunity zone program isn't applicable to what they're looking to do around the stadium and that they wouldn't be going that route.
https://www.jacksonville.com/story/news/politics/county/2020/01/14/jaguars-president-says-talks-with-city-close-to-deal-for-700-million-lot-j-development/112152302/
Quote from: jaxlongtimer on May 01, 2022, 10:07:06 PM
Quote from: fieldafm on May 01, 2022, 11:05:45 AM
Quote from: jaxlongtimer on April 30, 2022, 09:45:11 PM
Quote from: Ken_FSU on April 30, 2022, 02:04:06 PM
Quote from: landfall on April 29, 2022, 08:18:38 PM
Thats quite the footprint the Jags have got now from the Shipyards all the way up to the Fairgrounds.
It's almost like they see a ton of opportunity in the city and don't actually have a secret scheme to move the team to London.
Question is how much of that "opportunity" will be funded on the backs of taxpayers, and not just local ones. Much of this could be "tax motivated" as this area is a Federal opportunity zone that may allow him to shelter unlimited profits Federal income tax-free forever.
You don't seem to understand how Opportunity Zones work. The program is not designed for a developer to invest new capital into a project, and never pay taxes on income generated from that development. Its a way to encourage dormant capital to find new investment opportunities in places that have been traditionally starved of development. You have to first have a realized gain from a liquidity event, in order to then move money into a qualified opportunity zone investment fund, that then invests in a qualified opportunity zone property. Four Seasons, Metro Park, Lot J, etc aren't utilizing opportunity zone capital.
Seems the IRS explains things differently. And, to be clearer, I was referring to profits on the sale of the investment, not its yearly profits from operations. From the IRS website:
Quote QOZs are designed to spur economic development by providing tax incentives for investors who invest new capital in businesses operating in one or more QOZs.
First, an investor can defer tax on any prior eligible gain to the extent that a corresponding amount is timely invested in a Qualified Opportunity Fund (QOF). The deferral lasts until the earlier of the date on which the investment in the QOF is sold or exchanged, or December 31, 2026. If the QOF investment is held for at least 5 years, there is a 10% exclusion of the deferred gain. If held for at least 7 years, the 10% exclusion becomes 15%.
Second, if the investor holds the investment in the QOF for at least 10 years, the investor is eligible for an adjustment in the basis of the QOF investment to its fair market value on the date that the QOF investment is sold or exchanged. As a result of this basis adjustment, the appreciation in the QOF investment is never taxed. A similar rule applies to exclude the QOF investor's share of gain and loss from sales of QOF assets.
https://www.irs.gov/credits-deductions/opportunity-zones-frequently-asked-questions#general
And, based on the IRS-linked QOZ map (https://cimsprodprep.cdfifund.gov/CIMS4/apps/pn-nmtc/index.aspx#?center=-81.625446,30.310748&level=14&tool=layers&visible=OPPORTUNITYZONE), it appears that all of Khan's plans (Lot J, Four Seasons, Metro Park, Fair Grounds, stadium improvements) are in the Opportunity Zone. How can you be so sure Khan isn't leveraging the Opportunity Zone program? Do you have insight into how he sources his capital for investment?
(https://www.lisc.org/media/filer_public_thumbnails/filer_public/a5/fd/a5fdaddb-973c-477d-a96e-0f09c00e5389/opportunityzone.jpeg__680x380_q85_crop_subsampling-2_upscale.jpg)
The IRS explains it pretty well. You are ignoring this:
QuoteFirst, an investor can defer tax on any prior eligible gain to the extent that a corresponding amount is timely invested in a Qualified Opportunity Fund (QOF).
To reiterate:
QuoteYou have to first have a realized gain from a liquidity event, in order to then move money into a qualified opportunity zone investment fund, that then invests in a qualified opportunity zone property.
I don't have insider information on Khan's personal finances.... but I'd be shocked if he is trying to avoid taking a capital gain hit from the sale of his comic book collection, and therefore setting up his own OZ fund in order to pay for his share of the Four Seasons construction.
I also don't see a universe where an outside OZ fund is a source of capital for a future Lot J development, as this would dilute Khan's own equity in the project. That would not benefit Khan nor a partner like Cordish, as neither needs to raise outside cash for such a project- they have the capacity (from both a capital and debt perspective) to do so themselves.
Quote from: Ken_FSU on May 01, 2022, 10:21:44 PM
^Khan/Lamping have flat-out said numerous times that the opportunity zone program isn't applicable to what they're looking to do around the stadium and that they wouldn't be going that route.
https://www.jacksonville.com/story/news/politics/county/2020/01/14/jaguars-president-says-talks-with-city-close-to-deal-for-700-million-lot-j-development/112152302/
Point noted but that was 2 years ago and only related to Lot J. As a billionaire, Khan likely owns lots of stocks and other investments. If he is the savvy investor he appears to be, he likely has substantial capital gains in his portfolio, a relatively small portion for him that he might be tempted to liquidate for investment funds for this project at this point in time. Surely, he would not pass up the OZ option if he could find a way to take advantage. Who wouldn't? Short of his team making a public disclosure, we may never know.
Looks like Lot J is not dead by any means. Also, I thought some of the Jaguar team names in the article looked familiar so I Googled them. It seems one might be "affiliated" with one of the posters on this thread. No problem by me, but it does give a bit more context to the responses herein.
QuoteJacksonville Jaguars hire Drew Frick as real estate and development VP
The Jacksonville Jaguars announced May 3 the hiring of Drew Frick, former president of Gate Petroleum Co.'s real estate subsidiary, to lead the team's Downtown development plans.
The Jaguars said Frick will fill the new role as senior vice president of real estate development.
The team said Frick started the job in April and will coordinate projects including the Sports Performance Center, now under construction; Shipyards development; and future projects.
"He'll oversee a team leading multiple projects through every phase of development from design to completion, including land acquisition, master planning, permitting, construction and leasing," the Jaguars said in a news release.
"Adding Drew to our development team continues the momentum we've experienced this last year toward our goal of a revitalized downtown Jacksonville," Jaguars President Mark Lamping said in the release.
"He brings a wealth of experience, specifically in Jacksonville, that will allow him to hit the ground running alongside our partners at the City of Jacksonville and throughout the Northeast Florida construction industry. I'm thrilled to have him on board the 1st DownTown Jacksonville team."
At Jacksonville-based Gate Petroleum, Frick served as Gate Petroleum's general counsel before replacing former Gate Lands President Ken Wilson in early 2019.
Frick was with Gate for 18 years after spending four years with Jacksonville-based law firm Rogers Towers.
"Through his work with both companies, he has been involved in many of North Florida's most distinctive office, residential, hospitality, and retail developments, several of which have been recognized with local and national awards for planning, architecture, landscape design, and marketing success," the news release says.
According to the Jaguars, Frick is on the Seamark Ranch board of directors and has been appointed by City Council to serve on the Joint Planning Committee, which is an advisory body to Council and the Duval County School Board in matters relating to the selection and utilization of all sites for schools, libraries, parks, and community centers.
Frick, a Clemson University graduate, holds a Juris Doctor degree from the University of Georgia School of Law.
Frick also is a member of The Florida Bar, admitted in 2000.
He will lead the NFL team's real estate and development department that includes:
• Will Tutwiler – director, real estate and development.
• Lori Windisch – project manager, real estate and development.
• Caron Streibich – senior communications manager, real estate and development.
• David Paulk – financial analyst, real estate and development.
The announcement comes after the Jaguars' development arm, Iguana Investments Florida LLC, said it signed an agreement with the Greater Jacksonville Agricultural Fair Association to buy the fairgrounds near TIAA Bank Field.
The Jaguars said Iguana initially will convert the 14.1-acre site into surface parking lot for events in the Downtown Sports Complex after the fair completes its move to West Jacksonville, tentatively scheduled for 2024.
The Jaguars have $441 million in real estate development projects in some stage of development near the city-owned stadium.
Work began this year on the Jaguars' $120 million Sports Performance Center — a 127,087-square-foot practice, training and executive team office facility.
Downtown Investment Authority CEO Lori Boyer said in April that the city is expected to close on its land deal with Iguana by the end of May so the company can break ground on Jaguars' owner Shad Khan's $321 million Four Seasons hotel-anchored project.
If completed, the 176-room hotel and 25 for-sale luxury condominium project next to a six-story office building and a city-owned marina would sit on the former 8-acre Kids Kampus park southwest of the stadium on the Northbank riverfront.
The Jaguars also are interested in building entertainment-anchored developments near TIAA Bank Field, despite previous setbacks.
Lamping said in October that the Jaguars executive leadership still sees market demand and "a big need" for a Downtown entertainment complex similar to what was proposed for Lot J at the stadium.
A proposed $450 million mixed-use development with Baltimore-based The Cordish Companies was abandoned after it failed to win $245 million in public incentives from City Council.
"It's just a question of when versus if and where that should happen," Lamping said.
Despite the Lot J setback, Lamping said the Jaguars leadership still considers Cordish a development partner in Jacksonville.
"But we're firm in our belief that Downtown Jacksonville needs a healthy mix of office, residential, hospitality and entertainment offerings in order to reach its full potential," Lamping said in a subsequent email.
"Whether that happens on Lot J with our partner Cordish, which we prefer, or someplace else, it's too soon to tell," he said.
https://www.jaxdailyrecord.com/article/jacksonville-jaguars-hire-drew-frick-as-real-estate-and-development-vp